diff --git a/.ado/jobs/e2e-test.yml b/.ado/jobs/e2e-test.yml
index 204e4c82666..9cd5b6a892a 100644
--- a/.ado/jobs/e2e-test.yml
+++ b/.ado/jobs/e2e-test.yml
@@ -320,7 +320,7 @@ jobs:
               condition: and(failed(), eq(variables.StartedFabricTests, 'true'))
               continueOnError: true
 
-            - powershell: |
+            - pwsh: |
                 if (Test-Path "packages/e2e-test-app-fabric/test/__image_snapshots__/__diff_output__") {
                   Write-Host "##vso[task.setvariable variable=DiffOutputExists]true"
                 }
diff --git a/.ado/scripts/build.js b/.ado/scripts/build.js
index 47df62d2c65..db46551eba9 100644
--- a/.ado/scripts/build.js
+++ b/.ado/scripts/build.js
@@ -101,7 +101,7 @@ function ensureNuGet(toolsPath) {
   ensureDir(toolsPath);
   console.log(`Downloading nuget.exe to: ${localNuGet}`);
   execSync(
-    `powershell.exe -NoLogo -NoProfile -Command ` +
+    `pwsh.exe -NoLogo -NoProfile -Command ` +
       `"[Net.ServicePointManager]::SecurityProtocol = ` +
       `[Net.SecurityProtocolType]::Tls12; ` +
       `Invoke-WebRequest -Uri 'https://dist.nuget.org/win-x86-commandline/latest/nuget.exe' ` +
diff --git a/.ado/templates/install-SDK.yml b/.ado/templates/install-SDK.yml
index ef301a278dd..18fda6f4c47 100644
--- a/.ado/templates/install-SDK.yml
+++ b/.ado/templates/install-SDK.yml
@@ -7,5 +7,6 @@ steps:
       targetType: filePath
       filePath: vnext\Scripts\Install-WindowsSdkISO.ps1
       arguments: ${{ parameters.sdkVersion }}
+      pwsh: true
     displayName: 'Install Insider SDK (${{ parameters.sdkVersion }})'
     condition: ne('', '${{ parameters.sdkVersion }}')
diff --git a/change/@react-native-windows-automation-10c8b2ce-ed81-450b-b846-4695f1ed4c4f.json b/change/@react-native-windows-automation-10c8b2ce-ed81-450b-b846-4695f1ed4c4f.json
new file mode 100644
index 00000000000..44cad7b1964
--- /dev/null
+++ b/change/@react-native-windows-automation-10c8b2ce-ed81-450b-b846-4695f1ed4c4f.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Migrate to PowerShell 7",
+  "packageName": "@react-native-windows/automation",
+  "email": "julio.rocha@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/change/@react-native-windows-cli-d0909d53-2984-4eff-bcf6-fe1702c03277.json b/change/@react-native-windows-cli-d0909d53-2984-4eff-bcf6-fe1702c03277.json
new file mode 100644
index 00000000000..46065e97e3a
--- /dev/null
+++ b/change/@react-native-windows-cli-d0909d53-2984-4eff-bcf6-fe1702c03277.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Upgrade to PowerShell 7",
+  "packageName": "@react-native-windows/cli",
+  "email": "julio.rocha@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/change/@react-native-windows-find-dotnet-tools-7018a5fe-0791-4fb7-ae1d-c95620216ddc.json b/change/@react-native-windows-find-dotnet-tools-7018a5fe-0791-4fb7-ae1d-c95620216ddc.json
new file mode 100644
index 00000000000..621e68e6ec3
--- /dev/null
+++ b/change/@react-native-windows-find-dotnet-tools-7018a5fe-0791-4fb7-ae1d-c95620216ddc.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Migrate to PowerShell 7",
+  "packageName": "@react-native-windows/find-dotnet-tools",
+  "email": "julio.rocha@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/change/react-native-windows-f8669931-74f3-4c8e-a1d1-ecb19860ee42.json b/change/react-native-windows-f8669931-74f3-4c8e-a1d1-ecb19860ee42.json
new file mode 100644
index 00000000000..f1e3abb1df6
--- /dev/null
+++ b/change/react-native-windows-f8669931-74f3-4c8e-a1d1-ecb19860ee42.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Upgrade to PowerShell 7",
+  "packageName": "react-native-windows",
+  "email": "julio.rocha@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/packages/@react-native-windows/automation/package.json b/packages/@react-native-windows/automation/package.json
index ea12ead689d..a962aa661ed 100644
--- a/packages/@react-native-windows/automation/package.json
+++ b/packages/@react-native-windows/automation/package.json
@@ -18,6 +18,7 @@
   },
   "dependencies": {
     "@react-native-windows/automation-channel": "0.0.0-canary.1052",
+    "@react-native-windows/find-dotnet-tools": "0.0.0-canary.1",
     "@react-native-windows/fs": "^0.0.0-canary.72",
     "@typescript-eslint/eslint-plugin": "^8.36.0",
     "@typescript-eslint/parser": "^8.36.0",
diff --git a/packages/@react-native-windows/automation/src/AutomationEnvironment.ts b/packages/@react-native-windows/automation/src/AutomationEnvironment.ts
index 9088328a9d6..2306bfa0ec6 100644
--- a/packages/@react-native-windows/automation/src/AutomationEnvironment.ts
+++ b/packages/@react-native-windows/automation/src/AutomationEnvironment.ts
@@ -8,6 +8,7 @@
 import chalk from 'chalk';
 import {spawnSync, spawn, ChildProcess} from 'child_process';
 import fs from '@react-native-windows/fs';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 import path from 'path';
 import readlineSync from 'readline-sync';
 
@@ -250,7 +251,7 @@ export default class AutomationEnvironment extends NodeEnvironment {
     if (this.breakOnStart) {
       readlineSync.question(
         chalk.bold.yellow('Breaking before tests start\n') +
-          'Press Enter to resume...',
+        'Press Enter to resume...',
       );
     }
 
@@ -335,8 +336,14 @@ function resolveAppName(appName: string): string {
   }
 
   try {
-    const packageFamilyName = spawnSync('powershell', [
-      `(Get-AppxPackage -Name ${appName}).PackageFamilyName`,
+    const useAppxCompatibility = !!process.env.TF_BUILD;
+    const packageFamilyNameCommand = useAppxCompatibility
+      ? `& { Import-Module Appx -UseWindowsPowerShell -WarningAction SilentlyContinue; (Get-AppxPackage -Name '${appName}').PackageFamilyName }`
+      : `(Get-AppxPackage -Name '${appName}').PackageFamilyName`;
+    const packageFamilyName = spawnSync(findPowerShell(), [
+      '-NoProfile',
+      '-Command',
+      packageFamilyNameCommand,
     ])
       .stdout.toString()
       .trim();
diff --git a/packages/@react-native-windows/cli/package.json b/packages/@react-native-windows/cli/package.json
index b66c099b7f5..6d7a0a2846d 100644
--- a/packages/@react-native-windows/cli/package.json
+++ b/packages/@react-native-windows/cli/package.json
@@ -18,6 +18,7 @@
   },
   "dependencies": {
     "@react-native-windows/codegen": "0.0.0-canary.133",
+    "@react-native-windows/find-dotnet-tools": "0.0.0-canary.1",
     "@react-native-windows/fs": "^0.0.0-canary.72",
     "@react-native-windows/package-utils": "^0.0.0-canary.98",
     "@react-native-windows/telemetry": "^0.0.0-canary.133",
diff --git a/packages/@react-native-windows/cli/src/commands/healthCheck/healthChecks.ts b/packages/@react-native-windows/cli/src/commands/healthCheck/healthChecks.ts
index 90a4a11a1df..74d4797811a 100644
--- a/packages/@react-native-windows/cli/src/commands/healthCheck/healthChecks.ts
+++ b/packages/@react-native-windows/cli/src/commands/healthCheck/healthChecks.ts
@@ -14,9 +14,11 @@ import type {
   HealthCheckCategory,
   HealthCheckInterface,
 } from '@react-native-community/cli-doctor/build/types';
-import {powershell} from '../../utils/commandWithProgress';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 import {HealthCheckList} from './healthCheckList';
 
+const powershell = findPowerShell();
+
 export function getHealthChecks(): HealthCheckCategory[] | undefined {
   // #8471: There are known cases where the dependencies script will error out.
   // Fail gracefully if that happens in the meantime.
@@ -76,7 +78,7 @@ function getHealthChecksUnsafe(): HealthCheckCategory[] | undefined {
             };
           },
           runAutomaticFix: async ({loader, logManualInstallation}) => {
-            const command = `${powershell} -ExecutionPolicy Unrestricted -NoProfile "${rnwDepScriptPath}" -Check ${id}`;
+            const command = `"${powershell}" -ExecutionPolicy Unrestricted -NoProfile "${rnwDepScriptPath}" -Check ${id}`;
             try {
               const {exitCode} = await execa(command, {stdio: 'inherit'});
               if (exitCode) {
diff --git a/packages/@react-native-windows/cli/src/e2etest/healthChecks.test.ts b/packages/@react-native-windows/cli/src/e2etest/healthChecks.test.ts
index ad0a17edfb2..98d2be3a9f8 100644
--- a/packages/@react-native-windows/cli/src/e2etest/healthChecks.test.ts
+++ b/packages/@react-native-windows/cli/src/e2etest/healthChecks.test.ts
@@ -6,9 +6,11 @@
 
 import {execSync} from 'child_process';
 import path from 'path';
-import {powershell} from '../utils/commandWithProgress';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 import {HealthCheckList} from '../commands/healthCheck/healthCheckList';
 
+const powershell = findPowerShell();
+
 test('Verify list of health checks aligns with rnw-dependencies', async () => {
   const rnwDepScriptPath = path.join(
     path.dirname(
@@ -20,7 +22,7 @@ test('Verify list of health checks aligns with rnw-dependencies', async () => {
   );
 
   const rnwDeps = execSync(
-    `${powershell} -ExecutionPolicy Unrestricted -NoProfile "${rnwDepScriptPath}" -NoPrompt -ListChecks`,
+    `"${powershell}" -ExecutionPolicy Unrestricted -NoProfile "${rnwDepScriptPath}" -NoPrompt -ListChecks`,
     {stdio: 'pipe'},
   );
   const deps = rnwDeps.toString().trim().split('\n');
diff --git a/packages/@react-native-windows/cli/src/utils/commandWithProgress.ts b/packages/@react-native-windows/cli/src/utils/commandWithProgress.ts
index 74e8bec3d0c..9ee9fe56113 100644
--- a/packages/@react-native-windows/cli/src/utils/commandWithProgress.ts
+++ b/packages/@react-native-windows/cli/src/utils/commandWithProgress.ts
@@ -14,6 +14,7 @@ import {
   CodedErrors,
   CodedErrorType,
 } from '@react-native-windows/telemetry';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 
 function setSpinnerText(spinner: ora.Ora, prefix: string, text: string) {
   text = prefix + spinnerString(text);
@@ -47,7 +48,7 @@ export function newSpinner(text: string) {
   return ora(options).start();
 }
 
-export const powershell = `${process.env.SystemRoot}\\System32\\WindowsPowerShell\\v1.0\\powershell.exe`;
+const powershell = findPowerShell();
 
 export async function runPowerShellScriptFunction(
   taskDescription: string,
@@ -55,10 +56,15 @@ export async function runPowerShellScriptFunction(
   funcName: string,
   verbose: boolean,
   errorCategory: CodedErrorType,
+  useAppxCompatibility = false,
 ) {
   try {
     const printException = verbose ? '$_;' : '';
-    const importScript = script ? `Import-Module "${script}"; ` : '';
+    const importAppx = useAppxCompatibility
+      ? 'Import-Module Appx -UseWindowsPowerShell -WarningAction SilentlyContinue; '
+      : '';
+    const importScript = script ? `Import-Module '${script}'; ` : '';
+    const powershellCommand = `${importAppx}${importScript}try { ${funcName} -ErrorAction Stop; $lec = $LASTEXITCODE; } catch { $lec = 1; ${printException} }; exit $lec`;
     await commandWithProgress(
       newSpinner(taskDescription),
       taskDescription,
@@ -67,7 +73,8 @@ export async function runPowerShellScriptFunction(
         '-NoProfile',
         '-ExecutionPolicy',
         'RemoteSigned',
-        `${importScript}try { ${funcName} -ErrorAction Stop; $lec = $LASTEXITCODE; } catch { $lec = 1; ${printException} }; exit $lec`,
+        '-Command',
+        `&{${powershellCommand}}`,
       ],
       verbose,
       errorCategory,
@@ -88,7 +95,7 @@ export function commandWithProgress(
   errorCategory: CodedErrorType,
 ) {
   return new Promise<void>((resolve, reject) => {
-    const spawnOptions: SpawnOptions = verbose ? {stdio: 'inherit'} : {};
+    const spawnOptions: SpawnOptions = verbose ? { stdio: 'inherit' } : {};
 
     if (verbose) {
       spinner.stop();
diff --git a/packages/@react-native-windows/cli/src/utils/deploy.ts b/packages/@react-native-windows/cli/src/utils/deploy.ts
index 39395245d74..4335d166c36 100644
--- a/packages/@react-native-windows/cli/src/utils/deploy.ts
+++ b/packages/@react-native-windows/cli/src/utils/deploy.ts
@@ -4,7 +4,7 @@
  * @format
  */
 
-import {spawn, execSync, SpawnOptions} from 'child_process';
+import {spawn, execFileSync, SpawnOptions} from 'child_process';
 import fs from '@react-native-windows/fs';
 import http from 'http';
 import path from 'path';
@@ -19,8 +19,8 @@ import {
   newSpinner,
   commandWithProgress,
   runPowerShellScriptFunction,
-  powershell,
 } from './commandWithProgress';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 import * as build from './build';
 import {
   BuildConfig,
@@ -183,9 +183,12 @@ function getWindowsStoreAppUtils(options: RunWindowsOptions) {
     'powershell',
     'WindowsStoreAppUtils.psm1',
   );
-  execSync(
-    `${powershell} -NoProfile Unblock-File '${windowsStoreAppUtilsPath}'`,
-  );
+  const powershell = findPowerShell();
+  execFileSync(powershell, [
+    '-NoProfile',
+    '-Command',
+    `& { Unblock-File '${windowsStoreAppUtilsPath}' }`,
+  ]);
   popd();
   return windowsStoreAppUtilsPath;
 }
@@ -359,6 +362,7 @@ export async function deployToDesktop(
   config: Config,
   buildTools: MSBuildTools,
 ) {
+  const useAppxCompatibility = !!process.env.TF_BUILD;
   const windowsConfig: Partial<WindowsProjectConfig> | undefined =
     config.project.windows;
   const slnFile =
@@ -391,6 +395,7 @@ export async function deployToDesktop(
     'EnableDevMode',
     verbose,
     'EnableDevModeFailure',
+    useAppxCompatibility,
   );
 
   const appPackageFolder = getAppPackage(options, projectName);
@@ -403,6 +408,7 @@ export async function deployToDesktop(
       `Uninstall-App ${appName}`,
       verbose,
       'RemoveOldAppVersionFailure',
+      useAppxCompatibility,
     );
 
     const script = glob.sync(
@@ -415,6 +421,7 @@ export async function deployToDesktop(
       `Install-App "${script}" -Force`,
       verbose,
       'InstallAppFailure',
+      useAppxCompatibility,
     );
   } else {
     // Deploy from layout
@@ -442,6 +449,7 @@ export async function deployToDesktop(
         `Install-AppDependencies ${appxManifestPath} ${appPackageFolder} ${options.arch}`,
         verbose,
         'InstallAppDependenciesFailure',
+        useAppxCompatibility,
       );
       await build.buildSolution(
         buildTools,
@@ -456,9 +464,14 @@ export async function deployToDesktop(
     }
   }
 
-  const appFamilyName = execSync(
-    `${powershell} -NoProfile -c $(Get-AppxPackage -Name ${appName}).PackageFamilyName`,
-  )
+  const appFamilyNameCommand = useAppxCompatibility
+    ? `& { Import-Module Appx -UseWindowsPowerShell -WarningAction SilentlyContinue; (Get-AppxPackage -Name '${appName}').PackageFamilyName }`
+    : `(Get-AppxPackage -Name '${appName}').PackageFamilyName`;
+  const appFamilyName = execFileSync(findPowerShell(), [
+    '-NoProfile',
+    '-Command',
+    appFamilyNameCommand,
+  ])
     .toString()
     .trim();
 
@@ -488,6 +501,7 @@ export async function deployToDesktop(
       `Start-Locally ${appName} ${args}`,
       verbose,
       'AppStartupFailure',
+      useAppxCompatibility,
     );
   } else {
     newInfo('Skip the step to start the app');
diff --git a/packages/@react-native-windows/cli/src/utils/msbuildtools.ts b/packages/@react-native-windows/cli/src/utils/msbuildtools.ts
index 479fbed6974..859ef8c28e9 100644
--- a/packages/@react-native-windows/cli/src/utils/msbuildtools.ts
+++ b/packages/@react-native-windows/cli/src/utils/msbuildtools.ts
@@ -18,8 +18,8 @@ import {
   newSpinner,
   newSuccess,
   newError,
-  powershell,
 } from './commandWithProgress';
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
 import {execSync} from 'child_process';
 import {BuildArch, BuildConfig} from '../commands/runWindows/runWindowsOptions';
 import {findLatestVsInstall} from './vsInstalls';
@@ -317,7 +317,7 @@ export default class MSBuildTools {
         'Eval-MsBuildProperties.ps1',
       );
 
-      let command = `${powershell} -ExecutionPolicy Unrestricted -NoProfile "${msbuildEvalScriptPath}" -SolutionFile '${solutionFile}' -ProjectFile '${projectFile}' -MSBuildPath '${this.msbuildPath()}'`;
+      let command = `"${findPowerShell()}" -ExecutionPolicy Unrestricted -NoProfile "${msbuildEvalScriptPath}" -SolutionFile '${solutionFile}' -ProjectFile '${projectFile}' -MSBuildPath '${this.msbuildPath()}'`;
 
       if (propertyNames && propertyNames.length > 0) {
         command += ` -PropertyNames '${propertyNames.join(',')}'`;
diff --git a/packages/@react-native-windows/find-dotnet-tools/.eslintrc.js b/packages/@react-native-windows/find-dotnet-tools/.eslintrc.js
new file mode 100644
index 00000000000..35e0d115126
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/.eslintrc.js
@@ -0,0 +1,4 @@
+module.exports = {
+  extends: ['@rnw-scripts'],
+  parserOptions: {tsconfigRootDir : __dirname},
+};
diff --git a/packages/@react-native-windows/find-dotnet-tools/.gitignore b/packages/@react-native-windows/find-dotnet-tools/.gitignore
new file mode 100644
index 00000000000..f42efbb9f7c
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/.gitignore
@@ -0,0 +1,2 @@
+lib/
+lib-commonjs/
diff --git a/packages/@react-native-windows/find-dotnet-tools/README.md b/packages/@react-native-windows/find-dotnet-tools/README.md
new file mode 100644
index 00000000000..f643400da11
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/README.md
@@ -0,0 +1,50 @@
+# @react-native-windows/find-dotnet-tools
+
+Helpers to locate .NET-based tools (e.g. PowerShell) restored via `dotnet tool restore` or
+available on PATH.
+
+Used to resolve tool paths consistently across local development and CI
+environments.
+
+## Usage
+
+Add the package as a dependency:
+
+```json
+{
+  "dependencies": {
+    "@react-native-windows/find-dotnet-tools": "<version>"
+  }
+}
+```
+
+### findPowerShell
+
+Locates a PowerShell executable by checking, in order:
+
+1. A `dotnet-tool`-restored copy of `pwsh.exe` (skipped in CI builds)
+2. `pwsh.exe` on the system PATH
+
+Throws an error if `pwsh.exe` cannot be found.
+
+```js
+import {findPowerShell} from '@react-native-windows/find-dotnet-tools';
+
+const pwsh = findPowerShell();
+// e.g. "C:\\Users\\user\\.nuget\\packages\\PowerShell\\7.6.1\\tools\\net10.0\\any\\win\\pwsh.exe"
+```
+
+### getNugetGlobalPackagesFolder
+
+Returns the path to the global NuGet packages folder by checking, in order:
+
+1. The `NUGET_PACKAGES` environment variable
+2. The output of `dotnet nuget locals global-packages --list`
+3. The default `~/.nuget/packages` location
+
+```js
+import {getNugetGlobalPackagesFolder} from '@react-native-windows/find-dotnet-tools';
+
+const packagesDir = getNugetGlobalPackagesFolder();
+// e.g. "C:\\Users\\user\\.nuget\\packages"
+```
diff --git a/packages/@react-native-windows/find-dotnet-tools/package.json b/packages/@react-native-windows/find-dotnet-tools/package.json
new file mode 100644
index 00000000000..77901e68a1c
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/package.json
@@ -0,0 +1,52 @@
+{
+  "name": "@react-native-windows/find-dotnet-tools",
+  "description": "Helpers to locate .NET-based tools (e.g. pwsh) restored via NuGet or available on PATH.",
+  "version": "0.0.0-canary.1",
+  "license": "MIT",
+  "scripts": {
+    "build": "rnw-scripts build",
+    "clean": "rnw-scripts clean",
+    "lint": "rnw-scripts lint",
+    "lint:fix": "rnw-scripts lint:fix",
+    "watch": "rnw-scripts watch"
+  },
+  "main": "lib-commonjs/findDotnetTools.js",
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/microsoft/react-native-windows",
+    "directory": "packages/@react-native-windows/find-dotnet-tools"
+  },
+  "dependencies": {
+    "@react-native-windows/fs": "^0.0.0-canary.72"
+  },
+  "devDependencies": {
+    "@rnw-scripts/eslint-config": "1.2.38",
+    "@rnw-scripts/just-task": "2.3.58",
+    "@rnw-scripts/ts-config": "2.0.6",
+    "@types/node": "^22.14.0",
+    "@typescript-eslint/eslint-plugin": "^8.36.0",
+    "@typescript-eslint/parser": "^8.36.0",
+    "eslint": "^8.19.0",
+    "prettier": "^3.6.2",
+    "typescript": "5.0.4"
+  },
+  "beachball": {
+    "defaultNpmTag": "canary",
+    "disallowedChangeTypes": [
+      "major",
+      "minor",
+      "patch",
+      "premajor",
+      "preminor",
+      "prepatch"
+    ]
+  },
+  "promoteRelease": true,
+  "files": [
+    "lib-commonjs",
+    "README.md"
+  ],
+  "engines": {
+    "node": ">= 22"
+  }
+}
diff --git a/packages/@react-native-windows/find-dotnet-tools/src/findDotnetTools.ts b/packages/@react-native-windows/find-dotnet-tools/src/findDotnetTools.ts
new file mode 100644
index 00000000000..d684656bee4
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/src/findDotnetTools.ts
@@ -0,0 +1,70 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ * Licensed under the MIT License.
+ * @format
+ */
+
+import {execSync} from 'child_process';
+import fs from '@react-native-windows/fs';
+import os from 'os';
+import path from 'path';
+
+/**
+ * Returns the path to the global NuGet packages folder, checking (in order):
+ * 1. The NUGET_PACKAGES environment variable
+ * 2. The `dotnet nuget locals` command output
+ * 3. The default ~/.nuget/packages location
+ */
+export function getNugetGlobalPackagesFolder(): string {
+  if (process.env.NUGET_PACKAGES) {
+    return process.env.NUGET_PACKAGES;
+  }
+  try {
+    const output = execSync('dotnet.exe nuget locals global-packages --list', {
+      encoding: 'utf8',
+    }).trim();
+    const match = output.match(/global-packages:\s*(.+)/i);
+    if (match) {
+      return match[1].trim();
+    }
+  } catch {}
+  return path.join(os.homedir(), '.nuget', 'packages');
+}
+
+/**
+ * Locates a PowerShell executable, checking (in order):
+ * 1. A NuGet-restored copy of pwsh (skipped in CI builds)
+ * 2. pwsh.exe on the system PATH
+ *
+ * Throws if no pwsh.exe can be located.
+ */
+export function findPowerShell(): string {
+  // Build agents already have PowerShell (pwsh) installed
+  if (!process.env.TF_BUILD) {
+    const nugetPackages = getNugetGlobalPackagesFolder();
+    const nugetPwsh = path.join(
+      nugetPackages,
+      'PowerShell',
+      '7.6.1',
+      'tools',
+      'net10.0',
+      'any',
+      'win',
+      'pwsh.exe',
+    );
+    if (fs.existsSync(nugetPwsh)) {
+      return nugetPwsh;
+    }
+  }
+
+  try {
+    const found = execSync('where pwsh.exe', {encoding: 'utf8'}).trim();
+    if (found) {
+      return found.split(/\r?\n/)[0];
+    }
+  } catch {}
+
+  throw new Error(
+    'Unable to find pwsh.exe. It should have been made available by `yarn install`.',
+  );
+}
diff --git a/packages/@react-native-windows/find-dotnet-tools/tsconfig.json b/packages/@react-native-windows/find-dotnet-tools/tsconfig.json
new file mode 100644
index 00000000000..c62faa78baf
--- /dev/null
+++ b/packages/@react-native-windows/find-dotnet-tools/tsconfig.json
@@ -0,0 +1,5 @@
+{
+  "extends": "@rnw-scripts/ts-config",
+  "include": ["src"],
+  "exclude": ["node_modules"]
+}
diff --git a/packages/@rnw-scripts/just-task/nuget-restore-task.js b/packages/@rnw-scripts/just-task/nuget-restore-task.js
index d8b316a46b2..97da9d6e163 100644
--- a/packages/@rnw-scripts/just-task/nuget-restore-task.js
+++ b/packages/@rnw-scripts/just-task/nuget-restore-task.js
@@ -9,6 +9,7 @@ const fs = require('fs');
 const path = require('path');
 const {execSync, spawnSync} = require('child_process');
 const {task} = require('just-scripts');
+const {findPowerShell} = require('@react-native-windows/find-dotnet-tools');
 
 function registerNuGetRestoreTask(options) {
   const config = normalizeOptions(options);
@@ -51,12 +52,14 @@ function executeNuGetRestore(config) {
     `Restoring NuGet packages (log: ${path.relative(process.cwd(), logPath)})`,
   );
 
+  const powershell = findPowerShell();
+
   const scriptArgs = config.scriptArguments.length
     ? ` ${config.scriptArguments.join(' ')}`
     : '';
   const restoreCommand = `call ${quote(
     vsDevCmd,
-  )} && powershell -NoProfile -ExecutionPolicy Bypass -File ${quote(
+  )} && "${powershell}" -NoProfile -ExecutionPolicy Bypass -File ${quote(
     config.scriptPath,
   )}${scriptArgs}`;
   const wrappedCommand = `${restoreCommand}`;
diff --git a/vnext/dotnet-tools.json b/vnext/dotnet-tools.json
new file mode 100644
index 00000000000..2468cbda2de
--- /dev/null
+++ b/vnext/dotnet-tools.json
@@ -0,0 +1,12 @@
+{
+  "version": 1,
+  "isRoot": true,
+  "tools": {
+    "powershell": {
+      "version": "7.6.1",
+      "commands": [
+        "pwsh"
+      ]
+    }
+  }
+}
\ No newline at end of file
diff --git a/vnext/just-task.js b/vnext/just-task.js
index e3fb44c76b1..e10779044fb 100644
--- a/vnext/just-task.js
+++ b/vnext/just-task.js
@@ -25,6 +25,7 @@ const fs = require('fs');
 const {
   registerNuGetRestoreTask,
 } = require('@rnw-scripts/just-task/nuget-restore-task');
+const {findPowerShell} = require('@react-native-windows/find-dotnet-tools');
 
 option('production');
 option('clean');
@@ -44,11 +45,12 @@ function codegen(test) {
   );
 }
 
+const powershell = findPowerShell();
+
 function layoutMSRNCxx() {
   if (require('os').platform() === 'win32') {
-    const powershell = `${process.env.SystemRoot}\\System32\\WindowsPowerShell\\v1.0\\powershell.exe`;
     execSync(
-      `${powershell} -NoProfile .\\Scripts\\Tfs\\Layout-MSRN-Headers.ps1 -GenerateLocalCxx`,
+      `"${powershell}" -NoProfile .\\Scripts\\Tfs\\Layout-MSRN-Headers.ps1 -GenerateLocalCxx`,
       {
         env: process.env,
       },
@@ -84,12 +86,22 @@ registerNuGetRestoreTask({
   scriptArguments: ['-SkipLockDeletion'],
 });
 
+function installDotnetToolsTask() {
+  execSync(
+    `dotnet tool restore --tool-manifest ${path.resolve(__dirname, 'dotnet-tools.json')}`,
+    {env: process.env},
+  );
+}
+
+task('installDotnetTools', installDotnetToolsTask);
+
 task(
   'build',
   series(
     condition('clean', () => argv().clean),
     'copyRNLibraries',
     'copyReadmeAndLicenseFromRoot',
+    condition('installDotnetTools', () => !process.env.TF_BUILD),
     'layoutMSRNCxx',
     'compileTsPlatformOverrides',
     'restoreNuGetPackages',
diff --git a/vnext/package.json b/vnext/package.json
index 77061d9aac2..f008cea4c2a 100644
--- a/vnext/package.json
+++ b/vnext/package.json
@@ -73,6 +73,7 @@
     "@babel/core": "^7.25.2",
     "@babel/preset-env": "^7.25.3",
     "@react-native-windows/codegen": "0.0.0-canary.133",
+    "@react-native-windows/find-dotnet-tools": "0.0.0-canary.1",
     "@react-native/metro-config": "0.85.0-nightly-20260114-f15985f4f",
     "@rnw-scripts/babel-react-native-config": "0.0.0",
     "@rnw-scripts/eslint-config": "1.2.38",
diff --git a/yarn.lock b/yarn.lock
index 3930c317407..6ee2ecc7b23 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3551,6 +3551,7 @@ __metadata:
     "@jest/environment": "npm:^29.3.0"
     "@jest/types": "npm:^29.2.1"
     "@react-native-windows/automation-channel": "npm:0.0.0-canary.1052"
+    "@react-native-windows/find-dotnet-tools": "npm:0.0.0-canary.1"
     "@react-native-windows/fs": "npm:^0.0.0-canary.72"
     "@rnw-scripts/eslint-config": "npm:1.2.38"
     "@rnw-scripts/just-task": "npm:2.3.58"
@@ -3580,6 +3581,7 @@ __metadata:
     "@react-native-community/cli-doctor": "npm:20.0.0"
     "@react-native-community/cli-types": "npm:20.0.0"
     "@react-native-windows/codegen": "npm:0.0.0-canary.133"
+    "@react-native-windows/find-dotnet-tools": "npm:0.0.0-canary.1"
     "@react-native-windows/fs": "npm:^0.0.0-canary.72"
     "@react-native-windows/package-utils": "npm:^0.0.0-canary.98"
     "@react-native-windows/telemetry": "npm:^0.0.0-canary.133"
@@ -3663,6 +3665,23 @@ __metadata:
   languageName: unknown
   linkType: soft
 
+"@react-native-windows/find-dotnet-tools@npm:0.0.0-canary.1, @react-native-windows/find-dotnet-tools@workspace:packages/@react-native-windows/find-dotnet-tools":
+  version: 0.0.0-use.local
+  resolution: "@react-native-windows/find-dotnet-tools@workspace:packages/@react-native-windows/find-dotnet-tools"
+  dependencies:
+    "@react-native-windows/fs": "npm:^0.0.0-canary.72"
+    "@rnw-scripts/eslint-config": "npm:1.2.38"
+    "@rnw-scripts/just-task": "npm:2.3.58"
+    "@rnw-scripts/ts-config": "npm:2.0.6"
+    "@types/node": "npm:^22.14.0"
+    "@typescript-eslint/eslint-plugin": "npm:^8.36.0"
+    "@typescript-eslint/parser": "npm:^8.36.0"
+    eslint: "npm:^8.19.0"
+    prettier: "npm:^3.6.2"
+    typescript: "npm:5.0.4"
+  languageName: unknown
+  linkType: soft
+
 "@react-native-windows/find-repo-root@npm:^0.0.0-canary.101, @react-native-windows/find-repo-root@workspace:packages/@react-native-windows/find-repo-root":
   version: 0.0.0-use.local
   resolution: "@react-native-windows/find-repo-root@workspace:packages/@react-native-windows/find-repo-root"
@@ -15993,6 +16012,7 @@ __metadata:
     "@react-native-community/cli-platform-ios": "npm:20.0.0"
     "@react-native-windows/cli": "npm:0.0.0-canary.288"
     "@react-native-windows/codegen": "npm:0.0.0-canary.133"
+    "@react-native-windows/find-dotnet-tools": "npm:0.0.0-canary.1"
     "@react-native/assets": "npm:1.0.0"
     "@react-native/assets-registry": "npm:0.85.0-nightly-20260114-f15985f4f"
     "@react-native/codegen": "npm:0.85.0-nightly-20260114-f15985f4f"