diff --git a/CHANGELOG.md b/CHANGELOG.md
index dff93854..171a3d4b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,4 @@
+- Fixed tab title showing "Claude Code" for sessions opened in non-project directories — now shows the directory name
 - Added OpenAI-compatible proxy: profiles can now route Claude Code through any OpenAI-compatible API provider (OpenAI, Azure, Groq, DeepSeek, Ollama, local models, etc.)
 
 # 1.1.7 (2026-05-22)
diff --git a/pom.xml b/pom.xml
index ea4b004c..75b32a3e 100644
--- a/pom.xml
+++ b/pom.xml
@@ -6,7 +6,7 @@
 
     <groupId>io.github.nbplugins</groupId>
     <artifactId>netbeans-plugin-claude-code-gui</artifactId>
-    <version>1.2.7-SNAPSHOT</version>
+    <version>1.2.8-SNAPSHOT</version>
     <packaging>nbm</packaging>
     <name>Netbeans Plugin Claude Code GUI</name>
     <description>NetBeans plugin that provides a GUI for Claude Code CLI — run claude code sessions directly inside the IDE.</description>
diff --git a/src/main/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanel.java b/src/main/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanel.java
index f77bdf54..85b40fc5 100644
--- a/src/main/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanel.java
+++ b/src/main/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanel.java
@@ -337,7 +337,7 @@ public void preselectForDirectory(File dir) {
      * Resolves the tab label for a session directory.
      *
      * <p>Returns the NetBeans project display name when {@code dir} matches an
-     * open project, or {@code "Claude Code"} as a fallback.  Returns the
+     * open project, or the directory name as a fallback.  Returns the
      * localised "New Session" string when {@code dir} is {@code null}.
      *
      * @param dir working directory, or {@code null} for a new empty session
@@ -373,8 +373,8 @@ public static String resolveTabLabel(File dir) {
                 LOG.fine("canonical path comparison failed: " + e.getMessage());
             }
         }
-        LOG.warning("resolveTabLabel: no project match for " + dir.getAbsolutePath());
-        return "Claude Code";
+        LOG.fine("resolveTabLabel: no project match for " + dir.getAbsolutePath() + ", using dir name");
+        return dir.getName();
     }
 
     // -------------------------------------------------------------------------
diff --git a/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeCodeTopComponentTest.java b/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeCodeTopComponentTest.java
index 9f3535c1..7574198a 100644
--- a/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeCodeTopComponentTest.java
+++ b/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeCodeTopComponentTest.java
@@ -31,7 +31,7 @@ void testSessionPanelLabelResolutionNoProject() throws IOException {
         tmpDir.deleteOnExit();
         try {
             String label = ClaudeSessionSelectorPanel.resolveTabLabel(tmpDir);
-            assertEquals("Claude Code", label);
+            assertEquals(tmpDir.getName(), label);
         } finally {
             tmpDir.delete();
         }
@@ -72,15 +72,15 @@ void testTabTooltipSetImmediatelyOnStartSession() throws IOException {
     void testTabNameRemainsStableWhenProjectsAlreadyLoaded() throws IOException {
         // When openProjects() Future is already done (projects fully loaded),
         // updateDisplayName must not schedule a background refresh — the name is final.
-        // Verify this by checking that a tab created for a non-project dir keeps "Claude Code".
+        // Verify this by checking that a tab created for a non-project dir uses the dir name.
         File tmpDir = Files.createTempDirectory("proj-loaded-test").toFile();
         tmpDir.deleteOnExit();
         try {
             ClaudeSessionTab tc = new ClaudeSessionTab();
             tc.autoStart(tmpDir, "default");
-            // openProjects() is done in test env (no real projects) — name must be "Claude Code"
-            assertEquals("Claude Code", tc.getDisplayName(),
-                    "Tab name for non-project dir must be 'Claude Code'");
+            // openProjects() is done in test env (no real projects) — name must be the dir basename
+            assertEquals(tmpDir.getName(), tc.getDisplayName(),
+                    "Tab name for non-project dir must be the directory name");
         } finally {
             tmpDir.delete();
         }
diff --git a/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanelTest.java b/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanelTest.java
index 2605f352..85e866f2 100644
--- a/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanelTest.java
+++ b/src/test/java/io/github/nbplugins/claudecodegui/ui/ClaudeSessionSelectorPanelTest.java
@@ -151,9 +151,9 @@ void resolveTabLabelNonProjectDirReturnsFallback() throws IOException {
         tmpDir.deleteOnExit();
         try {
             String label = ClaudeSessionSelectorPanel.resolveTabLabel(tmpDir);
-            // No open projects in the headless test environment → fallback "Claude Code"
-            assertEquals("Claude Code", label,
-                    "resolveTabLabel must fall back to 'Claude Code' for non-project dirs");
+            // No open projects in the headless test environment → fallback is the directory name
+            assertEquals(tmpDir.getName(), label,
+                    "resolveTabLabel must fall back to the directory name for non-project dirs");
         } finally {
             tmpDir.delete();
         }