diff --git a/src/Microsoft.PowerShell.Commands.Utility/commands/utility/TestJsonCommand.cs b/src/Microsoft.PowerShell.Commands.Utility/commands/utility/TestJsonCommand.cs
index 23f0cc7c37f..42926643e45 100644
--- a/src/Microsoft.PowerShell.Commands.Utility/commands/utility/TestJsonCommand.cs
+++ b/src/Microsoft.PowerShell.Commands.Utility/commands/utility/TestJsonCommand.cs
@@ -2,11 +2,12 @@
 // Licensed under the MIT License.
 
 using System;
-using System.Collections.Generic;
+using System.Globalization;
+using System.IO;
 using System.Management.Automation;
-using System.Management.Automation.Internal;
-
-using Newtonsoft.Json;
+using System.Reflection;
+using System.Runtime.ExceptionServices;
+using System.Security;
 using Newtonsoft.Json.Linq;
 using NJsonSchema;
 
@@ -15,50 +16,122 @@ namespace Microsoft.PowerShell.Commands
     /// <summary>
     /// This class implements Test-Json command.
     /// </summary>
-    [Cmdlet(VerbsDiagnostic.Test, "Json", HelpUri = "")]
+    [Cmdlet(VerbsDiagnostic.Test, "Json", DefaultParameterSetName = ParameterAttribute.AllParameterSets, HelpUri = "https://go.microsoft.com/fwlink/?LinkID=2096609")]
     public class TestJsonCommand : PSCmdlet
     {
+        private const string SchemaFileParameterSet = "SchemaFile";
+        private const string SchemaStringParameterSet = "SchemaString";
+
         /// <summary>
-        /// An JSON to be validated.
+        /// Gets or sets JSON string to be validated.
         /// </summary>
         [Parameter(Position = 0, Mandatory = true, ValueFromPipeline = true)]
         public string Json { get; set; }
 
         /// <summary>
-        /// A schema to validate the JSON against.
+        /// Gets or sets schema to validate the JSON against.
         /// This is optional parameter.
         /// If the parameter is absent the cmdlet only attempts to parse the JSON string.
         /// If the parameter present the cmdlet attempts to parse the JSON string and
         /// then validates the JSON against the schema. Before testing the JSON string,
         /// the cmdlet parses the schema doing implicitly check the schema too.
         /// </summary>
-        [Parameter(Position = 1)]
-        [ValidateNotNullOrEmpty()]
+        [Parameter(Position = 1, ParameterSetName = SchemaStringParameterSet)]
+        [ValidateNotNullOrEmpty]
         public string Schema { get; set; }
 
+        /// <summary>
+        /// Gets or sets path to the file containg schema to validate the JSON string against.
+        /// This is optional parameter.
+        /// </summary>
+        [Parameter(Position = 1, ParameterSetName = SchemaFileParameterSet)]
+        [ValidateNotNullOrEmpty]
+        public string SchemaFile { get; set; }
+
         private JsonSchema _jschema;
 
         /// <summary>
-        /// Prepare an JSON schema.
+        /// Process all exceptions in the AggregateException.
+        /// Unwrap TargetInvocationException if any and
+        /// rethrow inner exception without losing the stack trace.
+        /// </summary>
+        /// <param name="e">AggregateException to be unwrapped.</param>
+        /// <returns>Return value is unreachable since we always rethrow.</returns>
+        private static bool UnwrapException(Exception e)
+        {
+            if (e is TargetInvocationException)
+            {
+                ExceptionDispatchInfo.Capture(e.InnerException).Throw();
+            }
+            else
+            {
+                ExceptionDispatchInfo.Capture(e).Throw();
+            }
+
+            return true;
+        }
+
+        /// <summary>
+        /// Prepare a JSON schema.
         /// </summary>
         protected override void BeginProcessing()
         {
-            if (Schema != null)
+            string resolvedpath = string.Empty;
+
+            try
             {
-                try
+                if (Schema != null)
                 {
-                    _jschema = JsonSchema.FromJsonAsync(Schema).Result;
+                    try
+                    {
+                        _jschema = JsonSchema.FromJsonAsync(Schema).Result;
+                    }
+                    catch (AggregateException ae)
+                    {
+                        // Even if only one exception is thrown, it is still wrapped in an AggregateException exception
+                        // https://docs.microsoft.com/en-us/dotnet/standard/parallel-programming/exception-handling-task-parallel-library
+                        ae.Handle(UnwrapException);
+                    }
                 }
-                catch (Exception exc)
+                else if (SchemaFile != null)
                 {
-                    Exception exception = new Exception(TestJsonCmdletStrings.InvalidJsonSchema, exc);
-                    ThrowTerminatingError(new ErrorRecord(exception, "InvalidJsonSchema", ErrorCategory.InvalidData, null));
+                    try
+                    {
+                        resolvedpath = Context.SessionState.Path.GetUnresolvedProviderPathFromPSPath(SchemaFile);
+                        _jschema = JsonSchema.FromFileAsync(resolvedpath).Result;
+                    }
+                    catch (AggregateException ae)
+                    {
+                        ae.Handle(UnwrapException);
+                    }
                 }
             }
+            catch (Exception e) when (
+                // Handle exceptions related to file access to provide more specific error message
+                // https://docs.microsoft.com/en-us/dotnet/standard/io/handling-io-errors
+                e is IOException ||
+                e is UnauthorizedAccessException ||
+                e is NotSupportedException ||
+                e is SecurityException
+            )
+            {
+                Exception exception = new Exception(
+                    string.Format(
+                        CultureInfo.CurrentUICulture,
+                        TestJsonCmdletStrings.JsonSchemaFileOpenFailure,
+                        resolvedpath),
+                    e);
+                ThrowTerminatingError(new ErrorRecord(exception, "JsonSchemaFileOpenFailure", ErrorCategory.OpenError, resolvedpath));
+            }
+            catch (Exception e)
+            {
+                Exception exception = new Exception(TestJsonCmdletStrings.InvalidJsonSchema, e);
+                ThrowTerminatingError(new ErrorRecord(exception, "InvalidJsonSchema", ErrorCategory.InvalidData, resolvedpath));
+            }
         }
 
         /// <summary>
-        /// Validate an JSON.
+        /// Validate a JSON.
         /// </summary>
         protected override void ProcessRecord()
         {
diff --git a/src/Microsoft.PowerShell.Commands.Utility/resources/TestJsonCmdletStrings.resx b/src/Microsoft.PowerShell.Commands.Utility/resources/TestJsonCmdletStrings.resx
index a5c8d5d24d9..ab105e47fd3 100644
--- a/src/Microsoft.PowerShell.Commands.Utility/resources/TestJsonCmdletStrings.resx
+++ b/src/Microsoft.PowerShell.Commands.Utility/resources/TestJsonCmdletStrings.resx
@@ -126,4 +126,7 @@
   <data name="InvalidJsonAgainstSchema" xml:space="preserve">
     <value>The JSON is not valid with the schema.</value>
   </data>
+  <data name="JsonSchemaFileOpenFailure" xml:space="preserve">
+    <value>Can not open JSON schema file: {0}</value>
+  </data>
 </root>
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/Test-Json.Tests.ps1 b/test/powershell/Modules/Microsoft.PowerShell.Utility/Test-Json.Tests.ps1
index cf5a9438406..6ca6511cd86 100644
--- a/test/powershell/Modules/Microsoft.PowerShell.Utility/Test-Json.Tests.ps1
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/Test-Json.Tests.ps1
@@ -3,6 +3,12 @@
 
 Describe "Test-Json" -Tags "CI" {
     BeforeAll {
+        $validSchemaJsonPath = Join-Path -Path (Join-Path $PSScriptRoot -ChildPath assets) -ChildPath valid_schema_reference.json
+
+        $invalidSchemaJsonPath = Join-Path -Path (Join-Path $PSScriptRoot -ChildPath assets) -ChildPath invalid_schema_reference.json
+
+        $missingSchemaJsonPath = Join-Path -Path (Join-Path $PSScriptRoot -ChildPath assets) -ChildPath no_such_file.json
+
         $validSchemaJson = @"
             {
             'description': 'A person',
@@ -61,40 +67,73 @@ Describe "Test-Json" -Tags "CI" {
 "@
 }
 
+    It "Missing JSON schema file doesn't exist" {
+        Test-Path -LiteralPath $missingSchemaJsonPath | Should -BeFalse
+    }
+
     It "Json is valid" {
         Test-Json -Json $validJson | Should -BeTrue
     }
 
-    It "Json is valid against a valid schema" {
+    It "Json is valid against a valid schema from string" {
         Test-Json -Json $validJson -Schema $validSchemaJson | Should -BeTrue
     }
 
+    It "Json is valid against a valid schema from file" {
+        Test-Json -Json $validJson -SchemaFile $validSchemaJsonPath | Should -BeTrue
+    }
+
     It "Json is invalid" {
         Test-Json -Json $invalidNodeInJson -ErrorAction SilentlyContinue | Should -BeFalse
     }
 
-    It "Json is invalid against a valid schema" {
+    It "Json is invalid against a valid schema from string" {
         Test-Json -Json $invalidTypeInJson2 -Schema $validSchemaJson -ErrorAction SilentlyContinue | Should -BeFalse
         Test-Json -Json $invalidNodeInJson -Schema $validSchemaJson -ErrorAction SilentlyContinue | Should -BeFalse
     }
 
-    It "Test-Json throw if a schema is invalid" {
+    It "Json is invalid against a valid schema from file" {
+        Test-Json -Json $invalidTypeInJson2 -SchemaFile $validSchemaJsonPath -ErrorAction SilentlyContinue | Should -BeFalse
+        Test-Json -Json $invalidNodeInJson -SchemaFile $validSchemaJsonPath -ErrorAction SilentlyContinue | Should -BeFalse
+    }
+
+    It "Test-Json throw if a schema from string is invalid" {
         { Test-Json -Json $validJson -Schema $invalidSchemaJson -ErrorAction Stop } | Should -Throw -ErrorId "InvalidJsonSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
     }
 
-    It "Test-Json write an error on invalid (<name>) Json against a valid schema" -TestCases @(
+    It "Test-Json throw if a schema from file is invalid" {
+        { Test-Json -Json $validJson -SchemaFile $invalidSchemaJsonPath -ErrorAction Stop } | Should -Throw -ErrorId "InvalidJsonSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
+    }
+
+    It "Test-Json throw if a path to a schema from file is invalid" {
+        { Test-Json -Json $validJson -SchemaFile $missingSchemaJsonPath -ErrorAction Stop } | Should -Throw -ErrorId "JsonSchemaFileOpenFailure,Microsoft.PowerShell.Commands.TestJsonCommand"
+    }
+
+    It "Test-Json write an error on invalid (<name>) Json against a valid schema from string" -TestCases @(
         @{ name = "type"; json = $invalidTypeInJson; errorId = "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand" }
         @{ name = "node"; json = $invalidNodeInJson; errorId = "InvalidJson,Microsoft.PowerShell.Commands.TestJsonCommand" }
-        ) {
-            param ($json, $errorId)
+    ) {
+        param ($json, $errorId)
 
-            $errorVar = $null
-            Test-Json -Json $json -Schema $validSchemaJson -ErrorVariable errorVar -ErrorAction SilentlyContinue
+        $errorVar = $null
+        Test-Json -Json $json -Schema $validSchemaJson -ErrorVariable errorVar -ErrorAction SilentlyContinue
 
-            $errorVar.FullyQualifiedErrorId | Should -BeExactly $errorId
+        $errorVar.FullyQualifiedErrorId | Should -BeExactly $errorId
     }
 
-    It "Test-Json return all errors when check invalid Json against a valid schema" {
+    It "Test-Json write an error on invalid (<name>) Json against a valid schema from file" -TestCases @(
+        @{ name = "type"; json = $invalidTypeInJson; errorId = "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand" }
+        @{ name = "node"; json = $invalidNodeInJson; errorId = "InvalidJson,Microsoft.PowerShell.Commands.TestJsonCommand" }
+    ) {
+        param ($json, $errorId)
+
+        $errorVar = $null
+        Test-Json -Json $json -SchemaFile $validSchemaJsonPath -ErrorVariable errorVar -ErrorAction SilentlyContinue
+
+        $errorVar.FullyQualifiedErrorId | Should -BeExactly $errorId
+    }
+
+    It "Test-Json return all errors when check invalid Json against a valid schema from string" {
         $errorVar = $null
         Test-Json -Json $invalidTypeInJson2 -Schema $validSchemaJson -ErrorVariable errorVar -ErrorAction SilentlyContinue
 
@@ -103,4 +142,14 @@ Describe "Test-Json" -Tags "CI" {
         $errorVar[0].FullyQualifiedErrorId | Should -BeExactly "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
         $errorVar[1].FullyQualifiedErrorId | Should -BeExactly "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
     }
+
+    It "Test-Json return all errors when check invalid Json against a valid schema from file" {
+        $errorVar = $null
+        Test-Json -Json $invalidTypeInJson2 -SchemaFile $validSchemaJsonPath -ErrorVariable errorVar -ErrorAction SilentlyContinue
+
+        # '$invalidTypeInJson2' contains two errors in property types.
+        $errorVar.Count | Should -Be 2
+        $errorVar[0].FullyQualifiedErrorId | Should -BeExactly "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
+        $errorVar[1].FullyQualifiedErrorId | Should -BeExactly "InvalidJsonAgainstSchema,Microsoft.PowerShell.Commands.TestJsonCommand"
+    }
 }
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_definitions.json b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_definitions.json
new file mode 100644
index 00000000000..d3fc0cdeef9
--- /dev/null
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_definitions.json
@@ -0,0 +1,8 @@
+{
+    "definitions": {
+        "name": {
+            "type": "string"
+        },
+        "hobbies"
+    }
+}
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_reference.json b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_reference.json
new file mode 100644
index 00000000000..32520f59496
--- /dev/null
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/invalid_schema_reference.json
@@ -0,0 +1,12 @@
+{
+    "description": "A person",
+    "type": "object",
+    "properties": {
+        "name": {
+            "$ref": "invalid_schema_definitions.json#/definitions/name"
+        },
+        "hobbies": {
+            "$ref": "invalid_schema_definitions.json#/definitions/hobbies"
+        }
+    }
+}
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_definitions.json b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_definitions.json
new file mode 100644
index 00000000000..5396927a5bf
--- /dev/null
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_definitions.json
@@ -0,0 +1,13 @@
+{
+    "definitions": {
+        "name": {
+            "type": "string"
+        },
+        "hobbies": {
+            "type": "array",
+            "items": {
+                "type": "string"
+            }
+        }
+    }
+}
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_reference.json b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_reference.json
new file mode 100644
index 00000000000..aa9c18a30c7
--- /dev/null
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/assets/valid_schema_reference.json
@@ -0,0 +1,12 @@
+{
+    "description": "A person",
+    "type": "object",
+    "properties": {
+        "name": {
+            "$ref": "valid_schema_definitions.json#/definitions/name"
+        },
+        "hobbies": {
+            "$ref": "valid_schema_definitions.json#/definitions/hobbies"
+        }
+    }
+}