diff --git a/packages/safe-chain/src/shell-integration/helpers.js b/packages/safe-chain/src/shell-integration/helpers.js
index 3e71d71..17b527c 100644
--- a/packages/safe-chain/src/shell-integration/helpers.js
+++ b/packages/safe-chain/src/shell-integration/helpers.js
@@ -1,4 +1,4 @@
-import { spawnSync } from "child_process";
+import { spawnSync, execSync } from "child_process";
 import * as os from "os";
 import fs from "fs";
 import path from "path";
@@ -243,3 +243,34 @@ 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 {{isValid: boolean, policy: string}} validation result
+ */
+export function validatePowerShellExecutionPolicy(shellExecutableName) {
+  // Security: Only allow known shell executables
+  const validShells = ["pwsh", "powershell"];
+  if (!validShells.includes(shellExecutableName)) {
+    return { isValid: false, policy: "Unknown" };
+  }
+
+  try {
+    // Security: Use literal command string, no interpolation
+    const policy = execSync("Get-ExecutionPolicy", {
+      encoding: "utf8",
+      shell: shellExecutableName,
+      timeout: 5000, // 5 second timeout
+    }).trim();
+
+    const acceptablePolicies = ["RemoteSigned", "Unrestricted", "Bypass"];
+    return {
+      isValid: acceptablePolicies.includes(policy),
+      policy: policy,
+    };
+  } catch (/** @type {any} */ error) {
+    // If we can't check the policy, return false to be safe
+    return { isValid: false, policy: "Unknown" };
+  }
+}
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..b26a3ff 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";
 
@@ -39,6 +40,16 @@ function teardown(tools) {
 }
 
 function setup() {
+  // Check execution policy
+  const { isValid, policy } = validatePowerShellExecutionPolicy(executableName);
+  if (!isValid) {
+    throw new Error(
+      `PowerShell execution policy is set to '${policy}', which prevents safe-chain from running. ` +
+        `To fix this, open PowerShell as Administrator and run: Set-ExecutionPolicy -ExecutionPolicy RemoteSigned. ` +
+        `For more information, see: https://github.com/AikidoSec/safe-chain/blob/main/docs/troubleshooting.md#powershell-execution-policy-blocks-scripts-windows`
+    );
+  }
+
   const startupFile = getStartupFile();
 
   addLineToFile(
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..5c93f45 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,
       },
     });
 
@@ -76,8 +83,8 @@ describe("PowerShell Core shell integration", () => {
       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 "));
@@ -173,14 +180,14 @@ describe("PowerShell Core shell integration", () => {
       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"'),
       );
     });
 
@@ -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`, () => {
+      executionPolicyResult = {
+        isValid: false,
+        policy: "Restricted",
+      };
+
+      assert.throws(
+        () => 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..cb07e0f 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";
 
@@ -39,6 +40,16 @@ function teardown(tools) {
 }
 
 function setup() {
+  // Check execution policy
+  const { isValid, policy } = validatePowerShellExecutionPolicy(executableName);
+  if (!isValid) {
+    throw new Error(
+      `PowerShell execution policy is set to '${policy}', which prevents safe-chain from running. ` +
+        `To fix this, open PowerShell as Administrator and run: Set-ExecutionPolicy -ExecutionPolicy RemoteSigned. ` +
+        `For more information, see: https://github.com/AikidoSec/safe-chain/blob/main/docs/troubleshooting.md#powershell-execution-policy-blocks-scripts-windows`
+    );
+  }
+
   const startupFile = getStartupFile();
 
   addLineToFile(
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..9a3a696 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,
       },
     });
 
@@ -76,8 +83,8 @@ describe("Windows PowerShell shell integration", () => {
       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 "));
@@ -173,14 +180,14 @@ describe("Windows PowerShell shell integration", () => {
       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"'),
       );
     });
 
@@ -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`, () => {
+      executionPolicyResult = {
+        isValid: false,
+        policy: "Restricted",
+      };
+
+      assert.throws(
+        () => windowsPowershell.setup(),
+        (err) =>
+          err.message.startsWith(
+            "PowerShell execution policy is set to 'Restricted'",
+          ),
+      );
+    });
+  });
 });