diff --git a/sdk/ml/azure-ai-ml/CHANGELOG.md b/sdk/ml/azure-ai-ml/CHANGELOG.md
index bd975fafa7ad..02afd1fe6fb4 100644
--- a/sdk/ml/azure-ai-ml/CHANGELOG.md
+++ b/sdk/ml/azure-ai-ml/CHANGELOG.md
@@ -6,6 +6,7 @@
 
 ### Bugs Fixed
 
+- Quote each argument in the local-endpoint `run_cli_command` helper before running it under `shell=True`, so a path containing spaces or shell metacharacters is passed through literally instead of being re-interpreted by the shell.
 - Fixed cross-tenant registry endpoint resolution for deployment template operations by using the registry discovery API instead of ARM calls.
 - Fixed deployment template update failing with immutable field errors by ensuring `allowedInstanceType` and `allowedEnvironmentVariableOverrides` are properly round-tripped during serialization.
 
diff --git a/sdk/ml/azure-ai-ml/azure/ai/ml/_local_endpoints/utilities/commandline_utility.py b/sdk/ml/azure-ai-ml/azure/ai/ml/_local_endpoints/utilities/commandline_utility.py
index 3f41e5f0ffab..45b7d95a3515 100644
--- a/sdk/ml/azure-ai-ml/azure/ai/ml/_local_endpoints/utilities/commandline_utility.py
+++ b/sdk/ml/azure-ai-ml/azure/ai/ml/_local_endpoints/utilities/commandline_utility.py
@@ -4,6 +4,7 @@
 
 import json
 import os
+import shlex
 import subprocess
 import sys
 import time
@@ -27,9 +28,14 @@ def run_cli_command(
     if not custom_environment:
         custom_environment = os.environ
 
-    # We do this join to construct a command because "shell=True" flag, used below, doesn't work with the vector
-    # argv form on a mac OS.
-    command_to_execute = " ".join(cmd_arguments)
+    # "shell=True" (used below) is needed so the platform "az"/"code" wrappers resolve, and it doesn't work with
+    # the vector argv form on macOS, so the arguments are collapsed into a single command string. Quote each
+    # argument while joining so a value containing spaces or shell metacharacters is passed through literally
+    # instead of being re-interpreted by the shell.
+    if os.name == "nt":
+        command_to_execute = subprocess.list2cmdline(cmd_arguments)
+    else:
+        command_to_execute = shlex.join(cmd_arguments)
 
     if not do_not_print:  # Avoid printing the az login service principal password, for example
         print("Preparing to run CLI command: \n{}\n".format(command_to_execute))
diff --git a/sdk/ml/azure-ai-ml/tests/local_endpoint/unittests/test_commandline_utility.py b/sdk/ml/azure-ai-ml/tests/local_endpoint/unittests/test_commandline_utility.py
new file mode 100644
index 000000000000..b2921d56862e
--- /dev/null
+++ b/sdk/ml/azure-ai-ml/tests/local_endpoint/unittests/test_commandline_utility.py
@@ -0,0 +1,50 @@
+# ---------------------------------------------------------
+# Copyright (c) Microsoft Corporation. All rights reserved.
+# ---------------------------------------------------------
+
+
+import os
+import shlex
+import subprocess
+from unittest.mock import patch
+
+import pytest
+
+from azure.ai.ml._local_endpoints.utilities.commandline_utility import run_cli_command
+
+
+def _expected_command(args):
+    return subprocess.list2cmdline(args) if os.name == "nt" else shlex.join(args)
+
+
+@pytest.mark.unittest
+class TestRunCliCommand:
+    def test_arguments_are_quoted_before_shell_execution(self):
+        # An argument carrying shell metacharacters (e.g. a deployment-derived path component).
+        args = ["echo", "x$(touch pwned)"]
+
+        with patch(
+            "azure.ai.ml._local_endpoints.utilities.commandline_utility.subprocess.check_output",
+            return_value=b"",
+        ) as mock_check_output:
+            run_cli_command(args)
+
+        command_to_execute = mock_check_output.call_args[0][0]
+        # The raw space-join would let the shell evaluate the $(...) substitution.
+        assert command_to_execute != " ".join(args)
+        assert command_to_execute == _expected_command(args)
+
+    def test_plain_uri_argument_is_unchanged(self):
+        uri = "vscode-remote://dev-container+deadbeef/var/azureml-app/onlinescoring"
+        args = ["code", "--folder-uri", uri]
+
+        with patch(
+            "azure.ai.ml._local_endpoints.utilities.commandline_utility.subprocess.check_output",
+            return_value=b"",
+        ) as mock_check_output:
+            run_cli_command(args)
+
+        command_to_execute = mock_check_output.call_args[0][0]
+        assert command_to_execute == _expected_command(args)
+        if os.name != "nt":
+            assert command_to_execute == f"code --folder-uri {uri}"