diff --git a/CHANGELOG.md b/CHANGELOG.md
index 202b10fc13..5dfbfac6d1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -48,6 +48,8 @@
   - Test-SQLDscParameterState helper function can now correctly pass a CimInstance as DesiredValue.
   - Test-SQLDscParameterState helper function will now output a warning message
     if the value type of a desired value is not supported.
+  - Changes to Connect-SQL and Import-SQLPSModule
+    - Now it correctly loads the correct assemblies when SqlServer module is present (issue #649).
 - Changes to xSQLServerSetup
   - BREAKING CHANGE: Replaced StartWin32Process helper function with the cmdlet Start-Process (issue #41, #93 and #126).
   - BREAKING CHANGE: The parameter SetupCredential has been removed since it is no longer needed. This is because the resource now support the built-in PsDscRunAsCredential.
diff --git a/xSQLServerHelper.psm1 b/xSQLServerHelper.psm1
index a342e76a38..07258d0c4f 100644
--- a/xSQLServerHelper.psm1
+++ b/xSQLServerHelper.psm1
@@ -34,7 +34,7 @@ function Connect-SQL
         $SetupCredential
     )
 
-    $null = [System.Reflection.Assembly]::LoadWithPartialName('Microsoft.SqlServer.Smo')
+    Import-SQLPSModule
 
     if ($SQLInstanceName -eq "MSSQLSERVER")
     {
@@ -674,6 +674,15 @@ function Import-SQLPSModule
     else
     {
         New-VerboseMessage -Message 'Module SqlServer not found, trying to use older SQLPS module.'
+
+        <#
+            After installing SQL Server the current PowerShell session doesn't know about the new path
+            that was added for the SQLPS module.
+            This reloads PowerShell session environment variable PSModulePath to make sure it contains
+            all paths.
+        #>
+        $env:PSModulePath = [System.Environment]::GetEnvironmentVariable("PSModulePath","Machine")
+
         $module = (Get-Module -FullyQualifiedName 'SQLPS' -ListAvailable).Name
     }