diff --git a/README.md b/README.md
index 5fab8b59..187a67b4 100644
--- a/README.md
+++ b/README.md
@@ -279,6 +279,18 @@ to a certain length:
     # Limit to the last two folders
     POWERLEVEL9K_SHORTEN_DIR_LENGTH=2
 
+To change the way how the current working directory is truncated, just set:
+
+    # truncate the middle part
+    POWERLEVEL9K_SHORTEN_STRATEGY="truncate_middle"
+    # truncate from right, leaving the first X characters untouched
+    POWERLEVEL9K_SHORTEN_STRATEGY="truncate_from_right"
+    # default behaviour is to truncate whole directories
+
+In each case you have to specify the length you want to shorten the directory
+to. So in some cases `POWERLEVEL9K_SHORTEN_DIR_LENGTH` means characters, in 
+others whole directories.
+
 #### The 'time' segment
 
 By default the time is show in 'H:M:S' format. If you want to change it, 
diff --git a/powerlevel9k.zsh-theme b/powerlevel9k.zsh-theme
index c0ea83aa..56ecb611 100644
--- a/powerlevel9k.zsh-theme
+++ b/powerlevel9k.zsh-theme
@@ -44,6 +44,21 @@
 #zstyle ':vcs_info:*+*:*' debug true
 #set -o xtrace
 
+################################################################
+# Utility functions
+################################################################
+
+function print_icon() {
+  local icon_name=$1
+  local ICON_USER_VARIABLE=POWERLEVEL9K_${icon_name}
+  local USER_ICON=${(P)ICON_USER_VARIABLE}
+  if [[ -n "$USER_ICON" ]]; then
+    echo -n $USER_ICON
+  else
+    echo -n ${icons[$icon_name]}
+  fi
+}
+
 ################################################################
 # Icons
 ################################################################
@@ -75,6 +90,7 @@ case $POWERLEVEL9K_MODE in
       FREEBSD_ICON                   $'\U1F608 ' # 😈
       LINUX_ICON                     $'\U1F427 ' # 🐧
       SUNOS_ICON                     $'\U1F31E ' # 🌞
+      HOME_ICON                      $'\UE12C' # 
       VCS_UNTRACKED_ICON             "\UE16C" # 
       VCS_UNSTAGED_ICON              "\UE17C" # 
       VCS_STAGED_ICON                "\UE168" # 
@@ -115,6 +131,7 @@ case $POWERLEVEL9K_MODE in
       FREEBSD_ICON                   'BSD'
       LINUX_ICON                     'Lx'
       SUNOS_ICON                     'Sun'
+      HOME_ICON                      ''
       VCS_UNTRACKED_ICON             '?'
       VCS_UNSTAGED_ICON              "\u25CF" # ●
       VCS_STAGED_ICON                "\u271A" # ✚
@@ -149,28 +166,47 @@ if [[ "$POWERLEVEL9K_HIDE_BRANCH_ICON" == true ]]; then
     icons[VCS_BRANCH_ICON]=''
 fi
 
-function print_icon() {
-  local icon_name=$1
-  local ICON_USER_VARIABLE=POWERLEVEL9K_${icon_name}
-  local USER_ICON=${(P)ICON_USER_VARIABLE}
-  if [[ -n "$USER_ICON" ]]; then
-    echo -n $USER_ICON
-  else
-    echo -n ${icons[$icon_name]}
-  fi
-}
-
 # OS detection for the `os_icon` segment
 case $(uname) in
-  "Darwin")    OS_ICON=$(print_icon 'APPLE_ICON')   ;;
-  "FreeBSD")   OS_ICON=$(print_icon 'FREEBSD_ICON') ;;
-  "OpenBSD")   OS_ICON=$(print_icon 'FREEBSD_ICON') ;;
-  "DragonFly") OS_ICON=$(print_icon 'FREEBSD_ICON') ;;
-  "Linux")     OS_ICON=$(print_icon 'LINUX_ICON')   ;;
-  "SunOS")     OS_ICON=$(print_icon 'SUNOS_ICON')   ;;
-  *)           OS_ICON=''                           ;;
+    Darwin)
+      OS='OSX'
+      OS_ICON=$(print_icon 'APPLE_ICON')
+      ;;
+    FreeBSD)
+      OS='BSD'
+      OS_ICON=$(print_icon 'FREEBSD_ICON')
+      ;;
+    OpenBSD)
+      OS='BSD'
+      OS_ICON=$(print_icon 'FREEBSD_ICON')
+      ;;
+    DragonFly)
+      OS='BSD'
+      OS_ICON=$(print_icon 'FREEBSD_ICON')
+      ;;
+    Linux)
+      OS='Linux'
+      OS_ICON=$(print_icon 'LINUX_ICON')
+      ;;
+    SunOS)
+      OS='Solaris'
+      OS_ICON=$(print_icon 'SUNOS_ICON')
+      ;;
+    *)
+      OS=''
+      OS_ICON=''
+      ;;
 esac
 
+# Determine the correct sed parameter.
+SED_EXTENDED_REGEX_PARAMETER="-r"
+if [[ "$OS" == 'OSX' ]]; then
+  local IS_BSD_SED=$(sed --version &>> /dev/null || echo "BSD sed")
+  if [[ -n "$IS_BSD_SED" ]]; then
+    SED_EXTENDED_REGEX_PARAMETER="-E"
+  fi
+fi
+
 ################################################################
 # color scheme
 ################################################################
@@ -457,11 +493,22 @@ prompt_context() {
 prompt_dir() {
   local current_path='%~'
   if [[ -n "$POWERLEVEL9K_SHORTEN_DIR_LENGTH" ]]; then
-    # shorten path to $POWERLEVEL9K_SHORTEN_DIR_LENGTH
-    current_path="%$((POWERLEVEL9K_SHORTEN_DIR_LENGTH+1))(c:.../:)%${POWERLEVEL9K_SHORTEN_DIR_LENGTH}c"
+
+    case "$POWERLEVEL9K_SHORTEN_STRATEGY" in
+      truncate_middle)
+        current_path=$(pwd | sed -e "s,^$HOME,~," | sed $SED_EXTENDED_REGEX_PARAMETER "s/([^/]{$POWERLEVEL9K_SHORTEN_DIR_LENGTH})[^/]+([^/]{$POWERLEVEL9K_SHORTEN_DIR_LENGTH})\//\1\.\.\2\//g")
+      ;;
+      truncate_from_right)
+        current_path=$(pwd | sed -e "s,^$HOME,~," | sed $SED_EXTENDED_REGEX_PARAMETER "s/([^/]{$POWERLEVEL9K_SHORTEN_DIR_LENGTH})[^/]+\//\1..\//g")
+      ;;
+      *)
+        current_path="%$((POWERLEVEL9K_SHORTEN_DIR_LENGTH+1))(c:.../:)%${POWERLEVEL9K_SHORTEN_DIR_LENGTH}c"
+      ;;
+    esac
+
   fi
 
-  $1_prompt_segment "$0" "blue" "$DEFAULT_COLOR" "$current_path"
+  $1_prompt_segment "$0" "blue" "$DEFAULT_COLOR" "$(print_icon 'HOME_ICON') $current_path"
 }
 
 # Command number (in local history)