diff --git a/images/windows/scripts/helpers/InstallHelpers.ps1 b/images/windows/scripts/helpers/InstallHelpers.ps1
index 0f8611a5c..139d51b38 100644
--- a/images/windows/scripts/helpers/InstallHelpers.ps1
+++ b/images/windows/scripts/helpers/InstallHelpers.ps1
@@ -217,11 +217,11 @@ function Get-ToolsetContent {
         Retrieves the content of the toolset.json file.
 
     .DESCRIPTION
-        This function reads the toolset.json file located at "C:\image\toolset.json"
-        and returns the content as a PowerShell object.
+        This function reads the toolset.json file in path provided by IMAGE_FOLDER
+        environment variable and returns the content as a PowerShell object.
     #>
 
-    $toolsetPath = Join-Path "C:\\image" "toolset.json"
+    $toolsetPath = Join-Path $env:IMAGE_FOLDER "toolset.json"
     $toolsetJson = Get-Content -Path $toolsetPath -Raw
     ConvertFrom-Json -InputObject $toolsetJson
 }
diff --git a/images/windows/templates/windows-2019.pkr.hcl b/images/windows/templates/windows-2019.pkr.hcl
index 3e3fd2426..203805289 100644
--- a/images/windows/templates/windows-2019.pkr.hcl
+++ b/images/windows/templates/windows-2019.pkr.hcl
@@ -253,7 +253,7 @@ build {
   }
 
   provisioner "powershell" {
-    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_OS=${var.image_os}", "AGENT_TOOLSDIRECTORY=${var.agent_tools_directory}", "IMAGEDATA_FILE=${var.imagedata_file}"]
+    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_OS=${var.image_os}", "AGENT_TOOLSDIRECTORY=${var.agent_tools_directory}", "IMAGEDATA_FILE=${var.imagedata_file}", "IMAGE_FOLDER=${var.image_folder}"]
     execution_policy = "unrestricted"
     scripts          = [
       "${path.root}/../scripts/build/Configure-WindowsDefender.ps1",
@@ -273,7 +273,8 @@ build {
   }
 
   provisioner "powershell" {
-    scripts = [
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-VCRedist.ps1",
       "${path.root}/../scripts/build/Install-Docker.ps1",
       "${path.root}/../scripts/build/Install-DockerWinCred.ps1",
@@ -291,6 +292,7 @@ build {
   provisioner "powershell" {
     elevated_password = "${var.install_password}"
     elevated_user     = "${var.install_user}"
+    environment_vars  = ["IMAGE_FOLDER=${var.image_folder}"]
     scripts           = [
       "${path.root}/../scripts/build/Install-VisualStudio.ps1",
       "${path.root}/../scripts/build/Install-KubernetesTools.ps1",
@@ -300,7 +302,8 @@ build {
   }
 
   provisioner "powershell" {
-    scripts = [
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-Wix.ps1",
       "${path.root}/../scripts/build/Install-WDK.ps1",
       "${path.root}/../scripts/build/Install-VSExtensions.ps1",
@@ -315,6 +318,7 @@ build {
 
   provisioner "powershell" {
     execution_policy = "remotesigned"
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
     scripts          = ["${path.root}/../scripts/build/Install-ServiceFabricSDK.ps1"]
   }
 
@@ -327,7 +331,8 @@ build {
   }
 
   provisioner "powershell" {
-    scripts = [
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-ActionsCache.ps1",
       "${path.root}/../scripts/build/Install-Ruby.ps1",
       "${path.root}/../scripts/build/Install-PyPy.ps1",
@@ -398,8 +403,9 @@ build {
   }
 
   provisioner "powershell" {
-    pause_before = "2m0s"
-    scripts      = [
+    pause_before     = "2m0s"
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-WindowsUpdatesAfterReboot.ps1",
       "${path.root}/../scripts/tests/RunAll-Tests.ps1"
     ]
@@ -410,7 +416,7 @@ build {
   }
 
   provisioner "powershell" {
-    environment_vars = ["IMAGE_VERSION=${var.image_version}"]
+    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_FOLDER=${var.image_folder}"]
     inline           = ["pwsh -File '${var.image_folder}\\SoftwareReport\\Generate-SoftwareReport.ps1'"]
   }
 
diff --git a/images/windows/templates/windows-2022.pkr.hcl b/images/windows/templates/windows-2022.pkr.hcl
index ec9e436d7..70bb6c5a6 100644
--- a/images/windows/templates/windows-2022.pkr.hcl
+++ b/images/windows/templates/windows-2022.pkr.hcl
@@ -242,7 +242,7 @@ build {
   }
 
   provisioner "powershell" {
-    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_OS=${var.image_os}", "AGENT_TOOLSDIRECTORY=${var.agent_tools_directory}", "IMAGEDATA_FILE=${var.imagedata_file}"]
+    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_OS=${var.image_os}", "AGENT_TOOLSDIRECTORY=${var.agent_tools_directory}", "IMAGEDATA_FILE=${var.imagedata_file}", "IMAGE_FOLDER=${var.image_folder}"]
     execution_policy = "unrestricted"
     scripts          = [
       "${path.root}/../scripts/build/Configure-WindowsDefender.ps1",
@@ -264,7 +264,8 @@ build {
   }
 
   provisioner "powershell" {
-    scripts = [
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-Docker.ps1",
       "${path.root}/../scripts/build/Install-DockerWinCred.ps1",
       "${path.root}/../scripts/build/Install-DockerCompose.ps1",
@@ -281,6 +282,7 @@ build {
   provisioner "powershell" {
     elevated_password = "${var.install_password}"
     elevated_user     = "${var.install_user}"
+    environment_vars  = ["IMAGE_FOLDER=${var.image_folder}"]
     scripts           = [
       "${path.root}/../scripts/build/Install-VisualStudio.ps1",
       "${path.root}/../scripts/build/Install-KubernetesTools.ps1"
@@ -294,8 +296,9 @@ build {
   }
 
   provisioner "powershell" {
-    pause_before = "2m0s"
-    scripts      = [
+    pause_before     = "2m0s"
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-Wix.ps1",
       "${path.root}/../scripts/build/Install-WDK.ps1",
       "${path.root}/../scripts/build/Install-VSExtensions.ps1",
@@ -310,6 +313,7 @@ build {
 
   provisioner "powershell" {
     execution_policy = "remotesigned"
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
     scripts          = ["${path.root}/../scripts/build/Install-ServiceFabricSDK.ps1"]
   }
 
@@ -322,7 +326,8 @@ build {
   }
 
   provisioner "powershell" {
-    scripts = [
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-ActionsCache.ps1",
       "${path.root}/../scripts/build/Install-Ruby.ps1",
       "${path.root}/../scripts/build/Install-PyPy.ps1",
@@ -361,12 +366,21 @@ build {
       "${path.root}/../scripts/build/Install-Mercurial.ps1",
       "${path.root}/../scripts/build/Install-Zstd.ps1",
       "${path.root}/../scripts/build/Install-NSIS.ps1",
-      "${path.root}/../scripts/build/Install-Vcpkg.ps1", "${path.root}/../scripts/build/Install-PostgreSQL.ps1", "${path.root}/../scripts/build/Install-Bazel.ps1", "${path.root}/../scripts/build/Install-AliyunCli.ps1", "${path.root}/../scripts/build/Install-RootCA.ps1", "${path.root}/../scripts/build/Install-MongoDB.ps1", "${path.root}/../scripts/build/Install-CodeQLBundle.ps1", "${path.root}/../scripts/build/Configure-Diagnostics.ps1"]
+      "${path.root}/../scripts/build/Install-Vcpkg.ps1",
+      "${path.root}/../scripts/build/Install-PostgreSQL.ps1",
+      "${path.root}/../scripts/build/Install-Bazel.ps1",
+      "${path.root}/../scripts/build/Install-AliyunCli.ps1",
+      "${path.root}/../scripts/build/Install-RootCA.ps1",
+      "${path.root}/../scripts/build/Install-MongoDB.ps1",
+      "${path.root}/../scripts/build/Install-CodeQLBundle.ps1",
+      "${path.root}/../scripts/build/Configure-Diagnostics.ps1"
+    ]
   }
 
   provisioner "powershell" {
     elevated_password = "${var.install_password}"
     elevated_user     = "${var.install_user}"
+    environment_vars  = ["IMAGE_FOLDER=${var.image_folder}"]
     scripts           = [
       "${path.root}/../scripts/build/Install-WindowsUpdates.ps1",
       "${path.root}/../scripts/build/Configure-DynamicPort.ps1",
@@ -384,8 +398,9 @@ build {
   }
 
   provisioner "powershell" {
-    pause_before = "2m0s"
-    scripts      = [
+    pause_before     = "2m0s"
+    environment_vars = ["IMAGE_FOLDER=${var.image_folder}"]
+    scripts          = [
       "${path.root}/../scripts/build/Install-WindowsUpdatesAfterReboot.ps1",
       "${path.root}/../scripts/tests/RunAll-Tests.ps1"
     ]
@@ -396,7 +411,7 @@ build {
   }
 
   provisioner "powershell" {
-    environment_vars = ["IMAGE_VERSION=${var.image_version}"]
+    environment_vars = ["IMAGE_VERSION=${var.image_version}", "IMAGE_FOLDER=${var.image_folder}"]
     inline           = ["pwsh -File '${var.image_folder}\\SoftwareReport\\Generate-SoftwareReport.ps1'"]
   }