diff --git a/external-deps/spyder-kernels/.gitrepo b/external-deps/spyder-kernels/.gitrepo
index a93c88d1081..2b67e126cf4 100644
--- a/external-deps/spyder-kernels/.gitrepo
+++ b/external-deps/spyder-kernels/.gitrepo
@@ -6,7 +6,7 @@
 [subrepo]
 	remote = /Users/rclary/Documents/Repos/Spyder-IDE/spyder-kernels
 	branch = ppm-syspath
-	commit = 250da79497cb46b5c686f90c1acb37a998ad4f4e
-	parent = 192a4ccf53b9803abf9faed49cefd028e1cc7dd9
+	commit = a7a55e27f869f1fadbc80896311e5738f41fb89e
+	parent = 6e4c005158b75605253bbf6c1e9741876eab5ee6
 	method = merge
 	cmdver = 0.4.6
diff --git a/external-deps/spyder-kernels/spyder_kernels/console/kernel.py b/external-deps/spyder-kernels/spyder_kernels/console/kernel.py
index 331c88a241a..44a5e9a027d 100644
--- a/external-deps/spyder-kernels/spyder_kernels/console/kernel.py
+++ b/external-deps/spyder-kernels/spyder_kernels/console/kernel.py
@@ -76,11 +76,6 @@ def __init__(self, *args, **kwargs):
         # Socket to signal shell_stream locally
         self.loopback_socket = None
 
-        # Re-add current working directory path into sys.path after
-        # removing it before kernel started
-        if '' not in sys.path:
-            sys.path.insert(0, '')
-
         # Store original sys.path. Kernels are started with PYTHONPATH
         # removed from environment variables, so this will never have
         # user paths and should be clean.
@@ -795,8 +790,9 @@ def update_syspath(self, new_path, prioritize):
 
                 # Ensure current directory is always first to imitate Python
                 # standard behavior
-                sys.path.remove('')
-                sys.path.insert(0, '')
+                if '' in sys.path:
+                    sys.path.remove('')
+                    sys.path.insert(0, '')
             else:
                 sys.path[:] = self._sys_path + new_path
         else:
diff --git a/external-deps/spyder-kernels/spyder_kernels/console/start.py b/external-deps/spyder-kernels/spyder_kernels/console/start.py
index c66c086fb3f..2d79a1ddb62 100644
--- a/external-deps/spyder-kernels/spyder_kernels/console/start.py
+++ b/external-deps/spyder-kernels/spyder_kernels/console/start.py
@@ -16,6 +16,15 @@
 import sys
 import site
 
+# Remove current directory from sys.path to prevent kernel
+# crashes when people name Python files or modules with
+# the same name as standard library modules.
+# See spyder-ide/spyder#8007
+# Inject it back into sys.path after all imports in this module but
+# before the kernel is initialized
+while '' in sys.path:
+    sys.path.remove('')
+
 # Third-party imports
 from traitlets import DottedObjectName
 
@@ -29,14 +38,6 @@ def import_spydercustomize():
     parent = osp.dirname(here)
     customize_dir = osp.join(parent, 'customize')
 
-    # Remove current directory from sys.path to prevent kernel
-    # crashes when people name Python files or modules with
-    # the same name as standard library modules.
-    # See spyder-ide/spyder#8007
-    # Inject it back into sys.path after kernel starts
-    while '' in sys.path:
-        sys.path.remove('')
-
     # Import our customizations
     site.addsitedir(customize_dir)
     import spydercustomize  # noqa
@@ -177,13 +178,6 @@ def main():
     # Import our customizations into the kernel
     import_spydercustomize()
 
-    # Remove current directory from sys.path to prevent kernel
-    # crashes when people name Python files or modules with
-    # the same name as standard library modules.
-    # See spyder-ide/spyder#8007
-    while '' in sys.path:
-        sys.path.remove('')
-
     # Main imports
     from ipykernel.kernelapp import IPKernelApp
     from spyder_kernels.console.kernel import SpyderKernel
@@ -216,6 +210,12 @@ def close(self):
         kernel.config = kernel_config()
     except:
         pass
+
+    # Re-add current working directory path into sys.path after all of the
+    # import statements, but before initiializing the kernel.
+    if '' not in sys.path:
+        sys.path.insert(0, '')
+
     kernel.initialize()
 
     # Set our own magics
diff --git a/external-deps/spyder-kernels/spyder_kernels/console/tests/test_console_kernel.py b/external-deps/spyder-kernels/spyder_kernels/console/tests/test_console_kernel.py
index 2b542bac08f..5636c727a74 100644
--- a/external-deps/spyder-kernels/spyder_kernels/console/tests/test_console_kernel.py
+++ b/external-deps/spyder-kernels/spyder_kernels/console/tests/test_console_kernel.py
@@ -524,17 +524,16 @@ def test_cwd_in_sys_path():
 def test_prioritize(kernel):
     """Test that user path priority is honored in sys.path."""
     syspath = kernel.get_syspath()
-    syspath.remove('')
     append_path = ['/test/append/path']
     prepend_path = ['/test/prepend/path']
 
     kernel.update_syspath(append_path, prioritize=False)
     new_syspath = kernel.get_syspath()
-    assert new_syspath == [''] + syspath + append_path
+    assert new_syspath == syspath + append_path
 
     kernel.update_syspath(prepend_path, prioritize=True)
     new_syspath = kernel.get_syspath()
-    assert new_syspath == [''] + prepend_path + syspath
+    assert new_syspath == prepend_path + syspath
 
 
 @flaky(max_runs=3)