diff --git a/src/command_modules/azure-cli-interactive/HISTORY.rst b/src/command_modules/azure-cli-interactive/HISTORY.rst
index ad0a0441217..d35ad8201b1 100644
--- a/src/command_modules/azure-cli-interactive/HISTORY.rst
+++ b/src/command_modules/azure-cli-interactive/HISTORY.rst
@@ -3,6 +3,10 @@
 Release History
 ===============
 
+0.3.16
+++++++
+* Fix issue where user is prompted to login when using interactive mode in Cloud Shell.
+
 0.3.15
 ++++++
 * Fixed issue where command option completions no longer appeared.
diff --git a/src/command_modules/azure-cli-interactive/azclishell/app.py b/src/command_modules/azure-cli-interactive/azclishell/app.py
index 2365b1b1ec8..3612a31a110 100644
--- a/src/command_modules/azure-cli-interactive/azclishell/app.py
+++ b/src/command_modules/azure-cli-interactive/azclishell/app.py
@@ -631,7 +631,7 @@ def cli_execute(self, cmd):
                 self.config.set_feedback('yes')
                 self.user_feedback = False
 
-            azure_folder = self.config.config_dir
+            azure_folder = get_config_dir()
             if not os.path.exists(azure_folder):
                 os.makedirs(azure_folder)
             ACCOUNT.load(os.path.join(azure_folder, 'azureProfile.json'))
diff --git a/src/command_modules/azure-cli-interactive/setup.py b/src/command_modules/azure-cli-interactive/setup.py
index b7e85b4e4ea..25e348821bf 100644
--- a/src/command_modules/azure-cli-interactive/setup.py
+++ b/src/command_modules/azure-cli-interactive/setup.py
@@ -14,7 +14,7 @@
     cmdclass = {}
 
 # Version is also defined in azclishell.__init__.py.
-VERSION = "0.3.15"
+VERSION = "0.3.16"
 # The full list of classifiers is available at
 # https://pypi.python.org/pypi?%3Aaction=list_classifiers
 CLASSIFIERS = [