diff --git a/GitPrompt.ps1 b/GitPrompt.ps1
index c3aaf913c..215f4524b 100644
--- a/GitPrompt.ps1
+++ b/GitPrompt.ps1
@@ -96,6 +96,9 @@ $global:GitPromptSettings = New-Object PSObject -Property @{
 
     EnableWindowTitle                           = 'posh~git ~ '
 
+    PromptSuffix                                = '> '
+    PromptDebugSuffix                           = ' [DBG]>> '
+
     Debug                                       = $false
 
     BranchNameLimit                             = 0
@@ -306,8 +309,4 @@ $PoshGitVcsPrompt = {
     Write-GitStatus $GitStatus
 }
 
-# Install handler for removal/unload of the module
 $Global:VcsPromptStatuses += $PoshGitVcsPrompt
-$ExecutionContext.SessionState.Module.OnRemove = {
-    $Global:VcsPromptStatuses = $Global:VcsPromptStatuses | Where-Object { $_ -ne $PoshGitVcsPrompt }
-}
diff --git a/posh-git.psd1 b/posh-git.psd1
index e888c5cda..d94163aa5 100644
--- a/posh-git.psd1
+++ b/posh-git.psd1
@@ -22,22 +22,24 @@ Description = 'A PowerShell environment for Git'
 PowerShellVersion = '2.0'
 
 # Functions to export from this module
-FunctionsToExport = @('Invoke-NullCoalescing',
-        'Write-GitStatus',
-        'Write-Prompt',
-        'Write-VcsStatus',
-        'Get-GitStatus',
-        'Enable-GitColors',
-        'Get-GitDirectory',
-        'TabExpansion',
-        'Get-AliasPattern',
-        'Get-SshAgent',
-        'Start-SshAgent',
-        'Stop-SshAgent',
-        'Add-SshKey',
-        'Get-SshPath',
-        'Update-AllBranches',
-        'tgit')
+FunctionsToExport = @(
+    'Invoke-NullCoalescing',
+    'Write-GitStatus',
+    'Write-Prompt',
+    'Write-VcsStatus',
+    'Get-GitStatus',
+    'Enable-GitColors',
+    'Get-GitDirectory',
+    'TabExpansion',
+    'Get-AliasPattern',
+    'Get-SshAgent',
+    'Start-SshAgent',
+    'Stop-SshAgent',
+    'Add-SshKey',
+    'Get-SshPath',
+    'Update-AllBranches',
+    'tgit'
+)
 
 # Cmdlets to export from this module
 CmdletsToExport = @()
diff --git a/posh-git.psm1 b/posh-git.psm1
index 96efea065..bc310f9e9 100644
--- a/posh-git.psm1
+++ b/posh-git.psm1
@@ -1,4 +1,4 @@
-param([switch]$NoVersionWarn = $false)
+param([switch]$NoVersionWarn)
 
 if (Get-Module posh-git) { return }
 
@@ -11,15 +11,13 @@ if ($psv.Major -lt 3 -and !$NoVersionWarn) {
     "To suppress this warning, change your profile to include 'Import-Module posh-git -Args `$true'.")
 }
 
-Push-Location $psScriptRoot
-.\CheckVersion.ps1 > $null
+& $PSScriptRoot\CheckVersion.ps1 > $null
 
-. .\Utils.ps1
-. .\GitUtils.ps1
-. .\GitPrompt.ps1
-. .\GitTabExpansion.ps1
-. .\TortoiseGit.ps1
-Pop-Location
+. $PSScriptRoot\Utils.ps1
+. $PSScriptRoot\GitUtils.ps1
+. $PSScriptRoot\GitPrompt.ps1
+. $PSScriptRoot\GitTabExpansion.ps1
+. $PSScriptRoot\TortoiseGit.ps1
 
 if (!$Env:HOME) { $Env:HOME = "$Env:HOMEDRIVE$Env:HOMEPATH" }
 if (!$Env:HOME) { $Env:HOME = "$Env:USERPROFILE" }
@@ -27,10 +25,84 @@ if (!$Env:HOME) { $Env:HOME = "$Env:USERPROFILE" }
 Get-TempEnv 'SSH_AGENT_PID'
 Get-TempEnv 'SSH_AUTH_SOCK'
 
-Export-ModuleMember `
-    -Alias @(
-        '??') `
-    -Function @(
+# Get the default prompt definition.
+if ($psv.Major -eq 2) {
+    $defaultPromptDef = "`$(if (test-path variable:/PSDebugContext) { '[DBG]: ' } else { '' }) + 'PS ' + `$(Get-Location) + `$(if (`$nestedpromptlevel -ge 1) { '>>' }) + '> '"
+}
+else {
+    $defaultPromptDef = [Runspace]::DefaultRunspace.InitialSessionState.Commands['prompt'].Definition
+}
+
+# If there is no prompt function or the prompt function is the default, replace the current prompt function definition
+$poshGitPromptScriptBlock = $null
+
+$currentPromptDef = if ($funcInfo = Get-Command prompt -ErrorAction SilentlyContinue) { $funcInfo.Definition }
+if (!$currentPromptDef -or ($currentPromptDef -eq $defaultPromptDef)) {
+    # Have to use [scriptblock]::Create() to get debugger detection to work in PS v2
+    $poshGitPromptScriptBlock = [scriptblock]::Create(@'
+        $origLastExitCode = $global:LASTEXITCODE
+
+        # A UNC path has no drive so it's better to use the ProviderPath e.g. "\\server\share".
+        # However for any path with a drive defined, it's better to use the Path property.
+        # In this case, ProviderPath is "\LocalMachine\My"" whereas Path is "Cert:\LocalMachine\My".
+        # The latter is more desirable.
+        $pathInfo = $ExecutionContext.SessionState.Path.CurrentLocation
+        $currentPath = if ($pathInfo.Drive) { $pathInfo.Path } else { $pathInfo.ProviderPath }
+
+        # File system paths are case-sensitive on Linux and case-insensitive on Windows and macOS
+        if (($PSVersionTable.PSVersion.Major -ge 6) -and $IsLinux) {
+            $stringComparison = [System.StringComparison]::Ordinal
+        }
+        else {
+            $stringComparison = [System.StringComparison]::OrdinalIgnoreCase
+        }
+
+        # Abbreviate path by replacing beginning of path with ~ *iff* the path is in the user's home dir
+        if ($currentPath -and $currentPath.StartsWith($Home, $stringComparison))
+        {
+            $currentPath = "~" + $currentPath.SubString($Home.Length)
+        }
+
+        # Write the abbreviated current path
+        Write-Host $currentPath -NoNewline
+
+        # Write the Git status summary information
+        Write-VcsStatus
+
+        # If stopped in the debugger, the prompt needs to indicate that in some fashion
+        $debugMode = (Test-Path Variable:/PSDebugContext) -or [runspace]::DefaultRunspace.Debugger.InBreakpoint
+        $promptSuffix = if ($debugMode) { $GitPromptSettings.PromptDebugSuffix } else { $GitPromptSettings.PromptSuffix }
+
+        # If user specifies $null or empty string, set to ' ' to avoid "PS>" unexpectedly being displayed
+        if (!$promptSuffix) {
+            $promptSuffix = ' '
+        }
+
+        $global:LASTEXITCODE = $origLastExitCode
+        $promptSuffix
+'@)
+
+    # Set the posh-git prompt as the default prompt
+    Set-Item Function:\prompt -Value $poshGitPromptScriptBlock
+}
+
+# Install handler for removal/unload of the module
+$ExecutionContext.SessionState.Module.OnRemove = {
+    $global:VcsPromptStatuses = $global:VcsPromptStatuses | Where-Object { $_ -ne $PoshGitVcsPrompt }
+
+    # Check if the posh-git prompt function itself has been replaced. If so, do not restore the prompt function
+    $promptDef = if ($funcInfo = Get-Command prompt -ErrorAction SilentlyContinue) { $funcInfo.Definition }
+    if ($promptDef -eq $poshGitPromptScriptBlock) {
+        Set-Item Function:\prompt -Value ([scriptblock]::Create($defaultPromptDef))
+        return
+    }
+
+    Write-Warning 'If your prompt function uses any posh-git commands, it will cause posh-git to be re-imported every time your prompt function is invoked.'
+}
+
+$exportModuleMemberParams = @{
+    Alias = @('??') # TODO: Remove in 1.0.0
+    Function = @(
         'Invoke-NullCoalescing',
         'Write-GitStatus',
         'Write-Prompt',
@@ -46,6 +118,8 @@ Export-ModuleMember `
         'Add-SshKey',
         'Get-SshPath',
         'Update-AllBranches',
-        'tgit')
-
+        'tgit'
+    )
+}
 
+Export-ModuleMember @exportModuleMemberParams
diff --git a/profile.example.ps1 b/profile.example.ps1
index d14f3769b..8247668ed 100644
--- a/profile.example.ps1
+++ b/profile.example.ps1
@@ -10,25 +10,6 @@ else {
     throw "Failed to import posh-git."
 }
 
-# Set up a simple prompt that displays Git status summary info when inside of a Git repo.
-function global:prompt {
-    $origLastExitCode = $LASTEXITCODE
-
-    # A UNC path has no drive so it's better to use the ProviderPath e.g. "\\server\share".
-    # However for any path with a drive defined, it's better to use the Path property.
-    # In this case, ProviderPath is "\LocalMachine\My"" whereas Path is "Cert:\LocalMachine\My".
-    # The latter is more desirable.
-    $pathInfo = $ExecutionContext.SessionState.Path.CurrentLocation
-    $curPath = if ($pathInfo.Drive) { $pathInfo.Path } else { $pathInfo.ProviderPath }
-    Write-Host $curPath -NoNewline
-
-    # Write the Git status summary information to the host.
-    Write-VcsStatus
-
-    $global:LASTEXITCODE = $origLastExitCode
-    "> "
-}
-
 # Settings for the prompt are in GitPrompt.ps1, so add any desired settings changes here.
 # Example:
 #     $Global:GitPromptSettings.BranchBehindAndAheadDisplay = "Compact"