diff -r 8d60c1c89105 Lib/idlelib/PyShell.py
--- a/Lib/idlelib/PyShell.py	Fri Dec 02 21:25:39 2011 +0200
+++ b/Lib/idlelib/PyShell.py	Sat Dec 03 16:57:18 2011 -0600
@@ -365,7 +365,7 @@
             command = "__import__('run').main(%r)" % (del_exitf,)
         return [sys.executable] + w + ["-c", command, str(self.port)]
 
-    def start_subprocess(self):
+    def start_subprocess(self, with_cwd=False):
         addr = (HOST, self.port)
         # GUI makes several attempts to acquire socket, listens for connection
         for i in range(3):
@@ -403,11 +403,11 @@
         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=with_cwd)
         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
@@ -431,7 +431,7 @@
         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:
@@ -484,12 +484,18 @@
             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
 
@@ -829,7 +835,7 @@
         self.per.insertfilter(color)
         if use_subprocess:
             text.bind("<<view-restart>>", self.view_restart_mark)
-            text.bind("<<restart-shell>>", self.restart_shell)
+            text.bind("<<restart-shell>>", self.restart_shell_interactive)
         #
         self.save_stdout = sys.stdout
         self.save_stderr = sys.stderr
@@ -979,7 +985,7 @@
         self.resetoutput()
         if use_subprocess:
             nosub = ''
-            client = self.interp.start_subprocess()
+            client = self.interp.start_subprocess(with_cwd=True)
             if not client:
                 self.close()
                 return False
@@ -1182,8 +1188,11 @@
         self.text.see("iomark")
         self.text.see("restart")
 
+    def restart_shell_interactive(self, event=None):
+        self.interp.restart_subprocess(with_cwd=True)
+
     def restart_shell(self, event=None):
-        self.interp.restart_subprocess()
+        self.interp.restart_subprocess(with_cwd=False)
 
     def showprompt(self):
         self.resetoutput()