diff --git a/templates/powershell.txt b/templates/powershell.txt
index 7744338..e134ab1 100644
--- a/templates/powershell.txt
+++ b/templates/powershell.txt
@@ -106,9 +106,12 @@ function global:__zoxide_z {
     elseif ($args.Length -eq 1 -and ($args[0] -eq '-' -or $args[0] -eq '+')) {
         __zoxide_cd $args[0] $false
     }
-    elseif ($args.Length -eq 1 -and (Test-Path $args[0] -PathType Container)) {
+    elseif ($args.Length -eq 1 -and (Test-Path $args[0] -PathType Container -LiteralPath)) {
         __zoxide_cd $args[0] $true
     }
+    elseif ($args.Length -eq 1 -and (Test-Path $args[0] -PathType Container -Path)) {
+        __zoxide_cd $args[0] $false
+    }
     else {
         $result = __zoxide_pwd
         if ($null -ne $result) {