diff --git a/README.md b/README.md
index 128d662..003921c 100644
--- a/README.md
+++ b/README.md
@@ -66,7 +66,6 @@ You can find all available versions on the [releases page](https://github.com/Ai
 ### Verify the installation
 
 1. **❗Restart your terminal** to start using the Aikido Safe Chain.
-
    - This step is crucial as it ensures that the shell aliases for npm, npx, yarn, pnpm, pnpx, bun, bunx, pip, pip3, poetry, uv and pipx are loaded correctly. If you do not restart your terminal, the aliases will not be available.
 
 2. **Verify the installation** by running the verification command:
@@ -159,7 +158,6 @@ You can control the output from Aikido Safe Chain using the `--safe-chain-loggin
 You can set the logging level through multiple sources (in order of priority):
 
 1. **CLI Argument** (highest priority):
-
    - `--safe-chain-logging=silent` - Suppresses all Aikido Safe Chain output except when malware is blocked. The package manager output is written to stdout as normal, and Safe Chain only writes a short message if it has blocked malware and causes the process to exit.
 
      ```shell
@@ -396,4 +394,4 @@ After setup, all subsequent package manager commands in your CI pipeline will au
 
 # Troubleshooting
 
-Having issues? See the [Troubleshooting Guide](https://github.com/AikidoSec/safe-chain/blob/main/docs/troubleshooting.md) for help with common problems.
+Having issues? See the [Troubleshooting Guide](https://help.aikido.dev/code-scanning/aikido-malware-scanning/safe-chain-troubleshooting) for help with common problems.
diff --git a/packages/safe-chain/bin/safe-chain.js b/packages/safe-chain/bin/safe-chain.js
index dbefa10..2913d28 100755
--- a/packages/safe-chain/bin/safe-chain.js
+++ b/packages/safe-chain/bin/safe-chain.js
@@ -104,8 +104,8 @@ if (tool) {
     })();
   }
 } else if (command === "teardown") {
-  teardownDirectories();
   teardown();
+  teardownDirectories();
 } else if (command === "setup-ci") {
   setupCi();
 } else if (command === "--version" || command === "-v" || command === "-v") {
diff --git a/packages/safe-chain/src/shell-integration/helpers.js b/packages/safe-chain/src/shell-integration/helpers.js
index 3e71d71..18ba52e 100644
--- a/packages/safe-chain/src/shell-integration/helpers.js
+++ b/packages/safe-chain/src/shell-integration/helpers.js
@@ -3,6 +3,8 @@ import * as os from "os";
 import fs from "fs";
 import path from "path";
 import { ECOSYSTEM_JS, ECOSYSTEM_PY } from "../config/settings.js";
+import { safeSpawn } from "../utils/safeSpawn.js";
+import { ui } from "../environment/userInteraction.js";
 
 /**
  * @typedef {Object} AikidoTool
@@ -243,3 +245,60 @@ function createFileIfNotExists(filePath) {
 
   fs.writeFileSync(filePath, "", "utf-8");
 }
+
+/**
+ * Checks if PowerShell execution policy allows script execution
+ * @param {string} shellExecutableName - The name of the PowerShell executable ("pwsh" or "powershell")
+ * @returns {Promise<{isValid: boolean, policy: string}>} validation result
+ */
+export async function validatePowerShellExecutionPolicy(shellExecutableName) {
+  // Security: Only allow known shell executables
+  const validShells = ["pwsh", "powershell"];
+  if (!validShells.includes(shellExecutableName)) {
+    return { isValid: false, policy: "Unknown" };
+  }
+
+  try {
+    // For Windows PowerShell (5.1), clean PSModulePath to avoid conflicts with PowerShell 7 modules
+    // When safe-chain is invoked from PowerShell 7, it sets its module paths to PSModulePath, causing
+    // Windows PowerShell to try loading incompatible PowerShell 7 modules.
+    // Setting the environment to Windows PowerShell's modules fixes this.
+    let spawnOptions;
+    if (shellExecutableName === "powershell") {
+      const userProfile = process.env.USERPROFILE || "";
+      const cleanPSModulePath = [
+        path.join(userProfile, "Documents", "WindowsPowerShell", "Modules"),
+        "C:\\Program Files\\WindowsPowerShell\\Modules",
+        "C:\\WINDOWS\\system32\\WindowsPowerShell\\v1.0\\Modules",
+      ].join(";");
+
+      spawnOptions = {
+        env: {
+          ...process.env,
+          PSModulePath: cleanPSModulePath,
+        },
+      };
+    } else {
+      spawnOptions = {};
+    }
+
+    const commandResult = await safeSpawn(
+      shellExecutableName,
+      ["-Command", "Get-ExecutionPolicy"],
+      spawnOptions,
+    );
+
+    const policy = commandResult.stdout.trim();
+
+    const acceptablePolicies = ["RemoteSigned", "Unrestricted", "Bypass"];
+    return {
+      isValid: acceptablePolicies.includes(policy),
+      policy: policy,
+    };
+  } catch (err) {
+    ui.writeWarning(
+      `An error happened while trying to find the current executionpolicy in powershell: ${err}`,
+    );
+    return { isValid: false, policy: "Unknown" };
+  }
+}
diff --git a/packages/safe-chain/src/shell-integration/setup.js b/packages/safe-chain/src/shell-integration/setup.js
index 7e64c0b..4138db6 100644
--- a/packages/safe-chain/src/shell-integration/setup.js
+++ b/packages/safe-chain/src/shell-integration/setup.js
@@ -1,7 +1,11 @@
 import chalk from "chalk";
 import { ui } from "../environment/userInteraction.js";
 import { detectShells } from "./shellDetection.js";
-import { knownAikidoTools, getPackageManagerList, getScriptsDir } from "./helpers.js";
+import {
+  knownAikidoTools,
+  getPackageManagerList,
+  getScriptsDir,
+} from "./helpers.js";
 import fs from "fs";
 import path from "path";
 import { fileURLToPath } from "url";
@@ -26,7 +30,7 @@ if (import.meta.url) {
 export async function setup() {
   ui.writeInformation(
     chalk.bold("Setting up shell aliases.") +
-      ` This will wrap safe-chain around ${getPackageManagerList()}.`
+      ` This will wrap safe-chain around ${getPackageManagerList()}.`,
   );
   ui.emptyLine();
 
@@ -42,12 +46,12 @@ export async function setup() {
     ui.writeInformation(
       `Detected ${shells.length} supported shell(s): ${shells
         .map((shell) => chalk.bold(shell.name))
-        .join(", ")}.`
+        .join(", ")}.`,
     );
 
     let updatedCount = 0;
     for (const shell of shells) {
-      if (setupShell(shell)) {
+      if (await setupShell(shell)) {
         updatedCount++;
       }
     }
@@ -58,7 +62,7 @@ export async function setup() {
     }
   } catch (/** @type {any} */ error) {
     ui.writeError(
-      `Failed to set up shell aliases: ${error.message}. Please check your shell configuration.`
+      `Failed to set up shell aliases: ${error.message}. Please check your shell configuration.`,
     );
     return;
   }
@@ -68,12 +72,12 @@ export async function setup() {
  * Calls the setup function for the given shell and reports the result.
  * @param {import("./shellDetection.js").Shell} shell
  */
-function setupShell(shell) {
+async function setupShell(shell) {
   let success = false;
   let error;
   try {
     shell.teardown(knownAikidoTools); // First, tear down to prevent duplicate aliases
-    success = shell.setup(knownAikidoTools);
+    success = await shell.setup(knownAikidoTools);
   } catch (/** @type {any} */ err) {
     success = false;
     error = err;
@@ -82,14 +86,14 @@ function setupShell(shell) {
   if (success) {
     ui.writeInformation(
       `${chalk.bold("- " + shell.name + ":")} ${chalk.green(
-        "Setup successful"
-      )}`
+        "Setup successful",
+      )}`,
     );
   } else {
     ui.writeError(
       `${chalk.bold("- " + shell.name + ":")} ${chalk.red(
-        "Setup failed"
-      )}. Please check your ${shell.name} configuration.`
+        "Setup failed",
+      )}. Please check your ${shell.name} configuration.`,
     );
     if (error) {
       let message = `  Error: ${error.message}`;
@@ -115,11 +119,7 @@ function copyStartupFiles() {
     }
 
     // Use absolute path for source
-    const sourcePath = path.join(
-      dirname,
-      "startup-scripts",
-      file
-    );
+    const sourcePath = path.join(dirname, "startup-scripts", file);
     fs.copyFileSync(sourcePath, targetPath);
   }
 }
diff --git a/packages/safe-chain/src/shell-integration/shellDetection.js b/packages/safe-chain/src/shell-integration/shellDetection.js
index 9e0f110..996125c 100644
--- a/packages/safe-chain/src/shell-integration/shellDetection.js
+++ b/packages/safe-chain/src/shell-integration/shellDetection.js
@@ -9,7 +9,7 @@ import { ui } from "../environment/userInteraction.js";
  * @typedef {Object} Shell
  * @property {string} name
  * @property {() => boolean} isInstalled
- * @property {(tools: import("./helpers.js").AikidoTool[]) => boolean} setup
+ * @property {(tools: import("./helpers.js").AikidoTool[]) => boolean|Promise<boolean>} setup
  * @property {(tools: import("./helpers.js").AikidoTool[]) => boolean} teardown
  */
 
@@ -28,7 +28,7 @@ export function detectShells() {
     }
   } catch (/** @type {any} */ error) {
     ui.writeError(
-      `We were not able to detect which shells are installed on your system. Please check your shell configuration. Error: ${error.message}`
+      `We were not able to detect which shells are installed on your system. Please check your shell configuration. Error: ${error.message}`,
     );
     return [];
   }
diff --git a/packages/safe-chain/src/shell-integration/supported-shells/powershell.js b/packages/safe-chain/src/shell-integration/supported-shells/powershell.js
index 8cec258..96eb219 100644
--- a/packages/safe-chain/src/shell-integration/supported-shells/powershell.js
+++ b/packages/safe-chain/src/shell-integration/supported-shells/powershell.js
@@ -2,6 +2,7 @@ import {
   addLineToFile,
   doesExecutableExistOnSystem,
   removeLinesMatchingPattern,
+  validatePowerShellExecutionPolicy,
 } from "../helpers.js";
 import { execSync } from "child_process";
 
@@ -25,25 +26,33 @@ function teardown(tools) {
     // Remove any existing alias for the tool
     removeLinesMatchingPattern(
       startupFile,
-      new RegExp(`^Set-Alias\\s+${tool}\\s+`)
+      new RegExp(`^Set-Alias\\s+${tool}\\s+`),
     );
   }
 
   // Remove the line that sources the safe-chain PowerShell initialization script
   removeLinesMatchingPattern(
     startupFile,
-    /^\.\s+["']?\$HOME[/\\].safe-chain[/\\]scripts[/\\]init-pwsh\.ps1["']?/
+    /^\.\s+["']?\$HOME[/\\].safe-chain[/\\]scripts[/\\]init-pwsh\.ps1["']?/,
   );
 
   return true;
 }
 
-function setup() {
+async function setup() {
+  const { isValid, policy } =
+    await validatePowerShellExecutionPolicy(executableName);
+  if (!isValid) {
+    throw new Error(
+      `PowerShell execution policy is set to '${policy}', which prevents safe-chain from running.\n  -> To fix this, open PowerShell as Administrator and run: Set-ExecutionPolicy -ExecutionPolicy RemoteSigned.\n     For more information, see: https://help.aikido.dev/code-scanning/aikido-malware-scanning/safe-chain-troubleshooting#powershell-execution-policy-blocks-scripts-windows`,
+    );
+  }
+
   const startupFile = getStartupFile();
 
   addLineToFile(
     startupFile,
-    `. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script`
+    `. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script`,
   );
 
   return true;
@@ -57,7 +66,7 @@ function getStartupFile() {
     }).trim();
   } catch (/** @type {any} */ error) {
     throw new Error(
-      `Command failed: ${startupFileCommand}. Error: ${error.message}`
+      `Command failed: ${startupFileCommand}. Error: ${error.message}`,
     );
   }
 }
diff --git a/packages/safe-chain/src/shell-integration/supported-shells/powershell.spec.js b/packages/safe-chain/src/shell-integration/supported-shells/powershell.spec.js
index 3a15376..de2c14b 100644
--- a/packages/safe-chain/src/shell-integration/supported-shells/powershell.spec.js
+++ b/packages/safe-chain/src/shell-integration/supported-shells/powershell.spec.js
@@ -8,14 +8,20 @@ import { knownAikidoTools } from "../helpers.js";
 describe("PowerShell Core shell integration", () => {
   let mockStartupFile;
   let powershell;
+  let executionPolicyResult;
 
   beforeEach(async () => {
     // Create temporary startup file for testing
     mockStartupFile = path.join(
       tmpdir(),
-      `test-powershell-profile-${Date.now()}.ps1`
+      `test-powershell-profile-${Date.now()}.ps1`,
     );
 
+    executionPolicyResult = {
+      isValid: true,
+      policy: "RemoteSigned",
+    };
+
     // Mock the helpers module
     mock.module("../helpers.js", {
       namedExports: {
@@ -33,6 +39,7 @@ describe("PowerShell Core shell integration", () => {
           const filteredLines = lines.filter((line) => !pattern.test(line));
           fs.writeFileSync(filePath, filteredLines.join("\n"), "utf-8");
         },
+        validatePowerShellExecutionPolicy: () => executionPolicyResult,
       },
     });
 
@@ -69,15 +76,15 @@ describe("PowerShell Core shell integration", () => {
   });
 
   describe("setup", () => {
-    it("should add init-pwsh.ps1 source line", () => {
-      const result = powershell.setup();
+    it("should add init-pwsh.ps1 source line", async () => {
+      const result = await powershell.setup();
       assert.strictEqual(result, true);
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
         content.includes(
-          '. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script'
-        )
+          '. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script',
+        ),
       );
     });
   });
@@ -98,7 +105,7 @@ describe("PowerShell Core shell integration", () => {
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
       assert.ok(content.includes("Set-Alias ls "));
       assert.ok(content.includes("Set-Alias grep "));
@@ -168,26 +175,26 @@ describe("PowerShell Core shell integration", () => {
   });
 
   describe("integration tests", () => {
-    it("should handle complete setup and teardown cycle", () => {
+    it("should handle complete setup and teardown cycle", async () => {
       // Setup
-      powershell.setup();
+      await powershell.setup();
       let content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
 
       // Teardown
       powershell.teardown(knownAikidoTools);
       content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
     });
 
-    it("should handle multiple setup calls", () => {
-      powershell.setup();
+    it("should handle multiple setup calls", async () => {
+      await powershell.setup();
       powershell.teardown(knownAikidoTools);
-      powershell.setup();
+      await powershell.setup();
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       const sourceMatches = (
@@ -197,4 +204,21 @@ describe("PowerShell Core shell integration", () => {
       assert.strictEqual(sourceMatches, 1, "Should not duplicate source lines");
     });
   });
+
+  describe("execution policy", () => {
+    it(`should throw for restricted policies`, async () => {
+      executionPolicyResult = {
+        isValid: false,
+        policy: "Restricted",
+      };
+
+      await assert.rejects(
+        () => powershell.setup(),
+        (err) =>
+          err.message.startsWith(
+            "PowerShell execution policy is set to 'Restricted'",
+          ),
+      );
+    });
+  });
 });
diff --git a/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.js b/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.js
index e554a32..2740456 100644
--- a/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.js
+++ b/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.js
@@ -2,6 +2,7 @@ import {
   addLineToFile,
   doesExecutableExistOnSystem,
   removeLinesMatchingPattern,
+  validatePowerShellExecutionPolicy,
 } from "../helpers.js";
 import { execSync } from "child_process";
 
@@ -25,25 +26,33 @@ function teardown(tools) {
     // Remove any existing alias for the tool
     removeLinesMatchingPattern(
       startupFile,
-      new RegExp(`^Set-Alias\\s+${tool}\\s+`)
+      new RegExp(`^Set-Alias\\s+${tool}\\s+`),
     );
   }
 
   // Remove the line that sources the safe-chain PowerShell initialization script
   removeLinesMatchingPattern(
     startupFile,
-    /^\.\s+["']?\$HOME[/\\].safe-chain[/\\]scripts[/\\]init-pwsh\.ps1["']?/
+    /^\.\s+["']?\$HOME[/\\].safe-chain[/\\]scripts[/\\]init-pwsh\.ps1["']?/,
   );
 
   return true;
 }
 
-function setup() {
+async function setup() {
+  const { isValid, policy } =
+    await validatePowerShellExecutionPolicy(executableName);
+  if (!isValid) {
+    throw new Error(
+      `PowerShell execution policy is set to '${policy}', which prevents safe-chain from running.\n  -> To fix this, open PowerShell as Administrator and run: Set-ExecutionPolicy -ExecutionPolicy RemoteSigned.\n     For more information, see: https://help.aikido.dev/code-scanning/aikido-malware-scanning/safe-chain-troubleshooting#powershell-execution-policy-blocks-scripts-windows`,
+    );
+  }
+
   const startupFile = getStartupFile();
 
   addLineToFile(
     startupFile,
-    `. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script`
+    `. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script`,
   );
 
   return true;
@@ -57,7 +66,7 @@ function getStartupFile() {
     }).trim();
   } catch (/** @type {any} */ error) {
     throw new Error(
-      `Command failed: ${startupFileCommand}. Error: ${error.message}`
+      `Command failed: ${startupFileCommand}. Error: ${error.message}`,
     );
   }
 }
diff --git a/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.spec.js b/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.spec.js
index c201c60..561d0d4 100644
--- a/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.spec.js
+++ b/packages/safe-chain/src/shell-integration/supported-shells/windowsPowershell.spec.js
@@ -8,14 +8,20 @@ import { knownAikidoTools } from "../helpers.js";
 describe("Windows PowerShell shell integration", () => {
   let mockStartupFile;
   let windowsPowershell;
+  let executionPolicyResult;
 
   beforeEach(async () => {
     // Create temporary startup file for testing
     mockStartupFile = path.join(
       tmpdir(),
-      `test-windows-powershell-profile-${Date.now()}.ps1`
+      `test-windows-powershell-profile-${Date.now()}.ps1`,
     );
 
+    executionPolicyResult = {
+      isValid: true,
+      policy: "RemoteSigned",
+    };
+
     // Mock the helpers module
     mock.module("../helpers.js", {
       namedExports: {
@@ -33,6 +39,7 @@ describe("Windows PowerShell shell integration", () => {
           const filteredLines = lines.filter((line) => !pattern.test(line));
           fs.writeFileSync(filePath, filteredLines.join("\n"), "utf-8");
         },
+        validatePowerShellExecutionPolicy: () => executionPolicyResult,
       },
     });
 
@@ -69,15 +76,15 @@ describe("Windows PowerShell shell integration", () => {
   });
 
   describe("setup", () => {
-    it("should add init-pwsh.ps1 source line", () => {
-      const result = windowsPowershell.setup();
+    it("should add init-pwsh.ps1 source line", async () => {
+      const result = await windowsPowershell.setup();
       assert.strictEqual(result, true);
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
         content.includes(
-          '. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script'
-        )
+          '. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1" # Safe-chain PowerShell initialization script',
+        ),
       );
     });
   });
@@ -98,7 +105,7 @@ describe("Windows PowerShell shell integration", () => {
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
       assert.ok(content.includes("Set-Alias ls "));
       assert.ok(content.includes("Set-Alias grep "));
@@ -168,26 +175,26 @@ describe("Windows PowerShell shell integration", () => {
   });
 
   describe("integration tests", () => {
-    it("should handle complete setup and teardown cycle", () => {
+    it("should handle complete setup and teardown cycle", async () => {
       // Setup
-      windowsPowershell.setup();
+      await windowsPowershell.setup();
       let content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
 
       // Teardown
       windowsPowershell.teardown(knownAikidoTools);
       content = fs.readFileSync(mockStartupFile, "utf-8");
       assert.ok(
-        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"')
+        !content.includes('. "$HOME\\.safe-chain\\scripts\\init-pwsh.ps1"'),
       );
     });
 
-    it("should handle multiple setup calls", () => {
-      windowsPowershell.setup();
+    it("should handle multiple setup calls", async () => {
+      await windowsPowershell.setup();
       windowsPowershell.teardown(knownAikidoTools);
-      windowsPowershell.setup();
+      await windowsPowershell.setup();
 
       const content = fs.readFileSync(mockStartupFile, "utf-8");
       const sourceMatches = (
@@ -197,4 +204,21 @@ describe("Windows PowerShell shell integration", () => {
       assert.strictEqual(sourceMatches, 1, "Should not duplicate source lines");
     });
   });
+
+  describe("execution policy", () => {
+    it(`should throw for restricted policies`, async () => {
+      executionPolicyResult = {
+        isValid: false,
+        policy: "Restricted",
+      };
+
+      await assert.rejects(
+        () => windowsPowershell.setup(),
+        (err) =>
+          err.message.startsWith(
+            "PowerShell execution policy is set to 'Restricted'",
+          ),
+      );
+    });
+  });
 });