diff --git a/crates/call/src/room.rs b/crates/call/src/room.rs
index 09b49716e0..b2e79f820d 100644
--- a/crates/call/src/room.rs
+++ b/crates/call/src/room.rs
@@ -8,7 +8,7 @@ use collections::{BTreeMap, HashSet};
 use futures::StreamExt;
 use gpui::{AsyncAppContext, Entity, ModelContext, ModelHandle, MutableAppContext, Task};
 use project::Project;
-use std::sync::Arc;
+use std::{os::unix::prelude::OsStrExt, sync::Arc};
 use util::ResultExt;
 
 #[derive(Clone, Debug, PartialEq, Eq)]
@@ -389,6 +389,7 @@ impl Room {
                         id: worktree.id().to_proto(),
                         root_name: worktree.root_name().into(),
                         visible: worktree.is_visible(),
+                        abs_path: worktree.abs_path().as_os_str().as_bytes().to_vec(),
                     }
                 })
                 .collect(),
diff --git a/crates/collab/src/integration_tests.rs b/crates/collab/src/integration_tests.rs
index debd2d56be..e715a995a7 100644
--- a/crates/collab/src/integration_tests.rs
+++ b/crates/collab/src/integration_tests.rs
@@ -3038,7 +3038,7 @@ async fn test_references(cx_a: &mut TestAppContext, cx_b: &mut TestAppContext) {
         assert_eq!(references[1].buffer, references[0].buffer);
         assert_eq!(
             three_buffer.file().unwrap().full_path(cx),
-            Path::new("/OUTSIDE_PROJECT/three.rs")
+            Path::new("/root/dir-2/three.rs")
         );
 
         assert_eq!(references[0].range.to_offset(two_buffer), 24..27);
diff --git a/crates/collab/src/rpc.rs b/crates/collab/src/rpc.rs
index 564e173fec..bb8d7c2325 100644
--- a/crates/collab/src/rpc.rs
+++ b/crates/collab/src/rpc.rs
@@ -42,6 +42,7 @@ use std::{
     marker::PhantomData,
     net::SocketAddr,
     ops::{Deref, DerefMut},
+    os::unix::prelude::OsStrExt,
     rc::Rc,
     sync::{
         atomic::{AtomicBool, Ordering::SeqCst},
@@ -941,6 +942,7 @@ impl Server {
                 id: *id,
                 root_name: worktree.root_name.clone(),
                 visible: worktree.visible,
+                abs_path: worktree.abs_path.as_os_str().as_bytes().to_vec(),
             })
             .collect::<Vec<_>>();
 
@@ -989,6 +991,7 @@ impl Server {
             let message = proto::UpdateWorktree {
                 project_id: project_id.to_proto(),
                 worktree_id: *worktree_id,
+                abs_path: worktree.abs_path.as_os_str().as_bytes().to_vec(),
                 root_name: worktree.root_name.clone(),
                 updated_entries: worktree.entries.values().cloned().collect(),
                 removed_entries: Default::default(),
diff --git a/crates/collab/src/rpc/store.rs b/crates/collab/src/rpc/store.rs
index b7dd39cff1..fb21538d60 100644
--- a/crates/collab/src/rpc/store.rs
+++ b/crates/collab/src/rpc/store.rs
@@ -66,6 +66,7 @@ pub struct Collaborator {
 
 #[derive(Default, Serialize)]
 pub struct Worktree {
+    pub abs_path: PathBuf,
     pub root_name: String,
     pub visible: bool,
     #[serde(skip)]
diff --git a/crates/project/src/project_tests.rs b/crates/project/src/project_tests.rs
index 1b0294c4d1..a9ac5f4411 100644
--- a/crates/project/src/project_tests.rs
+++ b/crates/project/src/project_tests.rs
@@ -2164,6 +2164,7 @@ async fn test_rescan_and_remote_updates(
             proto::WorktreeMetadata {
                 id: initial_snapshot.id().to_proto(),
                 root_name: initial_snapshot.root_name().into(),
+                abs_path: initial_snapshot.abs_path().as_os_str().as_bytes().to_vec(),
                 visible: true,
             },
             rpc.clone(),
diff --git a/crates/project/src/worktree.rs b/crates/project/src/worktree.rs
index c58fcd4638..9f0ebe32f7 100644
--- a/crates/project/src/worktree.rs
+++ b/crates/project/src/worktree.rs
@@ -87,6 +87,7 @@ pub struct RemoteWorktree {
 #[derive(Clone)]
 pub struct Snapshot {
     id: WorktreeId,
+    abs_path: Arc<Path>,
     root_name: String,
     root_char_bag: CharBag,
     entries_by_path: SumTree<Entry>,
@@ -118,7 +119,6 @@ impl std::fmt::Debug for GitRepositoryEntry {
 }
 
 pub struct LocalSnapshot {
-    abs_path: Arc<Path>,
     ignores_by_parent_abs_path: HashMap<Arc<Path>, (Arc<Gitignore>, usize)>,
     git_repositories: Vec<GitRepositoryEntry>,
     removed_entry_ids: HashMap<u64, ProjectEntryId>,
@@ -130,7 +130,6 @@ pub struct LocalSnapshot {
 impl Clone for LocalSnapshot {
     fn clone(&self) -> Self {
         Self {
-            abs_path: self.abs_path.clone(),
             ignores_by_parent_abs_path: self.ignores_by_parent_abs_path.clone(),
             git_repositories: self.git_repositories.iter().cloned().collect(),
             removed_entry_ids: self.removed_entry_ids.clone(),
@@ -221,8 +220,11 @@ impl Worktree {
             .collect();
         let root_name = worktree.root_name.clone();
         let visible = worktree.visible;
+
+        let abs_path = PathBuf::from(OsString::from_vec(worktree.abs_path));
         let snapshot = Snapshot {
             id: WorktreeId(remote_id as usize),
+            abs_path: Arc::from(abs_path.deref()),
             root_name,
             root_char_bag,
             entries_by_path: Default::default(),
@@ -372,6 +374,13 @@ impl Worktree {
             Self::Remote(worktree) => worktree.poll_snapshot(cx),
         };
     }
+
+    pub fn abs_path(&self) -> Arc<Path> {
+        match self {
+            Worktree::Local(worktree) => worktree.abs_path.clone(),
+            Worktree::Remote(worktree) => worktree.abs_path.clone(),
+        }
+    }
 }
 
 impl LocalWorktree {
@@ -402,13 +411,13 @@ impl LocalWorktree {
             watch::channel_with(ScanState::Initializing);
         let tree = cx.add_model(move |cx: &mut ModelContext<Worktree>| {
             let mut snapshot = LocalSnapshot {
-                abs_path,
                 ignores_by_parent_abs_path: Default::default(),
                 git_repositories: Default::default(),
                 removed_entry_ids: Default::default(),
                 next_entry_id,
                 snapshot: Snapshot {
                     id: WorktreeId::from_usize(cx.model_id()),
+                    abs_path,
                     root_name: root_name.clone(),
                     root_char_bag,
                     entries_by_path: Default::default(),
@@ -647,6 +656,7 @@ impl LocalWorktree {
             id: self.id().to_proto(),
             root_name: self.root_name().to_string(),
             visible: self.visible,
+            abs_path: self.abs_path().as_os_str().as_bytes().to_vec(),
         }
     }
 
@@ -980,6 +990,7 @@ impl LocalWorktree {
                             let update = proto::UpdateWorktree {
                                 project_id,
                                 worktree_id,
+                                abs_path: snapshot.abs_path().as_os_str().as_bytes().to_vec(),
                                 root_name: snapshot.root_name().to_string(),
                                 updated_entries: snapshot
                                     .entries_by_path
@@ -1389,6 +1400,7 @@ impl LocalSnapshot {
         proto::UpdateWorktree {
             project_id,
             worktree_id: self.id().to_proto(),
+            abs_path: self.abs_path().as_os_str().as_bytes().to_vec(),
             root_name,
             updated_entries: self.entries_by_path.iter().map(Into::into).collect(),
             removed_entries: Default::default(),
@@ -1456,6 +1468,7 @@ impl LocalSnapshot {
         proto::UpdateWorktree {
             project_id,
             worktree_id,
+            abs_path: self.abs_path().as_os_str().as_bytes().to_vec(),
             root_name: self.root_name().to_string(),
             updated_entries,
             removed_entries,
@@ -1844,16 +1857,13 @@ impl language::File for File {
         if worktree.is_visible() {
             full_path.push(worktree.root_name());
         } else {
-            if let Some(path) = worktree.as_local().map(|local| local.abs_path.clone()) {
-                if let Ok(trimmed_path) = path.strip_prefix(cx.global::<HomeDir>().as_path()) {
-                    full_path.push("~");
-                    full_path.push(trimmed_path);
-                } else {
-                    full_path.push(path)
-                }
+            let path = worktree.abs_path();
+
+            if worktree.is_local() && path.starts_with(cx.global::<HomeDir>().as_path()) {
+                full_path.push("~");
+                full_path.push(path.strip_prefix(cx.global::<HomeDir>().as_path()).unwrap());
             } else {
-                full_path.push(Path::new("/OUTSIDE_PROJECT"));
-                full_path.push(worktree.root_name());
+                full_path.push(path)
             }
         }
 
@@ -3473,7 +3483,6 @@ mod tests {
         let fs = Arc::new(RealFs);
         let next_entry_id = Arc::new(AtomicUsize::new(0));
         let mut initial_snapshot = LocalSnapshot {
-            abs_path: root_dir.path().into(),
             removed_entry_ids: Default::default(),
             ignores_by_parent_abs_path: Default::default(),
             git_repositories: Default::default(),
@@ -3482,6 +3491,7 @@ mod tests {
                 id: WorktreeId::from_usize(0),
                 entries_by_path: Default::default(),
                 entries_by_id: Default::default(),
+                abs_path: root_dir.path().into(),
                 root_name: Default::default(),
                 root_char_bag: Default::default(),
                 scan_id: 0,
diff --git a/crates/rpc/proto/zed.proto b/crates/rpc/proto/zed.proto
index 1248bb0551..1f4c067fca 100644
--- a/crates/rpc/proto/zed.proto
+++ b/crates/rpc/proto/zed.proto
@@ -266,6 +266,7 @@ message UpdateWorktree {
     repeated uint64 removed_entries = 5;
     uint64 scan_id = 6;
     bool is_last_update = 7;
+    bytes abs_path = 8;
 }
 
 message UpdateWorktreeExtensions {
@@ -1052,6 +1053,7 @@ message WorktreeMetadata {
     uint64 id = 1;
     string root_name = 2;
     bool visible = 3;
+    bytes abs_path = 4;
 }
 
 message UpdateDiffBase {
diff --git a/crates/rpc/src/proto.rs b/crates/rpc/src/proto.rs
index 069fde4e59..827a8ff1a8 100644
--- a/crates/rpc/src/proto.rs
+++ b/crates/rpc/src/proto.rs
@@ -435,6 +435,7 @@ pub fn split_worktree_update(
             project_id: message.project_id,
             worktree_id: message.worktree_id,
             root_name: message.root_name.clone(),
+            abs_path: message.abs_path.clone(),
             updated_entries,
             removed_entries: mem::take(&mut message.removed_entries),
             scan_id: message.scan_id,
diff --git a/crates/rpc/src/rpc.rs b/crates/rpc/src/rpc.rs
index 5fb9ca79a2..558f52e684 100644
--- a/crates/rpc/src/rpc.rs
+++ b/crates/rpc/src/rpc.rs
@@ -6,4 +6,4 @@ pub use conn::Connection;
 pub use peer::*;
 mod macros;
 
-pub const PROTOCOL_VERSION: u32 = 35;
+pub const PROTOCOL_VERSION: u32 = 37;