diff --git a/doc_src/cmds/cd.rst b/doc_src/cmds/cd.rst
index 52ae89561..2992d05b3 100644
--- a/doc_src/cmds/cd.rst
+++ b/doc_src/cmds/cd.rst
@@ -6,7 +6,7 @@ Synopsis
 
 .. synopsis::
 
-    cd [DIRECTORY]
+    cd [( -L | --no-dereference ) | ( -P | --dereference )] [DIRECTORY]
 
 Description
 -----------
@@ -18,11 +18,22 @@ Description
 
 ``cd`` changes the current working directory.
 
+The :envvar:`PWD` environment variable is updated with the new working directory, and the previous directory
+is added to the :ref:`directory history <directory-history>`.
+
 If *DIRECTORY* is given, it will become the new directory. If no parameter is given, the :envvar:`HOME` environment variable will be used.
 
 If *DIRECTORY* is a relative path, all the paths in the :envvar:`CDPATH` will be tried as prefixes for it, in addition to :envvar:`PWD`.
 It is recommended to keep **.** as the first element of :envvar:`CDPATH`, or :envvar:`PWD` will be tried last.
 
+The new directory name is partially resolved to remove redundant segments (``.`` or ``..``).
+
+``cd`` defaults to treating symbolic links as real directories, and not resolving them to their underlying
+targets. The ``$PWD`` :ref:`special variable <variables-special>` variable will contain the path that was
+supplied. This default behaviour can be enforced with the ``-L`` or ``--no-dereference`` option.
+
+The ``-P`` or ``--dereference`` option resolves all symbolic links first. This was the default in fish versions before 3.0.0.
+
 Fish will also try to change directory if given a command that looks like a directory (starting with **.**, **/** or **~**, or ending with **/**), without explicitly requiring **cd**.
 
 Fish also ships a wrapper function around the builtin **cd** that understands ``cd -`` as changing to the previous directory.
@@ -45,6 +56,9 @@ Examples
     cd /usr/src/fish-shell
     # changes the working directory to /usr/src/fish-shell
 
+    cd -P /tmp/link
+    # resolves /tmp/link to its target before recording the directory
+
 See Also
 --------
 
diff --git a/share/completions/cd.fish b/share/completions/cd.fish
index 11cb16e56..026139ce8 100644
--- a/share/completions/cd.fish
+++ b/share/completions/cd.fish
@@ -1,2 +1,4 @@
 complete -c cd -a "(__fish_complete_cd)"
 complete -c cd -s h -l help -d 'Display help and exit'
+complete -c cd -s L -l no-dereference -d 'Change directory without resolving symbolic links'
+complete -c cd -s P -l dereference -d 'Resolve symbolic links before changing directory'
diff --git a/share/functions/cd.fish b/share/functions/cd.fish
index be9f00683..7ad6239ed 100644
--- a/share/functions/cd.fish
+++ b/share/functions/cd.fish
@@ -5,14 +5,6 @@
 function cd --description "Change directory"
     set -l MAX_DIR_HIST 25
 
-    if set -q argv[2]; and begin
-            set -q argv[3]
-            or not test "$argv[1]" = --
-        end
-        printf "%s\n" (_ "Too many args for cd command") >&2
-        return 1
-    end
-
     # Skip history in subshells.
     if status is-command-substitution
         builtin cd $argv
diff --git a/src/builtins/cd.rs b/src/builtins/cd.rs
index d5468eca2..3d2c07c25 100644
--- a/src/builtins/cd.rs
+++ b/src/builtins/cd.rs
@@ -7,13 +7,20 @@
     fds::{BEST_O_SEARCH, wopen_dir},
     parser::ParserEnvSetMode,
     path::path_apply_cdpath,
-    wutil::{normalize_path, wreadlink},
+    wutil::{normalize_path, wreadlink, wrealpath},
 };
 use errno::Errno;
 use libc::{EACCES, ELOOP, ENOENT, ENOTDIR, EPERM};
 use nix::unistd::fchdir;
 use std::sync::Arc;
 
+const SHORT_OPTIONS: &wstr = L!("hLP");
+const LONG_OPTIONS: &[WOption] = &[
+    wopt(L!("help"), ArgType::NoArgument, 'h'),
+    wopt(L!("no-dereference"), ArgType::NoArgument, 'L'),
+    wopt(L!("dereference"), ArgType::NoArgument, 'P'),
+];
+
 // The cd builtin. Changes the current directory to the one specified or to $HOME if none is
 // specified. The directory can be relative to any directory in the CDPATH variable.
 pub fn cd(parser: &mut Parser, streams: &mut IoStreams, args: &mut [&wstr]) -> BuiltinResult {
@@ -26,18 +33,43 @@ pub fn cd(parser: &mut Parser, streams: &mut IoStreams, args: &mut [&wstr]) -> B
         return Err(STATUS_INVALID_ARGS);
     };
 
-    let opts = HelpOnlyCmdOpts::parse(args, parser, streams)?;
+    let argc = args.len();
+    let mut deref_symlink = false;
+    let mut w = WGetopter::new(SHORT_OPTIONS, LONG_OPTIONS, args);
+    while let Some(opt) = w.next_opt() {
+        match opt {
+            'L' => deref_symlink = false,
+            'P' => deref_symlink = true,
+            'h' => {
+                builtin_print_help(parser, streams, cmd);
+                return Ok(SUCCESS);
+            }
+            ';' => {
+                builtin_unexpected_argument(parser, streams, cmd, args[w.wopt_index - 1], false);
+                return Err(STATUS_INVALID_ARGS);
+            }
+            '?' => {
+                builtin_unknown_option(parser, streams, cmd, args[w.wopt_index - 1], false);
+                return Err(STATUS_INVALID_ARGS);
+            }
+            _ => panic!("unexpected option {}", opt),
+        }
+    }
 
-    if opts.print_help {
-        builtin_print_help(parser, streams, cmd);
-        return Ok(SUCCESS);
+    let optind = w.wopt_index;
+    let non_option_argc = argc - optind;
+    if non_option_argc > 1 {
+        err_fmt!(Error::UNEXP_ARG_COUNT, 1, non_option_argc)
+            .cmd(cmd)
+            .finish(streams);
+        return Err(STATUS_INVALID_ARGS);
     }
 
     let vars = parser.vars();
     let tmpstr;
 
-    let dir_in: &wstr = if args.len() > opts.optind {
-        args[opts.optind]
+    let dir_in: &wstr = if non_option_argc == 1 {
+        args[optind]
     } else {
         match vars.get_unless_empty(L!("HOME")) {
             Some(v) => {
@@ -63,7 +95,15 @@ pub fn cd(parser: &mut Parser, streams: &mut IoStreams, args: &mut [&wstr]) -> B
         return Err(STATUS_CMD_ERROR);
     }
 
-    let pwd = vars.get_pwd_slash();
+    let mut pwd = vars.get_pwd_slash();
+    if deref_symlink {
+        if let Some(mut real_pwd) = wrealpath(&pwd) {
+            if !real_pwd.ends_with('/') {
+                real_pwd.push('/');
+            }
+            pwd = real_pwd;
+        }
+    }
 
     let dirs = path_apply_cdpath(dir_in, &pwd, vars);
     assert!(
@@ -120,10 +160,17 @@ pub fn cd(parser: &mut Parser, streams: &mut IoStreams, args: &mut [&wstr]) -> B
         // Eventually fish will support distinct CWDs for different parsers in different threads.
         parser.libdata_mut().cwd_fd = Some(Arc::new(fd));
 
+        let mut new_pwd = norm_dir;
+        if deref_symlink {
+            if let Some(real_dir) = wrealpath(&new_pwd) {
+                new_pwd = real_dir;
+            }
+        }
+
         parser.set_var_and_fire(
             L!("PWD"),
             ParserEnvSetMode::new(EnvMode::EXPORT | EnvMode::GLOBAL),
-            vec![norm_dir],
+            vec![new_pwd],
         );
         return Ok(SUCCESS);
     }
diff --git a/tests/checks/cd.fish b/tests/checks/cd.fish
index daf3a5462..e6cded924 100644
--- a/tests/checks/cd.fish
+++ b/tests/checks/cd.fish
@@ -55,6 +55,20 @@ else
 end
 # CHECKERR: pwd: realpath failed: {{.+}}
 
+mkdir $real/subdir
+cd $link
+test "$PWD" = "$link" || echo "Default cd should keep symlink:"\n "\$PWD: $PWD"\n "\$link: $link"\n
+cd -P $link
+test "$PWD" = "$real" || echo "cd -P should resolve symlink:"\n "\$PWD: $PWD"\n "\$real: $real"\n
+cd $link/subdir
+test "$PWD" = "$link/subdir" || echo "Logical cd should keep subdir symlink:"\n "\$PWD: $PWD"\n "\$link/subdir: $link/subdir"\n
+cd -P ..
+test "$PWD" = "$real" || echo "cd -P .. should use physical parent:"\n "\$PWD: $PWD"\n "\$real: $real"\n
+cd $link/subdir
+cd -L ..
+test "$PWD" = "$link" || echo "cd -L .. should use logical parent:"\n "\$PWD: $PWD"\n "\$link: $link"\n
+cd $base
+
 # Create a symlink and verify logical completion.
 # create directory $base/through/the/looking/glass
 # symlink $base/somewhere/rabbithole -> $base/through/the/looking/glass