diff --git a/src/System.Management.Automation/utils/ClrFacade.cs b/src/System.Management.Automation/utils/ClrFacade.cs
index cabac1bd335..3ffa6f59bb4 100644
--- a/src/System.Management.Automation/utils/ClrFacade.cs
+++ b/src/System.Management.Automation/utils/ClrFacade.cs
@@ -54,13 +54,15 @@ internal static IEnumerable<Assembly> GetAssemblies(string namespaceQualifiedTyp
         }
 
         /// <summary>
-        /// Return assemblies from the default load context and the 'individual' load contexts.
-        /// The 'individual' load contexts are the ones holding assemblies loaded via 'Assembly.Load(byte[])' and 'Assembly.LoadFile'.
-        /// Assemblies loaded in any custom load contexts are not consider visible to PowerShell to avoid type identity issues.
+        /// Return the assemblies from the default load context and the assemblies loaded from byte streams through the 'Assembly.Load(byte[])' API.
+        /// Assemblies that were loaded by 'Assembly.LoadFile' or loaded in any custom load contexts are not consider visible to PowerShell to avoid
+        /// the type identity issues. We do not discover assemblies loaded by 'Assembly.LoadFile', because this API is usually used by modules built
+        /// against 'netstandard2.0' or 'net462' to address assembly loading conflicts when working in the PowerShell Core environment.
         /// </summary>
         private static IEnumerable<Assembly> GetPSVisibleAssemblies()
         {
-            const string IndividualAssemblyLoadContext = "System.Runtime.Loader.IndividualAssemblyLoadContext";
+            const string LoadContextFullTypeName = "System.Runtime.Loader.IndividualAssemblyLoadContext";
+            const string ByteStreamLoadContextName = "Assembly.Load(byte[], ...)";
 
             foreach (Assembly assembly in AssemblyLoadContext.Default.Assemblies)
             {
@@ -72,7 +74,8 @@ private static IEnumerable<Assembly> GetPSVisibleAssemblies()
 
             foreach (AssemblyLoadContext context in AssemblyLoadContext.All)
             {
-                if (IndividualAssemblyLoadContext.Equals(context.GetType().FullName, StringComparison.Ordinal))
+                if (LoadContextFullTypeName.Equals(context.GetType().FullName, StringComparison.Ordinal)
+                    && ByteStreamLoadContextName.Equals(context.Name, StringComparison.Ordinal))
                 {
                     foreach (Assembly assembly in context.Assemblies)
                     {
diff --git a/test/powershell/engine/Basic/Assembly.LoadBytesAndLoadFile.Tests.ps1 b/test/powershell/engine/Basic/Assembly.LoadBytesAndLoadFile.Tests.ps1
index 981a00627e4..e925e28b921 100644
--- a/test/powershell/engine/Basic/Assembly.LoadBytesAndLoadFile.Tests.ps1
+++ b/test/powershell/engine/Basic/Assembly.LoadBytesAndLoadFile.Tests.ps1
@@ -1,7 +1,7 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 
-Describe "Assembly loaded in IndividualAssemblyLoadContext should be visible to PowerShell" -Tags "CI" {
+Describe "Discoverability of assemblies loaded by 'Assembly.Load(byte[])' and 'Assembly.LoadFile'" -Tags "CI" {
     BeforeAll {
         $code1 = @'
         namespace LoadBytes {
@@ -39,9 +39,13 @@ Describe "Assembly loaded in IndividualAssemblyLoadContext should be visible to
         [LoadBytes.MyLoadBytesTest]::GetName() | Should -BeExactly "MyLoadBytesTest"
     }
 
-    It "Assembly loaded via 'Assembly.LoadFile' should be discoverable" {
-        [System.Reflection.Assembly]::LoadFile($loadFileFile) > $null
+    It "Assembly loaded via 'Assembly.LoadFile' should NOT be discoverable" {
+        ## Reflection should work fine.
+        $asm = [System.Reflection.Assembly]::LoadFile($loadFileFile)
+        $type = $asm.GetType('LoadFile.MyLoadFileTest')
+        $type::GetName() | Should -BeExactly "MyLoadFileTest"
 
-        [LoadFile.MyLoadFileTest]::GetName() | Should -BeExactly "MyLoadFileTest"
+        ## Type resolution should not work.
+        { [LoadFile.MyLoadFileTest] } | Should -Throw -ErrorId "TypeNotFound"
     }
 }