diff --git a/Lib/idlelib/PyShell.py b/Lib/idlelib/PyShell.py
--- a/Lib/idlelib/PyShell.py
+++ b/Lib/idlelib/PyShell.py
@@ -400,11 +400,11 @@
         self.rpcclt.register("flist", self.tkconsole.flist)
         self.rpcclt.register("linecache", linecache)
         self.rpcclt.register("interp", self)
-        self.transfer_path()
+        self.transfer_path(with_cwd=True)
         self.poll_subprocess()
         return self.rpcclt

-    def restart_subprocess(self):
+    def restart_subprocess(self, with_cwd=False):
         if self.restarting:
             return self.rpcclt
         self.restarting = True
@@ -428,7 +428,7 @@
         except socket.timeout as err:
             self.display_no_subprocess_error()
             return None
-        self.transfer_path()
+        self.transfer_path(with_cwd=with_cwd)
         # annotate restart in shell window and mark it
         console.text.delete("iomark", "end-1c")
         if was_executing:
@@ -476,12 +476,18 @@
             except OSError:
                 return

-    def transfer_path(self):
+    def transfer_path(self, with_cwd=False):
+        if with_cwd:        # Issue 13506
+            path = ['']     # include Current Working Directory
+            path.extend(sys.path)
+        else:
+            path = sys.path
+
         self.runcommand("""if 1:
         import sys as _sys
         _sys.path = %r
         del _sys
-        \n""" % (sys.path,))
+        \n""" % (path,))

     active_seq = None

@@ -1173,8 +1179,9 @@
         self.text.see("iomark")
         self.text.see("restart")

-    def restart_shell(self, event=None):
-        self.interp.restart_subprocess()
+    def restart_shell(self, event=None, with_cwd=True):
+        # False when called from ScriptBinding._run_module_event
+        self.interp.restart_subprocess(with_cwd)

     def showprompt(self):
         self.resetoutput()
diff --git a/Lib/idlelib/ScriptBinding.py b/Lib/idlelib/ScriptBinding.py
--- a/Lib/idlelib/ScriptBinding.py
+++ b/Lib/idlelib/ScriptBinding.py
@@ -152,7 +152,7 @@
         shell = self.shell
         interp = shell.interp
         if PyShell.use_subprocess:
-            shell.restart_shell()
+            shell.restart_shell(event, False)
         dirname = os.path.dirname(filename)
         # XXX Too often this discards arguments the user just set...
         interp.runcommand("""if 1: