diff --git a/backend/windmill-worker/nsjail/install.powershell.config.proto b/backend/windmill-worker/nsjail/install.powershell.config.proto
new file mode 100644
index 0000000000..1ea6be4475
--- /dev/null
+++ b/backend/windmill-worker/nsjail/install.powershell.config.proto
@@ -0,0 +1,123 @@
+name: "powershell install"
+
+mode: ONCE
+hostname: "powershell"
+log_level: ERROR
+time_limit: {TIMEOUT}
+
+disable_rl: true
+
+cwd: "/tmp"
+
+clone_newnet: false
+clone_newuser: {CLONE_NEWUSER}
+
+skip_setsid: true
+keep_caps: false
+keep_env: true
+mount_proc: true
+
+mount {
+    src: "/bin"
+    dst: "/bin"
+	is_bind: true
+}
+
+mount {
+  src: "/proc/self/fd"
+  dst: "/dev/fd"
+  is_symlink: true
+  mandatory: false
+}
+
+mount {
+    src: "/opt/microsoft"
+    dst: "/opt/microsoft"
+	is_bind: true
+}
+
+mount {
+    src: "/lib"
+    dst: "/lib"
+	is_bind: true
+}
+
+
+mount {
+    src: "/lib64"
+    dst: "/lib64"
+	is_bind: true
+    mandatory: false
+}
+
+
+mount {
+    src: "/usr"
+    dst: "/usr"
+	is_bind: true
+}
+
+mount {
+	src: "/dev/null"
+	dst: "/dev/null"
+	is_bind: true
+	rw: true
+}
+
+{TMP_MOUNT_BLOCK}
+
+mount {
+    src: "/etc"
+    dst: "/etc"
+	is_bind: true
+}
+
+# Container runtimes bind exactly these 3 files as separate submounts over
+# /etc; nsjail's ro remount of /etc is non-recursive so they stay writable.
+# Load-bearing -- do not remove as redundant with the /etc bind above.
+mount {
+    src: "/etc/resolv.conf"
+    dst: "/etc/resolv.conf"
+    is_bind: true
+    mandatory: false
+}
+
+mount {
+    src: "/etc/hosts"
+    dst: "/etc/hosts"
+    is_bind: true
+    mandatory: false
+}
+
+mount {
+    src: "/etc/hostname"
+    dst: "/etc/hostname"
+    is_bind: true
+    mandatory: false
+}
+
+mount {
+    src: "/dev/random"
+    dst: "/dev/random"
+    is_bind: true
+}
+
+mount {
+    src: "/dev/urandom"
+    dst: "/dev/urandom"
+    is_bind: true
+}
+
+iface_no_lo: true
+
+# Writable, unlike the run step: the install step downloads modules into the
+# shared PowerShell cache here.
+mount {
+    src: "{CACHE_DIR}"
+    dst: "{CACHE_DIR}"
+    is_bind: true
+    rw: true
+    mandatory: false
+}
+
+envar: "HOME=/tmp"
diff --git a/backend/windmill-worker/src/pwsh_executor.rs b/backend/windmill-worker/src/pwsh_executor.rs
index 0bd02985ae..cac7fd62e2 100644
--- a/backend/windmill-worker/src/pwsh_executor.rs
+++ b/backend/windmill-worker/src/pwsh_executor.rs
@@ -18,6 +18,8 @@ use crate::SYSTEM_ROOT;
 
 const NSJAIL_CONFIG_RUN_POWERSHELL_CONTENT: &str =
     include_str!("../nsjail/run.powershell.config.proto");
+const NSJAIL_CONFIG_INSTALL_POWERSHELL_CONTENT: &str =
+    include_str!("../nsjail/install.powershell.config.proto");
 
 lazy_static::lazy_static! {
     static ref RE_POWERSHELL_IMPORTS: Regex = Regex::new(r#"^\s*Import-Module\s+(?:-Name\s+)?"?([^\s"]+)"?(?:\s+-RequiredVersion\s+"?([^\s"]+)"?)?"#).unwrap();
@@ -563,12 +565,51 @@ pub async fn handle_powershell_job(
                 &powershell_repo_pat.unwrap_or_default(),
             )
             .replace("{modules}", &modules_list);
-        let mut cmd = Command::new(POWERSHELL_PATH.as_str());
-        cmd.args(&["-Command", &install_string])
-            .stdout(Stdio::piped())
-            .stderr(Stdio::piped());
+        // Sandbox the install step under nsjail when sandboxing is enabled, matching
+        // the run step. The install step previously always ran with full worker
+        // privileges; the install nsjail config mounts the module cache rw so
+        // Save-PSResource can still write to it.
+        let install_jailed = is_sandboxing_enabled();
+        let mut cmd = if install_jailed {
+            let nsjail_timeout =
+                resolve_nsjail_timeout(db, &job.workspace_id, job.id, job.timeout).await;
+            let nsjail_proto = format!("{}.pwsh_install.config.proto", job.id);
+            let config_content = NSJAIL_CONFIG_INSTALL_POWERSHELL_CONTENT
+                .replace("{CLONE_NEWUSER}", &(!*DISABLE_NUSER).to_string())
+                .replace("{CACHE_DIR}", &*POWERSHELL_CACHE_DIR)
+                .replace(
+                    "{TMP_MOUNT_BLOCK}",
+                    &resolve_nsjail_tmp_mount_block(job_dir).await,
+                )
+                .replace("{TIMEOUT}", &nsjail_timeout);
+            write_file(job_dir, &nsjail_proto, &config_content)?;
+            let mut cmd = Command::new(NSJAIL_PATH.as_str());
+            cmd.current_dir(job_dir).args(&[
+                "--config",
+                &nsjail_proto,
+                "--",
+                POWERSHELL_PATH.as_str(),
+                "-Command",
+                &install_string,
+            ]);
+            cmd
+        } else {
+            let mut cmd = Command::new(POWERSHELL_PATH.as_str());
+            cmd.args(&["-Command", &install_string]);
+            cmd
+        };
+        cmd.stdout(Stdio::piped()).stderr(Stdio::piped());
 
-        let child = start_child_process(cmd, POWERSHELL_PATH.as_str(), false).await?;
+        let child = start_child_process(
+            cmd,
+            if install_jailed {
+                NSJAIL_PATH.as_str()
+            } else {
+                POWERSHELL_PATH.as_str()
+            },
+            false,
+        )
+        .await?;
 
         handle_child(
             &job.id,