diff --git a/bin/sh/cd.c b/bin/sh/cd.c
--- a/bin/sh/cd.c
+++ b/bin/sh/cd.c
@@ -99,8 +99,6 @@
 
 	if ((dest = *argptr) == NULL && (dest = bltinlookup("HOME", 1)) == NULL)
 		error("HOME not set");
-	if (*dest == '\0')
-		dest = ".";
 	if (dest[0] == '-' && dest[1] == '\0') {
 		dest = bltinlookup("OLDPWD", 1);
 		if (dest == NULL)
diff --git a/bin/sh/tests/builtins/Makefile b/bin/sh/tests/builtins/Makefile
--- a/bin/sh/tests/builtins/Makefile
+++ b/bin/sh/tests/builtins/Makefile
@@ -52,6 +52,7 @@
 ${PACKAGE}FILES+=		cd9.0 cd9.0.stdout
 ${PACKAGE}FILES+=		cd10.0
 ${PACKAGE}FILES+=		cd11.0
+${PACKAGE}FILES+=		cd12.0 cd12.0.stderr
 ${PACKAGE}FILES+=		command1.0
 ${PACKAGE}FILES+=		command2.0
 ${PACKAGE}FILES+=		command3.0
diff --git a/bin/sh/tests/builtins/cd12.0 b/bin/sh/tests/builtins/cd12.0
new file mode 100644
--- /dev/null
+++ b/bin/sh/tests/builtins/cd12.0
@@ -0,0 +1,3 @@
+(cd /bin) || exit 1
+cd "" && exit 1
+exit 0
diff --git a/bin/sh/tests/builtins/cd12.0.stderr b/bin/sh/tests/builtins/cd12.0.stderr
new file mode 100644
--- /dev/null
+++ b/bin/sh/tests/builtins/cd12.0.stderr
@@ -0,0 +1 @@
+cd: : No such file or directory