diff --git a/CHANGELOG.md b/CHANGELOG.md
index 00f08f58..734978ba 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,8 @@ project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 ### Fixed
 
+- Restore current-directory `.env` discovery in interactive consoles that report
+  pseudo-filenames such as `<input>` by [@cucuwang] in [#596]
 - An unquoted empty value followed by an inline comment (e.g. `KEY= # comment`) is now parsed as an empty string instead of the comment text by [@Noethix55555] in [#663]
 
 ## [1.2.3] - 2026-08-16
@@ -436,6 +438,7 @@ os.PathLike]` instead of just `os.PathLike` (#347 by [@bbc2]).
 [#583]: https://github.com/theskumar/python-dotenv/issues/583
 [#586]: https://github.com/theskumar/python-dotenv/issues/586
 [#590]: https://github.com/theskumar/python-dotenv/issues/590
+[#596]: https://github.com/theskumar/python-dotenv/issues/596
 [#607]: https://github.com/theskumar/python-dotenv/issues/607
 [#588]: https://github.com/theskumar/python-dotenv/issues/588
 [#579]: https://github.com/theskumar/python-dotenv/pull/579
@@ -508,6 +511,7 @@ os.PathLike]` instead of just `os.PathLike` (#347 by [@bbc2]).
 [@JYOuyang]: https://github.com/JYOuyang
 [@burnout-projects]: https://github.com/burnout-projects
 [@cpackham-atlnz]: https://github.com/cpackham-atlnz
+[@cucuwang]: https://github.com/cucuwang
 [Unreleased]: https://github.com/theskumar/python-dotenv/compare/v1.2.3...HEAD
 [1.2.3]: https://github.com/theskumar/python-dotenv/compare/v1.2.2...v1.2.3
 [1.2.2]: https://github.com/theskumar/python-dotenv/compare/v1.2.1...v1.2.2
diff --git a/src/dotenv/main.py b/src/dotenv/main.py
index 3123690a..251a34da 100644
--- a/src/dotenv/main.py
+++ b/src/dotenv/main.py
@@ -358,6 +358,9 @@ def _is_interactive():
     def _is_debugger():
         return sys.gettrace() is not None
 
+    def _is_pseudo_filename(source_path: str) -> bool:
+        return source_path.startswith("<") and source_path.endswith(">")
+
     if usecwd or _is_interactive() or _is_debugger() or getattr(sys, "frozen", False):
         # Should work without __file__, e.g. in REPL or IPython notebook.
         path = os.getcwd()
@@ -366,13 +369,18 @@ def _is_debugger():
         frame = sys._getframe()
         current_file = __file__
 
-        while frame.f_code.co_filename == current_file or not os.path.exists(
-            frame.f_code.co_filename
+        while frame.f_code.co_filename == current_file or (
+            not _is_pseudo_filename(frame.f_code.co_filename)
+            and not os.path.exists(frame.f_code.co_filename)
         ):
             assert frame.f_back is not None
             frame = frame.f_back
         frame_filename = frame.f_code.co_filename
-        path = os.path.dirname(os.path.abspath(frame_filename))
+        path = (
+            os.getcwd()
+            if _is_pseudo_filename(frame_filename)
+            else os.path.dirname(os.path.abspath(frame_filename))
+        )
 
     for dirname in _walk_to_root(path):
         check_path = os.path.join(dirname, filename)
diff --git a/tests/test_main.py b/tests/test_main.py
index 6f9d4c5c..00c53342 100644
--- a/tests/test_main.py
+++ b/tests/test_main.py
@@ -412,6 +412,35 @@ def test_find_dotenv_found(tmp_path):
     assert result == str(dotenv_path)
 
 
+def test_find_dotenv_from_pseudo_filename(tmp_path):
+    project_dir = tmp_path / "project"
+    project_dir.mkdir()
+    dotenv_path = project_dir / ".env"
+    dotenv_path.write_text("TEST=test\n")
+
+    console_driver = tmp_path / "console_driver.py"
+    console_driver.write_text(
+        textwrap.dedent(
+            """
+            from dotenv import find_dotenv
+
+            console_code = compile("print(find_dotenv())", "<input>", "exec")
+            exec(console_code)
+            """
+        )
+    )
+
+    result = subprocess.run(
+        [sys.executable, str(console_driver)],
+        cwd=project_dir,
+        check=True,
+        capture_output=True,
+        text=True,
+    )
+
+    assert result.stdout.strip() == str(dotenv_path)
+
+
 @pytest.mark.skipif(
     sys.platform == "win32", reason="This test assumes case-sensitive variable names"
 )