diff --git a/test/powershell/engine/InitialSessionState.Tests.ps1 b/test/powershell/engine/InitialSessionState.Tests.ps1
new file mode 100644
index 0000000000..85b1bec4fd
--- /dev/null
+++ b/test/powershell/engine/InitialSessionState.Tests.ps1
@@ -0,0 +1,57 @@
+Describe "InitialSessionState capacity" -Tags CI {
+    BeforeAll {
+        $iss = [initialsessionstate]::CreateDefault()
+
+        for ($i = 0; $i -lt 5000; $i++)
+        {
+            $ssfe = [System.Management.Automation.Runspaces.SessionStateFunctionEntry]::new("f$i", "'fn f$i'")
+            $iss.Commands.Add($ssfe)
+
+            $ssve = [System.Management.Automation.Runspaces.SessionStateVariableEntry]::new("v$i", "var v$i", $null)
+            $iss.Variables.Add($ssve)
+
+            $ssae = [System.Management.Automation.Runspaces.SessionStateAliasEntry]::new("a$i", "f$i")
+            $iss.Commands.Add($ssae)
+        }
+
+        $ps = [PowerShell]::Create($iss)
+    }
+
+    AfterAll {
+        $ps.Dispose()
+    }
+
+    BeforeEach {
+        $ps.Commands.Clear()
+    }
+
+    It "function capacity in initial session state should not be limited" {
+        $ps.AddCommand('f4999').Invoke() | Should Be "fn f4999"
+        $ps.Streams.Error | Should Be $null
+    }
+
+    It "alias capacity in initial session state should not be limited" {
+        $ps.AddCommand('a4999').Invoke() | Should Be "fn f4999"
+        $ps.Streams.Error | Should Be $null
+    }
+
+    It "variable capacity in initial session state should not be limited" {
+        $ps.AddScript('$v4999').Invoke() | Should Be "var v4999"
+        $ps.Streams.Error | Should Be $null
+    }
+
+    It "function capacity should not be limited after runspace is opened" {
+        $ps.AddScript('function f5000 { "in f5000" } f5000').Invoke() | Should Be "in f5000"
+        $ps.Streams.Error | Should Be $null
+    }
+
+    It "variable capacity should not be limited after runspace is opened" {
+        $ps.AddScript('$v5000 = "var v5000"; $v5000').Invoke() | Should Be "var v5000"
+        $ps.Streams.Error | Should Be $null
+    }
+
+    It "alias capacity should not be limited after runspace is opened" {
+        $ps.AddScript('New-Alias -Name a5000 -Value f1; a5000').Invoke() | Should Be "fn f1"
+        $ps.Streams.Error | Should Be $null
+    }
+}
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