diff --git a/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs b/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
index ee8e2d5879..5cfdb06765 100644
--- a/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
+++ b/src/Microsoft.PowerShell.ConsoleHost/host/msh/ConsoleHost.cs
@@ -187,17 +187,18 @@ namespace Microsoft.PowerShell
                         @"\Microsoft\Windows\PowerShell";
                 } 
                 
-                else
-                {
-                    //check if the user has set an XDG path in their environment variables
-                    profileDir = Platform.SelectProductNameForDirectory(Platform.XDG_Type.PROFILE);                  
-                }
-                
-                if (!Directory.Exists(profileDir)) //xdg value may have been set but not a valid directory 
-                {
-                    Console.WriteLine("The selected directory (" + profileDir +") for the profile does not exist. Using the default path.");
-                    profileDir = Platform.SelectProductNameForDirectory(Platform.XDG_Type.DEFAULT);
-                }
+                    else
+                    {
+                        //check if the user has set an XDG path in their environment variables
+                        profileDir = Platform.SelectProductNameForDirectory(Platform.XDG_Type.CACHE);  
+                        
+                        if (!Directory.Exists(profileDir)) //xdg value may have been set but not a valid directory 
+                        {
+                           Console.Error.WriteLine("The selected directory (" + profileDir +") for the profile does not exist. Using the default path.");
+                           profileDir = Platform.SelectProductNameForDirectory(Platform.XDG_Type.DEFAULT);
+                        }                
+                }                
+           
                 
                 ClrFacade.SetProfileOptimizationRoot(profileDir);
             }
diff --git a/src/Microsoft.PowerShell.PSReadLine/Cmdlets.cs b/src/Microsoft.PowerShell.PSReadLine/Cmdlets.cs
index d3fae3ee62..cd00286ac8 100644
--- a/src/Microsoft.PowerShell.PSReadLine/Cmdlets.cs
+++ b/src/Microsoft.PowerShell.PSReadLine/Cmdlets.cs
@@ -180,23 +180,20 @@ namespace Microsoft.PowerShell
             else
             {
                 //PSReadline does not have access to Utils.CorePSPlatform. Must set PSReadline path seperately                
-                string historypath = System.Environment.GetEnvironmentVariable("XDG_DATA_HOME");
+                string historypath = System.Environment.GetEnvironmentVariable("XDG_CACHE_HOME");
                     
                 if (!String.IsNullOrEmpty(historypath))
                 {
-                    historypath = System.IO.Path.Combine(historypath, "powershell");
+                    historypath = System.IO.Path.Combine(historypath, "powershell", "PSReadLine", hostName + "_history.txt");
                     HistorySavePath = historypath; 
                 }
 
                 else
                 {
-                    historypath = System.IO.Path.Combine(
-                                                        Environment.GetEnvironmentVariable("HOME"), 
-                                                        ".local/share/powershell/modules");
-                        
                     HistorySavePath = System.IO.Path.Combine(
                                                              Environment.GetEnvironmentVariable("HOME"), 
-                                                             historypath,
+                                                             ".cache",
+                                                             "powershell",
                                                              "PSReadLine",
                                                              hostName + "_history.txt");
                 }
diff --git a/src/System.Management.Automation/CoreCLR/CorePsPlatform.cs b/src/System.Management.Automation/CoreCLR/CorePsPlatform.cs
index ecf7d8b2a5..f2bfb4d9c7 100644
--- a/src/System.Management.Automation/CoreCLR/CorePsPlatform.cs
+++ b/src/System.Management.Automation/CoreCLR/CorePsPlatform.cs
@@ -48,7 +48,7 @@ namespace System.Management.Automation
         {
             PROFILE,
             MODULES,
-            HISTORY, 
+            CACHE, 
             DEFAULT
         
         }
@@ -115,7 +115,8 @@ namespace System.Management.Automation
             string xdgdatahome = System.Environment.GetEnvironmentVariable("XDG_DATA_HOME");
             string xdgcachehome = System.Environment.GetEnvironmentVariable("XDG_CACHE_HOME");
             string xdgConfigHomeDefault =  Path.Combine ( System.Environment.GetEnvironmentVariable("HOME"), ".config/powershell");
-            string moduleDefault = Path.Combine ( System.Environment.GetEnvironmentVariable("HOME"), ".local/share/powershell/modules");
+            string xdgModuleDefault = Path.Combine ( System.Environment.GetEnvironmentVariable("HOME"), ".local/share/powershell/modules");
+            string xdgCacheDefault = Path.Combine (System.Environment.GetEnvironmentVariable("HOME"), ".cache/powershell"); 
             
             switch (dirpath){
                 case Platform.XDG_Type.PROFILE: 
@@ -134,40 +135,54 @@ namespace System.Management.Automation
                 case Platform.XDG_Type.MODULES: 
                     //the user has set XDG_DATA_HOME corresponding to module path 
                     if (String.IsNullOrEmpty(xdgdatahome)){
-                        //xdg values have not been set 
-                        if (!Directory.Exists(moduleDefault)) //module folder not always guaranteed to exist
-                        {   
-                            Directory.CreateDirectory(moduleDefault);                           
-                        }
-
-                        return xdgConfigHomeDefault; 
+         
+                    //xdg values have not been set 
+                    if (!Directory.Exists(xdgModuleDefault)) //module folder not always guaranteed to exist
+                    {   
+                        Directory.CreateDirectory(xdgModuleDefault);                           
+                    }
+                       return xdgConfigHomeDefault; 
                     }
-
                     else
                     {
                         return Path.Combine(xdgdatahome, "powershell"); 
                     }                                        
-                   
-                case Platform.XDG_Type.HISTORY: 
+                                    
+                case Platform.XDG_Type.CACHE:
                     //the user has set XDG_CACHE_HOME
-                    if (String.IsNullOrEmpty(xdgcachehome)){
-                        return xdgConfigHomeDefault; 
+                    if (String.IsNullOrEmpty(xdgcachehome))
+                    {
+                       //xdg values have not been set 
+                        if (!Directory.Exists(xdgCacheDefault)) //module folder not always guaranteed to exist
+                        {   
+                            Directory.CreateDirectory(xdgCacheDefault);                           
+                        }
+         
+                        return xdgCacheDefault; 
                     }
                     else
                     {
                         return Path.Combine(xdgcachehome, "powershell"); 
-
-                    }
-
+                    }                 
+                                    
                 case Platform.XDG_Type.DEFAULT:     
                     //default for profile location
                     return xdgConfigHomeDefault;
 
                 default:                    
+                    //xdgConfigHomeDefault needs to be created in the edge case that we do not have the folder or it was deleted
+                    //This folder is the default in the event of all other failures for data storage
                     if (!Directory.Exists(xdgConfigHomeDefault)) 
                     {   
-                        Directory.CreateDirectory(xdgConfigHomeDefault);                        
+                        try {                            
+                            Directory.CreateDirectory(xdgConfigHomeDefault);
+                        }   
+                        catch{
+                            
+                            Console.Error.WriteLine("Failed to create default data directory: " + xdgConfigHomeDefault);
+                        }                     
                     }
+                    
                     return xdgConfigHomeDefault; 
             }
       
diff --git a/src/System.Management.Automation/engine/hostifaces/HostUtilities.cs b/src/System.Management.Automation/engine/hostifaces/HostUtilities.cs
index aef980161f..592c0dcaef 100644
--- a/src/System.Management.Automation/engine/hostifaces/HostUtilities.cs
+++ b/src/System.Management.Automation/engine/hostifaces/HostUtilities.cs
@@ -188,11 +188,6 @@ namespace System.Management.Automation
                 basePath = Environment.GetFolderPath(Environment.SpecialFolder.Personal);
                 basePath = IO.Path.Combine(basePath, Utils.ProductNameForDirectory);
                 
-                //If the profile path doesn't exist, create it.
-                if (!System.IO.Directory.Exists(basePath))
-                {
-                    System.IO.Directory.CreateDirectory(basePath);
-                }
             }
         
             else