diff --git a/src/Microsoft.PowerShell.Commands.Utility/commands/utility/NewGuidCommand.cs b/src/Microsoft.PowerShell.Commands.Utility/commands/utility/NewGuidCommand.cs
index 0e466f86d3f..d1d41b312f7 100644
--- a/src/Microsoft.PowerShell.Commands.Utility/commands/utility/NewGuidCommand.cs
+++ b/src/Microsoft.PowerShell.Commands.Utility/commands/utility/NewGuidCommand.cs
@@ -49,7 +49,7 @@ protected override void ProcessRecord()
             }
             else
             {
-                guid = Empty.ToBool() ? Guid.Empty : Guid.NewGuid();
+                guid = Empty.ToBool() ? Guid.Empty : Guid.CreateVersion7();
             }
 
             WriteObject(guid);
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/New-Guid.Tests.ps1 b/test/powershell/Modules/Microsoft.PowerShell.Utility/New-Guid.Tests.ps1
index 8756fed7726..9b082793413 100644
--- a/test/powershell/Modules/Microsoft.PowerShell.Utility/New-Guid.Tests.ps1
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/New-Guid.Tests.ps1
@@ -43,6 +43,12 @@ Describe "New-Guid" -Tags "CI" {
         $observed | Should -Be $guids
     }
 
+    It "Should generate a UUID v7" {
+        $guid = New-Guid
+        # UUID v7 has version nibble '7' at position 14 in the string representation
+        $guid.ToString()[14] | Should -BeExactly '7'
+    }
+
     It "Should return different guids with each call" {
         $guid1 = New-Guid
         $guid2 = New-Guid