diff --git a/ports/esp32/main.c b/ports/esp32/main.c
index 4920180b23..e95930ed07 100644
--- a/ports/esp32/main.c
+++ b/ports/esp32/main.c
@@ -141,6 +141,9 @@ soft_reset:
     gc_init(mp_task_heap, mp_task_heap + mp_task_heap_size);
     mp_init();
     mp_obj_list_init(mp_sys_path, 0);
+    #if MICROPY_MODULE_FROZEN
+    mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+    #endif
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_));
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__slash_lib));
     mp_obj_list_init(mp_sys_argv, 0);
diff --git a/ports/esp8266/main.c b/ports/esp8266/main.c
index 404188346c..14863a35b0 100644
--- a/ports/esp8266/main.c
+++ b/ports/esp8266/main.c
@@ -53,6 +53,9 @@ STATIC void mp_reset(void) {
     gc_init(heap, heap + sizeof(heap));
     mp_init();
     mp_obj_list_init(mp_sys_path, 0);
+    #if MICROPY_MODULE_FROZEN
+    mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+    #endif
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_)); // current dir (or base dir of the script)
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__slash_lib));
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__slash_));
diff --git a/ports/mimxrt/main.c b/ports/mimxrt/main.c
index 4d603913fd..28ee30d990 100644
--- a/ports/mimxrt/main.c
+++ b/ports/mimxrt/main.c
@@ -76,6 +76,9 @@ int main(void) {
         mp_init();
 
         mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_path), 0);
+        #if MICROPY_MODULE_FROZEN
+        mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+        #endif
         mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_));
         mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_argv), 0);
         #if MICROPY_PY_NETWORK
diff --git a/ports/nrf/main.c b/ports/nrf/main.c
index 3768b8f404..fc67bd657d 100644
--- a/ports/nrf/main.c
+++ b/ports/nrf/main.c
@@ -130,6 +130,9 @@ soft_reset:
 
     mp_init();
     mp_obj_list_init(mp_sys_path, 0);
+    #if MICROPY_MODULE_FROZEN
+    mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+    #endif
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_)); // current dir (or base dir of the script)
     mp_obj_list_init(mp_sys_argv, 0);
 
diff --git a/ports/rp2/main.c b/ports/rp2/main.c
index 793444c9a9..6a5bb8867d 100644
--- a/ports/rp2/main.c
+++ b/ports/rp2/main.c
@@ -101,6 +101,9 @@ int main(int argc, char **argv) {
         // Initialise MicroPython runtime.
         mp_init();
         mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_path), 0);
+        #if MICROPY_MODULE_FROZEN
+        mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+        #endif
         mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_));
         mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__slash_lib));
         mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_argv), 0);
diff --git a/ports/stm32/main.c b/ports/stm32/main.c
index 7a7f80467b..51459682fd 100644
--- a/ports/stm32/main.c
+++ b/ports/stm32/main.c
@@ -495,6 +495,9 @@ soft_reset:
     // MicroPython init
     mp_init();
     mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_path), 0);
+    #if MICROPY_MODULE_FROZEN
+    mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+    #endif
     mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR_)); // current dir (or base dir of the script)
     mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_argv), 0);
 
diff --git a/ports/unix/main.c b/ports/unix/main.c
index 031bdd75d1..cecb806283 100644
--- a/ports/unix/main.c
+++ b/ports/unix/main.c
@@ -495,13 +495,9 @@ MP_NOINLINE int main_(int argc, char **argv) {
     char *home = getenv("HOME");
     char *path = getenv("MICROPYPATH");
     if (path == NULL) {
-        #ifdef MICROPY_PY_SYS_PATH_DEFAULT
         path = MICROPY_PY_SYS_PATH_DEFAULT;
-        #else
-        path = "~/.micropython/lib:/usr/lib/micropython";
-        #endif
     }
-    size_t path_num = 1; // [0] is for current dir (or base dir of the script)
+    size_t path_num = 2; // [0] is frozen, [1] is for current dir (or base dir of the script)
     if (*path == PATHLIST_SEP_CHAR) {
         path_num++;
     }
@@ -514,10 +510,11 @@ MP_NOINLINE int main_(int argc, char **argv) {
     mp_obj_list_init(MP_OBJ_TO_PTR(mp_sys_path), path_num);
     mp_obj_t *path_items;
     mp_obj_list_get(mp_sys_path, &path_num, &path_items);
-    path_items[0] = MP_OBJ_NEW_QSTR(MP_QSTR_);
+    path_items[0] = MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen);
+    path_items[1] = MP_OBJ_NEW_QSTR(MP_QSTR_);
     {
         char *p = path;
-        for (mp_uint_t i = 1; i < path_num; i++) {
+        for (mp_uint_t i = 2; i < path_num; i++) {
             char *p1 = strchr(p, PATHLIST_SEP_CHAR);
             if (p1 == NULL) {
                 p1 = p + strlen(p);
@@ -658,9 +655,9 @@ MP_NOINLINE int main_(int argc, char **argv) {
                 break;
             }
 
-            // Set base dir of the script as first entry in sys.path
+            // Set base dir of the script as second entry in sys.path.
             char *p = strrchr(basedir, '/');
-            path_items[0] = mp_obj_new_str_via_qstr(basedir, p - basedir);
+            path_items[1] = mp_obj_new_str_via_qstr(basedir, p - basedir);
             free(pathbuf);
 
             set_sys_argv(argv, argc, a);
diff --git a/ports/unix/mpconfigport.h b/ports/unix/mpconfigport.h
index 93d790ac36..68d4d8d33f 100644
--- a/ports/unix/mpconfigport.h
+++ b/ports/unix/mpconfigport.h
@@ -123,6 +123,9 @@
     #define MICROPY_PY_SYS_PLATFORM  "linux"
 #endif
 #endif
+#ifndef MICROPY_PY_SYS_PATH_DEFAULT
+#define MICROPY_PY_SYS_PATH_DEFAULT "~/.micropython/lib:/usr/lib/micropython"
+#endif
 #define MICROPY_PY_SYS_MAXSIZE      (1)
 #define MICROPY_PY_SYS_STDFILES     (1)
 #define MICROPY_PY_SYS_EXC_INFO     (1)
diff --git a/ports/unix/variants/minimal/mpconfigvariant.h b/ports/unix/variants/minimal/mpconfigvariant.h
index 973febd572..4766b8e895 100644
--- a/ports/unix/variants/minimal/mpconfigvariant.h
+++ b/ports/unix/variants/minimal/mpconfigvariant.h
@@ -88,6 +88,9 @@
 #define MICROPY_PY_SYS              (1)
 #define MICROPY_PY_SYS_EXIT         (0)
 #define MICROPY_PY_SYS_PLATFORM     "linux"
+#ifndef MICROPY_PY_SYS_PATH_DEFAULT
+#define MICROPY_PY_SYS_PATH_DEFAULT "~/.micropython/lib:/usr/lib/micropython"
+#endif
 #define MICROPY_PY_SYS_MAXSIZE      (0)
 #define MICROPY_PY_SYS_STDFILES     (0)
 #define MICROPY_PY_CMATH            (0)
diff --git a/shared/upytesthelper/upytesthelper.c b/shared/upytesthelper/upytesthelper.c
index 326172be65..ce60732424 100644
--- a/shared/upytesthelper/upytesthelper.c
+++ b/shared/upytesthelper/upytesthelper.c
@@ -94,6 +94,9 @@ void upytest_execute_test(const char *src) {
     gc_init(heap_start, heap_end);
     mp_init();
     mp_obj_list_init(mp_sys_path, 0);
+    #if MICROPY_MODULE_FROZEN
+    mp_obj_list_append(mp_sys_path, MP_OBJ_NEW_QSTR(MP_QSTR__dot_frozen));
+    #endif
     mp_obj_list_init(mp_sys_argv, 0);
 
     nlr_buf_t nlr;