diff --git a/src/pytorch_lightning/CHANGELOG.md b/src/pytorch_lightning/CHANGELOG.md
index ea0e8f76461da..ba8bf05f49bb3 100644
--- a/src/pytorch_lightning/CHANGELOG.md
+++ b/src/pytorch_lightning/CHANGELOG.md
@@ -136,6 +136,9 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - Fixed an issue to keep downscaling the batch size in case there hasn't been even a single successful optimal batch size with `mode="power"` ([#14372](https://github.com/Lightning-AI/lightning/pull/14372))
 
 
+- Fixed `WandbLogger` `save_dir` is not set after creation ([#14326](https://github.com/Lightning-AI/lightning/pull/14326))
+
+
 
 ## [1.7.4] - 2022-08-31
 
@@ -162,9 +165,6 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - Fixed an issue to avoid the impact of sanity check on `reload_dataloaders_every_n_epochs` for validation ([#13964](https://github.com/Lightning-AI/lightning/pull/13964))
 
 
-- Fixed `Trainer.estimated_stepping_batches` when maximum number of epochs is not set ([#14317](https://github.com/Lightning-AI/lightning/pull/14317))
-
-
 ## [1.7.2] - 2022-08-17
 
 ### Added
diff --git a/src/pytorch_lightning/loggers/wandb.py b/src/pytorch_lightning/loggers/wandb.py
index baf4bc9092774..3198e46b1a586 100644
--- a/src/pytorch_lightning/loggers/wandb.py
+++ b/src/pytorch_lightning/loggers/wandb.py
@@ -223,7 +223,7 @@ def __init__(self, *args, **kwarg):
 
     Args:
         name: Display name for the run.
-        save_dir: Path where data is saved (wandb dir by default).
+        save_dir: Path where data is saved.
         offline: Run offline (data can be streamed later to wandb servers).
         id: Sets the version, mainly used to resume a previous run.
         version: Same as id.
@@ -255,7 +255,7 @@ def __init__(self, *args, **kwarg):
     def __init__(
         self,
         name: Optional[str] = None,
-        save_dir: Optional[str] = None,
+        save_dir: str = ".",
         offline: bool = False,
         id: Optional[str] = None,
         anonymous: Optional[bool] = None,
@@ -300,7 +300,7 @@ def __init__(
             name=name,
             project=project,
             id=version or id,
-            dir=save_dir,
+            dir=save_dir or kwargs.pop("dir"),
             resume="allow",
             anonymous=("allow" if anonymous else None),
         )
diff --git a/tests/tests_pytorch/loggers/test_wandb.py b/tests/tests_pytorch/loggers/test_wandb.py
index 648e1a8f38ec8..b408046c9e5d2 100644
--- a/tests/tests_pytorch/loggers/test_wandb.py
+++ b/tests/tests_pytorch/loggers/test_wandb.py
@@ -58,9 +58,15 @@ def test_wandb_logger_init(wandb, monkeypatch):
     wandb.init.reset_mock()
     WandbLogger(project="test_project").experiment
     wandb.init.assert_called_once_with(
-        name=None, dir=None, id=None, project="test_project", resume="allow", anonymous=None
+        name=None, dir=".", id=None, project="test_project", resume="allow", anonymous=None
     )
 
+    # test wandb.init set save_dir correctly after created
+    wandb.run = None
+    wandb.init.reset_mock()
+    logger = WandbLogger(project="test_project")
+    assert logger.save_dir is not None
+
     # test wandb.init and setting logger experiment externally
     wandb.run = None
     run = wandb.init()