diff --git a/web/pgadmin/tools/psql/__init__.py b/web/pgadmin/tools/psql/__init__.py
index 1bd57066b..99b1cd62a 100644
--- a/web/pgadmin/tools/psql/__init__.py
+++ b/web/pgadmin/tools/psql/__init__.py
@@ -109,6 +109,13 @@ def panel(trans_id):
     # Set TERM env for xterm.
     os.environ['TERM'] = 'xterm'
 
+    # If psql is enabled in server mode, set psqlrc and hist paths
+    # to individual user storage.
+    if config.ENABLE_PSQL and config.SERVER_MODE:
+        os.environ['PSQLRC'] = get_complete_file_path('.psqlrc', False)
+        os.environ['PSQL_HISTORY'] = \
+            get_complete_file_path('.psql_history', False)
+
     o_db_name = _get_database(params['sid'], params['did'])
 
     return render_template('editor_template.html',
diff --git a/web/pgadmin/utils/__init__.py b/web/pgadmin/utils/__init__.py
index c10500e94..11d742b97 100644
--- a/web/pgadmin/utils/__init__.py
+++ b/web/pgadmin/utils/__init__.py
@@ -241,7 +241,7 @@ else:
         return os.path.realpath(os.path.expanduser('~/'))
 
 
-def get_complete_file_path(file):
+def get_complete_file_path(file, validate=True):
     """
     Args:
         file: File returned by file manager
@@ -266,7 +266,10 @@ def get_complete_file_path(file):
             file = file.replace('\\', '/')
             file = fs_short_path(file)
 
-    return file if os.path.isfile(file) else None
+    if validate:
+        return file if os.path.isfile(file) else None
+    else:
+        return file
 
 
 def does_utility_exist(file):