diff --git a/package.json b/package.json
index 8a3df3fe..33abc133 100644
--- a/package.json
+++ b/package.json
@@ -72,7 +72,7 @@
         "c9.ide.find": "#6cc6d3379d",
         "c9.ide.find.infiles": "#72582de3cd",
         "c9.ide.find.replace": "#e4daf722b8",
-        "c9.ide.run.debug": "#23a188b91a",
+        "c9.ide.run.debug": "#0526107587",
         "c9.automate": "#47e2c429c9",
         "c9.ide.ace.emmet": "#0ab4c6cd68",
         "c9.ide.ace.gotoline": "#4d1a93172c",
diff --git a/plugins/c9.core/util.js b/plugins/c9.core/util.js
index cec28160..8d2a51dc 100644
--- a/plugins/c9.core/util.js
+++ b/plugins/c9.core/util.js
@@ -275,9 +275,37 @@ define(function(require, exports, module) {
                 + md5Email + "?s=" + size + "&d="  + (defaultImage || "retro");
         };
         
-        var reHome = new RegExp("^" + plugin.escapeRegExp(c9.home || "/home/ubuntu"));
+        var reHome, reWorkspace, homeSub;
+        plugin.$initPaths = function(home, workspaceDir) {
+            reHome = new RegExp("^" + plugin.escapeRegExp(home) + "(/|/?$)");
+            var wd = workspaceDir.replace(/\/?$/, "");
+            reWorkspace = new RegExp("^" + plugin.escapeRegExp(wd) + "(/|/?$)");
+            homeSub = "~/";
+            if (home == workspaceDir) {
+                reHome = new RegExp("^(" + plugin.escapeRegExp(home) + "|~)(/|/?$)");
+                homeSub = "/";
+                reWorkspace = null;
+            } else if (reHome.test(workspaceDir)) {
+                reWorkspace = new RegExp("^" +
+                    plugin.escapeRegExp(workspaceDir.replace(reHome, "~/")) + "(/|/?$)"
+                );
+            } else if (reWorkspace.test(home)) {
+                reHome = new RegExp("^(" + plugin.escapeRegExp(home) + "|~)(/|/?$)");
+                homeSub = home.replace(reWorkspace, "/").replace(/\/?$/, "/");
+                reWorkspace = null;
+            }
+        };
+        plugin.$initPaths(c9.home || "/home/ubuntu", c9.workspaceDir || "/");
+        
         plugin.normalizePath = function(path){
-            return path && normalize(path.replace(reHome, "~"));
+            if (!path) return "";
+            if (reHome) {
+                path = path.replace(reHome, homeSub);
+                if (reWorkspace) {
+                    path = path.replace(reWorkspace, "/");
+                }
+            }
+            return normalize(path);
         };
         
         /**
diff --git a/plugins/c9.core/util_test.js b/plugins/c9.core/util_test.js
index afe54df5..02c778b9 100644
--- a/plugins/c9.core/util_test.js
+++ b/plugins/c9.core/util_test.js
@@ -2,6 +2,7 @@
 
 "use client";
 
+
 require(["lib/architect/architect", "lib/chai/chai"], function (architect, chai) {
     var expect = chai.expect;
     
@@ -35,6 +36,41 @@ require(["lib/architect/architect", "lib/chai/chai"], function (architect, chai)
             });
         });
         
+        describe('normalizePath', function() {
+            var normalizePath = util.normalizePath;
+            it('should handle home in workspaceDir', function() {
+                util.$initPaths("/home/ubuntu", "/");
+                expect(normalizePath("/home/ubuntu")).to.equal("/home/ubuntu/");
+                expect(normalizePath("/home/ubuntu/x")).to.equal("/home/ubuntu/x");
+                expect(normalizePath("/home/ubuntu/x/y")).to.equal("/home/ubuntu/x/y");
+                expect(normalizePath("/home/ubuntu/xy")).to.equal("/home/ubuntu/xy");
+                expect(normalizePath("/")).to.equal("/");
+                expect(normalizePath("~/z")).to.equal("/home/ubuntu/z");
+            });
+            it('should handle workspaceDir in home', function() {
+                util.$initPaths("/home/ubuntu", "/home/ubuntu/x");
+                expect(normalizePath("/home/ubuntu")).to.equal("~/");
+                expect(normalizePath("/home/ubuntu/x")).to.equal("/");
+                expect(normalizePath("/home/ubuntu/x/y")).to.equal("/y");
+                expect(normalizePath("/home/ubuntu/xy")).to.equal("~/xy");
+                expect(normalizePath("/")).to.equal("/");
+                expect(normalizePath("~/z")).to.equal("~/z");
+            });
+            it('should handle home == workspaceDir', function() {
+                util.$initPaths("/home/ubuntu", "/home/ubuntu");
+                expect(normalizePath("/home/ubuntu")).to.equal("/");
+                expect(normalizePath("/home/ubuntu/x")).to.equal("/x");
+                expect(normalizePath("/home/ubuntu/x/y")).to.equal("/x/y");
+                expect(normalizePath("/home/ubuntu/xy")).to.equal("/xy");
+                expect(normalizePath("/")).to.equal("/");
+                expect(normalizePath("~/z")).to.equal("/z");
+            });
+            it('should handle relative paths', function() {
+                util.$initPaths("/home/ubuntu", "/");
+                expect(normalizePath("/home/ubuntu/x/y/.//../z")).to.equal("/home/ubuntu/x/z");
+            });
+        });
+        
         onload && onload();
     }
 });
\ No newline at end of file