diff --git a/internal/exec/shell_utils.go b/internal/exec/shell_utils.go
index d7e4e7fcf..a6fd60fde 100644
--- a/internal/exec/shell_utils.go
+++ b/internal/exec/shell_utils.go
@@ -154,7 +154,7 @@ func execTerraformShellCommand(
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_import=-var-file=%s", varFile))
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_destroy=-var-file=%s", varFile))
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_console=-var-file=%s", varFile))
-	componentEnvList = append(componentEnvList, "PS1=atmos>")
+	componentEnvList = append(componentEnvList, fmt.Sprintf("PS1=[atmos:%s/%s]> ", stack, component))
 
 	u.LogDebug(cliConfig, "\nStarting a new interactive shell where you can execute all native Terraform commands (type 'exit' to go back)")
 	u.LogDebug(cliConfig, fmt.Sprintf("Component: %s\n", component))
@@ -184,9 +184,15 @@ func execTerraformShellCommand(
 		if len(shellCommand) == 0 {
 			bashPath, err := exec.LookPath("bash")
 			if err != nil {
-				return err
+				// Try fallback to sh if bash is not available
+				shPath, shErr := exec.LookPath("sh")
+				if shErr != nil {
+					return fmt.Errorf("no suitable shell found: %v", shErr)
+				}
+				shellCommand = shPath
+			} else {
+				shellCommand = bashPath
 			}
-			shellCommand = bashPath
 		}
 	}