diff --git a/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs b/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
index c16bd481692..c2eb41a1f85 100644
--- a/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
+++ b/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
@@ -134,6 +134,14 @@ internal static int Start(
             }
 #endif
 
+            // put PSHOME in front of PATH so that calling `powershell` within `powershell` always starts the same running version
+            string path = Environment.GetEnvironmentVariable("PATH");
+            string pshome = Utils.DefaultPowerShellAppBase;
+            if (!path.Contains(pshome))
+            {
+                Environment.SetEnvironmentVariable("PATH", pshome + Path.PathSeparator + path);
+            }
+
             try
             {
                 string profileDir;
diff --git a/test/powershell/Host/ConsoleHost.Tests.ps1 b/test/powershell/Host/ConsoleHost.Tests.ps1
index 2c3b8ccaaaf..4bb8b8b0581 100644
--- a/test/powershell/Host/ConsoleHost.Tests.ps1
+++ b/test/powershell/Host/ConsoleHost.Tests.ps1
@@ -486,6 +486,12 @@ foo
             bash -c "unset HOME;$powershell -c '1+1'" | Should BeExactly 2
         }
     }
+
+    Context "PATH environment variable" {
+        It "`$PSHOME should be in front so that powershell.exe starts current running PowerShell" {
+            powershell -v | Should Match $psversiontable.GitCommitId
+        }
+    }
 }
 
 Describe "Console host api tests" -Tag CI {