diff --git a/SPEC.md b/SPEC.md
index 2afd1d2..c567823 100644
--- a/SPEC.md
+++ b/SPEC.md
@@ -445,7 +445,7 @@ retransmit_window = 256
 default_input_mode = "read-write"
 prewarm_sessions = ["default"]
 create_on_attach = true
-shell = "/bin/sh"
+shell = "/usr/bin/zsh"
 sessions_dir = "~/.local/share/dosh/sessions"
 secret_path = "~/.config/dosh/secret"
 ```
diff --git a/install.sh b/install.sh
index 355d21f..efba86c 100755
--- a/install.sh
+++ b/install.sh
@@ -152,6 +152,12 @@ fi
 if [ "$role" = "server" ] || [ "$role" = "both" ]; then
   server_config="$config_dir/server.toml"
   if [ "$force_config" -eq 1 ] || [ ! -f "$server_config" ]; then
+    login_shell="$(
+      if command -v getent >/dev/null 2>&1; then
+        getent passwd "$(id -un)" | awk -F: '{print $7}'
+      fi
+    )"
+    login_shell="${login_shell:-${SHELL:-/bin/sh}}"
     cat >"$server_config" <<EOF
 port = $port
 bind = "0.0.0.0"
@@ -164,7 +170,7 @@ retransmit_window = 256
 default_input_mode = "read-write"
 prewarm_sessions = ["default"]
 create_on_attach = true
-shell = "/bin/sh"
+shell = "$login_shell"
 sessions_dir = "~/.local/share/dosh/sessions"
 secret_path = "~/.config/dosh/secret"
 EOF
diff --git a/src/pty.rs b/src/pty.rs
index 975d1b3..ae48c5c 100644
--- a/src/pty.rs
+++ b/src/pty.rs
@@ -1,6 +1,7 @@
 use anyhow::{Context, Result};
 use portable_pty::{CommandBuilder, MasterPty, NativePtySystem, PtySize, PtySystem};
 use std::io::{Read, Write};
+use std::path::Path;
 use std::sync::{Arc, Mutex};
 use std::thread;
 use tokio::sync::mpsc;
@@ -51,7 +52,17 @@ pub fn spawn_pty_session(
             pixel_height: 0,
         })
         .context("open pty")?;
-    let cmd = CommandBuilder::new(shell);
+    let mut cmd = CommandBuilder::new(shell);
+    cmd.env("TERM", "xterm-256color");
+    cmd.env("COLORTERM", "truecolor");
+    cmd.env("SHELL", shell);
+    if let Some(home) = dirs::home_dir() {
+        cmd.env("HOME", home.as_os_str());
+        cmd.env("PWD", home.as_os_str());
+        cmd.cwd(home.as_os_str());
+    } else if let Some(parent) = Path::new(shell).parent() {
+        cmd.env("PWD", parent.as_os_str());
+    }
     let _child = pair.slave.spawn_command(cmd).context("spawn shell")?;
     drop(pair.slave);