diff --git a/src/Files.App/Actions/Content/Run/RunWithPowershellAction.cs b/src/Files.App/Actions/Content/Run/RunWithPowershellAction.cs
index 72700b45ce6b..29577f0cac9c 100644
--- a/src/Files.App/Actions/Content/Run/RunWithPowershellAction.cs
+++ b/src/Files.App/Actions/Content/Run/RunWithPowershellAction.cs
@@ -31,7 +31,11 @@ public RunWithPowershellAction()
 
 		public Task ExecuteAsync(object? parameter = null)
 		{
-			return Win32Helper.RunPowershellCommandAsync($"& '{context.ShellPage?.SlimContentPage?.SelectedItem?.ItemPath}'", PowerShellExecutionOptions.None);
+			return Win32Helper.RunPowershellCommandAsync(
+				$"& '{context.ShellPage?.SlimContentPage?.SelectedItem?.ItemPath}'",
+				PowerShellExecutionOptions.None,
+				context.Folder?.ItemPath
+			);
 		}
 
 		private void Context_PropertyChanged(object? sender, PropertyChangedEventArgs e)
diff --git a/src/Files.App/Data/Factories/ShellContextFlyoutHelper.cs b/src/Files.App/Data/Factories/ShellContextFlyoutHelper.cs
index e97b64c744b8..39a5ed09af27 100644
--- a/src/Files.App/Data/Factories/ShellContextFlyoutHelper.cs
+++ b/src/Files.App/Data/Factories/ShellContextFlyoutHelper.cs
@@ -199,6 +199,13 @@ async Task InvokeShellMenuItemAsync(ContextMenu contextMenu, object? tag)
 						await Win32Helper.OpenFormatDriveDialog(drivePath);
 						break;
 
+					case "Windows.PowerShell.Run":
+						await contextMenu.InvokeItem(
+							menuId,
+							contextMenu.ItemsPath[0].EndsWith(".ps1") ? Path.GetDirectoryName(contextMenu.ItemsPath[0]) : null
+						);
+						break;
+
 					default:
 						await contextMenu.InvokeItem(menuId);
 						break;
diff --git a/src/Files.App/Helpers/Win32/Win32Helper.Storage.cs b/src/Files.App/Helpers/Win32/Win32Helper.Storage.cs
index 8e2e3a5979ba..c940884ccd8e 100644
--- a/src/Files.App/Helpers/Win32/Win32Helper.Storage.cs
+++ b/src/Files.App/Helpers/Win32/Win32Helper.Storage.cs
@@ -405,9 +405,9 @@ public static string ExtractStringFromDLL(string file, int number)
 			}
 		}
 
-		public static async Task<bool> RunPowershellCommandAsync(string command, PowerShellExecutionOptions options)
+		public static async Task<bool> RunPowershellCommandAsync(string command, PowerShellExecutionOptions options, string? workingDirectory = null)
 		{
-			using Process process = CreatePowershellProcess(command, options);
+			using Process process = CreatePowershellProcess(command, options, workingDirectory);
 			using var cts = new CancellationTokenSource(TimeSpan.FromMilliseconds(30 * 1000));
 
 			try
@@ -432,11 +432,11 @@ public static async Task<bool> RunPowershellCommandAsync(string command, PowerSh
 			}
 		}
 
-		public static bool RunPowershellCommand(string command, PowerShellExecutionOptions options)
+		public static bool RunPowershellCommand(string command, PowerShellExecutionOptions options, string? workingDirectory = null)
 		{
 			try
 			{
-				using Process process = CreatePowershellProcess(command, options);
+				using Process process = CreatePowershellProcess(command, options, workingDirectory);
 
 				process.Start();
 
@@ -867,7 +867,7 @@ public static async Task InstallFontsAsync(string[] fontFilePaths, bool forAllUs
 			await RunPowershellCommandAsync(psCommand.Append("\"").ToString(), PowerShellExecutionOptions.Elevated | PowerShellExecutionOptions.Hidden);
 		}
 
-		private static Process CreatePowershellProcess(string command, PowerShellExecutionOptions options)
+		private static Process CreatePowershellProcess(string command, PowerShellExecutionOptions options, string? workingDirectory = null)
 		{
 			Process process = new();
 
@@ -883,6 +883,10 @@ private static Process CreatePowershellProcess(string command, PowerShellExecuti
 				process.StartInfo.CreateNoWindow = true;
 				process.StartInfo.WindowStyle = ProcessWindowStyle.Hidden;
 			}
+
+			if (workingDirectory is not null)
+				process.StartInfo.WorkingDirectory = workingDirectory;
+
 			process.StartInfo.Arguments = command;
 
 			return process;
diff --git a/src/Files.App/Utils/Shell/ContextMenu.cs b/src/Files.App/Utils/Shell/ContextMenu.cs
index 7fb485c7e9d8..b409ba730c03 100644
--- a/src/Files.App/Utils/Shell/ContextMenu.cs
+++ b/src/Files.App/Utils/Shell/ContextMenu.cs
@@ -85,7 +85,7 @@ public async Task<bool> InvokeVerb(string? verb)
 			return false;
 		}
 
-		public async Task<bool> InvokeItem(int itemID)
+		public async Task<bool> InvokeItem(int itemID, string? workingDirectory = null)
 		{
 			if (itemID < 0)
 				return false;
@@ -100,6 +100,8 @@ public async Task<bool> InvokeItem(int itemID)
 				};
 
 				pici.cbSize = (uint)Marshal.SizeOf(pici);
+				if (workingDirectory is not null)
+					pici.lpDirectoryW = workingDirectory;
 
 				await _owningThread.PostMethod(() => _cMenu.InvokeCommand(pici));
 				Win32Helper.BringToForeground(currentWindows);