diff --git a/Engine/Settings.cs b/Engine/Settings.cs
index 0947b77d8..35a941781 100644
--- a/Engine/Settings.cs
+++ b/Engine/Settings.cs
@@ -202,13 +202,25 @@ internal static Settings Create(object settingsObj, string cwd, IOutputWriter ou
 
                 case SettingsMode.Preset:
                 case SettingsMode.File:
-                    var resolvedPath = getResolvedProviderPathFromPSPathDelegate(settingsFound.ToString(), out ProviderInfo providerInfo).Single();
-                    settingsFound = resolvedPath;
-                    outputWriter?.WriteVerbose(
-                        String.Format(
-                            CultureInfo.CurrentCulture,
-                            Strings.SettingsUsingFile,
-                            resolvedPath));
+                    var userProvidedSettingsString = settingsFound.ToString();
+                    try
+                    {
+                        var resolvedPath = getResolvedProviderPathFromPSPathDelegate(userProvidedSettingsString, out ProviderInfo providerInfo).Single();
+                        settingsFound = resolvedPath;
+                        outputWriter?.WriteVerbose(
+                            String.Format(
+                                CultureInfo.CurrentCulture,
+                                Strings.SettingsUsingFile,
+                                resolvedPath));
+                    }
+                    catch
+                    {
+                        outputWriter?.WriteVerbose(
+                            String.Format(
+                                CultureInfo.CurrentCulture,
+                                Strings.SettingsCannotFindFile,
+                                userProvidedSettingsString));
+                    }
                     break;
 
                 case SettingsMode.Hashtable:
@@ -218,20 +230,15 @@ internal static Settings Create(object settingsObj, string cwd, IOutputWriter ou
                             Strings.SettingsUsingHashtable));
                     break;
 
-                default: // case SettingsMode.None
+                default:
                     outputWriter?.WriteVerbose(
                         String.Format(
                             CultureInfo.CurrentCulture,
-                            Strings.SettingsCannotFindFile));
-                    break;
-            }
-
-            if (settingsMode != SettingsMode.None)
-            {
-                return new Settings(settingsFound);
+                            Strings.SettingsObjectCouldNotBResolved));
+                    return null;
             }
 
-            return null;
+            return new Settings(settingsFound);
         }
 
         /// <summary>
@@ -703,6 +710,16 @@ internal static SettingsMode FindSettingsMode(object settings, string path, out
                     {
                         settingsMode = SettingsMode.Hashtable;
                     }
+                    else // if the provided argument is wrapped in an expressions then PowerShell resolves it but it will be of type PSObject and we have to operate then on the BaseObject
+                    {
+                        if (settingsFound is PSObject settingsFoundPSObject)
+                        {
+                            if (settingsFoundPSObject.BaseObject is String)
+                            {
+                                settingsMode = SettingsMode.File;
+                            }
+                        }
+                    }
                 }
             }
 
diff --git a/Engine/Strings.Designer.cs b/Engine/Strings.Designer.cs
index 1f8db8c92..d7234f283 100644
--- a/Engine/Strings.Designer.cs
+++ b/Engine/Strings.Designer.cs
@@ -458,7 +458,7 @@ internal static string SettingsAutoDiscovered {
         }
         
         /// <summary>
-        ///   Looks up a localized string similar to Cannot find a settings file..
+        ///   Looks up a localized string similar to Cannot resolve settings file path &apos;{0}&apos;..
         /// </summary>
         internal static string SettingsCannotFindFile {
             get {
@@ -511,6 +511,15 @@ internal static string SettingsNotProvided {
             }
         }
         
+        /// <summary>
+        ///   Looks up a localized string similar to Settings object could not be resolved..
+        /// </summary>
+        internal static string SettingsObjectCouldNotBResolved {
+            get {
+                return ResourceManager.GetString("SettingsObjectCouldNotBResolved", resourceCulture);
+            }
+        }
+        
         /// <summary>
         ///   Looks up a localized string similar to Using settings file at {0}..
         /// </summary>
diff --git a/Engine/Strings.resx b/Engine/Strings.resx
index 5194830c3..99d90761f 100644
--- a/Engine/Strings.resx
+++ b/Engine/Strings.resx
@@ -268,7 +268,7 @@
     <value>Using settings hashtable.</value>
   </data>
   <data name="SettingsCannotFindFile" xml:space="preserve">
-    <value>Cannot find a settings file.</value>
+    <value>Cannot resolve settings file path '{0}'.</value>
   </data>
   <data name="SettingsNotParsable" xml:space="preserve">
     <value>Cannot parse settings. Will abort the invocation.</value>
@@ -321,4 +321,7 @@
   <data name="PositionRefPosLessThanInputPos" xml:space="preserve">
     <value>Input position should be less than that of the invoking object.</value>
   </data>
+  <data name="SettingsObjectCouldNotBResolved" xml:space="preserve">
+    <value>Settings object could not be resolved.</value>
+  </data>
 </root>
\ No newline at end of file
diff --git a/Tests/Engine/InvokeScriptAnalyzer.tests.ps1 b/Tests/Engine/InvokeScriptAnalyzer.tests.ps1
index e358d42c5..554749bb2 100644
--- a/Tests/Engine/InvokeScriptAnalyzer.tests.ps1
+++ b/Tests/Engine/InvokeScriptAnalyzer.tests.ps1
@@ -387,13 +387,23 @@ Describe "Test CustomizedRulePath" {
         Context "When used from settings file" {
             It "Should process relative settings path" {
                 try {
-                    $initialLocation = Get-Location
-                    Set-Location $PSScriptRoot
+                    Push-Location $PSScriptRoot
                     $warnings = Invoke-ScriptAnalyzer -ScriptDefinition 'gci' -Settings .\SettingsTest\..\SettingsTest\Project1\PSScriptAnalyzerSettings.psd1
                     $warnings.Count | Should -Be 1
                 }
                 finally {
-                    Set-Location $initialLocation
+                    Pop-Location
+                }
+            }
+
+            It "Should process relative settings path even when settings path object is not resolved to a string yet" {
+                try {
+                    Push-Location $PSScriptRoot
+                    $warnings = Invoke-ScriptAnalyzer -ScriptDefinition 'gci' -Settings (Join-Path (Get-Location).Path '.\SettingsTest\..\SettingsTest\Project1\PSScriptAnalyzerSettings.psd1')
+                    $warnings.Count | Should -Be 1
+                }
+                finally {
+                    Pop-Location
                 }
             }