diff --git a/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1 b/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
index c401003c2..10a276b32 100644
--- a/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
+++ b/test/powershell/Modules/Microsoft.PowerShell.Management/Set-Location.Tests.ps1
@@ -76,6 +76,18 @@ Describe "Set-Location" -Tags "CI" {
         $(Get-Location).Path | Should -BeExactly $testPath.FullName
     }
 
+    It "Should use actual casing of folder on case-sensitive filesystem: <dir>" -Skip:(!$IsLinux)
+    {
+        $dir = "teST"
+        $testPathLower = New-Item -ItemType Directory -Path (Join-Path $TestDrive $dir.ToLower())
+        $testPathUpper = New-Item -ItemType Directory -Path (Join-Path $TestDrive $dir.ToUpper())
+        Set-Location $testPathLower.FullName
+        $(Get-Location).Path | Should -BeExactly $testPathLower.FullName
+        Set-Location $testPathUpper.FullName
+        $(Get-Location).Path | Should -BeExactly $testPathUpper.FullName
+        { Set-Locaiton (Join-Path $TestDrive $dir) } | Should -Throw -ErrorId "PathNotFound,Microsoft.PowerShell.Commands.SetLocationCommand"
+    }
+
     Context 'Set-Location with no arguments' {
 
         It 'Should go to $env:HOME when Set-Location run with no arguments from FileSystem provider' {