diff --git a/reactos/dll/win32/kernel32/file/curdir.c b/reactos/dll/win32/kernel32/file/curdir.c
index 8c74fbe11a1..42ae057f054 100644
--- a/reactos/dll/win32/kernel32/file/curdir.c
+++ b/reactos/dll/win32/kernel32/file/curdir.c
@@ -28,6 +28,8 @@ DEBUG_CHANNEL(kernel32file);
 
 UNICODE_STRING SystemDirectory;
 UNICODE_STRING WindowsDirectory;
+UNICODE_STRING BaseDefaultPathAppend;
+UNICODE_STRING BaseDefaultPath;
 
 
 /* FUNCTIONS *****************************************************************/
diff --git a/reactos/dll/win32/kernel32/file/dir.c b/reactos/dll/win32/kernel32/file/dir.c
index a364e6a1f46..184403912f3 100644
--- a/reactos/dll/win32/kernel32/file/dir.c
+++ b/reactos/dll/win32/kernel32/file/dir.c
@@ -20,7 +20,7 @@
 #include <debug.h>
 DEBUG_CHANNEL(kernel32file);
 
-UNICODE_STRING DllDirectory = {0, 0, NULL};
+UNICODE_STRING BaseDllDirectory = {0, 0, NULL};
 
 /* FUNCTIONS *****************************************************************/
 
@@ -1079,35 +1079,35 @@ SetDllDirectoryW(
 
   RtlInitUnicodeString(&PathName, lpPathName);
 
-  RtlEnterCriticalSection(&DllLock);
+  RtlEnterCriticalSection(&BaseDllDirectoryLock);
   if(PathName.Length > 0)
   {
-    if(PathName.Length + sizeof(WCHAR) <= DllDirectory.MaximumLength)
+    if(PathName.Length + sizeof(WCHAR) <= BaseDllDirectory.MaximumLength)
     {
-      RtlCopyUnicodeString(&DllDirectory, &PathName);
+      RtlCopyUnicodeString(&BaseDllDirectory, &PathName);
     }
     else
     {
-      RtlFreeUnicodeString(&DllDirectory);
-      if(!(DllDirectory.Buffer = (PWSTR)RtlAllocateHeap(RtlGetProcessHeap(),
-                                                        0,
-                                                        PathName.Length + sizeof(WCHAR))))
+      RtlFreeUnicodeString(&BaseDllDirectory);
+      if(!(BaseDllDirectory.Buffer = (PWSTR)RtlAllocateHeap(RtlGetProcessHeap(),
+                                                            0,
+                                                            PathName.Length + sizeof(WCHAR))))
       {
-        RtlLeaveCriticalSection(&DllLock);
+        RtlLeaveCriticalSection(&BaseDllDirectoryLock);
         SetLastError(ERROR_NOT_ENOUGH_MEMORY);
         return FALSE;
       }
-      DllDirectory.Length = 0;
-      DllDirectory.MaximumLength = PathName.Length + sizeof(WCHAR);
+      BaseDllDirectory.Length = 0;
+      BaseDllDirectory.MaximumLength = PathName.Length + sizeof(WCHAR);
 
-      RtlCopyUnicodeString(&DllDirectory, &PathName);
+      RtlCopyUnicodeString(&BaseDllDirectory, &PathName);
     }
   }
   else
   {
-    RtlFreeUnicodeString(&DllDirectory);
+    RtlFreeUnicodeString(&BaseDllDirectory);
   }
-  RtlLeaveCriticalSection(&DllLock);
+  RtlLeaveCriticalSection(&BaseDllDirectoryLock);
 
   return TRUE;
 }
@@ -1144,10 +1144,10 @@ GetDllDirectoryW(
 {
   DWORD Ret;
 
-  RtlEnterCriticalSection(&DllLock);
+  RtlEnterCriticalSection(&BaseDllDirectoryLock);
   if(nBufferLength > 0)
   {
-    Ret = DllDirectory.Length / sizeof(WCHAR);
+    Ret = BaseDllDirectory.Length / sizeof(WCHAR);
     if(Ret > nBufferLength - 1)
     {
       Ret = nBufferLength - 1;
@@ -1155,16 +1155,16 @@ GetDllDirectoryW(
 
     if(Ret > 0)
     {
-      RtlCopyMemory(lpBuffer, DllDirectory.Buffer, Ret * sizeof(WCHAR));
+      RtlCopyMemory(lpBuffer, BaseDllDirectory.Buffer, Ret * sizeof(WCHAR));
     }
     lpBuffer[Ret] = L'\0';
   }
   else
   {
     /* include termination character, even if the string is empty! */
-    Ret = (DllDirectory.Length / sizeof(WCHAR)) + 1;
+    Ret = (BaseDllDirectory.Length / sizeof(WCHAR)) + 1;
   }
-  RtlLeaveCriticalSection(&DllLock);
+  RtlLeaveCriticalSection(&BaseDllDirectoryLock);
 
   return Ret;
 }
diff --git a/reactos/dll/win32/kernel32/include/kernel32.h b/reactos/dll/win32/kernel32/include/kernel32.h
index 747c8b1b664..d6361b3bdfe 100755
--- a/reactos/dll/win32/kernel32/include/kernel32.h
+++ b/reactos/dll/win32/kernel32/include/kernel32.h
@@ -91,9 +91,9 @@ extern HANDLE hProcessHeap;
 extern HANDLE hBaseDir;
 extern HMODULE hCurrentModule;
 
-extern RTL_CRITICAL_SECTION DllLock;
+extern RTL_CRITICAL_SECTION BaseDllDirectoryLock;
 
-extern UNICODE_STRING DllDirectory;
+extern UNICODE_STRING BaseDllDirectory;
 
 extern LPTOP_LEVEL_EXCEPTION_FILTER GlobalTopLevelExceptionFilter;
 
@@ -211,6 +211,12 @@ BasepMapFile(IN LPCWSTR lpApplicationName,
              OUT PHANDLE hSection,
              IN PUNICODE_STRING ApplicationName);
 
+LPWSTR
+WINAPI
+BasepGetDllPath(LPWSTR FullPath,
+                PVOID Environment);
+
+
 PCODEPAGE_ENTRY FASTCALL
 IntGetCodePageEntry(UINT CodePage);
 
diff --git a/reactos/dll/win32/kernel32/misc/console.c b/reactos/dll/win32/kernel32/misc/console.c
index 2b0d253b23e..2fc95b58d5f 100644
--- a/reactos/dll/win32/kernel32/misc/console.c
+++ b/reactos/dll/win32/kernel32/misc/console.c
@@ -3524,7 +3524,7 @@ SetConsoleCtrlHandler(PHANDLER_ROUTINE HandlerRoutine,
 {
     BOOL Ret;
 
-    RtlEnterCriticalSection(&DllLock);
+    RtlEnterCriticalSection(&BaseDllDirectoryLock);
     if (Add)
     {
         Ret = AddConsoleCtrlHandler(HandlerRoutine);
@@ -3534,7 +3534,7 @@ SetConsoleCtrlHandler(PHANDLER_ROUTINE HandlerRoutine,
         Ret = RemoveConsoleCtrlHandler(HandlerRoutine);
     }
 
-    RtlLeaveCriticalSection(&DllLock);
+    RtlLeaveCriticalSection(&BaseDllDirectoryLock);
     return(Ret);
 }
 
diff --git a/reactos/dll/win32/kernel32/misc/dllmain.c b/reactos/dll/win32/kernel32/misc/dllmain.c
index ae0ada2e85c..f43b9b27b69 100644
--- a/reactos/dll/win32/kernel32/misc/dllmain.c
+++ b/reactos/dll/win32/kernel32/misc/dllmain.c
@@ -5,6 +5,7 @@
  * FILE:            lib/kernel32/misc/dllmain.c
  * PURPOSE:         Initialization
  * PROGRAMMER:      Ariadne ( ariadne@xs4all.nl)
+ *                  Aleksey Bragin (aleksey@reactos.org)
  * UPDATE HISTORY:
  *                  Created 01/11/98
  */
@@ -20,6 +21,10 @@
 
 extern UNICODE_STRING SystemDirectory;
 extern UNICODE_STRING WindowsDirectory;
+extern UNICODE_STRING BaseDefaultPath;
+extern UNICODE_STRING BaseDefaultPathAppend;
+
+WCHAR BaseDefaultPathBuffer[6140];
 
 HANDLE hProcessHeap = NULL;
 HMODULE hCurrentModule = NULL;
@@ -36,7 +41,7 @@ DllMain(HANDLE hInst,
 	LPVOID lpReserved);
 
 /* Critical section for various kernel32 data structures */
-RTL_CRITICAL_SECTION DllLock;
+RTL_CRITICAL_SECTION BaseDllDirectoryLock;
 RTL_CRITICAL_SECTION ConsoleLock;
 
 extern BOOL WINAPI DefaultConsoleCtrlHandler(DWORD Event);
@@ -275,6 +280,9 @@ DllMain(HANDLE hDll,
         /* Don't bother us for each thread */
         LdrDisableThreadCalloutsForDll((PVOID)hDll);
 
+        /* Initialize default path to NULL */
+        RtlInitUnicodeString(&BaseDefaultPath, NULL);
+
         /* Setup the right Object Directory path */
         if (!SessionId)
         {
@@ -332,11 +340,25 @@ DllMain(HANDLE hDll,
                                                  SystemDirectory.MaximumLength);
         if(SystemDirectory.Buffer == NULL)
         {
+           DPRINT1("Failure allocating SystemDirectory buffer\n");
            return FALSE;
         }
         wcscpy(SystemDirectory.Buffer, WindowsDirectory.Buffer);
         wcscat(SystemDirectory.Buffer, L"\\System32");
 
+        /* Construct the default path (using the static buffer) */
+        _snwprintf(BaseDefaultPathBuffer, sizeof(BaseDefaultPathBuffer) / sizeof(WCHAR),
+            L".;%wZ;%wZ\\system;%wZ;", &SystemDirectory, &WindowsDirectory, &WindowsDirectory);
+
+        BaseDefaultPath.Buffer = BaseDefaultPathBuffer;
+        BaseDefaultPath.Length = wcslen(BaseDefaultPathBuffer) * sizeof(WCHAR);
+        BaseDefaultPath.MaximumLength = sizeof(BaseDefaultPathBuffer);
+
+        /* Use remaining part of the default path buffer for the append path */
+        BaseDefaultPathAppend.Buffer = (PWSTR)((ULONG_PTR)BaseDefaultPathBuffer + BaseDefaultPath.Length);
+        BaseDefaultPathAppend.Length = 0;
+        BaseDefaultPathAppend.MaximumLength = BaseDefaultPath.MaximumLength - BaseDefaultPath.Length;
+
         /* Initialize command line */
         InitCommandLines();
 
@@ -349,7 +371,7 @@ DllMain(HANDLE hDll,
         }
 
         /* Initialize the DLL critical section */
-        RtlInitializeCriticalSection(&DllLock);
+        RtlInitializeCriticalSection(&BaseDllDirectoryLock);
 
         /* Initialize the National Language Support routines */
         if (!NlsInit())
@@ -395,7 +417,7 @@ DllMain(HANDLE hDll,
                     ConsoleInitialized = FALSE;
                     RtlDeleteCriticalSection (&ConsoleLock);
                 }
-                RtlDeleteCriticalSection (&DllLock);
+                RtlDeleteCriticalSection (&BaseDllDirectoryLock);
 
                 /* Close object base directory */
                 NtClose(hBaseDir);
diff --git a/reactos/dll/win32/kernel32/process/procsup.c b/reactos/dll/win32/kernel32/process/procsup.c
index 33b053d9324..a4d35d786d7 100644
--- a/reactos/dll/win32/kernel32/process/procsup.c
+++ b/reactos/dll/win32/kernel32/process/procsup.c
@@ -14,6 +14,9 @@
 #define NDEBUG
 #include <debug.h>
 
+UNICODE_STRING BasePathVariableName = RTL_CONSTANT_STRING(L"PATH");
+UNICODE_STRING BaseDefaultPath;
+
 #define CMD_STRING L"cmd /c "
 
 extern __declspec(noreturn)
@@ -352,13 +355,46 @@ BasepDuplicateAndWriteHandle(IN HANDLE ProcessHandle,
     }
 }
 
+LPWSTR
+WINAPI
+BasepGetProcessPath(DWORD Reserved,
+                    LPWSTR FullPath,
+                    PVOID Environment)
+{
+    return NULL;
+}
+
 LPWSTR
 WINAPI
 BasepGetDllPath(LPWSTR FullPath,
                 PVOID Environment)
 {
-    /* FIXME: Not yet implemented */
-    return NULL;
+    LPWSTR DllPath = NULL;
+
+    /* Acquire DLL directory lock */
+    RtlEnterCriticalSection(&BaseDllDirectoryLock);
+
+    /* Check if we have a base dll directory */
+    if (BaseDllDirectory.Buffer)
+    {
+        /* Then get process path */
+        DllPath = BasepGetProcessPath(0, FullPath, Environment);
+
+        /* Release DLL directory lock */
+        RtlLeaveCriticalSection(&BaseDllDirectoryLock);
+
+        /* Return dll path */
+        return DllPath;
+    }
+
+    /* Release DLL directory lock */
+    RtlLeaveCriticalSection(&BaseDllDirectoryLock);
+
+    /* There is no base DLL directory */
+    UNIMPLEMENTED;
+
+    /* Return dll path */
+    return DllPath;
 }
 
 VOID