diff --git a/test/powershell/engine/Basic/Assembly.LoadFrom.ps1 b/test/powershell/engine/Basic/Assembly.LoadFrom.ps1
new file mode 100644
index 000000000..9704df5f8
--- /dev/null
+++ b/test/powershell/engine/Basic/Assembly.LoadFrom.ps1
@@ -0,0 +1,68 @@
+Describe "Assembly.LoadFrom Validation Test" -Tags "CI" {
+    BeforeAll {
+        $ConsumerCode = @'
+            using System;
+            using Assembly.Bar;
+
+            namespace Assembly.Foo
+            {
+                public class Consumer
+                {
+                    public static string GetName()
+                    {
+                        return Provider.GetProviderName();
+                    }
+                }
+            }
+'@
+        $ProviderCode = @'
+            using System;
+
+            namespace Assembly.Bar
+            {
+                public class Provider
+                {
+                    public static string GetProviderName()
+                    {
+                        return "Assembly.Bar.Provider";
+                    }
+                }
+            }
+'@
+
+        ## The assembly files cannot be removed once they are loaded, unless the current PowerShell session exits.
+        ## If we use $TestDrive here, then Pester will try to remove them afterward and result in errors.
+        $TempPath = [System.IO.Path]::GetTempFileName()
+        if (Test-Path $TempPath) { Remove-Item -Path $TempPath -Force -Recurse }
+        New-Item -Path $TempPath -ItemType Directory -Force > $null
+
+        $ConsumerAssembly = Join-Path -Path $TempPath -ChildPath "Consumer.dll"
+        $ProviderAssembly = Join-Path -Path $TempPath -ChildPath "Provider.dll"
+
+        Add-Type -TypeDefinition $ProviderCode -OutputType Library -OutputAssembly $ProviderAssembly
+        Add-Type -TypeDefinition $ConsumerCode -OutputType Library -OutputAssembly $ConsumerAssembly -ReferencedAssemblies $ProviderAssembly
+
+        ## Add-Type uses a random name as the AssemblyName, so we need to change the file name of the to-be-referenced assembly
+        ## to the same AssemblyName, so that `Assembly.LoadFrom` can discover the to-be-referenced assembly from the same folder.
+        $AssemblyName = [System.Reflection.AssemblyName]::GetAssemblyName($ProviderAssembly)
+        $ProviderAssemblyNewPath = Join-Path -Path $TempPath -ChildPath "$($AssemblyName.Name).dll"
+        Move-Item -Path $ProviderAssembly -Destination $ProviderAssemblyNewPath
+    }
+
+    It "Assembly.LoadFrom should automatically load the implicit referenced assembly from the same folder" {
+        ## Both types should not be available before loading the test assemblies
+        { [Assembly.Foo.Consumer] } | Should Throw
+        { [Assembly.Bar.Provider] } | Should Throw
+
+        ## The type 'Assembly.Foo.Consumer' should be available after loading 'Consumer.dll'
+        [System.Reflection.Assembly]::LoadFrom($ConsumerAssembly) > $null
+        [Assembly.Foo.Consumer].FullName | Should Be "Assembly.Foo.Consumer"
+        ## The type 'Assembly.Bar.Provider' should still not be available
+        { [Assembly.Bar.Provider] } | Should Throw
+
+        ## Calling '[Assembly.Foo.Consumer]::GetName()' will trigger implicit loading of 'Provider.dll' and the call should work
+        [Assembly.Foo.Consumer]::GetName() | Should Be "Assembly.Bar.Provider"
+        ## Now the type 'Assembly.Bar.Provider' should be available
+        [Assembly.Bar.Provider].FullName | Should Be "Assembly.Bar.Provider"
+    }
+}