diff --git a/cookbooks/aws-parallelcluster-environment/templates/cfn_bootstrap/pcluster.sh.erb b/cookbooks/aws-parallelcluster-environment/templates/cfn_bootstrap/pcluster.sh.erb
index 0f23d9c482..f9e2309c61 100644
--- a/cookbooks/aws-parallelcluster-environment/templates/cfn_bootstrap/pcluster.sh.erb
+++ b/cookbooks/aws-parallelcluster-environment/templates/cfn_bootstrap/pcluster.sh.erb
@@ -2,7 +2,6 @@
 # pcluster.sh:
 #   Setup ParallelCluster environment variables
 #
-
-PATH=$PATH:<%= @cfn_bootstrap_virtualenv_path %>/bin
+PATH=<%= @cfn_bootstrap_virtualenv_path %>/bin:$PATH
 
 export PATH
diff --git a/cookbooks/aws-parallelcluster-environment/test/controls/cfn_bootstrap_spec.rb b/cookbooks/aws-parallelcluster-environment/test/controls/cfn_bootstrap_spec.rb
index d48629c3d5..20a83960d1 100644
--- a/cookbooks/aws-parallelcluster-environment/test/controls/cfn_bootstrap_spec.rb
+++ b/cookbooks/aws-parallelcluster-environment/test/controls/cfn_bootstrap_spec.rb
@@ -36,6 +36,12 @@
     its('mode') { should cmp '0644' }
     its('owner') { should eq 'root' }
     its('group') { should eq 'root' }
-    its('content') { should match "PATH=\\$PATH:#{pyenv_dir}/versions/#{cfn_python_version}/envs/cfn_bootstrap_virtualenv/bin" }
+    its('content') { should match "PATH=#{pyenv_dir}/versions/#{cfn_python_version}/envs/cfn_bootstrap_virtualenv/bin:\\$PATH" }
   end
+
+  desc "cfn-init needs to be from the cfnbootstrap virtualenv"
+  describe bash("sudo -u #{node['cluster']['cluster_user']} -i which cfn-init") do
+    its('exit_status') { should eq(0) }
+    its('stdout') { should match("#{pyenv_dir}/versions/#{cfn_python_version}/envs/cfn_bootstrap_virtualenv/bin/cfn-init") }
+  end unless os_properties.on_docker?
 end