diff --git a/powershell/codeql-extractor.yml b/powershell/codeql-extractor.yml
index 43cd6f6dc959..eb7375f826dc 100644
--- a/powershell/codeql-extractor.yml
+++ b/powershell/codeql-extractor.yml
@@ -7,4 +7,11 @@ file_types:
   - name: powershell
     display_name: powershellscripts
     extensions:
-      - .ps1
\ No newline at end of file
+      - .ps1
+      - .psd1
+options:
+  skip_psmodulepath_files:
+    title: Skip PSModulePath files.
+    description: Whether to avoid extracting source files in paths specified by the PSModulePath environment variable.
+    type: string
+    pattern: "^(false|true)$"
\ No newline at end of file
diff --git a/powershell/extractor/Semmle.Extraction.PowerShell.Standalone/Options.cs b/powershell/extractor/Semmle.Extraction.PowerShell.Standalone/Options.cs
index 0b7c5075bebd..fa3b88fa1e07 100644
--- a/powershell/extractor/Semmle.Extraction.PowerShell.Standalone/Options.cs
+++ b/powershell/extractor/Semmle.Extraction.PowerShell.Standalone/Options.cs
@@ -1,3 +1,4 @@
+using System;
 using System.Collections.Generic;
 using System.IO;
 using System.Linq;
@@ -120,6 +121,24 @@ private static FileInfo[] GetDefaultFiles()
             }
         }
 
+        /// <summary>
+        /// Returns true if the extractor should skip files in the PSModulePath because the
+        /// environment variable CODEQL_EXTRACTOR_POWERSHELL_OPTION_SKIP_PSMODULEPATH_FILES
+        /// is set to a truthy value.
+        /// </summary>
+        private static bool GetDefaultSkipPSModulePathFiles()
+        {
+            var skip = System.Environment.GetEnvironmentVariable(
+                "CODEQL_EXTRACTOR_POWERSHELL_OPTION_SKIP_PSMODULEPATH_FILES"
+            );
+            bool b = skip != null && skip.ToLower() != "false";
+            if (b)
+            {
+                System.Console.WriteLine("Skipping files in PSModulePath");
+            }
+            return b;
+        }
+
         /// <summary>
         /// The directory or file containing the source code;
         /// </summary>
@@ -134,7 +153,7 @@ private static FileInfo[] GetDefaultFiles()
         /// Whether to extract files in the paths found in the `PSModulePath`
         /// environment variable.
         /// </summary>
-        public bool SkipPSModulePathFiles { get; private set; } = false;
+        public bool SkipPSModulePathFiles { get; private set; } = GetDefaultSkipPSModulePathFiles();
 
         /// <summary>
         /// Whether errors were encountered parsing the arguments.
@@ -172,9 +191,13 @@ public static void ShowHelp(System.IO.TextWriter output)
                 "    --exclude:xxx                Exclude a file or directory (can be specified multiple times)"
             );
             output.WriteLine("    --dry-run                    Stop before extraction");
-            output.WriteLine("    --threads:nnn                Specify number of threads (default=CPU cores)");
+            output.WriteLine(
+                "    --threads:nnn                Specify number of threads (default=CPU cores)"
+            );
             output.WriteLine("    --verbose                    Produce more output");
-            output.WriteLine("    --skip-psmodulepath-files    Avoid extracting source files in paths specified by the PSModulePath environment variable.");
+            output.WriteLine(
+                "    --skip-psmodulepath-files    Avoid extracting source files in paths specified by the PSModulePath environment variable."
+            );
         }
 
         private Options() { }
diff --git a/powershell/tools/qltest.cmd b/powershell/tools/qltest.cmd
index 0f129800d4b0..402978322d69 100644
--- a/powershell/tools/qltest.cmd
+++ b/powershell/tools/qltest.cmd
@@ -6,6 +6,7 @@ type NUL && "%CODEQL_DIST%\codeql.exe" database index-files ^
     --size-limit=5m ^
     --language=powershell ^
     --working-dir=. ^
+    --extractor-option="powershell.skip_psmodulepath_files=true" ^
     "%CODEQL_EXTRACTOR_POWERSHELL_WIP_DATABASE%"
 
 exit /b %ERRORLEVEL%