diff --git a/documentation/Functions.md b/documentation/Functions.md
index 87a18bd3..631a541d 100644
--- a/documentation/Functions.md
+++ b/documentation/Functions.md
@@ -203,6 +203,7 @@ path: The URL path on which is checked if the server is running
 #### parameter
 1. The title of the step.
 2. An array of json objects with files, content, or images to be rendered within the katacoda step.
+3. (Optional) Path to the current directory where the user is located (relative to the workspace directory). Only needed if the directory is changed within this step.
 #### example 
 nextKatacodaStep("Step title", [{ "file": "files/description.md" }, { "content": "This is just plain content." }, { "image": "files/image.png" }])
 
diff --git a/runners/katacoda/index.ts b/runners/katacoda/index.ts
index 050273fe..c6b63012 100644
--- a/runners/katacoda/index.ts
+++ b/runners/katacoda/index.ts
@@ -303,7 +303,7 @@ export class Katacoda extends Runner {
 
     runCreateFolder(step: Step, command: Command): RunResult {
         let folderPath = new DirUtils().getCdParam(this.currentDir, path.join(this.getVariable(this.workspaceDirectory), command.parameters[0]));
-        
+
         this.steps.push({
             "title": "Create a new folder",
             "text": "step" + this.stepsCount + ".md"
@@ -335,6 +335,11 @@ export class Katacoda extends Runner {
             "text": "step" + this.stepsCount + ".md"
         });
         this.renderTemplate("nextKatacodaStep.md", this.outputPathTutorial + "step" + (this.stepsCount++) + ".md", { text: step.text, textAfter: step.textAfter, content: content });
+        
+        if(command.parameters[2]) {
+            this.currentDir = path.join(this.getVariable(this.workspaceDirectory), command.parameters[2]);
+        }
+        
         return null;
     }