diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
index 8bad0a2dc13..0c3ac67ff6e 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
@@ -236,6 +236,7 @@ export const terminalChatAgentToolsConfiguration: IStringDictionary<IConfigurati
 			'Get-Date': true,
 			'Get-Random': true,
 			'Get-Location': true,
+			'Set-Location': true,
 			'Write-Host': true,
 			'Write-Output': true,
 			'Out-String': true,
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/electron-browser/runInTerminalTool.test.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/electron-browser/runInTerminalTool.test.ts
index c3c90f50b76..90e57ad4bb3 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/electron-browser/runInTerminalTool.test.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/test/electron-browser/runInTerminalTool.test.ts
@@ -237,6 +237,7 @@ suite('RunInTerminalTool', () => {
 			'Get-Date',
 			'Get-Random',
 			'Get-Location',
+			'Set-Location C:\\Users\\test',
 			'Write-Host "Hello"',
 			'Write-Output "Test"',
 			'Out-String',