diff --git a/packages/php-wasm/node/src/test/php.spec.ts b/packages/php-wasm/node/src/test/php.spec.ts
index 75638fd6bc..cab2562260 100644
--- a/packages/php-wasm/node/src/test/php.spec.ts
+++ b/packages/php-wasm/node/src/test/php.spec.ts
@@ -3,7 +3,10 @@ import {
 	getPhpIniEntries,
 	loadPHPRuntime,
 	PHP,
+	PHPProcessManager,
+	sandboxedSpawnHandlerFactory,
 	setPhpIniEntries,
+	type SpawnedPHP,
 	SupportedPHPVersions,
 } from '@php-wasm/universal';
 import { createSpawnHandler, joinPaths, phpVar } from '@php-wasm/util';
@@ -21,6 +24,7 @@ import { vi } from 'vitest';
 import { getPHPLoaderModule, loadNodeRuntime } from '..';
 import type { PHPLoaderOptions } from '..';
 import { createNodeFsMountHandler } from '../lib/node-fs-mount';
+import { RecommendedPHPVersion } from '@wp-playground/common';
 
 const testDirPath = '/__test987654321';
 const testFilePath = '/__test987654321.txt';
@@ -2978,3 +2982,75 @@ phpLoaderOptions.forEach((options) => {
 		});
 	});
 });
+
+describe('sandboxedSpawnHandlerFactory', () => {
+	const phpVersion = RecommendedPHPVersion;
+	let php: PHP;
+	let spawnedPhp: SpawnedPHP;
+	let processManager: PHPProcessManager;
+	beforeEach(async () => {
+		processManager = new PHPProcessManager({
+			phpFactory: async () => {
+				const php = new PHP(
+					await loadNodeRuntime(phpVersion as any, {})
+				);
+				php.mkdir('/tmp/shared-test-directory');
+				php.chdir('/tmp/shared-test-directory');
+
+				php.writeFile(
+					'/tmp/shared-test-directory/README.md',
+					'Hello, world!'
+				);
+				php.mkdir('/tmp/shared-test-directory/code');
+				php.writeFile(
+					'/tmp/shared-test-directory/code/index.php',
+					'Hello, world!'
+				);
+				await php.setSpawnHandler(
+					sandboxedSpawnHandlerFactory(processManager)
+				);
+				return php;
+			},
+			maxPhpInstances: 5,
+		});
+		spawnedPhp = await processManager.acquirePHPInstance();
+		php = spawnedPhp.php;
+	});
+	afterEach(async () => {
+		await processManager[Symbol.asyncDispose]();
+		spawnedPhp?.reap();
+	});
+	it.each([
+		// Default cwd
+		{
+			command: 'ls',
+			expected: ['README.md', 'code', ''].join('\n'),
+		},
+		// Explicit path
+		{
+			command: 'ls /tmp/shared-test-directory',
+			expected: ['README.md', 'code', ''].join('\n'),
+		},
+		// Subdirectory – we expect a different output
+		{
+			command: 'ls /tmp/shared-test-directory/code',
+			expected: ['index.php', ''].join('\n'),
+		},
+		// pwd
+		{
+			command: 'pwd',
+			expected: '/tmp/shared-test-directory\n',
+		},
+	])('should be able to run "$command"', async ({ command, expected }) => {
+		const response = await php.run({
+			code: `<?php
+				$output = shell_exec(getenv('COMMAND'));
+				echo $output;
+			`,
+			env: {
+				COMMAND: command,
+			},
+		});
+		expect(response.text).toEqual(expected);
+	});
+});
diff --git a/packages/php-wasm/universal/src/lib/php.ts b/packages/php-wasm/universal/src/lib/php.ts
index 2b7e4f0a66..f040c3fe02 100644
--- a/packages/php-wasm/universal/src/lib/php.ts
+++ b/packages/php-wasm/universal/src/lib/php.ts
@@ -397,6 +397,15 @@ export class PHP implements Disposable {
 		this[__private__dont__use].FS.chdir(path);
 	}
 
+	/**
+	 * Gets the current working directory in the PHP filesystem.
+	 *
+	 * @returns The current working directory.
+	 */
+	cwd() {
+		return this[__private__dont__use].FS.cwd();
+	}
+
 	/**
 	 * Changes the permissions of a file or directory.
 	 * @param path - The path to the file or directory.
diff --git a/packages/php-wasm/universal/src/lib/sandboxed-spawn-handler-factory.ts b/packages/php-wasm/universal/src/lib/sandboxed-spawn-handler-factory.ts
index 82a78ed6d2..de28dcab5e 100644
--- a/packages/php-wasm/universal/src/lib/sandboxed-spawn-handler-factory.ts
+++ b/packages/php-wasm/universal/src/lib/sandboxed-spawn-handler-factory.ts
@@ -44,7 +44,7 @@ export function sandboxedSpawnHandlerFactory(
 			processApi.stdout(`140`);
 			processApi.exit(0);
 		} else if (binaryName === 'less') {
-			processApi.on('stdin', (data: Uint8Array) => {
+			processApi.on('stdin', (data) => {
 				processApi.stdout(data);
 			});
 			// Exit after the stdin stream is exhausted.
@@ -55,49 +55,83 @@ export function sandboxedSpawnHandlerFactory(
 			});
 			processApi.exit(0);
 			return;
-		} else if (binaryName === 'php') {
-			const { php, reap } = await processManager.acquirePHPInstance({
-				considerPrimary: false,
-			});
+		}
 
-			php.chdir(options.cwd as string);
-			try {
-				// Figure out more about setting env, putenv(), etc.
-				const result = await php.cli(args, {
-					env: {
-						...options.env,
-						SCRIPT_PATH: args[1],
-						// Set SHELL_PIPE to 0 to ensure WP-CLI formats
-						// the output as ASCII tables.
-						// @see https://github.com/wp-cli/wp-cli/issues/1102
-						SHELL_PIPE: '0',
-					},
-				});
+		if (!['php', 'ls', 'pwd'].includes(binaryName ?? '')) {
+			// 127 is the exit code "for command not found".
+			processApi.exit(127);
+			return;
+		}
 
-				result.stdout.pipeTo(
-					new WritableStream({
-						write(chunk) {
-							processApi.stdout(chunk);
-						},
-					})
-				);
-				result.stderr.pipeTo(
-					new WritableStream({
-						write(chunk) {
-							processApi.stderr(chunk);
+		const { php, reap } = await processManager.acquirePHPInstance({
+			considerPrimary: false,
+		});
+
+		try {
+			if (options.cwd) {
+				php.chdir(options.cwd as string);
+			}
+
+			const cwd = php.cwd();
+			switch (binaryName) {
+				case 'php': {
+					// Figure out more about setting env, putenv(), etc.
+					const result = await php.cli(args, {
+						env: {
+							...options.env,
+							SCRIPT_PATH: args[1],
+							// Set SHELL_PIPE to 0 to ensure WP-CLI formats
+							// the output as ASCII tables.
+							// @see https://github.com/wp-cli/wp-cli/issues/1102
+							SHELL_PIPE: '0',
 						},
-					})
-				);
-				processApi.exit(await result.exitCode);
-			} catch (e) {
-				// An exception here means the PHP runtime has crashed.
-				processApi.exit(1);
-				throw e;
-			} finally {
-				reap();
+					});
+
+					result.stdout.pipeTo(
+						new WritableStream({
+							write(chunk) {
+								processApi.stdout(chunk as any as ArrayBuffer);
+							},
+						})
+					);
+					result.stderr.pipeTo(
+						new WritableStream({
+							write(chunk) {
+								processApi.stderr(chunk as any as ArrayBuffer);
+							},
+						})
+					);
+					processApi.exit(await result.exitCode);
+					break;
+				}
+				case 'ls': {
+					const files = php.listFiles(args[1] ?? cwd);
+					for (const file of files) {
+						processApi.stdout(file + '\n');
+					}
+					// Technical limitation of subprocesses – we need to
+					// wait before exiting to give consumer a chance to read
+					// the output.
+					await new Promise((resolve) => setTimeout(resolve, 10));
+					processApi.exit(0);
+					break;
+				}
+				case 'pwd': {
+					processApi.stdout(cwd + '\n');
+					// Technical limitation of subprocesses – we need to
+					// wait before exiting to give consumer a chance to read
+					// the output.
+					await new Promise((resolve) => setTimeout(resolve, 10));
+					processApi.exit(0);
+					break;
+				}
 			}
-		} else {
+		} catch (e) {
+			// An exception here means the PHP runtime has crashed.
 			processApi.exit(1);
+			throw e;
+		} finally {
+			reap();
 		}
 	});
 }