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+---
+RFC: 0049
+Author: Steve Lee
+Status: Draft
+SupercededBy: n/a
+Version: 1.0
+Area: Engine
+Comments Due: 11/30
+Plan to implement: Yes
+---
+
+# PSModulePath When Starting PowerShell within PowerShell
+
+When starting PowerShell from a different version of PowerShell, the PSModulePath
+should reflect the module search path and only include segments appropriate for
+the version of PowerShell being started.
+
+## Motivation
+
+    As a PowerShell User,
+    I can start a different version of PowerShell within PowerShell,
+    so that I can do things required by that specific version of PowerShell.
+
+## User Experience
+
+### Starting Windows PowerShell from PowerShell 7
+
+```powershell
+PS7> $env:PSModulePath.split(';')
+C:\Users\user\Documents\PowerShell\Modules
+C:\Program Files\PowerShell\Modules
+c:\program files\powershell\7-preview\Modules
+C:\Program Files\WindowsPowerShell\Modules
+C:\WINDOWS\system32\WindowsPowerShell\v1.0\Modules
+
+PS7> powershell -noprofile
+WinPS> $env:PSModulePath.split(';')
+C:\Users\user\Documents\WindowsPowerShell\Modules
+C:\Program Files\WindowsPowerShell\Modules
+C:\WINDOWS\system32\WindowsPowerShell\v1.0\Modules
+```
+
+### Starting Windows PowerShell from PowerShell 7 with additions by user
+
+Here a custom `C:\MyModules` is added
+
+```powershell
+PS7> $env:PSModulePath.split(';')
+C:\Users\user\Documents\PowerShell\Modules
+C:\Program Files\PowerShell\Modules
+c:\program files\powershell\7-preview\Modules
+C:\Program Files\WindowsPowerShell\Modules
+C:\WINDOWS\system32\WindowsPowerShell\v1.0\Modules
+C:\MyModules
+
+PS7> powershell -noprofile
+WinPS> $env:PSModulePath.split(';')
+C:\Program Files\WindowsPowerShell\Modules
+C:\WINDOWS\system32\WindowsPowerShell\v1.0\Modules
+C:\MyModules
+```
+
+### Starting Windows PowerShell from PowerShell 7 with deletions by user
+
+Here the `System32` path is removed
+
+```powershell
+PS7> $env:PSModulePath.split(';')
+C:\Users\user\Documents\PowerShell\Modules
+C:\Program Files\PowerShell\Modules
+c:\program files\powershell\7-preview\Modules
+C:\Program Files\WindowsPowerShell\Modules
+
+PS7> powershell -noprofile
+WinPS> $env:PSModulePath.split(';')
+C:\Program Files\WindowsPowerShell\Modules
+```
+
+### Starting Windows PowerShell from PowerShell 7 with additions and deletions by user
+
+Here the `System32` path is removed and the `C:\MyModules` path is added
+
+```powershell
+PS7> $env:PSModulePath.split(';')
+C:\Users\user\Documents\PowerShell\Modules
+C:\Program Files\PowerShell\Modules
+c:\program files\powershell\7-preview\Modules
+C:\Program Files\WindowsPowerShell\Modules
+C:\MyModules
+
+PS7> powershell -noprofile
+WinPS> $env:PSModulePath.split(';')
+C:\Program Files\WindowsPowerShell\Modules
+C:\MyModules
+```
+
+## Specification
+
+By default, PowerShell starts with (in order):
+
+| Segment Description | Windows PowerShell example                                               | PowerShell 7 example                              |
+|---------------------|--------------------------------------------------------------------------|---------------------------------------------------|
+| User modules        | C:\Users\user\Documents\WindowsPowerShell\Modules                        | C:\Users\user\Documents\PowerShell\Modules        |
+| System modules      | C:\Program Files\WindowsPowerShell\Modules                               | C:\Program Files\PowerShell\Modules               |
+| $PSHOME modules     | C:\WINDOWS\system32\WindowsPowerShell\v1.0\Modules                       | c:\program files\powershell\7-preview\Modules     |
+| Windows modules     |                                                                          | C:\WINDOWS\system32\WindowsPowerShell\v1.0\Module |
+| App added modules   | C:\Program Files (x86)\Microsoft Azure Information Protection\Powershell |                                                   |
+
+Currently, applications (or user) adding additional paths to `$env:PSModulePath` are dropped in PowerShell 7.
+
+### Windows PowerShell PSModulePath construction
+
+Windows PowerShell has logic at startup to construct the PSModulePath based on (simplified version):
+
+- If PSModulePath doesn't exist: Combine `User` modules path, `System` modules path, and `$PSHOME` modules path
+- If PSModulePath does exist:
+  - If PSModulePath contains `$PSHOME` modules path:
+    - `System` modules path is inserted before `$PSHOME` modules path if it's not there
+  - else:
+    - Just use `$env:PSModulePath` as-is as user had deliberately removed `$PSHOME`
+
+`User` module path is prefixed only if User scope `$env:PSModulePath` doesn't exist.
+Otherwise, it is assumed the user removed it if it's not there already.
+
+There are no changes planned for Windows PowerShell 5.1, so this existing logic is in place.
+
+### PowerShell 7 startup
+
+Currently, PSCore6 doesn't use contents of `$env:PSModulePath` if it detects it was started from PowerShell
+and simply overwrites it with `User` modules path + `System` modules path + `$PSHOME` modules path + `Windows` modules path.
+
+Intent is to have `PSModulePath` behave how `Path` env var works on Windows.
+`Path` on Windows is treated differently from other env vars.
+When a process is started, Windows will combine the `User` `Path` env var with the `System` `Path` env var.
+However, for other env vars if the `User` env var exists, a new process will have that value only even if a `Machine` env var
+with the same name exists.
+In this case, the `User` version of the env var is preferred.
+In the changes detailed below, `PSModulePath` adopts the `Path` behavior to have a combined value from `User` and `System` versions of that env var.
+
+Change would be on Windows:
+
+- Retrieve user `PSModulePath` env var from registry
+- Compare to process inherited `PSModulePath` env var
+  - If the same:
+    - Append the `System` `PSModulePath` to the end following the semantics of the `Path` env var
+    - The Windows system32 path comes from the machine defined `PSModulePath` so does not need to be added explicitly
+  - If different, treat as though user explicitly modified it and don't append `System` `PSModulePath`
+- Prefix with PS7 user, system, and $PSHOME paths in that order
+  - If `powershell.config.json` contains a user scoped `PSModulePath`, use that instead of the default for the user
+  - If `powershell.config.json` contains a system scoped `PSModulePath`, use that instead of the default for the system
+
+Unix systems don't have a separation of `User` and `System` env vars so `PSModulePath` is inherited and PS7 specific paths are prefixed if not
+already existing.
+
+### Starting Windows PowerShell from PowerShell 7 Implementation
+
+Note that Windows PowerShell here means both `powershell.exe` and `powershell_ise.exe`.
+
+Copy process `$env:PSModulePath` as `WinPSModulePath`:
+
+- Remove PS7 `User` module path
+- Remove PS7 `System` module path
+- Remove PS7 `$PSHOME` module path
+
+Use that `WinPSModulePath` when starting Windows PowerShell.
+
+### Starting PowerShell 7 from Windows PowerShell
+
+The PowerShell 7 startup continues as-is with the addition of inheriting paths Windows PowerShell have added.
+Since the PS7 specific paths are prefixed, there is no functional issue.
+
+### Starting PowerShell 6 from PowerShell 7
+
+PowerShell Core 6 clobbers `$env:PSModulePath` and no changes will be made.
+
+### Starting PowerShell 7 from PowerShell 6
+
+The PowerShell 7 startup continues as-is with the addition of inheriting paths PowerShell Core 6 have added.
+Since the PS7 specific paths are prefixed, there is no functional issue.
+
+## Alternate Proposals and Considerations
+
+There was a proposal to cache the inherited `$env:PSModulePath` on startup and pass it to Windows PowerShell when started.
+However, this would not reflect any changes the user made and expect to be inherited by the child process.