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PowerShell Execution Policy vs. AppLocker and App Control for Business (WDAC)

Execution policy sets PowerShell script-running conditions; AppLocker and App Control for Business enforce application-control rules. Learn where each applies and how they interact.
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PowerShell execution policy, AppLocker, and App Control for Business are different controls, not interchangeable alternatives. Execution policy sets conditions for loading PowerShell configuration files and running scripts; AppLocker and App Control for Business determine which applications and files are trusted to run. Microsoft explicitly says execution policy is not a security boundary, so use application control when you need enforceable restrictions on what can run.

How the three controls differ

Control What it governs How to think about it
PowerShell execution policy Whether PowerShell loads configuration files or runs scripts under specified conditions, including signing requirements. A script-running safety setting; not a security boundary.
AppLocker Whether files in configured rule collections are allowed to run, based on rules such as publisher, path, or hash. Rule-based application control that can be audited or enforced.
App Control for Business (formerly WDAC) Which applications and drivers a Windows system trusts, according to policy. Microsoft’s preferred application-control path for new deployments.

Microsoft’s documentation describes the purpose and behavior of execution policies, AppLocker rules, and App Control for Business with PowerShell.

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What PowerShell execution policy actually does

Execution policy determines whether PowerShell can load configuration files or run scripts, and whether scripts must be digitally signed. Its settings are useful for preventing accidental execution that conflicts with local rules, but Microsoft’s wording is unambiguous: “The execution policy isn’t a security boundary, it’s defense in depth.” A user can, for example, enter script contents directly at the command line rather than run a blocked script file. Do not rely on a restrictive execution policy by itself to stop a determined user or attacker.

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Scopes and precedence

On Windows, execution policy can be set at five scopes. Group Policy scopes take precedence over values set from PowerShell. If Group Policy does not configure a policy, the order is Process, CurrentUser, then LocalMachine.

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Scope What it applies to Precedence or duration
MachinePolicy Computer policy set through Group Policy. Highest precedence.
UserPolicy User policy set through Group Policy. Overrides PowerShell-set scopes; below MachinePolicy.
Process The current PowerShell session and its child processes. Highest PowerShell-set scope; ends with the session.
CurrentUser The current user. Below Process.
LocalMachine All users on the computer. Lowest precedence when no Group Policy setting applies.

Use Get-ExecutionPolicy -List to inspect values at each scope and Get-ExecutionPolicy to see the effective policy. Microsoft documents scope behavior and precedence in about_Execution_Policies and Set-ExecutionPolicy.

How AppLocker controls applications

AppLocker uses separate rule collections for executable files, scripts, Windows Installer files, DLLs, and packaged applications. Within a collection, rules can identify files by publisher information from a digital signature, filesystem path, or file hash; rules can be assigned to users or groups.

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Audit first, then enforce

  • Audit only: AppLocker evaluates affected files and records events, but allows the files to run.
  • Enforce rules: AppLocker blocks files that violate the configured rules and logs events.

Testing in audit mode can reveal the effects of a policy before enforcement. AppLocker policy is enforced through the Application Identity service; Microsoft warns that rules will not be enforced if that service is not running. See Microsoft’s guidance on enforcing AppLocker rules and AppLocker processes and interactions.

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What changed from WDAC to App Control for Business

Windows Defender Application Control (WDAC) is the earlier name for Microsoft’s current App Control for Business. Its policies specify which drivers and applications are trusted. Policy rules can include audit-mode options, while file rules describe how the system identifies trusted applications; Microsoft explains these distinctions in its documentation on App Control policy rules and file rules.

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Microsoft currently recommends App Control for Business over AppLocker for application control. Its PowerShell documentation says Microsoft is no longer investing in AppLocker, though AppLocker will continue to receive security fixes. This is Microsoft’s stated product direction, not a claim that AppLocker has stopped working.

Check platform support before choosing

Microsoft’s feature-availability overview lists App Control for Business for Windows 10, Windows 11, and Windows Server 2016 or later, and AppLocker for Windows 8 or later. Those broad platform listings do not mean every feature is identical across releases: availability depends on the specific Windows version and capability. Check the feature-availability table against the exact systems you administer before deploying a policy.

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What happens when application control affects PowerShell

PowerShell detects system-wide AppLocker and App Control policies. Depending on the policy, PowerShell can enter Constrained Language Mode, which limits language features available to scripts and users. The precise behavior depends on the Windows and PowerShell versions in use.

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One important version-specific case: beginning with PowerShell 7.2, AppLocker rules take precedence over Set-ExecutionPolicy -ExecutionPolicy Bypass. In other words, setting execution policy to Bypass does not override applicable AppLocker rules in those versions. Verify the exact interaction on the supported Windows and PowerShell combination you plan to deploy; Microsoft describes it in its documentation on using App Control to secure PowerShell and how App Control for Business works with PowerShell.

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Which control should you use?

  • For script-running guardrails on a user’s PowerShell environment: configure execution policy at the appropriate scope, understanding that it is defense in depth rather than a hard block against a determined user.
  • To restrict which applications or files can run with an existing AppLocker setup: review rule collections, assignments, audit results, and the Application Identity service before enforcing rules.
  • For a new application-control deployment: evaluate App Control for Business, Microsoft’s preferred option, against your Windows versions and policy requirements.
  • For a PowerShell lockdown: treat application control and execution policy as separate layers, and validate language-mode and rule behavior on the exact Windows and PowerShell versions in scope.

These tools can coexist: execution policy governs PowerShell script conditions, while application-control policy can restrict trusted software at the system level. Choose based on the control you need rather than treating one as a stronger setting of another.

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