diff --git a/server.c b/server.c
index b961faae..9c8254a4 100644
--- a/server.c
+++ b/server.c
@@ -84,12 +84,7 @@ server_create_socket(void)
 		fatal("socket failed");
 	}
 
-#ifdef TMATE_SLAVE
-	if (access(sa.sun_path, F_OK) == 0)
-		tmate_fatal("session exists");
-#else
 	unlink(sa.sun_path);
-#endif
 
 	if ((fd = socket(AF_UNIX, SOCK_STREAM, 0)) == -1)
 		fatal("socket failed");
diff --git a/tmate-slave.c b/tmate-slave.c
index b28b7925..bdf56286 100644
--- a/tmate-slave.c
+++ b/tmate-slave.c
@@ -2,6 +2,16 @@
 #include <stdlib.h>
 #include <unistd.h>
 #include <libssh/libssh.h>
+#include <sys/stat.h>
+#include <errno.h>
+#include <grp.h>
+#include <pwd.h>
+#ifdef HAVE_CURSES_H
+#include <curses.h>
+#else
+#include <ncurses.h>
+#endif
+#include <term.h>
 #include "tmate.h"
 
 struct tmate_encoder *tmate_encoder;
@@ -41,6 +51,12 @@ int main(int argc, char **argv)
 	}
 
 	log_open(debug_level, log_path);
+
+	if ((mkdir(TMATE_WORKDIR, 0700)             < 0 && errno != EEXIST) ||
+	    (mkdir(TMATE_WORKDIR "/sessions", 0700) < 0 && errno != EEXIST) ||
+	    (mkdir(TMATE_WORKDIR "/jail", 0700)     < 0 && errno != EEXIST))
+		tmate_fatal("Cannot prepare session in " TMATE_WORKDIR);
+
 	tmate_ssh_server_main(port);
 	return 0;
 }
@@ -48,7 +64,7 @@ int main(int argc, char **argv)
 static void set_session_token(const char *token)
 {
 	tmate_session_token = xstrdup(token);
-	strcpy(socket_path, "/tmp/tmate-slave-");
+	strcpy(socket_path, TMATE_WORKDIR "/sessions/");
 	strcat(socket_path, token);
 }
 
@@ -62,6 +78,11 @@ static char *get_random_token(void)
 	int i;
 	char *token = xmalloc(TMATE_TOKEN_LEN + 1);
 
+#if 0
+	strcpy(token, "TOKENTOKENTOKENTOKENTOKEN");
+	return token;
+#endif
+
 	ssh_get_random(token, TMATE_TOKEN_LEN, 0);
 	for (i = 0; i < TMATE_TOKEN_LEN; i++)
 		token[i] = tmate_token_digits[token[i] % NUM_DIGITS];
@@ -134,6 +155,50 @@ static void close_fds_except(int *fd_to_preserve, int num_fds)
 	}
 }
 
+static void jail(void)
+{
+	struct passwd *pw;
+	uid_t uid;
+	gid_t gid;
+
+	pw = getpwnam(TMATE_JAIL_USER);
+	if (!pw) {
+		tmate_fatal("Cannot get the /etc/passwd entry for %s",
+			    TMATE_JAIL_USER);
+	}
+	uid = pw->pw_uid;
+	gid = pw->pw_gid;
+
+	/*
+	 * We are already in a new PID namespace (from the server fork).
+	 */
+
+	if (chroot(TMATE_WORKDIR "/jail") < 0)
+		tmate_fatal("Cannot chroot()");
+
+	if (chdir("/") < 0)
+		tmate_fatal("Cannot chdir()");
+
+	if (setgroups(1, (gid_t[]){gid}) < 0)
+		tmate_fatal("Cannot setgroups()");
+
+	if (setresuid(uid, uid, uid) < 0)
+		tmate_fatal("Cannot setresuid()");
+
+	if (setresuid(gid, gid, gid) < 0)
+		tmate_fatal("Cannot setresgid()");
+
+	tmate_debug("Dropped priviledges to %s (%d,%d)",
+		    TMATE_JAIL_USER, uid, gid);
+}
+
+static void setup_ncurse(int fd, const char *name)
+{
+	int error;
+	if (setupterm(name, fd, &error) != OK)
+		tmate_fatal("Cannot setup terminal");
+}
+
 static void tmate_spawn_slave_server(struct tmate_ssh_client *client)
 {
 	char *token;
@@ -150,8 +215,14 @@ static void tmate_spawn_slave_server(struct tmate_ssh_client *client)
 	if (tmux_socket_fd < 0)
 		tmate_fatal("Cannot create to the tmux socket");
 
+	/*
+	 * Needed to initialize the database used in tty-term.c.
+	 * We won't have access to it once in the jail.
+	 */
+	setup_ncurse(STDOUT_FILENO, "screen-256color");
 	close_fds_except((int[]){tmux_socket_fd, ssh_get_fd(client->session),
 				 fileno(log_file)}, 7);
+	jail();
 
 	ev_base = osdep_event_init();
 
@@ -195,9 +266,11 @@ static void tmate_spawn_slave_client(struct tmate_ssh_client *client)
 	dup2(slave_pty, STDOUT_FILENO);
 	dup2(slave_pty, STDERR_FILENO);
 
+	setup_ncurse(slave_pty, "screen-256color");
 	close_fds_except((int[]){STDIN_FILENO, STDOUT_FILENO, STDERR_FILENO,
 				 tmux_socket_fd, ssh_get_fd(client->session),
 				 client->pty, fileno(log_file)}, 7);
+	jail();
 
 	ev_base = osdep_event_init();
 
diff --git a/tmate-ssh-client.c b/tmate-ssh-client.c
index 6737b3d4..9a425d75 100644
--- a/tmate-ssh-client.c
+++ b/tmate-ssh-client.c
@@ -3,6 +3,8 @@
 #include <libssh/server.h>
 #include <libssh/callbacks.h>
 
+extern int server_shutdown;
+
 static void consume_channel(struct tmate_ssh_client *client)
 {
 	char *buf;
@@ -18,7 +20,8 @@ static void consume_channel(struct tmate_ssh_client *client)
 		if (len < 0) {
 			tmate_debug("Error reading from channel: %s",
 				    ssh_get_error(client->session));
-			exit(1);
+			server_shutdown = 1;
+			break;
 		}
 		if (len == 0)
 			break;
@@ -35,7 +38,8 @@ static void on_session_event(struct tmate_ssh_client *client)
 	consume_channel(client);
 	if (!ssh_is_connected(session)) {
 		tmate_debug("Disconnected");
-		exit(1);
+		server_shutdown = 1;
+		return;
 	}
 }
 
@@ -68,7 +72,8 @@ static void flush_input_stream(struct tmate_ssh_client *client)
 		if (written < 0) {
 			tmate_debug("Error writing to channel: %s",
 				    ssh_get_error(client->session));
-			exit(1);
+			server_shutdown = 1;
+			break;
 		}
 
 		evbuffer_drain(evb, written);
diff --git a/tmate-ssh-server.c b/tmate-ssh-server.c
index 3ac6866d..bb8b0d43 100644
--- a/tmate-ssh-server.c
+++ b/tmate-ssh-server.c
@@ -3,9 +3,11 @@
 #include <libssh/callbacks.h>
 #include <sys/socket.h>
 #include <netinet/tcp.h>
+#include <sys/wait.h>
+#include <sys/syscall.h>
+#include <sched.h>
 #include <stdio.h>
 #include <event.h>
-#include <sys/wait.h>
 
 #include "tmate.h"
 
@@ -160,6 +162,8 @@ static void handle_sigchld(void)
 	int status, child_dead, child_exit_status;
 	pid_t pid;
 
+	/* TODO cleanup the socket when the client dies */
+
 	while ((pid = waitpid(0, &status, WNOHANG)) > 0) {
 		child_dead = 0;
 
@@ -208,6 +212,14 @@ static struct ssh_callbacks_struct ssh_session_callbacks = {
 	.log_function = ssh_log_cb
 };
 
+static pid_t namespace_fork(void)
+{
+	/* XXX we are breaking getpid() libc cache. Bad libc. */
+	unsigned long flags;
+	flags = CLONE_NEWPID | CLONE_NEWIPC | CLONE_NEWNS | CLONE_NEWNET;
+	return syscall(SYS_clone, flags | SIGCHLD, NULL, NULL, NULL);
+}
+
 void tmate_ssh_server_main(int port)
 {
 	struct tmate_ssh_client _client;
@@ -245,8 +257,8 @@ void tmate_ssh_server_main(int port)
 		if (ssh_bind_accept(bind, client->session) < 0)
 			tmate_fatal("Error accepting connection: %s", ssh_get_error(bind));
 
-		if ((pid = fork()) < 0)
-			tmate_fatal("Can't fork");
+		if ((pid = namespace_fork()) < 0)
+			tmate_fatal("Can't fork in new namespace");
 
 		if (pid) {
 			ssh_free(client->session);
diff --git a/tmate.h b/tmate.h
index d3fd422f..ea434f9e 100644
--- a/tmate.h
+++ b/tmate.h
@@ -101,6 +101,8 @@ extern void tmate_ssh_server_main(int port);
 /* tmate-slave.c */
 
 #define TMATE_TOKEN_LEN 25
+#define TMATE_WORKDIR "/tmp/tmate"
+#define TMATE_JAIL_USER "nobody"
 
 extern struct tmate_encoder *tmate_encoder;
 extern int tmux_socket_fd;
diff --git a/tty-term.c b/tty-term.c
index 95cb5db7..74cd2fb1 100644
--- a/tty-term.c
+++ b/tty-term.c
@@ -333,6 +333,8 @@ tty_term_find(char *name, int fd, const char *overrides, char **cause)
 	memset(term->codes, 0, sizeof term->codes);
 	LIST_INSERT_HEAD(&tty_terms, term, entry);
 
+	/* we are in a jail, no access to files */
+#ifndef TMATE_SLAVE
 	/* Set up curses terminal. */
 	if (setupterm(name, fd, &error) != OK) {
 		switch (error) {
@@ -353,6 +355,7 @@ tty_term_find(char *name, int fd, const char *overrides, char **cause)
 		}
 		goto error;
 	}
+#endif
 
 	/* Fill in codes. */
 	for (i = 0; i < NTTYCODE; i++) {
diff --git a/tty.c b/tty.c
index 9e6a88f1..4e51f697 100644
--- a/tty.c
+++ b/tty.c
@@ -72,9 +72,13 @@ tty_init(struct tty *tty, struct client *c, int fd, char *term)
 	tty->fd = fd;
 	tty->client = c;
 
+#ifdef TMATE_SLAVE
+	tty->path = NULL;
+#else
 	if ((path = ttyname(fd)) == NULL)
 		fatalx("ttyname failed");
 	tty->path = xstrdup(path);
+#endif
 	tty->cstyle = 0;
 	tty->ccolour = xstrdup("");