diff --git a/src/plugins/terminal/scripts/init-alpine.sh b/src/plugins/terminal/scripts/init-alpine.sh
index 1f051f06c..f792a46d2 100644
--- a/src/plugins/terminal/scripts/init-alpine.sh
+++ b/src/plugins/terminal/scripts/init-alpine.sh
@@ -92,6 +92,39 @@ export TERM=xterm-256color
 SHELL=/bin/bash
 export PIP_BREAK_SYSTEM_PACKAGES=1
 
+# Smart path shortening function (fish-style: ~/p/s/components)
+_shorten_path() {
+    local path="$PWD"
+    
+    if [[ "$HOME" != "/" && "$path" == "$HOME" ]]; then
+        echo "~"
+        return
+    elif [[ "$HOME" != "/" && "$path" == "$HOME/"* ]]; then
+        path="~${path#$HOME}"
+    fi
+    
+    [[ "$path" == "~" ]] && echo "~" && return
+    
+    local parts result=""
+    IFS='/' read -ra parts <<< "$path"
+    local len=${#parts[@]}
+    
+    for ((i=0; i<len; i++)); do
+        [[ -z "${parts[i]}" ]] && continue
+        if [[ $i -lt $((len-1)) ]]; then
+            result+="${parts[i]:0:1}/"
+        else
+            result+="${parts[i]}"
+        fi
+    done
+    
+    [[ "$path" == /* ]] && echo "/$result" || echo "$result"
+}
+
+# Update prompt vars before each command
+PROMPT_COMMAND='_PS1_PATH=$(_shorten_path); _PS1_EXIT=$?'
+
+
 # Display MOTD if available
 if [ -s /etc/acode_motd ]; then
     cat /etc/acode_motd
@@ -120,12 +153,15 @@ fi
 
 # Add PS1 only if not already present
 if ! grep -q 'PS1=' "$PREFIX/alpine/initrc"; then
-    echo 'PS1="\[\033[1;32m\]\u\[\033[0m\]@localhost \w \$ "' >> "$PREFIX/alpine/initrc"
+    # Smart path shortening (fish-style: ~/p/s/components)
+    echo 'PS1="\[\033[1;32m\]\u\[\033[0m\]@localhost \[\033[1;34m\]\$_PS1_PATH\[\033[0m\] \[\$([ \$_PS1_EXIT -ne 0 ] && echo \"\033[31m\")\]\$\[\033[0m\] "' >> "$PREFIX/alpine/initrc"
+    # Simple prompt (uncomment below and comment above if you prefer full paths)
+    # echo 'PS1="\[\033[1;32m\]\u\[\033[0m\]@localhost \[\033[1;34m\]\w\[\033[0m\] \$ "' >> "$PREFIX/alpine/initrc"
 fi
 
 chmod +x "$PREFIX/alpine/initrc"
 
-#actual souce
+#actual source
 #everytime a terminal is started initrc will run
 "$PREFIX/axs" -c "bash --rcfile /initrc -i"