diff --git a/changelogs/fragments/validate-module-ps-cmdlet.yml b/changelogs/fragments/validate-module-ps-cmdlet.yml
new file mode 100644
index 00000000000..5ae24bc5699
--- /dev/null
+++ b/changelogs/fragments/validate-module-ps-cmdlet.yml
@@ -0,0 +1,2 @@
+bugfixes:
+- ansible-test - Fix validate-modules error when retrieving PowerShell argspec when retrieved inside a Cmdlet
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/README.rst b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/README.rst
new file mode 100644
index 00000000000..bf1003fa9e4
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/README.rst
@@ -0,0 +1,3 @@
+README
+------
+This is a simple collection used to test failures with ``ansible-test sanity --test validate-modules``.
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/galaxy.yml b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/galaxy.yml
new file mode 100644
index 00000000000..3b1167134d3
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/galaxy.yml
@@ -0,0 +1,6 @@
+namespace: ns
+name: failure
+version: 1.0.0
+readme: README.rst
+authors:
+    - Ansible
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/meta/main.yml b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/meta/main.yml
new file mode 100644
index 00000000000..1602a2556f7
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/meta/main.yml
@@ -0,0 +1 @@
+requires_ansible: '>=2.9'
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.ps1 b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.ps1
new file mode 100644
index 00000000000..6ec04393b9d
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.ps1
@@ -0,0 +1,16 @@
+#!powershell
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+#AnsibleRequires -CSharpUtil Ansible.Basic
+
+throw "test inner error message"
+
+$module = [Ansible.Basic.AnsibleModule]::Create($args, @{
+        options = @{
+            test = @{ type = 'str'; choices = @('foo', 'bar'); default = 'foo' }
+        }
+    })
+
+$module.Result.test = 'abc'
+
+$module.ExitJson()
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.yml b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.yml
new file mode 100644
index 00000000000..c657ec9b0df
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/failure/plugins/modules/failure_ps.yml
@@ -0,0 +1,31 @@
+# Copyright (c) 2022 Ansible Project
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+DOCUMENTATION:
+  module: failure_ps
+  short_description: Short description for failure_ps module
+  description:
+  - Description for failure_ps module
+  options:
+    test:
+      description:
+      - Description for test module option
+      type: str
+      choices:
+      - foo
+      - bar
+      default: foo
+  author:
+  - Ansible Core Team
+
+EXAMPLES: |
+  - name: example for failure_ps
+    ns.col.failure_ps:
+      test: bar
+
+RETURN:
+  test:
+    description: The test return value
+    returned: always
+    type: str
+    sample: abc
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/module_utils/share_module.psm1 b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/module_utils/share_module.psm1
new file mode 100644
index 00000000000..1e8ff905274
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/module_utils/share_module.psm1
@@ -0,0 +1,19 @@
+#AnsibleRequires -CSharpUtil Ansible.Basic
+
+Function Invoke-AnsibleModule {
+    <#
+        .SYNOPSIS
+        validate
+    #>
+    [CmdletBinding()]
+    param ()
+
+    $module = [Ansible.Basic.AnsibleModule]::Create(@(), @{
+            options = @{
+                test = @{ type = 'str' }
+            }
+        })
+    $module.ExitJson()
+}
+
+Export-ModuleMember -Function Invoke-AnsibleModule
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.ps1 b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.ps1
new file mode 100644
index 00000000000..8f74edcc779
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.ps1
@@ -0,0 +1,7 @@
+#!powershell
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+#AnsibleRequires -CSharpUtil Ansible.Basic
+#AnsibleRequires -PowerShell ..module_utils.share_module
+
+Invoke-AnsibleModule
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.yml b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.yml
new file mode 100644
index 00000000000..87d3ec777de
--- /dev/null
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/ansible_collections/ns/ps_only/plugins/modules/in_function.yml
@@ -0,0 +1,25 @@
+# Copyright (c) 2022 Ansible Project
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+DOCUMENTATION:
+  module: in_function
+  short_description: Short description for in_function module
+  description:
+  - Description for in_function module
+  options:
+    test:
+      description: Description for test
+      type: str
+  author:
+  - Ansible Core Team
+
+EXAMPLES: |
+  - name: example for sidecar
+    ns.col.in_function:
+
+RETURN:
+  test:
+    description: The test return value
+    returned: always
+    type: str
+    sample: abc
diff --git a/test/integration/targets/ansible-test-sanity-validate-modules/runme.sh b/test/integration/targets/ansible-test-sanity-validate-modules/runme.sh
index 1821e5a8bdd..e0299969c39 100755
--- a/test/integration/targets/ansible-test-sanity-validate-modules/runme.sh
+++ b/test/integration/targets/ansible-test-sanity-validate-modules/runme.sh
@@ -17,3 +17,18 @@ fi
 
 # Use a PowerShell-only collection to verify that validate-modules does not load the collection loader multiple times.
 ansible-test sanity --test validate-modules --color --truncate 0 "${@}"
+
+cd ../failure
+
+if ansible-test sanity --test validate-modules --color --truncate 0 "${@}" 1> ansible-stdout.txt 2> ansible-stderr.txt; then
+  echo "ansible-test sanity for failure should cause failure"
+  exit 1
+fi
+
+cat ansible-stdout.txt
+grep -q "ERROR: plugins/modules/failure_ps.ps1:0:0: import-error: Exception attempting to import module for argument_spec introspection" < ansible-stdout.txt
+grep -q "test inner error message" < ansible-stdout.txt
+
+cat ansible-stderr.txt
+grep -q "FATAL: The 1 sanity test(s) listed below (out of 1) failed" < ansible-stderr.txt
+grep -q "validate-modules" < ansible-stderr.txt
diff --git a/test/lib/ansible_test/_util/controller/sanity/validate-modules/validate_modules/ps_argspec.ps1 b/test/lib/ansible_test/_util/controller/sanity/validate-modules/validate_modules/ps_argspec.ps1
index 23610e3ebc6..4183b2bec4b 100644
--- a/test/lib/ansible_test/_util/controller/sanity/validate-modules/validate_modules/ps_argspec.ps1
+++ b/test/lib/ansible_test/_util/controller/sanity/validate-modules/validate_modules/ps_argspec.ps1
@@ -101,13 +101,21 @@ Add-CSharpType -References @(Get-Content -LiteralPath $manifest.ansible_basic -R
 
 $powershell.AddScript($module_code) > $null
 $powershell.Invoke() > $null
+$arg_spec = $powershell.Runspace.SessionStateProxy.GetVariable('ansibleTestArgSpec')
+
+if (-not $arg_spec) {
+    $err = $powershell.Streams.Error
+    if ($err) {
+        $err
+    }
+    else {
+        "Unknown error trying to get PowerShell arg spec"
+    }
 
-if ($powershell.HadErrors) {
-    $powershell.Streams.Error
     exit 1
 }
 
-$arg_spec = $powershell.Runspace.SessionStateProxy.GetVariable('ansibleTestArgSpec')
+
 Resolve-CircularReference -Hash $arg_spec
 
 ConvertTo-Json -InputObject $arg_spec -Compress -Depth 99