diff --git a/bin/sh/eval.c b/bin/sh/eval.c
index 2144c401436d..d26c400aba9b 100644
--- a/bin/sh/eval.c
+++ b/bin/sh/eval.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: eval.c,v 1.25 1995/05/19 15:08:55 christos Exp $	*/
+/*	$NetBSD: eval.c,v 1.26 1995/06/09 01:53:44 christos Exp $	*/
 
 /*-
  * Copyright (c) 1993
@@ -38,9 +38,9 @@
 
 #ifndef lint
 #if 0
-static char sccsid[] = "@(#)eval.c	8.8 (Berkeley) 5/19/95";
+static char sccsid[] = "@(#)eval.c	8.9 (Berkeley) 6/8/95";
 #else
-static char rcsid[] = "$Header: /cvsroot/src/bin/sh/eval.c,v 1.25 1995/05/19 15:08:55 christos Exp $";
+static char sccsid[] = "$NetBSD: eval.c,v 1.26 1995/06/09 01:53:44 christos Exp $";
 #endif
 #endif /* not lint */
 
@@ -677,7 +677,18 @@ evalcommand(cmd, flags, backcmd)
 		cmdentry.cmdtype = CMDBUILTIN;
 		cmdentry.u.index = BLTINCMD;
 	} else {
-		find_command(argv[0], &cmdentry, 1);
+		static const char PATH[] = "PATH=";
+		char *path = pathval();
+
+		/*
+		 * Modify the command lookup path, if a PATH= assignment
+		 * is present
+		 */
+		for (sp = varlist.list ; sp ; sp = sp->next)
+			if (strncmp(sp->text, PATH, sizeof(PATH) - 1) == 0)
+				path = sp->text + sizeof(PATH) - 1;
+
+		find_command(argv[0], &cmdentry, 1, path);
 		if (cmdentry.cmdtype == CMDUNKNOWN) {	/* command not found */
 			exitstatus = 1;
 			flushout(&errout);
@@ -876,7 +887,8 @@ prehash(n)
 
 	if (n->type == NCMD && n->ncmd.args)
 		if (goodname(n->ncmd.args->narg.text))
-			find_command(n->ncmd.args->narg.text, &entry, 0);
+			find_command(n->ncmd.args->narg.text, &entry, 0,
+				     pathval());
 }
 
 
diff --git a/bin/sh/exec.c b/bin/sh/exec.c
index b6b0ffcd3a8b..461f8cc40e21 100644
--- a/bin/sh/exec.c
+++ b/bin/sh/exec.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: exec.c,v 1.16 1995/05/11 21:29:02 christos Exp $	*/
+/*	$NetBSD: exec.c,v 1.17 1995/06/09 01:53:50 christos Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -38,9 +38,9 @@
 
 #ifndef lint
 #if 0
-static char sccsid[] = "@(#)exec.c	8.3 (Berkeley) 5/4/95";
+static char sccsid[] = "@(#)exec.c	8.4 (Berkeley) 6/8/95";
 #else
-static char rcsid[] = "$NetBSD: exec.c,v 1.16 1995/05/11 21:29:02 christos Exp $";
+static char rcsid[] = "$NetBSD: exec.c,v 1.17 1995/06/09 01:53:50 christos Exp $";
 #endif
 #endif /* not lint */
 
@@ -343,7 +343,7 @@ hashcmd(argc, argv)
 		 && (cmdp->cmdtype == CMDNORMAL
 		     || (cmdp->cmdtype == CMDBUILTIN && builtinloc >= 0)))
 			delete_cmd_entry();
-		find_command(name, &entry, 1);
+		find_command(name, &entry, 1, pathval());
 		if (verbose) {
 			if (entry.cmdtype != CMDUNKNOWN) {	/* if no error msg */
 				cmdp = cmdlookup(name, 0);
@@ -404,15 +404,15 @@ printentry(cmdp, verbose)
  */
 
 void
-find_command(name, entry, printerr)
+find_command(name, entry, printerr, path)
 	char *name;
 	struct cmdentry *entry;
 	int printerr;
+	char *path;
 {
 	struct tblentry *cmdp;
 	int index;
 	int prev;
-	char *path;
 	char *fullname;
 	struct stat statb;
 	int e;
@@ -448,7 +448,6 @@ find_command(name, entry, printerr)
 			prev = cmdp->param.index;
 	}
 
-	path = pathval();
 	e = ENOENT;
 	index = -1;
 loop:
diff --git a/bin/sh/exec.h b/bin/sh/exec.h
index 39d9acc04419..ac1b0a985514 100644
--- a/bin/sh/exec.h
+++ b/bin/sh/exec.h
@@ -1,4 +1,4 @@
-/*	$NetBSD: exec.h,v 1.8 1995/05/11 21:29:05 christos Exp $	*/
+/*	$NetBSD: exec.h,v 1.9 1995/06/09 01:53:53 christos Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -35,7 +35,7 @@
  * OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF
  * SUCH DAMAGE.
  *
- *	@(#)exec.h	8.2 (Berkeley) 5/4/95
+ *	@(#)exec.h	8.3 (Berkeley) 6/8/95
  */
 
 /* values of cmdtype */
@@ -59,7 +59,7 @@ extern char *pathopt;		/* set by padvance */
 void shellexec __P((char **, char **, char *, int));
 char *padvance __P((char **, char *));
 int hashcmd __P((int, char **));
-void find_command __P((char *, struct cmdentry *, int));
+void find_command __P((char *, struct cmdentry *, int, char *));
 int find_builtin __P((char *));
 void hashcd __P((void));
 void changepath __P((char *));
diff --git a/bin/sh/input.c b/bin/sh/input.c
index 77839fdf3af4..33f7df1c2138 100644
--- a/bin/sh/input.c
+++ b/bin/sh/input.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: input.c,v 1.15 1995/06/07 16:28:03 cgd Exp $	*/
+/*	$NetBSD: input.c,v 1.16 1995/06/09 01:53:54 christos Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -38,9 +38,9 @@
 
 #ifndef lint
 #if 0
-static char sccsid[] = "@(#)input.c	8.2 (Berkeley) 5/4/95";
+static char sccsid[] = "@(#)input.c	8.3 (Berkeley) 6/9/95";
 #else
-static char rcsid[] = "$NetBSD: input.c,v 1.15 1995/06/07 16:28:03 cgd Exp $";
+static char rcsid[] = "$NetBSD: input.c,v 1.16 1995/06/09 01:53:54 christos Exp $";
 #endif
 #endif /* not lint */