diff --git a/share/functions/prompt_pwd.fish b/share/functions/prompt_pwd.fish
index eb7ef6190..8fe7f9815 100644
--- a/share/functions/prompt_pwd.fish
+++ b/share/functions/prompt_pwd.fish
@@ -39,6 +39,10 @@ function prompt_pwd --description 'Print the current working directory, shortene
                 set -l all (string split -m (math $fish_prompt_pwd_full_dirs - 1) -r / $tmp)
                 set tmp $all[1]
                 set full $all[2..]
+            else if test $fish_prompt_pwd_full_dirs -eq 0
+                # 0 means not even the last component is kept
+                string replace -ar '(\.?[^/]{'"$fish_prompt_pwd_dir_length"'})[^/]*' '$1' $tmp
+                continue
             end
 
             string join / (string replace -ar '(\.?[^/]{'"$fish_prompt_pwd_dir_length"'})[^/]*/' '$1/' $tmp) $full
diff --git a/tests/checks/prompt.fish b/tests/checks/prompt.fish
index eb6d4825a..d2ddf492a 100644
--- a/tests/checks/prompt.fish
+++ b/tests/checks/prompt.fish
@@ -10,4 +10,4 @@ prompt_pwd -D 2 /usr/share/fish/tools/web_config/sample_prompts
 # CHECK: /u/s/f/t/web_config/sample_prompts
 
 prompt_pwd -D 0 /usr/share/fish/tools/web_config/sample_prompts
-# CHECK: /u/s/f/t/w/sample_prompts
+# CHECK: /u/s/f/t/w/s