diff --git a/example-ttps/actions/change-directory/runtime-created-directory.yaml b/example-ttps/actions/change-directory/runtime-created-directory.yaml
new file mode 100644
index 00000000..5d8b0c23
--- /dev/null
+++ b/example-ttps/actions/change-directory/runtime-created-directory.yaml
@@ -0,0 +1,28 @@
+---
+api_version: 2.0
+uuid: c15da914-de49-4297-a281-9c81b4fea413
+name: change_directory_example_with_runtime_created_directory
+description: |
+  This TTP shows you how to use the change_directory action type to change the
+  working directory for all future actions, even if the directory doesn't exist until
+  this TTP is ran.
+args:
+  - name: cd_destination
+    description: this argument is where we will try to cd to
+    default: /tmp/this_doesnt_exist_yet
+steps:
+  - name: "Initial directory"
+    inline: |
+      echo "Current working directory is: \"$(pwd)\""
+  - name: "Create directory"
+    inline: |
+      mkdir {{.Args.cd_destination}}
+    cleanup:
+      inline: |
+        rm -rf {{.Args.cd_destination}}
+  - name: "cd"
+    cd: {{.Args.cd_destination}}
+    cleanup: default
+  - name: "New directory"
+    inline: |
+      echo "Current working directory is: \"$(pwd)\""
diff --git a/pkg/blocks/changedirectory.go b/pkg/blocks/changedirectory.go
index abdc8cc1..590e88ce 100644
--- a/pkg/blocks/changedirectory.go
+++ b/pkg/blocks/changedirectory.go
@@ -63,21 +63,6 @@ func (step *ChangeDirectoryStep) Validate(_ TTPExecutionContext) error {
 		return err
 	}
 
-	// Check if cd is a valid directory
-	fsys := step.FileSystem
-	if fsys == nil {
-		fsys = afero.NewOsFs()
-	}
-
-	exists, err := afero.DirExists(fsys, step.Cd)
-	if err != nil {
-		return err
-	}
-
-	if !exists {
-		return fmt.Errorf("directory \"%s\" does not exist", step.Cd)
-	}
-
 	return nil
 }
 
@@ -96,6 +81,25 @@ func (step *ChangeDirectoryStep) Execute(ctx TTPExecutionContext) (*ActResult, e
 		step.Cd = step.PreviousCDStep.PreviousDir
 	}
 
+	// Check if cd is a valid directory
+	fsys := step.FileSystem
+	if fsys == nil {
+		if step.PreviousCDStep != nil && step.PreviousCDStep.FileSystem != nil {
+			fsys = step.PreviousCDStep.FileSystem
+		} else {
+			fsys = afero.NewOsFs()
+		}
+	}
+
+	exists, err := afero.DirExists(fsys, step.Cd)
+	if err != nil {
+		return nil, err
+	}
+
+	if !exists {
+		return nil, fmt.Errorf("directory \"%s\" does not exist", step.Cd)
+	}
+
 	logging.L().Infof("Changing directory to %s", step.Cd)
 
 	if step.Cd == "" {