diff --git a/.github/workflows/continuous_integration.yml b/.github/workflows/continuous_integration.yml
index 1d258279..801b997e 100644
--- a/.github/workflows/continuous_integration.yml
+++ b/.github/workflows/continuous_integration.yml
@@ -29,6 +29,8 @@ jobs:
       - name: Run full test suite
         run: fishtape tests/*/*.fish
         shell: fish {0}
+        # timeout in case tests get stuck on fzf
+        timeout-minutes: 3
 
   syntax-check:
     runs-on: ubuntu-latest
diff --git a/functions/__fzf_search_current_dir.fish b/functions/__fzf_search_current_dir.fish
index 669dc643..43234eec 100644
--- a/functions/__fzf_search_current_dir.fish
+++ b/functions/__fzf_search_current_dir.fish
@@ -6,8 +6,8 @@ function __fzf_search_current_dir --description "Search the current directory. R
     set fd_opts --color=always $fzf_fd_opts
     set fzf_arguments --multi --ansi $fzf_dir_opts
     set token (commandline --current-token)
-    # expand ~ in the directory name since fd can't expand it
-    set expanded_token (string replace --regex -- "^~/" $HOME/ $token)
+    ​# expand the token (which may include tilde, variables, etc.) into full path
+    set expanded_token (eval echo -- \"$token\")
     # unescape token because it's already quoted so backslashes will mess up the path
     set unescaped_exp_token (string unescape -- $expanded_token)
 
diff --git a/tests/search_current_dir/expands_var_in_query.fish b/tests/search_current_dir/expands_var_in_query.fish
new file mode 100644
index 00000000..09388eed
--- /dev/null
+++ b/tests/search_current_dir/expands_var_in_query.fish
@@ -0,0 +1,10 @@
+set target "file 1.txt"
+
+set --global fzf_dir_opts --select-1
+mock commandline --current-token "echo \$target"
+mock commandline "--current-token --replace --" "echo \$argv"
+mock commandline \* ""
+# string unescape because the args passed into commandline --current-token --replace are escaped
+set actual (string unescape (__fzf_search_current_dir))
+
+@test "expands variables in current token" (basename $actual) = $target