diff --git a/engine/src/main/java/org/terasology/engine/paths/PathManager.java b/engine/src/main/java/org/terasology/engine/paths/PathManager.java
index 01b11ad4047..d4422c2d412 100644
--- a/engine/src/main/java/org/terasology/engine/paths/PathManager.java
+++ b/engine/src/main/java/org/terasology/engine/paths/PathManager.java
@@ -32,6 +32,9 @@
 import java.util.List;
 
 import javax.swing.JFileChooser;
+import org.terasology.context.Context;
+import org.terasology.engine.subsystem.DisplayDevice;
+
 
 /**
  * Manager class that keeps track of the game's various paths and save directories.
@@ -52,6 +55,8 @@ public final class PathManager {
     private static final String REGEX = "[^A-Za-z0-9-_ ]";
 
     private static PathManager instance;
+
+    private static Context context;
     private Path installPath;
     private Path homePath;
     private Path savesPath;
@@ -169,15 +174,18 @@ public void useDefaultHomePath() throws IOException {
                 homePath = Paths.get(System.getProperty("user.home"), "Library", "Application Support", TERASOLOGY_FOLDER_NAME);
                 break;
             case LWJGLUtil.PLATFORM_WINDOWS:
-                String savedGamesPath = Shell32Util.getKnownFolderPath(KnownFolders.FOLDERID_SavedGames);
+                String savedGamesPath = Shell32Util
+                    .getKnownFolderPath(KnownFolders.FOLDERID_SavedGames);
                 if (savedGamesPath == null) {
-                    savedGamesPath = Shell32Util.getKnownFolderPath(KnownFolders.FOLDERID_Documents);
+                    savedGamesPath = Shell32Util
+                        .getKnownFolderPath(KnownFolders.FOLDERID_Documents);
                 }
                 Path rawPath;
                 if (savedGamesPath != null) {
                     rawPath = Paths.get(savedGamesPath);
                 } else {
-                    rawPath = new JFileChooser().getFileSystemView().getDefaultDirectory().toPath();
+                    rawPath = new JFileChooser().getFileSystemView().getDefaultDirectory()
+                        .toPath();
                 }
                 homePath = rawPath.resolve(TERASOLOGY_FOLDER_NAME);
                 break;
@@ -188,6 +196,24 @@ public void useDefaultHomePath() throws IOException {
         updateDirs();
     }
 
+    /**
+     * Gives user the option to manually choose home path.
+     * @throws IOException Thrown when required directories cannot be accessed.
+     */
+    public void chooseHomePathManually() throws IOException {
+        DisplayDevice display = context.get(DisplayDevice.class);
+        boolean isHeadless = display.isHeadless();
+        if (!isHeadless) {
+            Path rawPath = new JFileChooser().getFileSystemView().getDefaultDirectory()
+                .toPath();
+            homePath = rawPath.resolve("Terasology");
+        } else {
+            // If the system is headless
+            homePath = Paths.get("").toAbsolutePath();
+        }
+        updateDirs();
+    }
+
     /**
      *
      * @return This execution's home path.
diff --git a/facades/PC/src/main/java/org/terasology/engine/Terasology.java b/facades/PC/src/main/java/org/terasology/engine/Terasology.java
index 54017b178db..9924035d316 100644
--- a/facades/PC/src/main/java/org/terasology/engine/Terasology.java
+++ b/facades/PC/src/main/java/org/terasology/engine/Terasology.java
@@ -17,6 +17,8 @@
 
 import com.google.common.base.Joiner;
 import com.google.common.collect.ImmutableList;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
 import org.terasology.config.Config;
 import org.terasology.config.SystemConfig;
 import org.terasology.crashreporter.CrashReporter;
@@ -41,6 +43,7 @@
 import org.terasology.engine.subsystem.openvr.OpenVRInput;
 import org.terasology.engine.subsystem.rpc.DiscordRPCSubSystem;
 import org.terasology.game.GameManifest;
+import org.terasology.logic.characters.CharacterSystem;
 import org.terasology.network.NetworkMode;
 import org.terasology.rendering.nui.layers.mainMenu.savedGames.GameInfo;
 import org.terasology.rendering.nui.layers.mainMenu.savedGames.GameProvider;
@@ -107,6 +110,8 @@ public final class Terasology {
     private static final String NO_SPLASH = "-noSplash";
     private static final String SERVER_PORT = "-serverPort=";
     private static final String OVERRIDE_DEFAULT_CONFIG = "-overrideDefaultConfig=";
+    private static final Logger logger = LoggerFactory.getLogger(Terasology.class);
+
 
     private static boolean isHeadless;
     private static boolean crashReportEnabled = true;
@@ -114,6 +119,7 @@ public final class Terasology {
     private static boolean splashEnabled = true;
     private static boolean loadLastGame;
 
+
     private Terasology() {
     }
 
@@ -362,8 +368,13 @@ private static void handleLaunchArguments(String[] args) {
             }
 
         } catch (IOException e) {
-            reportException(e);
-            System.exit(0);
+            logger.warn("The game cannot detect default home directory");
+            try {
+                PathManager.getInstance().chooseHomePathManually();
+            } catch (IOException ex) {
+                reportException(ex);
+                System.exit(0);
+            }
         }
     }