diff --git a/src/corehost/cli/deps_format.cpp b/src/corehost/cli/deps_format.cpp
index 51d5f91a7..58c477c97 100644
--- a/src/corehost/cli/deps_format.cpp
+++ b/src/corehost/cli/deps_format.cpp
@@ -97,6 +97,16 @@ void deps_json_t::reconcile_libraries_with_targets(
                         entry.relative_path.c_str());
                 }
 
+                if (i == deps_entry_t::asset_types::native &&
+                        entry.asset_name == LIBHOSTPOLICY_FILENAME)
+                {
+                    m_hostpolicy_index = m_deps_entries[i].size() - 1;
+                    trace::verbose(_X("Found hostpolicy from deps %d [%s, %s, %s]"),
+                        m_hostpolicy_index,
+                        entry.library_name.c_str(),
+                        entry.library_version.c_str(),
+                        entry.relative_path.c_str());
+                }
             }
         }
     }
diff --git a/src/corehost/cli/deps_format.h b/src/corehost/cli/deps_format.h
index e9c8a0cea..94cb11fa8 100644
--- a/src/corehost/cli/deps_format.h
+++ b/src/corehost/cli/deps_format.h
@@ -26,6 +26,7 @@ public:
     deps_json_t()
         : m_valid(false)
         , m_coreclr_index(-1)
+        , m_hostpolicy_index(-1)
     {
     }
 
@@ -51,12 +52,23 @@ public:
         return m_coreclr_index >= 0;
     }
 
+    bool has_hostpolicy_entry()
+    {
+        return m_hostpolicy_index >= 0;
+    }
+
     const deps_entry_t& get_coreclr_entry()
     {
         assert(has_coreclr_entry());
         return m_deps_entries[deps_entry_t::asset_types::native][m_coreclr_index];
     }
 
+    const deps_entry_t& get_hostpolicy_entry()
+    {
+        assert(has_hostpolicy_entry());
+        return m_deps_entries[deps_entry_t::asset_types::native][m_hostpolicy_index];
+    }
+
     bool is_valid()
     {
         return m_valid;
@@ -90,6 +102,7 @@ private:
 	std::unordered_map<pal::string_t, int> m_ni_entries;
     rid_fallback_graph_t m_rid_fallback_graph;
     int m_coreclr_index;
+    int m_hostpolicy_index;
     bool m_valid;
 };
 
diff --git a/src/corehost/cli/fxr/CMakeLists.txt b/src/corehost/cli/fxr/CMakeLists.txt
index 61ac7da0e..1102e2754 100644
--- a/src/corehost/cli/fxr/CMakeLists.txt
+++ b/src/corehost/cli/fxr/CMakeLists.txt
@@ -20,6 +20,8 @@ set(SOURCES
     ../../common/trace.cpp
     ../../common/utils.cpp
     ../libhost.cpp
+    ../deps_format.cpp
+    ../deps_entry.cpp
     ../runtime_config.cpp
     ../json/casablanca/src/json/json.cpp
     ../json/casablanca/src/json/json_parsing.cpp
diff --git a/src/corehost/cli/fxr/fx_muxer.cpp b/src/corehost/cli/fxr/fx_muxer.cpp
index 341787502..bc7effe27 100644
--- a/src/corehost/cli/fxr/fx_muxer.cpp
+++ b/src/corehost/cli/fxr/fx_muxer.cpp
@@ -12,6 +12,7 @@
 #include "runtime_config.h"
 #include "cpprest/json.h"
 #include "error_codes.h"
+#include "deps_format.h"
 
 pal::string_t fx_muxer_t::resolve_fx_dir(const pal::string_t& muxer_dir, runtime_config_t* runtime)
 {
@@ -23,7 +24,7 @@ pal::string_t fx_muxer_t::resolve_fx_dir(const pal::string_t& muxer_dir, runtime
     fx_ver_t specified(-1, -1, -1);
     if (!fx_ver_t::parse(fx_ver, &specified, false))
     {
-        trace::info(_X("The specified runtimeconfig.json version [%s] could not be parsed"), fx_ver.c_str());
+        trace::error(_X("The specified runtimeconfig.json version [%s] could not be parsed"), fx_ver.c_str());
         return pal::string_t();
     }
 
@@ -61,7 +62,7 @@ pal::string_t fx_muxer_t::resolve_fx_dir(const pal::string_t& muxer_dir, runtime
     }
 
     trace::verbose(_X("Chose FX version [%s]"), fx_dir.c_str());
-    return pal::directory_exists(fx_dir) ? fx_dir : pal::string_t();
+    return fx_dir;
 }
 
 pal::string_t fx_muxer_t::resolve_cli_version(const pal::string_t& global_json)
@@ -104,7 +105,7 @@ pal::string_t fx_muxer_t::resolve_cli_version(const pal::string_t& global_json)
     }
     catch (...)
     {
-        trace::verbose(_X("A JSON parsing exception occurred"));
+        trace::error(_X("A JSON parsing exception occurred"));
     }
     trace::verbose(_X("CLI version is [%s] in global json file [%s]"), retval.c_str(), global_json.c_str());
     return retval;
@@ -329,8 +330,20 @@ int fx_muxer_t::execute(const int argc, const pal::char_t* argv[])
             else
             {
                 trace::verbose(_X("Executing as a standalone app as per config file [%s]"), config_file.c_str());
-                corehost_init_t init(deps_file, probe_path, _X(""), host_mode_t::muxer, &config);
                 pal::string_t impl_dir = get_directory(app_or_deps);
+                if (!library_exists_in_dir(impl_dir, LIBHOSTPOLICY_NAME, nullptr) && !probe_path.empty() && !deps_file.empty())
+                {
+                    deps_json_t deps_json(false, deps_file);
+                    pal::string_t candidate = impl_dir;
+                    if (!deps_json.has_hostpolicy_entry() ||
+                        !deps_json.get_hostpolicy_entry().to_full_path(probe_path, &candidate))
+                    {
+                        trace::error(_X("Policy library either not found in deps [%s] or not found in [%s]"), deps_file.c_str(), probe_path.c_str());
+                        return StatusCode::CoreHostLibMissingFailure;
+                    }
+                    impl_dir = get_directory(candidate);
+                }
+                corehost_init_t init(deps_file, probe_path, _X(""), host_mode_t::muxer, &config);
                 return execute_app(impl_dir, &init, new_argv.size(), new_argv.data());
             }
         }
diff --git a/src/corehost/cli/fxr/hostfxr.cpp b/src/corehost/cli/fxr/hostfxr.cpp
index 6ff99b5a7..df5fe38b6 100644
--- a/src/corehost/cli/fxr/hostfxr.cpp
+++ b/src/corehost/cli/fxr/hostfxr.cpp
@@ -21,7 +21,7 @@ int load_host_library(
     corehost_unload_fn* unload_fn)
 {
     pal::string_t host_path;
-    if (!library_exists_in_dir(lib_dir, LIBHOST_NAME, &host_path))
+    if (!library_exists_in_dir(lib_dir, LIBHOSTPOLICY_NAME, &host_path))
     {
         return StatusCode::CoreHostLibMissingFailure;
     }
@@ -86,7 +86,7 @@ bool hostpolicy_exists_in_svc(pal::string_t* resolved_dir)
     append_path(&path, COREHOST_PACKAGE_NAME);
     append_path(&path, COREHOST_PACKAGE_VERSION);
     append_path(&path, COREHOST_PACKAGE_COREHOST_RELATIVE_DIR);
-    if (library_exists_in_dir(path, LIBHOST_NAME))
+    if (library_exists_in_dir(path, LIBHOSTPOLICY_NAME))
     {
         resolved_dir->assign(path);
     }
diff --git a/src/corehost/cli/libhost.h b/src/corehost/cli/libhost.h
index d4e587e62..efb83b185 100644
--- a/src/corehost/cli/libhost.h
+++ b/src/corehost/cli/libhost.h
@@ -4,8 +4,6 @@
 #ifndef __LIBHOST_H__
 #define __LIBHOST_H__
 
-#define LIBHOST_NAME MAKE_LIBNAME("hostpolicy")
-
 enum host_mode_t
 {
     invalid = 0,
diff --git a/src/corehost/common/pal.h b/src/corehost/common/pal.h
index dfd76b3a6..f2661121d 100644
--- a/src/corehost/common/pal.h
+++ b/src/corehost/common/pal.h
@@ -65,6 +65,10 @@
 #define LIBCORECLR_FILENAME (LIB_PREFIX _X("coreclr"))
 #define LIBCORECLR_NAME MAKE_LIBNAME("coreclr")
 
+
+#define LIBHOSTPOLICY_FILENAME (LIB_PREFIX _X("hostpolicy"))
+#define LIBHOSTPOLICY_NAME MAKE_LIBNAME("hostpolicy")
+
 #if !defined(PATH_MAX) && !defined(_WIN32)
 #define PATH_MAX    4096
 #endif