diff --git a/powerlevel9k.zsh-theme b/powerlevel9k.zsh-theme
index e2259897..73573a07 100755
--- a/powerlevel9k.zsh-theme
+++ b/powerlevel9k.zsh-theme
@@ -744,6 +744,31 @@ prompt_command_execution_time() {
   fi
 }
 
+################################################################
+# Determine the unique path - this is needed for the
+# truncate_to_unique strategy.
+#
+function getUniqueFolder() {
+  local trunc_path directory test_dir test_dir_length
+  local -a matching
+  local -a paths
+  local cur_path='/'
+  paths=(${(s:/:)1})
+  for directory in ${paths[@]}; do
+    test_dir=''
+    for (( i=0; i < ${#directory}; i++ )); do
+      test_dir+="${directory:$i:1}"
+      matching=("$cur_path"/"$test_dir"*/)
+      if [[ ${#matching[@]} -eq 1 ]]; then
+        break
+      fi
+    done
+    trunc_path+="$test_dir/"
+    cur_path+="$directory/"
+  done
+  echo "${trunc_path: : -1}"
+}
+
 ################################################################
 # Dir: current working directory
 # Parameters:
@@ -811,23 +836,10 @@ prompt_dir() {
         # for each parent path component find the shortest unique beginning
         # characters sequence. Source: https://stackoverflow.com/a/45336078
         if (( ${#current_path} > 1 )); then # root and home are exceptions and won't have paths
-          local matching
-          local cur_path='/'
-          [[ $current_path != "~"* ]] && trunc_path='/' || trunc_path=''
-          for directory in ${paths[@]}; do
-            test_dir=''
-            for (( i=0; i<${#directory}; i++ )); do
-              test_dir+="${directory:$i:1}"
-              matching=("$cur_path"/"$test_dir"*/)
-              if [[ ${#matching[@]} -eq 1 ]]; then
-                break
-              fi
-            done
-            trunc_path+="$test_dir/"
-            cur_path+="$directory/"
-          done
-          [[ $current_path == "~"* ]] && trunc_path="~/$trunc_path"
-          current_path="${trunc_path: : -1}"
+          # cheating here to retain ~ as home folder
+          local home_path="$(getUniqueFolder $HOME)"
+          trunc_path="$(getUniqueFolder $PWD)"
+          [[ $current_path == "~"* ]] && current_path="~${trunc_path//${home_path}/}" || current_path="/${trunc_path}"
         fi
       ;;
       truncate_with_folder_marker)