diff --git a/CHANGELOG.md b/CHANGELOG.md
index b8bc539..450071f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,11 +7,19 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## Unreleased
 
+### Added
+
+- Setting `cwd` in the options for `process.spawn` to a path starting with a tilde (`~`) will now use a path relative to the platform-specific home / user directory.
+
 ### Changed
 
 - `NetRequest` query parameters value has been changed to be a table of key-value pairs similar to `process.env`.
   If any query parameter is specified more than once in the request url, the value chosen will be the last one that was specified.
 
+### Fixed
+
+- Fixed `process.spawn` blocking all lua threads if the spawned child process yields.
+
 ## `0.3.0` - February 6th, 2023
 
 ### Added
diff --git a/Cargo.lock b/Cargo.lock
index 8b57198..35cfacd 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -161,6 +161,26 @@ dependencies = [
  "zeroize",
 ]
 
+[[package]]
+name = "directories"
+version = "4.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f51c5d4ddabd36886dd3e1438cb358cdcb0d7c499cb99cb4ac2e38e18b5cb210"
+dependencies = [
+ "dirs-sys",
+]
+
+[[package]]
+name = "dirs-sys"
+version = "0.3.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1b1d1d91c932ef41c0f2663aa8b0ca0342d444d842c06914aa0a7e352d0bada6"
+dependencies = [
+ "libc",
+ "redox_users",
+ "winapi",
+]
+
 [[package]]
 name = "encode_unicode"
 version = "0.3.6"
@@ -310,6 +330,17 @@ dependencies = [
  "slab",
 ]
 
+[[package]]
+name = "getrandom"
+version = "0.2.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c05aeb6a22b8f62540c194aac980f2115af067bfe15a0734d7277a768d396b31"
+dependencies = [
+ "cfg-if",
+ "libc",
+ "wasi",
+]
+
 [[package]]
 name = "h2"
 version = "0.3.15"
@@ -575,6 +606,7 @@ dependencies = [
  "anyhow",
  "console",
  "dialoguer",
+ "directories",
  "hyper",
  "lazy_static",
  "mlua",
@@ -822,6 +854,17 @@ dependencies = [
  "bitflags",
 ]
 
+[[package]]
+name = "redox_users"
+version = "0.4.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b033d837a7cf162d7993aded9304e30a83213c648b6e389db233191f891e5c2b"
+dependencies = [
+ "getrandom",
+ "redox_syscall",
+ "thiserror",
+]
+
 [[package]]
 name = "regex"
 version = "1.7.1"
@@ -1118,6 +1161,26 @@ dependencies = [
  "winapi-util",
 ]
 
+[[package]]
+name = "thiserror"
+version = "1.0.38"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6a9cd18aa97d5c45c6603caea1da6628790b37f7a34b6ca89522331c5180fed0"
+dependencies = [
+ "thiserror-impl",
+]
+
+[[package]]
+name = "thiserror-impl"
+version = "1.0.38"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1fb327af4685e4d03fa8cbcf1716380da910eeb2bb8be417e7f9fd3fb164f36f"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
 [[package]]
 name = "tinyvec"
 version = "1.6.0"
diff --git a/packages/lib/Cargo.toml b/packages/lib/Cargo.toml
index 5bab490..80e93f2 100644
--- a/packages/lib/Cargo.toml
+++ b/packages/lib/Cargo.toml
@@ -22,6 +22,7 @@ reqwest.workspace = true
 
 console = "0.15.5"
 dialoguer = "0.10.3"
+directories = "4.0.1"
 lazy_static = "1.4.0"
 pin-project = "1.0.12"
 os_str_bytes = "6.4.1"
diff --git a/packages/lib/src/globals/process.rs b/packages/lib/src/globals/process.rs
index ac03491..8952425 100644
--- a/packages/lib/src/globals/process.rs
+++ b/packages/lib/src/globals/process.rs
@@ -1,5 +1,6 @@
 use std::{collections::HashMap, env, path::PathBuf, process::Stdio};
 
+use directories::UserDirs;
 use mlua::prelude::*;
 use os_str_bytes::RawOsString;
 use tokio::process::Command;
@@ -127,6 +128,12 @@ async fn process_spawn<'a>(
                 LuaValue::Nil => {}
                 LuaValue::String(s) => {
                     cwd = PathBuf::from(s.to_string_lossy().to_string());
+                    // Substitute leading tilde (~) for the actual home dir
+                    if cwd.starts_with("~") {
+                        if let Some(user_dirs) = UserDirs::new() {
+                            cwd = user_dirs.home_dir().join(cwd.strip_prefix("~").unwrap())
+                        }
+                    };
                     if !cwd.exists() {
                         return Err(LuaError::RuntimeError(
                             "Invalid value for option 'cwd' - path does not exist".to_string(),
@@ -218,7 +225,7 @@ async fn process_spawn<'a>(
             cmd
         }
     };
-    // FUTURE: Implement and test for tilde (~) to home dir substitution in child_cwd
+    // Set dir to run in and env variables
     cmd.current_dir(child_cwd);
     cmd.envs(child_envs);
     // Spawn the child process
diff --git a/tests/process/spawn.luau b/tests/process/spawn.luau
index 042210b..2449a06 100644
--- a/tests/process/spawn.luau
+++ b/tests/process/spawn.luau
@@ -54,20 +54,22 @@ process.spawn("ls", {}, {
 local pwdAfter = process.spawn("pwd").stdout
 assert(pwdBefore == pwdAfter, "Current working directory changed after running child process")
 
--- Inheriting stdio & environment variables should work
+--[[
+	Setting the cwd on a child process should properly
+	replace any leading ~ with the users real home dir
+]]
 
-local echoMessage = "Hello from child process!"
-local echoResult = process.spawn("echo", {
-	'"$TEST_VAR"',
-}, {
-	env = { TEST_VAR = echoMessage },
-	shell = "bash",
-	stdio = "inherit",
-})
-assert(
-	echoResult.stdout == (echoMessage .. "\n"), -- Note that echo adds a newline
-	"Inheriting stdio did not return proper output"
-)
+local homeDir1 = process.spawn("echo $HOME", nil, {
+	shell = true,
+}).stdout
+local homeDir2 = process.spawn("pwd", nil, {
+	shell = true,
+	cwd = "~",
+}).stdout
+
+assert(#homeDir1 > 0, "Home dir from echo was empty")
+assert(#homeDir2 > 0, "Home dir from pwd was empty")
+assert(homeDir1 == homeDir2, "Home dirs did not match when performing tilde substitution")
 
 --[[
 	Spawning a process should not block any lua thread(s)
@@ -97,3 +99,18 @@ assert(
 	(sleepElapsed >= SLEEP_DURATION) and (sleepElapsed < SLEEP_DURATION * 1.5),
 	"Coroutine yielded the main lua thread during process yield"
 )
+
+-- Inheriting stdio & environment variables should work
+
+local echoMessage = "Hello from child process!"
+local echoResult = process.spawn("echo", {
+	'"$TEST_VAR"',
+}, {
+	env = { TEST_VAR = echoMessage },
+	shell = "bash",
+	stdio = "inherit",
+})
+assert(
+	echoResult.stdout == (echoMessage .. "\n"), -- Note that echo adds a newline
+	"Inheriting stdio did not return proper output"
+)