diff --git a/powershellgroup/Tests/powershellgroup.config.tests.ps1 b/powershellgroup/Tests/powershellgroup.config.tests.ps1
index e6b4d04f..6b14b395 100644
--- a/powershellgroup/Tests/powershellgroup.config.tests.ps1
+++ b/powershellgroup/Tests/powershellgroup.config.tests.ps1
@@ -61,4 +61,37 @@ Describe 'PowerShellGroup resource tests' {
         $res.resources[0].properties.Name | Should -Be "Object1"
         $res.resources[0].properties.Prop1 | Should -Be "Property of object1"
     }
+
+    It 'Custom psmodulepath in config works' -Skip:(!$IsWindows){
+
+        $OldPSModulePath  = $env:PSModulePath
+        Copy-Item -Recurse -Force -Path "$PSScriptRoot/PSTestModule" -Destination $TestDrive
+        Rename-Item -Path "$PSScriptRoot/PSTestModule" -NewName "_PSTestModule"
+        
+        try {
+            $yaml = @"
+                `$schema: https://raw.githubusercontent.com/PowerShell/DSC/main/schemas/2023/10/config/document.json
+                resources:
+                - name: Working with class-based resources
+                  type: DSC/PowerShellGroup
+                  properties:
+                    psmodulepath: `$env:PSModulePath;$TestDrive
+                    resources:
+                    - name: Class-resource Info
+                      type: PSTestModule/TestClassResource
+"@
+            $out = $yaml | dsc config export
+            $LASTEXITCODE | Should -Be 0
+            $res = $out | ConvertFrom-Json
+            $res.'$schema' | Should -BeExactly 'https://raw.githubusercontent.com/PowerShell/DSC/main/schemas/2023/08/config/document.json'
+            $res.'resources' | Should -Not -BeNullOrEmpty
+            $res.resources.count | Should -Be 5
+            $res.resources[0].properties.Name | Should -Be "Object1"
+            $res.resources[0].properties.Prop1 | Should -Be "Property of object1"
+        }
+        finally {
+            Rename-Item -Path "$PSScriptRoot/_PSTestModule" -NewName "PSTestModule"
+            $env:PSModulePath = $OldPSModulePath
+        }
+    }
 }
diff --git a/powershellgroup/powershellgroup.resource.ps1 b/powershellgroup/powershellgroup.resource.ps1
index 9d6dae34..2d7d200a 100644
--- a/powershellgroup/powershellgroup.resource.ps1
+++ b/powershellgroup/powershellgroup.resource.ps1
@@ -39,6 +39,17 @@ if (($PSVersionTable.PSVersion.Major -eq 7) -and ($PSVersionTable.PSVersion.Mino
     throw "PowerShell 7.4-previews are not supported by PowerShellGroup resource; please use PS 7.4.0-rc.1 or newer."
 }
 
+$inputobj_pscustomobj = $null
+if ($stdinput)
+{
+    $inputobj_pscustomobj = $stdinput | ConvertFrom-Json
+    $new_psmodulepath = $inputobj_pscustomobj.psmodulepath
+    if ($new_psmodulepath)
+    {
+        $env:PSModulePath = $ExecutionContext.InvokeCommand.ExpandString($new_psmodulepath)
+    }
+}
+
 $DscModule = Get-Module -Name PSDesiredStateConfiguration -ListAvailable |
     Sort-Object -Property Version -Descending |
     Select-Object -First 1
@@ -105,12 +116,6 @@ if ($Operation -eq 'List')
 }
 elseif ($Operation -eq 'Get')
 {
-    $inputobj_pscustomobj = $null
-    if ($stdinput)
-    {
-        $inputobj_pscustomobj = $stdinput | ConvertFrom-Json
-    }
-
     $result = @()
 
     RefreshCache
@@ -181,12 +186,6 @@ elseif ($Operation -eq 'Get')
 }
 elseif ($Operation -eq 'Set')
 {
-    $inputobj_pscustomobj = $null
-    if ($stdinput)
-    {
-        $inputobj_pscustomobj = $stdinput | ConvertFrom-Json
-    }
-
     $result = @()
 
     RefreshCache
@@ -255,12 +254,6 @@ elseif ($Operation -eq 'Set')
 }
 elseif ($Operation -eq 'Test')
 {
-    $inputobj_pscustomobj = $null
-    if ($stdinput)
-    {
-        $inputobj_pscustomobj = $stdinput | ConvertFrom-Json
-    }
-
     $result = @()
 
     RefreshCache
@@ -329,12 +322,6 @@ elseif ($Operation -eq 'Test')
 }
 elseif ($Operation -eq 'Export')
 {
-    $inputobj_pscustomobj = $null
-    if ($stdinput)
-    {
-        $inputobj_pscustomobj = $stdinput | ConvertFrom-Json
-    }
-
     $result = @()
 
     RefreshCache