diff --git a/IPython/frontend/html/notebook/handlers.py b/IPython/frontend/html/notebook/handlers.py
index bc5dc9e..5207aa9 100644
--- a/IPython/frontend/html/notebook/handlers.py
+++ b/IPython/frontend/html/notebook/handlers.py
@@ -330,8 +330,9 @@ class MainKernelHandler(AuthenticatedHandler):
     @web.authenticated
     def post(self):
         km = self.application.kernel_manager
+        nbm = self.application.notebook_manager
         notebook_id = self.get_argument('notebook', default=None)
-        kernel_id = km.start_kernel(notebook_id)
+        kernel_id = km.start_kernel(notebook_id, cwd=nbm.notebook_dir)
         data = {'ws_url':self.ws_url,'kernel_id':kernel_id}
         self.set_header('Location', '/'+kernel_id)
         self.finish(jsonapi.dumps(data))
diff --git a/IPython/frontend/html/notebook/kernelmanager.py b/IPython/frontend/html/notebook/kernelmanager.py
index 7029e83..6bd0687 100644
--- a/IPython/frontend/html/notebook/kernelmanager.py
+++ b/IPython/frontend/html/notebook/kernelmanager.py
@@ -245,7 +245,7 @@ class MappingKernelManager(MultiKernelManager):
         if notebook_id is not None:
             del self._notebook_mapping[notebook_id]
 
-    def start_kernel(self, notebook_id=None):
+    def start_kernel(self, notebook_id=None, **kwargs):
         """Start a kernel for a notebok an return its kernel_id.
 
         Parameters
@@ -257,7 +257,6 @@ class MappingKernelManager(MultiKernelManager):
         """
         kernel_id = self.kernel_for_notebook(notebook_id)
         if kernel_id is None:
-            kwargs = dict()
             kwargs['extra_arguments'] = self.kernel_argv
             kernel_id = super(MappingKernelManager, self).start_kernel(**kwargs)
             self.set_kernel_for_notebook(notebook_id, kernel_id)
diff --git a/IPython/frontend/html/notebook/notebookapp.py b/IPython/frontend/html/notebook/notebookapp.py
index cc8b9f2..a256140 100644
--- a/IPython/frontend/html/notebook/notebookapp.py
+++ b/IPython/frontend/html/notebook/notebookapp.py
@@ -407,7 +407,6 @@ class NotebookApp(BaseIPythonApplication):
     def init_configurables(self):
         # force Session default to be secure
         default_secure(self.config)
-        # Create a KernelManager and start a kernel.
         self.kernel_manager = MappingKernelManager(
             config=self.config, log=self.log, kernel_argv=self.kernel_argv,
             connection_dir = self.profile_dir.security_dir,