diff --git a/src/System.Management.Automation/engine/runtime/Binding/Binders.cs b/src/System.Management.Automation/engine/runtime/Binding/Binders.cs
index 8d403b8e2f..de36b9d724 100644
--- a/src/System.Management.Automation/engine/runtime/Binding/Binders.cs
+++ b/src/System.Management.Automation/engine/runtime/Binding/Binders.cs
@@ -7175,6 +7175,13 @@ namespace System.Management.Automation.Language
                     {
                         argExprs[i] = Expression.Default(parameterType);
                     }
+                    else if (!parameters[i].HasDefaultValue && parameterType != typeof(object) && argValue == Type.Missing)
+                    {
+                        // If the method contains just [Optional] without a default value set then we cannot use
+                        // Type.Missing as a placeholder. Instead we use the default value for that type. Only
+                        // exception to this rule is when the parameter type is object.
+                        argExprs[i] = Expression.Default(parameterType);
+                    }
                     else
                     {
                         // We don't specify the parameter type in the constant expression. Normally the default
diff --git a/test/powershell/engine/Basic/CLRBinding.Tests.ps1 b/test/powershell/engine/Basic/CLRBinding.Tests.ps1
new file mode 100644
index 0000000000..98a05d8518
--- /dev/null
+++ b/test/powershell/engine/Basic/CLRBinding.Tests.ps1
@@ -0,0 +1,151 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+Describe ".NET Method Binding Tests" -tags CI {
+    BeforeAll {
+        Add-Type -TypeDefinition @'
+using System;
+using System.Runtime.InteropServices;
+
+namespace CLRBindingTests;
+
+public class TestClass
+{
+    public int Prop { get; }
+
+    public TestClass(int value = 1)
+    {
+        Prop = value;
+    }
+
+    public static string StaticWithDefaultExpected() => StaticWithDefault();
+    public static string StaticWithDefault(string value = "foo") => value;
+
+    public static string StaticWithOptionalAndValueExpected() => StaticWithOptionalAndValue();
+    public static string StaticWithOptionalAndValue([Optional, DefaultParameterValue("bar")] string value) => value;
+
+    public static string StaticWithOptionalExpected() => StaticWithOptional();
+    public static string StaticWithOptional([Optional] string value) => value;
+
+    public object InstanceWithDefaultExpected() => InstanceWithDefault();
+    public object InstanceWithDefault(object value = null) => value;
+
+    public object InstanceWithOptionalAndValueExpected() => InstanceWithOptionalAndValue();
+    public object InstanceWithOptionalAndValue([Optional, DefaultParameterValue("foo")] object value) => value;
+
+    public object InstanceWithOptionalExpected() => InstanceWithOptional();
+    public object InstanceWithOptional([Optional] object value) => value;
+
+    public string MultipleArgsWithDefaultExpected(string prefix) => MultipleArgsWithDefault(prefix);
+    public string MultipleArgsWithDefault(string prefix, string extra = "abc") => $"{prefix}{extra}";
+
+    public string MultipleArgsWithOptionalAndValueExpected(string prefix) => MultipleArgsWithOptionalAndValue(prefix);
+    public string MultipleArgsWithOptionalAndValue(string prefix, [Optional, DefaultParameterValue("def")] string extra) => $"{prefix}{extra}";
+
+    public string MultipleArgsWithOptionalExpected(string prefix) => MultipleArgsWithOptional(prefix);
+    public string MultipleArgsWithOptional(string prefix, [Optional] string extra) => $"{prefix}{extra}";
+}
+
+public class TestClassCstorWithOptionalAndValue
+{
+    public int Prop { get; }
+
+    public TestClassCstorWithOptionalAndValue([Optional, DefaultParameterValue(2)] int value)
+    {
+        Prop = value;
+    }
+}
+
+public class TestClassCstorWithOptional
+{
+    public int Prop { get; }
+
+    public TestClassCstorWithOptional([Optional] int value)
+    {
+        Prop = value;
+    }
+}
+'@
+    }
+
+    It "Binds to constructor with default argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+        $c.Prop | Should -Be 1
+    }
+
+    It "Binds to constructor with Optional with DefaultValue argument" {
+        $c = [CLRBindingTests.TestClassCstorWithOptionalAndValue]::new()
+        $c.Prop | Should -Be 2
+    }
+
+    It "Binds to constructor with Optional argument" {
+        $c = [CLRBindingTests.TestClassCstorWithOptional]::new()
+        $c.Prop | Should -Be 0
+    }
+
+    It "Binds to static method with default argument" {
+        $expected = [CLRBindingTests.TestClass]::StaticWithDefaultExpected()
+        $actual = [CLRBindingTests.TestClass]::StaticWithDefault()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to static method with Optional with DefaultValue argument" {
+        $expected = [CLRBindingTests.TestClass]::StaticWithOptionalAndValueExpected()
+        $actual = [CLRBindingTests.TestClass]::StaticWithOptionalAndValue()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to static method with Optional argument" {
+        $expected = [CLRBindingTests.TestClass]::StaticWithOptionalExpected()
+        $actual = [CLRBindingTests.TestClass]::StaticWithOptional()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with default argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.InstanceWithDefaultExpected()
+        $actual = $c.InstanceWithDefault()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with Optional with DefaultValue argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.InstanceWithOptionalAndValueExpected()
+        $actual = $c.InstanceWithOptionalAndValue()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with Optional argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.InstanceWithOptionalExpected()
+        $actual = $c.InstanceWithOptional()
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with normal arg and default argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.MultipleArgsWithDefaultExpected("prefix")
+        $actual = $c.MultipleArgsWithDefault("prefix")
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with Optional with normal arg and DefaultValue argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.MultipleArgsWithOptionalAndValueExpected("prefix")
+        $actual = $c.MultipleArgsWithOptionalAndValue("prefix")
+        $actual | Should -Be $expected
+    }
+
+    It "Binds to instance method with normal arg and Optional argument" {
+        $c = [CLRBindingTests.TestClass]::new()
+
+        $expected = $c.MultipleArgsWithOptionalExpected("prefix")
+        $actual = $c.MultipleArgsWithOptional("prefix")
+        $actual | Should -Be $expected
+    }
+}