diff --git a/src/option.c b/src/option.c
index 07bb71e..5fc059e 100644
--- a/src/option.c
+++ b/src/option.c
@@ -932,6 +932,27 @@
 		options[idx_srr].def_val[VI_DEFAULT] = p_srr;
 	    }
 	}
+# ifdef MSWIN
+	// PowerShell 5.1/.NET outputs UTF-16 with BOM so re-encode to the
+	// current codepage
+	else if (   fnamecmp(p, "powershell") == 0
+		    || fnamecmp(p, "powershell.exe") == 0
+		)
+	{
+# if defined(FEAT_QUICKFIX)
+		if (do_sp)
+		{
+		    p_sp = (char_u *)"2>&1 | Out-File -Encoding default";
+		    options[idx_sp].def_val[VI_DEFAULT] = p_sp;
+		}
+# endif
+		if (do_srr)
+		{
+		    p_srr = (char_u *)"2>&1 | Out-File -Encoding default";
+		    options[idx_srr].def_val[VI_DEFAULT] = p_srr;
+		}
+	}
+#endif
 	else
 	    // Always use POSIX shell style redirection if we reach this
 	    if (       fnamecmp(p, "sh") == 0
@@ -984,11 +1005,35 @@
      * Set 'shellcmdflag', 'shellxquote', and 'shellquote' depending on the
      * 'shell' option.
      * This is done after other initializations, where 'shell' might have been
-     * set, but only if they have not been set before.  Default for p_shcf is
-     * "/c", for p_shq is "".  For "sh" like  shells it is changed here to
-     * "-c" and "\"".  And for Win32 we need to set p_sxq instead.
+     * set, but only if they have not been set before.
+     * Default values depend on shell (cmd.exe is default shell):
+     *
+     *			    p_shcf	p_sxq
+     * cmd.exe          -   "/c"	"("
+     * powershell.exe   -   "-Command"	"\""
+     * "sh" like shells -   "-c"	"\""
+     *
+     * For Win32 p_sxq is set instead of p_shq to include shell redirection.
      */
-    if (strstr((char *)gettail(p_sh), "sh") != NULL)
+    if (strstr((char *)gettail(p_sh), "powershell") != NULL)
+    {
+	int	idx_opt;
+
+	idx_opt = findoption((char_u *)"shcf");
+	if (idx_opt >= 0 && !(options[idx_opt].flags & P_WAS_SET))
+	{
+	    p_shcf = (char_u*)"-Command";
+	    options[idx_opt].def_val[VI_DEFAULT] = p_shcf;
+	}
+
+	idx_opt = findoption((char_u *)"sxq");
+	if (idx_opt >= 0 && !(options[idx_opt].flags & P_WAS_SET))
+	{
+	    p_sxq = (char_u*)"\"";
+	    options[idx_opt].def_val[VI_DEFAULT] = p_sxq;
+	}
+    }
+    else if (strstr((char *)gettail(p_sh), "sh") != NULL)
     {
 	int	idx3;