diff --git a/src/Microsoft.DotNet.Cli.Utils/EmbedAppNameInHost.cs b/src/Microsoft.DotNet.Cli.Utils/EmbedAppNameInHost.cs
index 7a91b6f2f..3b5547af8 100644
--- a/src/Microsoft.DotNet.Cli.Utils/EmbedAppNameInHost.cs
+++ b/src/Microsoft.DotNet.Cli.Utils/EmbedAppNameInHost.cs
@@ -13,14 +13,21 @@ namespace Microsoft.DotNet.Cli.Utils
     {
         private static string _placeHolder = "c3ab8ff13720e8ad9047dd39466b3c8974e592c2fa383d4a3960714caef0c4f2"; //hash value embedded in default apphost executable
         private static byte[] _bytesToSearch = Encoding.UTF8.GetBytes(_placeHolder);
+
+        /// <summary>
+        /// Create an AppHost with embedded configuration of app binary location
+        /// </summary>
+        /// <param name="appHostSourceFilePath">The path of AppHost template, which has the place holder</param>
+        /// <param name="appHostDestinationFilePath">The destination path for desired location to place, including the file name</param>
+        /// <param name="appBinaryFilePath">Full path to app binary or relative path to appHostDestinationFilePath</param>
         public static void EmbedAndReturnModifiedAppHostPath(
             string appHostSourceFilePath,
             string appHostDestinationFilePath,
-            string appBinaryName)
+            string appBinaryFilePath)
         {
             var hostExtension = Path.GetExtension(appHostSourceFilePath);
-            var appbaseName = Path.GetFileNameWithoutExtension(appBinaryName);
-            var bytesToWrite = Encoding.UTF8.GetBytes(appBinaryName);
+            var appbaseName = Path.GetFileNameWithoutExtension(appBinaryFilePath);
+            var bytesToWrite = Encoding.UTF8.GetBytes(appBinaryFilePath);
             var destinationDirectory = new FileInfo(appHostDestinationFilePath).Directory.FullName;
 
             if (File.Exists(appHostDestinationFilePath))
@@ -31,7 +38,7 @@ namespace Microsoft.DotNet.Cli.Utils
 
             if (bytesToWrite.Length > 1024)
             {
-                throw new EmbedAppNameInHostException(string.Format(LocalizableStrings.EmbedAppNameInHostFileNameIsTooLong, appBinaryName));
+                throw new EmbedAppNameInHostException(string.Format(LocalizableStrings.EmbedAppNameInHostFileNameIsTooLong, appBinaryFilePath));
             }
 
             var array = File.ReadAllBytes(appHostSourceFilePath);
diff --git a/src/dotnet/ShellShim/ShellShimRepository.cs b/src/dotnet/ShellShim/ShellShimRepository.cs
index 6fcdf9c11..a7b890525 100644
--- a/src/dotnet/ShellShim/ShellShimRepository.cs
+++ b/src/dotnet/ShellShim/ShellShimRepository.cs
@@ -10,6 +10,7 @@ using Microsoft.DotNet.Cli;
 using Microsoft.DotNet.Cli.Utils;
 using Microsoft.DotNet.PlatformAbstractions;
 using Microsoft.DotNet.Tools;
+using Microsoft.DotNet.Tools.Common;
 using Microsoft.Extensions.EnvironmentAbstractions;
 using Newtonsoft.Json;
 
@@ -58,7 +59,7 @@ namespace Microsoft.DotNet.ShellShim
                             Directory.CreateDirectory(_shimsDirectory.Value);
                         }
 
-                        CreateApphostShimAndConfigFile(
+                        CreateApphostShim(
                                    commandName,
                                    entryPoint: targetExecutablePath);
 
@@ -125,7 +126,7 @@ namespace Microsoft.DotNet.ShellShim
                 });
         }
 
-        private void CreateApphostShimAndConfigFile(string commandName, FilePath entryPoint)
+        private void CreateApphostShim(string commandName, FilePath entryPoint)
         {
             string appHostSourcePath;
             if (RuntimeInformation.IsOSPlatform(OSPlatform.Windows))
@@ -137,21 +138,13 @@ namespace Microsoft.DotNet.ShellShim
                 appHostSourcePath = Path.Combine(_appHostSourceDirectory, ApphostNameWithoutExtension);
             }
 
+            var appHostDestinationFilePath = GetShimPath(commandName).Value;
+            var appBinaryFilePath = PathUtility.GetRelativePath(appHostDestinationFilePath, entryPoint.Value);
+
             EmbedAppNameInHost.EmbedAndReturnModifiedAppHostPath(
                 appHostSourceFilePath: appHostSourcePath,
-                appHostDestinationFilePath: GetShimPath(commandName).Value,
-                appBinaryName: Path.GetFileName(entryPoint.Value));
-
-            var config = JsonConvert.SerializeObject(
-                new RootObject
-                {
-                    startupOptions = new StartupOptions
-                    {
-                        appRoot = entryPoint.GetDirectoryPath().Value
-                    }
-                });
-
-            File.WriteAllText(GetConfigPath(commandName).Value, config);
+                appHostDestinationFilePath: appHostDestinationFilePath,
+                appBinaryFilePath: appBinaryFilePath);
         }
 
         private class StartupOptions
@@ -177,7 +170,6 @@ namespace Microsoft.DotNet.ShellShim
             }
 
             yield return GetShimPath(commandName);
-            yield return GetConfigPath(commandName);
         }
 
         private FilePath GetShimPath(string commandName)
@@ -192,11 +184,6 @@ namespace Microsoft.DotNet.ShellShim
             }
         }
 
-        private FilePath GetConfigPath(string commandName)
-        {
-            return _shimsDirectory.WithFile(commandName + ".startupconfig.json");
-        }
-
         private static void SetUserExecutionPermission(FilePath path)
         {
             if (RuntimeInformation.IsOSPlatform(OSPlatform.Windows))
diff --git a/test/Microsoft.DotNet.Cli.Utils.Tests/PathUtilityTests.cs b/test/Microsoft.DotNet.Cli.Utils.Tests/PathUtilityTests.cs
index 70e7768c7..2951ba9e7 100644
--- a/test/Microsoft.DotNet.Cli.Utils.Tests/PathUtilityTests.cs
+++ b/test/Microsoft.DotNet.Cli.Utils.Tests/PathUtilityTests.cs
@@ -21,6 +21,32 @@ namespace Microsoft.DotNet.Cli.Utils
             Assert.Equal(@"d:\foo\", PathUtility.GetRelativePath(@"C:\foo\", @"d:\foo\"));
         }
 
+        [WindowsOnlyFact]
+        public void GetRelativePathForFilePath()
+        {
+            Assert.Equal(
+                @"mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll",
+                PathUtility.GetRelativePath(
+                    @"C:\Users\myuser\.dotnet\tools\mytool.exe",
+                    @"C:\Users\myuser\.dotnet\tools\mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll"));
+        }
+
+        [WindowsOnlyFact]
+        public void GetRelativePathRequireTrailingSlashForDirectoryPath()
+        {
+            Assert.NotEqual(
+                @"mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll",
+                PathUtility.GetRelativePath(
+                    @"C:\Users\myuser\.dotnet\tools",
+                    @"C:\Users\myuser\.dotnet\tools\mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll"));
+
+            Assert.Equal(
+                @"mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll",
+                PathUtility.GetRelativePath(
+                    @"C:\Users\myuser\.dotnet\tools\",
+                    @"C:\Users\myuser\.dotnet\tools\mytool\1.0.1\mytool\1.0.1\tools\netcoreapp2.1\any\mytool.dll"));
+        }
+
         /// <summary>
         /// Tests that PathUtility.RemoveExtraPathSeparators works correctly with drive references on Windows.
         /// </summary>