diff --git a/runtime/doc/options.txt b/runtime/doc/options.txt
index b3c5697..cf064e1 100644
--- a/runtime/doc/options.txt
+++ b/runtime/doc/options.txt
@@ -1,4 +1,4 @@
-*options.txt*	For Vim version 9.1.  Last change: 2025 Jul 01
+*options.txt*	For Vim version 9.1.  Last change: 2025 Jul 03
 
 
 		  VIM REFERENCE MANUAL	  by Bram Moolenaar
@@ -2390,7 +2390,7 @@
 
 						*'cpoptions'* *'cpo'* *cpo*
 'cpoptions' 'cpo'	string	(Vim default: "aABceFsz",
-				 Vi default:  all flags, except "#{|&/\."
+				 Vi default:  all flags, except "#{|&/\.~"
 				 |$VIM_POSIX|:  all flags)
 			global
 	A sequence of single character flags.  When a character is present
@@ -2680,6 +2680,13 @@
 			character, the cursor won't move. When not included,
 			the cursor would skip over it and jump to the
 			following occurrence.
+								*cpo-~*
+		~	When included, don't resolve symbolic links when
+			changing directory with |:cd|, |:lcd|, or |:tcd|.
+			This preserves the symbolic link path in buffer names
+			and when displaying the current directory.  When
+			excluded (default), symbolic links are resolved to
+			their target paths.
 
 	POSIX flags.  These are not included in the Vi default value, except
 	when $VIM_POSIX was set on startup. |posix|
diff --git a/runtime/doc/tags b/runtime/doc/tags
index 71a9616..6b363db 100644
--- a/runtime/doc/tags
+++ b/runtime/doc/tags
@@ -6795,6 +6795,7 @@
 cpo-y	options.txt	/*cpo-y*
 cpo-z	options.txt	/*cpo-z*
 cpo-{	options.txt	/*cpo-{*
+cpo-~	options.txt	/*cpo-~*
 cpp.vim	syntax.txt	/*cpp.vim*
 crash-recovery	recover.txt	/*crash-recovery*
 creating-menus	gui.txt	/*creating-menus*
diff --git a/runtime/doc/version9.txt b/runtime/doc/version9.txt
index fcd3b9f..75d1401 100644
--- a/runtime/doc/version9.txt
+++ b/runtime/doc/version9.txt
@@ -41643,6 +41643,8 @@
 - 'completeopt' is now a |global-local| option.
 - add 'cpoptions' flag "z" |cpo-z|, to disable some (traditional) vi
   behaviour/inconsistency (see |d-special| and |cw|).
+- add 'cpoptions' flag "~" |cpo-~| to disable resolving symlinks on |:cd|
+  commands
 - new option values for 'fillchars':
 	"trunc"		- configure truncation indicator, 'pummaxwidth'
 	"truncrl"	- like "trunc" but in 'rl' mode, 'pummaxwidth'
diff --git a/src/ex_docmd.c b/src/ex_docmd.c
index ba0bff4..b985e2b 100644
--- a/src/ex_docmd.c
+++ b/src/ex_docmd.c
@@ -8029,7 +8029,7 @@
     }
 
     last_chdir_reason = NULL;
-    shorten_fnames(TRUE);
+    shorten_fnames(vim_strchr(p_cpo, CPO_NOSYMLINKS) == NULL);
 }
 
 /*
diff --git a/src/option.h b/src/option.h
index 4ed117c..5590e56 100644
--- a/src/option.h
+++ b/src/option.h
@@ -231,10 +231,11 @@
 #define CPO_CHDIR	'.'	// don't chdir if buffer is modified
 #define CPO_SCOLON	';'	// using "," and ";" will skip over char if
 				// cursor would not move
+#define CPO_NOSYMLINKS	'~'	// don't resolve symlinks when changing directory
 // default values for Vim, Vi and POSIX
 #define CPO_VIM		"aABceFsz"
 #define CPO_VI		"aAbBcCdDeEfFgHiIjJkKlLmMnoOpPqrRsStuvwWxXyZz$!%*-+<>;"
-#define CPO_ALL		"aAbBcCdDeEfFgHiIjJkKlLmMnoOpPqrRsStuvwWxXyZz$!%*-+<>#{|&/\\.;"
+#define CPO_ALL		"aAbBcCdDeEfFgHiIjJkKlLmMnoOpPqrRsStuvwWxXyZz$!%*-+<>#{|&/\\.;~"
 
 // characters for p_ww option:
 #define WW_ALL		"bshl<>[]~"
diff --git a/src/testdir/test_cd.vim b/src/testdir/test_cd.vim
index 13a3eba..85494d3 100644
--- a/src/testdir/test_cd.vim
+++ b/src/testdir/test_cd.vim
@@ -252,4 +252,67 @@
   call chdir(startdir)
 endfunc
 
+func Test_cd_preserve_symlinks()
+  " Test new behavior: preserve symlinks when cpo-=~
+  set cpoptions+=~
+
+  let savedir = getcwd()
+  call mkdir('Xsource', 'R')
+  call writefile(['abc'], 'Xsource/foo.txt', 'D')
+
+  if has("win32")
+    silent !mklink /D Xdest Xsource
+  else
+    silent !ln -s Xsource Xdest
+  endif
+  if v:shell_error
+    call delete('Xsource', 'rf')
+    throw 'Skipped: cannot create symlinks'
+  endif
+
+  edit Xdest/foo.txt
+  let path_before = expand('%')
+  call assert_match('Xdest[/\\]foo\.txt$', path_before)
+
+  cd .
+  let path_after = expand('%')
+  call assert_equal(path_before, path_after)
+  call assert_match('Xdest[/\\]foo\.txt$', path_after)
+
+  bwipe!
+  set cpoptions&
+  call delete('Xdest', 'rf')
+  call delete('Xsource', 'rf')
+  call chdir(savedir)
+endfunc
+
+func Test_cd_symlinks()
+  CheckNotMSWindows
+
+  let savedir = getcwd()
+  call mkdir('Xsource', 'R')
+  call writefile(['abc'], 'Xsource/foo.txt', 'D')
+
+  silent !ln -s Xsource Xdest
+  if v:shell_error
+    call delete('Xsource', 'rf')
+    throw 'Skipped: cannot create symlinks'
+  endif
+
+  edit Xdest/foo.txt
+  let path_before = expand('%')
+  call assert_match('Xdest[/\\]foo\.txt$', path_before)
+
+  cd .
+  let path_after = expand('%')
+  call assert_match('Xsource[/\\]foo\.txt$', path_after)
+  call assert_notequal(path_before, path_after)
+
+  bwipe!
+  set cpoptions&
+  call delete('Xdest', 'rf')
+  call delete('Xsource', 'rf')
+  call chdir(savedir)
+endfunc
+
 " vim: shiftwidth=2 sts=2 expandtab
diff --git a/src/testdir/test_options.vim b/src/testdir/test_options.vim
index cb5636e..21e4a03 100644
--- a/src/testdir/test_options.vim
+++ b/src/testdir/test_options.vim
@@ -2273,7 +2273,7 @@
     qall
   [CODE]
   if RunVim([], after, '')
-    call assert_equal(['aAbBcCdDeEfFgHiIjJkKlLmMnoOpPqrRsStuvwWxXyZz$!%*-+<>#{|&/\.;',
+    call assert_equal(['aAbBcCdDeEfFgHiIjJkKlLmMnoOpPqrRsStuvwWxXyZz$!%*-+<>#{|&/\.;~',
           \            'AS'], readfile('X_VIM_POSIX'))
   endif
 
@@ -2528,7 +2528,7 @@
         \ ['completeopt', 'popup', 'a123'],
         \ ['completepopup', 'width:20', 'border'],
         \ ['concealcursor', 'v', 'xyz'],
-        \ ['cpoptions', 'HJ', '~'],
+        \ ['cpoptions', 'HJ', 'Q'],
         \ ['cryptmethod', 'zip', 'a123'],
         \ ['cursorlineopt', 'screenline', 'a123'],
         \ ['debug', 'throw', 'a123'],
diff --git a/src/version.c b/src/version.c
index d5a882d..9d27681 100644
--- a/src/version.c
+++ b/src/version.c
@@ -720,6 +720,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1507,
+/**/
     1506,
 /**/
     1505,