diff --git a/App.xaml.cs b/App.xaml.cs
index 080c475a..0f20f349 100644
--- a/App.xaml.cs
+++ b/App.xaml.cs
@@ -74,7 +74,6 @@ namespace GARbro.GUI
 
         void ApplicationExit (object sender, ExitEventArgs e)
         {
-            Settings.Default.appLastDirectory = Directory.GetCurrentDirectory();
             Settings.Default.Save();
         }
 
diff --git a/MainWindow.xaml.cs b/MainWindow.xaml.cs
index 9c523d18..f6ba46e8 100644
--- a/MainWindow.xaml.cs
+++ b/MainWindow.xaml.cs
@@ -105,6 +105,16 @@ namespace GARbro.GUI
             }
             else
                 Settings.Default.lvSortColumn = "";
+
+            string cwd = CurrentPath;
+            if (!string.IsNullOrEmpty (cwd))
+            {
+                if (ViewModel.IsArchive)
+                    cwd = Path.GetDirectoryName (cwd);
+            }
+            else
+                cwd = Directory.GetCurrentDirectory();
+            Settings.Default.appLastDirectory = cwd;
         }
 
         /// <summary>