diff --git a/themes/powerline/powerline.base.bash b/themes/powerline/powerline.base.bash
index db770404..3a44307d 100644
--- a/themes/powerline/powerline.base.bash
+++ b/themes/powerline/powerline.base.bash
@@ -142,7 +142,8 @@ function __powerline_scm_prompt() {
 }
 
 function __powerline_cwd_prompt() {
-	local cwd=${PWD/$HOME/\~}
+	# For maximum backwards compatibility: no outer quotes, escape ~
+	local cwd=${PWD/#$HOME/\~}
 
 	echo "${cwd}|${CWD_THEME_PROMPT_COLOR}"
 }