Suppose you are using M-x ansi-term in emacs and you issue ssh user@remotehost command in the terminal session. Now when you do C-x C-f to find a file, your mini-buffer is probably going to display files and folders from the working directory from your localhost machine.

# M-x ansi-term
mkvenkatesh@localhost:~/$ ssh mkvenkatesh@remotehost
mkvenkatesh@remotehost:~/$
# Logged into remotehost. C-x C-f will open working directory from localhost

Wouldn't it be wonderful if emacs tracked the remote host working directory on such occasions? i.e when you are SSH'd into a remote host using ansi-term, C-x C-f would automatically call tramp and open the current working directory of the remote host in the mini-buffer so you can work with folders and files easily. You can do this by putting the code from here (See TRAMP Integration section), also shown below, into .bash_profile in your remote host.

if [ $TERM = eterm-color ]; then
 function eterm-set-cwd {
 $@
 echo -e "\033AnSiTc" $(pwd)
 }

 function eterm-reset {
 echo -e "\033AnSiTu" $(whoami)
 echo -e "\033AnSiTc" $(pwd)
 echo -e "\033AnSiTh" $(hostname -f)
 }

 for temp in cd pushd popd; do
  alias $temp="eterm-set-cwd $temp"
 done

 eterm-reset
fi

Open .bash_profile in your remote host with emacs using the command below and add the code from above to the end of the file.

C-x C-f /ssh:mkvenkatesh@remotehost:/home/mkvenkatesh/.bash_profile

I was using this code in my DigitalOcean Ubuntu droplet box and of course it didn't work. I had to make couple changes to the code and I hope someone will find this useful as well.

The first thing to verify is if the correct TERM variable is used in the code. In your remote host SSH session issue echo $TERM to make sure it says eterm-color. If it says something different adjust the first line in the code above to that value.

# verify TERM variable
if [ $TERM = eterm-color ]; then

The second thing that I had to change was the hostname section. The remote host that I was connecting through SSH didn't have a domain name (finiteheap.com) yet so I had to use the IP address. For any remote host that you connect to that doesn't have a DNS entry, can only be reached by an IP address so make sure to adjust the code appropriately so TRAMP knows how to reach the server.

echo -e "\033AnSiTh" $(hostname -f)
# was updated to
echo -e "\033AnSiTh" 104.160.65.45