diff --git a/runtime/doc/vimfn.txt b/runtime/doc/vimfn.txt
index e91dad1e2b..a98e00d826 100644
--- a/runtime/doc/vimfn.txt
+++ b/runtime/doc/vimfn.txt
@@ -1875,10 +1875,12 @@ executable({expr})                                                *executable()*
 		On MS-Windows an executable in the same directory as the Vim
 		executable is always found (it's added to $PATH at |startup|).
 					*NoDefaultCurrentDirectoryInExePath*
-		On MS-Windows an executable in Vim's current working directory
-		is also normally found, but this can be disabled by setting
-		the `$NoDefaultCurrentDirectoryInExePath` environment variable.
-		This is always done for |:!| commands, for security reasons.
+		On MS-Windows when using cmd.exe as 'shell' an executable in
+		Vim's current working directory is also normally found, which
+		can be disabled by setting the
+		`$NoDefaultCurrentDirectoryInExePath` environment variable.
+		This is always done when executing external commands using
+		e.g. |:!|, |:make|, |system()| for security reasons.
 
 		The result is a Number:
 			1	exists
diff --git a/runtime/lua/vim/_meta/vimfn.lua b/runtime/lua/vim/_meta/vimfn.lua
index fc8b1e218f..91a1a57fa1 100644
--- a/runtime/lua/vim/_meta/vimfn.lua
+++ b/runtime/lua/vim/_meta/vimfn.lua
@@ -1650,10 +1650,12 @@ function vim.fn.eventhandler() end
 --- On MS-Windows an executable in the same directory as the Vim
 --- executable is always found (it's added to $PATH at |startup|).
 ---       *NoDefaultCurrentDirectoryInExePath*
---- On MS-Windows an executable in Vim's current working directory
---- is also normally found, but this can be disabled by setting
---- the `$NoDefaultCurrentDirectoryInExePath` environment variable.
---- This is always done for |:!| commands, for security reasons.
+--- On MS-Windows when using cmd.exe as 'shell' an executable in
+--- Vim's current working directory is also normally found, which
+--- can be disabled by setting the
+--- `$NoDefaultCurrentDirectoryInExePath` environment variable.
+--- This is always done when executing external commands using
+--- e.g. |:!|, |:make|, |system()| for security reasons.
 ---
 --- The result is a Number:
 ---   1  exists
diff --git a/src/nvim/eval.lua b/src/nvim/eval.lua
index 5b36e6c4b7..b943629299 100644
--- a/src/nvim/eval.lua
+++ b/src/nvim/eval.lua
@@ -2161,10 +2161,12 @@ M.funcs = {
       On MS-Windows an executable in the same directory as the Vim
       executable is always found (it's added to $PATH at |startup|).
       			*NoDefaultCurrentDirectoryInExePath*
-      On MS-Windows an executable in Vim's current working directory
-      is also normally found, but this can be disabled by setting
-      the `$NoDefaultCurrentDirectoryInExePath` environment variable.
-      This is always done for |:!| commands, for security reasons.
+      On MS-Windows when using cmd.exe as 'shell' an executable in
+      Vim's current working directory is also normally found, which
+      can be disabled by setting the
+      `$NoDefaultCurrentDirectoryInExePath` environment variable.
+      This is always done when executing external commands using
+      e.g. |:!|, |:make|, |system()| for security reasons.
 
       The result is a Number:
       	1	exists
diff --git a/src/nvim/os/fs.c b/src/nvim/os/fs.c
index 4ffd783a5b..ecd013c4e2 100644
--- a/src/nvim/os/fs.c
+++ b/src/nvim/os/fs.c
@@ -355,7 +355,8 @@ static bool is_executable_in_path(const char *name, char **abspath)
 
 #ifdef MSWIN
   char *path = NULL;
-  if (!os_env_exists("NoDefaultCurrentDirectoryInExePath", false)) {
+  if (!os_env_exists("NoDefaultCurrentDirectoryInExePath", false)
+      && strstr(path_tail(p_sh), "cmd.exe") != NULL) {
     // Prepend ".;" to $PATH.
     size_t pathlen = strlen(path_env);
     path = xmallocz(pathlen + 2);
diff --git a/test/functional/vimscript/executable_spec.lua b/test/functional/vimscript/executable_spec.lua
index e5530926c4..a66f9cdb8a 100644
--- a/test/functional/vimscript/executable_spec.lua
+++ b/test/functional/vimscript/executable_spec.lua
@@ -202,9 +202,9 @@ describe('executable() (Windows)', function()
     clear({ env = { PATHEXT = '' } })
     command('set shell=sh')
     for _, ext in ipairs(exts) do
-      eq(1, call('executable', 'test_executable_' .. ext .. '.' .. ext))
+      eq(0, call('executable', 'test_executable_' .. ext .. '.' .. ext))
     end
-    eq(1, call('executable', 'test_executable_zzz.zzz'))
+    eq(0, call('executable', 'test_executable_zzz.zzz'))
   end)
 
   it("relative path, Unix-style 'shell' (backslashes)", function()