diff --git a/modules/terminal/init.zsh b/modules/terminal/init.zsh
index dc78a3be..733741d5 100644
--- a/modules/terminal/init.zsh
+++ b/modules/terminal/init.zsh
@@ -39,6 +39,17 @@ function set-terminal-tab-title {
   fi
 }
 
+# Sets the OSX Terminal.app document/directory URL.
+# This has the following effects:
+#   - a title bar shows an icon and a basename of the given document/directory
+#   - the icon can be dragged with a mouse like any other file
+#   - right-clicking the title shows a file hierarchy menu
+function set-terminal-app-document-url {
+  if [[ "$TERM_PROGRAM" == 'Apple_Terminal' ]]; then
+    printf '\e]7;%s\a' ${(V)argv}
+  fi
+}
+
 # Sets the tab and window titles with a given command.
 function set-titles-with-command {
   # Do not set the window and tab titles in Terminal.app because they are not
@@ -85,20 +96,18 @@ function set-titles-with-path {
   setopt EXTENDED_GLOB
 
   local absolute_path="${${1:a}:-$PWD}"
+  local abbreviated_path="${absolute_path/#$HOME/~}"
+  local truncated_path="${abbreviated_path/(#m)?(#c15,)/...${MATCH[-12,-1]}}"
+  unset MATCH
 
   if [[ "$TERM_PROGRAM" == 'Apple_Terminal' ]]; then
-    printf '\e]7;%s\a' "file://$HOST${absolute_path// /%20}"
+    set-terminal-app-document-url "file://$HOST${absolute_path// /%20}"
+    set-terminal-tab-title "$truncated_path"
+  elif [[ "$TERM" == screen* ]]; then
+    set-screen-window-title "$truncated_path"
   else
-    local abbreviated_path="${absolute_path/#$HOME/~}"
-    local truncated_path="${abbreviated_path/(#m)?(#c15,)/...${MATCH[-12,-1]}}"
-    unset MATCH
-
-    if [[ "$TERM" == screen* ]]; then
-      set-screen-window-title "$truncated_path"
-    else
-      set-terminal-window-title "$abbreviated_path"
-      set-terminal-tab-title "$truncated_path"
-    fi
+    set-terminal-window-title "$abbreviated_path"
+    set-terminal-tab-title "$truncated_path"
   fi
 }