diff --git a/src/features/PesterTests.ts b/src/features/PesterTests.ts
index 98e521cdd8..1cdbfc1298 100644
--- a/src/features/PesterTests.ts
+++ b/src/features/PesterTests.ts
@@ -2,9 +2,8 @@
  * Copyright (C) Microsoft Corporation. All rights reserved.
  *--------------------------------------------------------*/
 
-import ChildProcess = require("child_process");
+import * as path from "path";
 import vscode = require("vscode");
-import Window = vscode.window;
 import { IFeature, LanguageClient } from "../feature";
 import { SessionManager } from "../session";
 import Settings = require("../settings");
@@ -36,16 +35,20 @@ export class PesterTestsFeature implements IFeature {
         const currentDocument = vscode.window.activeTextEditor.document;
         const settings = Settings.load();
 
+        // Since we pass the script path to PSES in single quotes to avoid issues with PowerShell
+        // special chars like & $ @ () [], we do have to double up the interior single quotes.
+        const scriptPath = uri.fsPath.replace(/'/g, "''");
+
         const launchConfig = {
             request: "launch",
             type: "PowerShell",
             name: "PowerShell Launch Pester Tests",
             script: "Invoke-Pester",
             args: [
-                `-Script "${uri.fsPath}"`,
-                describeBlockName
-                    ? `-TestName '${describeBlockName}'`
-                    : "",
+                "-Script",
+                `'${scriptPath}'`,
+                "-PesterOption",
+                "@{IncludeVSCodeMarker=$true}",
             ],
             internalConsoleOptions: "neverOpen",
             noDebug: !runInDebugger,
@@ -53,9 +56,14 @@ export class PesterTestsFeature implements IFeature {
             cwd:
                 currentDocument.isUntitled
                     ? vscode.workspace.rootPath
-                    : currentDocument.fileName,
+                    : path.dirname(currentDocument.fileName),
         };
 
+        if (describeBlockName) {
+            launchConfig.args.push("-TestName");
+            launchConfig.args.push(`'${describeBlockName}'`);
+        }
+
         // Create or show the interactive console
         // TODO #367: Check if "newSession" mode is configured
         vscode.commands.executeCommand("PowerShell.ShowSessionConsole", true);