diff --git a/src/dos/dos_programs.cpp b/src/dos/dos_programs.cpp
index 66bebbdd..0bd0a2a8 100644
--- a/src/dos/dos_programs.cpp
+++ b/src/dos/dos_programs.cpp
@@ -272,7 +272,7 @@ public:
 			if (type == "overlay") {
 				//Ensure that the base drive exists:
 				if (!Drives[drive-'A']) {
-					WriteOut("No basedrive mounted yet!");
+					WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_NO_BASE"));
 					return;
 				}
 			} else if (Drives[drive-'A']) {
@@ -362,7 +362,7 @@ public:
 					localDrive* ldp = dynamic_cast<localDrive*>(Drives[drive - 'A']);
 					cdromDrive* cdp = dynamic_cast<cdromDrive*>(Drives[drive - 'A']);
 					if (!ldp || cdp) {
-						WriteOut("Basedrive not compatible");
+						WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_INCOMPAT_BASE"));
 						return;
 					}
 					std::string base = ldp->getBasedir();
@@ -371,20 +371,26 @@ public:
 					//Erase old drive on success
 					if (newdrive) {
 						if (o_error) { 
-							if (o_error == 1) WriteOut("No mixing of relative and absolute paths. Overlay failed.");
-							else if (o_error == 2) WriteOut("overlay directory can not be the same as underlying file system.");
-							else WriteOut("Something went wrong");
+							if (o_error == 1) WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_MIXED_BASE"));
+							else if (o_error == 2) WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_SAME_AS_BASE"));
+							else WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_GENERIC_ERROR"));
 							delete newdrive;
 							return;
 						}
+
+						//Copy current directory if not marked as deleted.
+						if (newdrive->TestDir(ldp->curdir)) {
+							strcpy(newdrive->curdir,ldp->curdir);
+						}
+
 						delete Drives[drive - 'A'];
 						Drives[drive - 'A'] = 0;
 					} else { 
-						WriteOut("overlaydrive construction failed.");
+						WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_GENERIC_ERROR"));
 						return;
 					}
 				} else {
-					newdrive=new localDrive(temp_line.c_str(),sizes[0],bit8size,sizes[2],sizes[3],mediaid);
+					newdrive = new localDrive(temp_line.c_str(),sizes[0],bit8size,sizes[2],sizes[3],mediaid);
 				}
 			}
 		} else {
@@ -396,7 +402,7 @@ public:
 		/* Set the correct media byte in the table */
 		mem_writeb(Real2Phys(dos.tables.mediaid) + (drive - 'A') * 9, newdrive->GetMediaByte());
 		if (type != "overlay") WriteOut(MSG_Get("PROGRAM_MOUNT_STATUS_2"),drive,newdrive->GetInfo());
-		else WriteOut("Overlay %s on drive %c mounted.\n",temp_line.c_str(),drive);
+		else WriteOut(MSG_Get("PROGRAM_MOUNT_OVERLAY_STATUS"),temp_line.c_str(),drive);
 		/* check if volume label is given and don't allow it to updated in the future */
 		if (cmd->FindString("-label",label,true)) newdrive->dirCache.SetLabel(label.c_str(),iscdrom,false);
 		/* For hard drives set the label to DRIVELETTER_Drive.
@@ -1562,6 +1568,12 @@ void DOS_SetupPrograms(void) {
 	MSG_Add("PROGRAM_MOUNT_WARNING_WIN","\033[31;1mMounting c:\\ is NOT recommended. Please mount a (sub)directory next time.\033[0m\n");
 	MSG_Add("PROGRAM_MOUNT_WARNING_OTHER","\033[31;1mMounting / is NOT recommended. Please mount a (sub)directory next time.\033[0m\n");
 	MSG_Add("PROGRAM_MOUNT_NO_OPTION", "Warning: Ignoring unsupported option '%s'.\n");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_NO_BASE","A normal directory needs to be MOUNTed first before an overlay can be added on top.\n");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_INCOMPAT_BASE","The overlay is NOT compatible with the drive that is specified.\n");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_MIXED_BASE","The overlay needs to be specified using the same addressing as the underlying drive. No mixing of relative and absolute paths.");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_SAME_AS_BASE","The overlay directory can not be the same as underlying drive.\n");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_GENERIC_ERROR","Something went wrong.\n");
+	MSG_Add("PROGRAM_MOUNT_OVERLAY_STATUS","Overlay %s on drive %c mounted.\n");
 
 	MSG_Add("PROGRAM_MEM_CONVEN","%10d Kb free conventional memory\n");
 	MSG_Add("PROGRAM_MEM_EXTEND","%10d Kb free extended memory\n");