diff --git a/packages/opencode/src/permission/next.ts b/packages/opencode/src/permission/next.ts
index f95aaf34525..2481f104ed1 100644
--- a/packages/opencode/src/permission/next.ts
+++ b/packages/opencode/src/permission/next.ts
@@ -7,11 +7,20 @@ import { Storage } from "@/storage/storage"
 import { fn } from "@/util/fn"
 import { Log } from "@/util/log"
 import { Wildcard } from "@/util/wildcard"
+import os from "os"
 import z from "zod"
 
 export namespace PermissionNext {
   const log = Log.create({ service: "permission" })
 
+  function expand(pattern: string): string {
+    if (pattern.startsWith("~/")) return os.homedir() + pattern.slice(1)
+    if (pattern === "~") return os.homedir()
+    if (pattern.startsWith("$HOME/")) return os.homedir() + pattern.slice(5)
+    if (pattern.startsWith("$HOME")) return os.homedir() + pattern.slice(5)
+    return pattern
+  }
+
   export const Action = z.enum(["allow", "deny", "ask"]).meta({
     ref: "PermissionAction",
   })
@@ -44,7 +53,9 @@ export namespace PermissionNext {
         })
         continue
       }
-      ruleset.push(...Object.entries(value).map(([pattern, action]) => ({ permission: key, pattern, action })))
+      ruleset.push(
+        ...Object.entries(value).map(([pattern, action]) => ({ permission: key, pattern: expand(pattern), action })),
+      )
     }
     return ruleset
   }
diff --git a/packages/opencode/test/permission/next.test.ts b/packages/opencode/test/permission/next.test.ts
index 68dc653de6d..29f1efa4019 100644
--- a/packages/opencode/test/permission/next.test.ts
+++ b/packages/opencode/test/permission/next.test.ts
@@ -1,4 +1,5 @@
 import { test, expect } from "bun:test"
+import os from "os"
 import { PermissionNext } from "../../src/permission/next"
 import { Instance } from "../../src/project/instance"
 import { Storage } from "../../src/storage/storage"
@@ -38,6 +39,43 @@ test("fromConfig - empty object", () => {
   expect(result).toEqual([])
 })
 
+test("fromConfig - expands tilde to home directory", () => {
+  const result = PermissionNext.fromConfig({ external_directory: { "~/projects/*": "allow" } })
+  expect(result).toEqual([{ permission: "external_directory", pattern: `${os.homedir()}/projects/*`, action: "allow" }])
+})
+
+test("fromConfig - expands $HOME to home directory", () => {
+  const result = PermissionNext.fromConfig({ external_directory: { "$HOME/projects/*": "allow" } })
+  expect(result).toEqual([{ permission: "external_directory", pattern: `${os.homedir()}/projects/*`, action: "allow" }])
+})
+
+test("fromConfig - expands $HOME without trailing slash", () => {
+  const result = PermissionNext.fromConfig({ external_directory: { $HOME: "allow" } })
+  expect(result).toEqual([{ permission: "external_directory", pattern: os.homedir(), action: "allow" }])
+})
+
+test("fromConfig - does not expand tilde in middle of path", () => {
+  const result = PermissionNext.fromConfig({ external_directory: { "/some/~/path": "allow" } })
+  expect(result).toEqual([{ permission: "external_directory", pattern: "/some/~/path", action: "allow" }])
+})
+
+test("fromConfig - expands exact tilde to home directory", () => {
+  const result = PermissionNext.fromConfig({ external_directory: { "~": "allow" } })
+  expect(result).toEqual([{ permission: "external_directory", pattern: os.homedir(), action: "allow" }])
+})
+
+test("evaluate - matches expanded tilde pattern", () => {
+  const ruleset = PermissionNext.fromConfig({ external_directory: { "~/projects/*": "allow" } })
+  const result = PermissionNext.evaluate("external_directory", `${os.homedir()}/projects/file.txt`, ruleset)
+  expect(result.action).toBe("allow")
+})
+
+test("evaluate - matches expanded $HOME pattern", () => {
+  const ruleset = PermissionNext.fromConfig({ external_directory: { "$HOME/projects/*": "allow" } })
+  const result = PermissionNext.evaluate("external_directory", `${os.homedir()}/projects/file.txt`, ruleset)
+  expect(result.action).toBe("allow")
+})
+
 // merge tests
 
 test("merge - simple concatenation", () => {
diff --git a/packages/web/src/content/docs/permissions.mdx b/packages/web/src/content/docs/permissions.mdx
index 4df3841e34a..229cb264e64 100644
--- a/packages/web/src/content/docs/permissions.mdx
+++ b/packages/web/src/content/docs/permissions.mdx
@@ -78,6 +78,14 @@ Permission patterns use simple wildcard matching:
 - `?` matches exactly one character
 - All other characters match literally
 
+### Home Directory Expansion
+
+You can use `~` or `$HOME` at the start of a pattern to reference your home directory. This is particularly useful for `external_directory` rules.
+
+- `~/projects/*` -> `/Users/username/projects/*`
+- `$HOME/projects/*` -> `/Users/username/projects/*`
+- `~` -> `/Users/username`
+
 ---
 
 ## Available Permissions