diff --git a/src/vs/workbench/contrib/terminalContrib/suggest/browser/terminalCompletionService.ts b/src/vs/workbench/contrib/terminalContrib/suggest/browser/terminalCompletionService.ts
index bf819a3c6d753..eb8761b215225 100644
--- a/src/vs/workbench/contrib/terminalContrib/suggest/browser/terminalCompletionService.ts
+++ b/src/vs/workbench/contrib/terminalContrib/suggest/browser/terminalCompletionService.ts
@@ -339,6 +339,15 @@ export class TerminalCompletionService extends Disposable implements ITerminalCo
 							return undefined;
 						}
 					}
+				} else {
+					// `./` by itself means the current directory, use cwd directly to avoid
+					// trailing slash issues with URI.joinPath on some remote file systems.
+					try {
+						await this._fileService.stat(cwd);
+						lastWordFolderResource = cwd;
+					} catch {
+						return undefined;
+					}
 				}
 			}
 
@@ -368,7 +377,7 @@ export class TerminalCompletionService extends Disposable implements ITerminalCo
 			case 'tilde': {
 				const home = this._getHomeDir(useWindowsStylePath, capabilities);
 				if (home) {
-					lastWordFolderResource = URI.joinPath(URI.file(home), lastWordFolder.slice(1).replaceAll('\\ ', ' '));
+					lastWordFolderResource = URI.joinPath(createUriFromLocalPath(cwd, home), lastWordFolder.slice(1).replaceAll('\\ ', ' '));
 				}
 				if (!lastWordFolderResource) {
 					// Use less strong wording here as it's not as strong of a concept on Windows
@@ -381,9 +390,9 @@ export class TerminalCompletionService extends Disposable implements ITerminalCo
 			}
 			case 'absolute': {
 				if (shellType === WindowsShellType.GitBash) {
-					lastWordFolderResource = URI.file(gitBashToWindowsPath(lastWordFolder, this._processEnv.SystemDrive));
+					lastWordFolderResource = createUriFromLocalPath(cwd, gitBashToWindowsPath(lastWordFolder, this._processEnv.SystemDrive));
 				} else {
-					lastWordFolderResource = URI.file(lastWordFolder.replaceAll('\\ ', ' '));
+					lastWordFolderResource = createUriFromLocalPath(cwd, lastWordFolder.replaceAll('\\ ', ' '));
 				}
 				break;
 			}
@@ -549,7 +558,7 @@ export class TerminalCompletionService extends Disposable implements ITerminalCo
 						const cdPathEntries = cdPath.split(useWindowsStylePath ? ';' : ':');
 						for (const cdPathEntry of cdPathEntries) {
 							try {
-								const fileStat = await this._fileService.resolve(URI.file(cdPathEntry), { resolveSingleChildDescendants: true });
+								const fileStat = await this._fileService.resolve(createUriFromLocalPath(cwd, cdPathEntry), { resolveSingleChildDescendants: true });
 								if (fileStat?.children) {
 									for (const child of fileStat.children) {
 										if (!child.isDirectory) {
@@ -610,7 +619,7 @@ export class TerminalCompletionService extends Disposable implements ITerminalCo
 			let homeResource: URI | string | undefined;
 			const home = this._getHomeDir(useWindowsStylePath, capabilities);
 			if (home) {
-				homeResource = URI.joinPath(URI.file(home), lastWordFolder.slice(1).replaceAll('\\ ', ' '));
+				homeResource = createUriFromLocalPath(cwd, home);
 			}
 			if (!homeResource) {
 				// Use less strong wording here as it's not as strong of a concept on Windows
@@ -685,3 +694,15 @@ function getIsAbsolutePath(shellType: TerminalShellType | undefined, pathSeparat
 	}
 	return useWindowsStylePath ? /^[a-zA-Z]:[\\\/]/.test(lastWord) : lastWord.startsWith(pathSeparator);
 }
+
+/**
+ * Creates a URI from an absolute path, preserving the scheme and authority from the cwd.
+ * For local file:// URIs, uses URI.file() which handles Windows path normalization.
+ * For remote URIs (e.g., vscode-remote://wsl+Ubuntu), preserves the remote context.
+ */
+function createUriFromLocalPath(cwd: URI, absolutePath: string): URI {
+	if (cwd.scheme === 'file') {
+		return URI.file(absolutePath);
+	}
+	return cwd.with({ path: absolutePath });
+}
diff --git a/src/vs/workbench/contrib/terminalContrib/suggest/test/browser/terminalCompletionService.test.ts b/src/vs/workbench/contrib/terminalContrib/suggest/test/browser/terminalCompletionService.test.ts
index f6ba7c0cc097a..23b8845644ce1 100644
--- a/src/vs/workbench/contrib/terminalContrib/suggest/test/browser/terminalCompletionService.test.ts
+++ b/src/vs/workbench/contrib/terminalContrib/suggest/test/browser/terminalCompletionService.test.ts
@@ -801,6 +801,87 @@ suite('TerminalCompletionService', () => {
 			});
 		});
 	}
+	if (!isWindows) {
+		suite('remote file completion (e.g. WSL)', () => {
+			const remoteAuthority = 'wsl+Ubuntu';
+			const remoteTestEnv: IProcessEnvironment = {
+				HOME: '/home/remoteuser',
+				USERPROFILE: '/home/remoteuser'
+			};
+
+			test('/absolute/path should preserve remote authority', async () => {
+				terminalCompletionService.processEnv = remoteTestEnv;
+				const resourceOptions: TerminalCompletionResourceOptions = {
+					cwd: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser' }),
+					showDirectories: true,
+					pathSeparator: '/'
+				};
+				validResources = [
+					URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home' }),
+					URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser' }),
+				];
+				childResources = [
+					{ resource: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser' }), isDirectory: true },
+				];
+				const result = await terminalCompletionService.resolveResources(resourceOptions, '/home/', 6, provider, capabilities);
+
+				// Check that results exist and have the correct scheme/authority
+				assert.ok(result && result.length > 0, 'Should return completions for remote absolute path');
+				// Verify completions contain paths resolved via the remote file service (not local file://)
+				const absoluteCompletion = result?.find(c => c.label === '/home/');
+				assert.ok(absoluteCompletion, 'Should have absolute path completion');
+				assert.ok(absoluteCompletion.detail?.includes('/home/'), 'Detail should show remote path');
+			});
+
+			test('~/ should preserve remote authority for tilde expansion', async () => {
+				terminalCompletionService.processEnv = remoteTestEnv;
+				const resourceOptions: TerminalCompletionResourceOptions = {
+					cwd: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project' }),
+					showDirectories: true,
+					pathSeparator: '/'
+				};
+				validResources = [
+					URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser' }),
+					URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project' }),
+				];
+				childResources = [
+					{ resource: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/Documents' }), isDirectory: true },
+					{ resource: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project' }), isDirectory: true },
+				];
+				const result = await terminalCompletionService.resolveResources(resourceOptions, '~/', 2, provider, capabilities);
+
+				// Check that results exist for remote tilde path
+				assert.ok(result && result.length > 0, 'Should return completions for remote tilde path');
+				// Verify the tilde path was resolved using the remote home directory
+				const documentsCompletion = result?.find(c => c.detail?.includes('Documents'));
+				assert.ok(documentsCompletion, 'Should find Documents folder from remote home');
+			});
+
+			test('./relative should preserve remote authority for relative paths', async () => {
+				terminalCompletionService.processEnv = remoteTestEnv;
+				const resourceOptions: TerminalCompletionResourceOptions = {
+					cwd: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project' }),
+					showDirectories: true,
+					pathSeparator: '/'
+				};
+				validResources = [
+					URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project' }),
+				];
+				childResources = [
+					{ resource: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project/src' }), isDirectory: true },
+					{ resource: URI.from({ scheme: 'vscode-remote', authority: remoteAuthority, path: '/home/remoteuser/project/docs' }), isDirectory: true },
+				];
+				const result = await terminalCompletionService.resolveResources(resourceOptions, './', 2, provider, capabilities);
+
+				// Check that results exist for remote relative path
+				assert.ok(result && result.length > 0, 'Should return completions for remote relative path');
+				// Verify completions are from the remote filesystem
+				const srcCompletion = result?.find(c => c.detail?.includes('/home/remoteuser/project/src'));
+				assert.ok(srcCompletion, 'Should find src folder completion with remote path in detail');
+			});
+		});
+	}
+
 	suite('completion label escaping', () => {
 		test('| should escape special characters in file/folder names for POSIX shells', async () => {
 			const resourceOptions: TerminalCompletionResourceOptions = {