diff --git a/package.json b/package.json
index 9fe3717750..8c28288f1e 100644
--- a/package.json
+++ b/package.json
@@ -257,9 +257,9 @@
               "type": "PowerShell",
               "request": "launch",
               "name": "PowerShell Launch ${Script}",
-              "script": "^\"\\${workspaceRoot}/${Script}\"",
+              "script": "^\"\\${workspaceFolder}/${Script}\"",
               "args": [],
-              "cwd": "^\"\\${workspaceRoot}\""
+              "cwd": "^\"\\${workspaceFolder}\""
             }
           },
           {
@@ -271,7 +271,7 @@
               "name": "PowerShell Pester Tests",
               "script": "Invoke-Pester",
               "args": [],
-              "cwd": "^\"\\${workspaceRoot}\""
+              "cwd": "^\"\\${workspaceFolder}\""
             }
           },
           {
@@ -292,17 +292,13 @@
               "type": "PowerShell",
               "request": "launch",
               "name": "PowerShell Interactive Session",
-              "cwd": "^\"\\${workspaceRoot}\""
+              "cwd": ""
             }
           }
         ],
         "configurationAttributes": {
           "launch": {
             "properties": {
-              "program": {
-                "type": "string",
-                "description": "Deprecated. Please use the 'script' property instead to specify the absolute path to the PowerShell script to launch under the debugger."
-              },
               "script": {
                 "type": "string",
                 "description": "Optional: Absolute path to the PowerShell script to launch under the debugger."
@@ -317,8 +313,8 @@
               },
               "cwd": {
                 "type": "string",
-                "description": "Absolute path to the working directory. Default is the current workspace.",
-                "default": "${workspaceRoot}"
+                "description": "Absolute path to the working directory. Default is the current workspace folder.",
+                "default": "${workspaceFolder}"
               },
               "createTemporaryIntegratedConsole": {
                 "type": "boolean",
@@ -385,7 +381,7 @@
             "type": "PowerShell",
             "request": "launch",
             "name": "PowerShell Interactive Session",
-            "cwd": "${workspaceRoot}"
+            "cwd": ""
           }
         ]
       }
diff --git a/src/features/DebugSession.ts b/src/features/DebugSession.ts
index 902d314a07..e488f464b9 100644
--- a/src/features/DebugSession.ts
+++ b/src/features/DebugSession.ts
@@ -2,14 +2,12 @@
  * Copyright (C) Microsoft Corporation. All rights reserved.
  *--------------------------------------------------------*/
 
-import { hostname } from "os";
-import { dirname } from "path";
 import vscode = require("vscode");
 import { CancellationToken, DebugConfiguration, DebugConfigurationProvider,
     ExtensionContext, ProviderResult, WorkspaceFolder } from "vscode";
-import { LanguageClient, NotificationType, RequestType } from "vscode-languageclient";
+import { LanguageClient, RequestType } from "vscode-languageclient";
 import { IFeature } from "../feature";
-import { getPlatformDetails, IPlatformDetails, OperatingSystem } from "../platform";
+import { getPlatformDetails, OperatingSystem } from "../platform";
 import { PowerShellProcess} from "../process";
 import { SessionManager } from "../session";
 import Settings = require("../settings");
@@ -19,7 +17,6 @@ export class DebugSessionFeature implements IFeature, DebugConfigurationProvider
 
     private sessionCount: number = 1;
     private command: vscode.Disposable;
-    private examplesPath: string;
     private tempDebugProcess: PowerShellProcess;
 
     constructor(context: ExtensionContext, private sessionManager: SessionManager) {
@@ -75,12 +72,18 @@ export class DebugSessionFeature implements IFeature, DebugConfigurationProvider
                     ? currentDocument.uri.toString()
                     : currentDocument.fileName;
 
-            // For a folder-less workspace, vscode.workspace.rootPath will be undefined.
-            // PSES will convert that undefined to a reasonable working dir.
-            config.cwd =
-                currentDocument.isUntitled
-                    ? vscode.workspace.rootPath
-                    : currentDocument.fileName;
+            if (settings.debugging.createTemporaryIntegratedConsole) {
+                // For a folder-less workspace, vscode.workspace.rootPath will be undefined.
+                // PSES will convert that undefined to a reasonable working dir.
+                config.cwd =
+                    currentDocument.isUntitled
+                        ? vscode.workspace.rootPath
+                        : currentDocument.fileName;
+
+            } else {
+                // If the non-temp integrated console is being used, default to the current working dir.
+                config.cwd = "";
+            }
         }
 
         if (config.request === "launch") {