diff --git a/src/rez/tests/test_shells.py b/src/rez/tests/test_shells.py
index 114497089..a05688730 100644
--- a/src/rez/tests/test_shells.py
+++ b/src/rez/tests/test_shells.py
@@ -607,6 +607,22 @@ def _make_alias(ex):
         out, _ = p.communicate()
         self.assertEqual(1, p.returncode)
 
+    @per_available_shell()
+    def test_alias_non_existent_command_return_code(self, shell):
+        """Ensure return codes are correct while using aliases."""
+        config.override("default_shell", shell)
+
+        def _make_alias(ex):
+            ex.alias('my_alias', 'a_non_existent_executable')
+
+        r = self._create_context([])
+        p = r.execute_shell(command='my_alias',
+                            actions_callback=_make_alias,
+                            stdout=subprocess.PIPE)
+
+        out, _ = p.communicate()
+        self.assertNotEqual(0, p.returncode)
+
 
 if __name__ == '__main__':
     unittest.main()
diff --git a/src/rezplugins/shell/_utils/powershell_base.py b/src/rezplugins/shell/_utils/powershell_base.py
index 89074efef..e9252f9bf 100644
--- a/src/rezplugins/shell/_utils/powershell_base.py
+++ b/src/rezplugins/shell/_utils/powershell_base.py
@@ -153,7 +153,7 @@ def _record_shell(ex, files, bind_rez=True, print_msg=False):
         # only the bool $? var is set.
         #
         executor.command(
-            "if(! $? -or $LASTEXITCODE) {\n"
+            "if(! $? -or $LASTEXITCODE -or $error) {\n"
             "  if ($LASTEXITCODE) {\n"
             "    exit $LASTEXITCODE\n"
             "  }\n"
@@ -248,7 +248,7 @@ def prependenv(self, key, value):
         # Be careful about ambiguous case in pwsh on Linux where pathsep is :
         # so that the ${ENV:VAR} form has to be used to not collide.
         self._addline(
-            'Set-Item -Path "Env:{0}" -Value ("{1}{2}" + (Get-ChildItem -ErrorAction SilentlyContinue "Env:{0}").Value)'
+            'Set-Item -Path "Env:{0}" -Value ("{1}{2}" + (Get-ChildItem -ErrorAction Ignore "Env:{0}").Value)'
             .format(key, value, self.pathsep)
         )
 
@@ -257,15 +257,15 @@ def appendenv(self, key, value):
 
         # Be careful about ambiguous case in pwsh on Linux where pathsep is :
         # so that the ${ENV:VAR} form has to be used to not collide.
-        # The nested Get-ChildItem call is set to SilentlyContinue to prevent
+        # The nested Get-ChildItem call is set to Ignore to prevent
         # an exception of the Environment Variable is not set already
         self._addline(
-            'Set-Item -Path "Env:{0}" -Value ((Get-ChildItem -ErrorAction SilentlyContinue "Env:{0}").Value + "{1}{2}")'
+            'Set-Item -Path "Env:{0}" -Value ((Get-ChildItem -ErrorAction Ignore "Env:{0}").Value + "{1}{2}")'
             .format(key, os.path.pathsep, value))
 
     def unsetenv(self, key):
         self._addline(
-            'Remove-Item -ErrorAction SilentlyContinue "Env:{0}"'.format(key)
+            'Remove-Item -ErrorAction Ignore "Env:{0}"'.format(key)
         )
 
     def resetenv(self, key, value, friends=None):