diff --git a/src/System.Management.Automation/engine/InitialSessionState.cs b/src/System.Management.Automation/engine/InitialSessionState.cs
index 6fa242ce521..34e5c6d7abb 100644
--- a/src/System.Management.Automation/engine/InitialSessionState.cs
+++ b/src/System.Management.Automation/engine/InitialSessionState.cs
@@ -4709,6 +4709,7 @@ internal static SessionStateAliasEntry[] BuiltInAliases
            // Functions that don't require full language mode
             SessionStateFunctionEntry.GetDelayParsedFunctionEntry("cd..", "Set-Location ..", isProductCode: true, languageMode: systemLanguageMode),
             SessionStateFunctionEntry.GetDelayParsedFunctionEntry("cd\\", "Set-Location \\", isProductCode: true, languageMode: systemLanguageMode),
+            SessionStateFunctionEntry.GetDelayParsedFunctionEntry("cd~", "Set-Location ~", isProductCode: true, languageMode: systemLanguageMode),
             // Win8: 320909. Retaining the original definition to ensure backward compatability.
             SessionStateFunctionEntry.GetDelayParsedFunctionEntry("Pause",
                 string.Concat("$null = Read-Host '", CodeGeneration.EscapeSingleQuotedStringContent(RunspaceInit.PauseDefinitionString), "'"), isProductCode: true, languageMode: systemLanguageMode),
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1 b/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
index 2fb8177ec1a..f8a15d389e3 100644
--- a/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
+++ b/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
@@ -230,4 +230,36 @@ Describe "Set-Location" -Tags "CI" {
             $PWD.Path | Should -Be $location.Path
         }
     }
+
+    Context 'Parsing of Set-Location to cd' {
+        It 'Should go to Filesystem home on cd~ run' {
+            Set-Location 'TestDrive:\'
+            cd~
+            (Get-Location).Path | Should -BeExactly (Get-PSProvider FileSystem).Home
+        }
+        It 'Should go to the parent folder on cd.. run' {
+            Set-Location 'TestDrive:\'
+            $ParentDir = (Get-Location).path
+            New-Item -Path 'TestDrive:\' -Name 'Directory1' -ItemType Directory
+            Set-Location 'TestDrive:\Directory1'
+            cd..
+            (Get-Location).Path | Should -BeExactly $ParentDir
+        }
+        It 'Should go to root of current drive on cd\ run (Windows)' -Skip:(!$IsWindows){
+            #root is / on linux and Mac, so it's not happy with this check.
+            Set-Location 'TestDrive:\'
+            $DriveRoot = (Get-Location).path
+            New-Item -Path 'TestDrive:\Directory1' -Name 'Directory2' -ItemType Directory
+            Set-Location 'TestDrive:\Directory1\Directory2'
+            cd\
+            (Get-Location).Path | Should -BeExactly $DriveRoot
+        }
+        It 'Should go to root of current drive on cd\ run (Linux/Mac)' -Skip:($IsWindows){
+            Set-Location 'TestDrive:\'
+            New-Item -Path 'TestDrive:\Directory1' -Name 'Directory2' -ItemType Directory
+            Set-Location 'TestDrive:\Directory1\Directory2'
+            cd\
+            (Get-Location).Path | Should -BeExactly "/"
+        }
+    }
 }