diff --git a/extensions/notebook/src/jupyter/jupyterSessionManager.ts b/extensions/notebook/src/jupyter/jupyterSessionManager.ts
index 01b613c973..6d8ab65558 100644
--- a/extensions/notebook/src/jupyter/jupyterSessionManager.ts
+++ b/extensions/notebook/src/jupyter/jupyterSessionManager.ts
@@ -382,7 +382,8 @@ export class JupyterSession implements nb.ISession {
 	}
 
 	private async setEnvironmentVars(skip: boolean = false): Promise<void> {
-		if (!skip && this.sessionImpl) {
+		// The PowerShell kernel doesn't define the %cd and %set_env magics; no need to run those here then
+		if (!skip && this.sessionImpl?.kernel?.name !== 'powershell') {
 			let allCode: string = '';
 			// Ensure cwd matches notebook path (this follows Jupyter behavior)
 			if (this.path && path.dirname(this.path)) {