diff --git a/src/Agent.Sdk/Knob/AgentKnobs.cs b/src/Agent.Sdk/Knob/AgentKnobs.cs
index 27f57912b6..f08b0ffce1 100644
--- a/src/Agent.Sdk/Knob/AgentKnobs.cs
+++ b/src/Agent.Sdk/Knob/AgentKnobs.cs
@@ -230,6 +230,13 @@ public class AgentKnobs
             new RuntimeKnobSource("ALLOW_TFVC_UNSHELVE_ERRORS"),
             new EnvironmentKnobSource("ALLOW_TFVC_UNSHELVE_ERRORS"),
             new BuiltInDefaultKnobSource("false"));
-    }
 
+        // Set DISABLE_JAVA_CAPABILITY_HIGHER_THAN_9 variable with any value
+        // to disable recognition of Java higher than 9
+        public static readonly Knob DisableRecognitionOfJDKHigherThen9 = new Knob(
+            nameof(DisableRecognitionOfJDKHigherThen9),
+            "Recognize JDK and JRE >= 9 installed on the machine as agent capability. Setting any value to DISABLE_JAVA_CAPABILITY_HIGHER_THAN_9 is disabling this behavior",
+            new EnvironmentKnobSource("DISABLE_JAVA_CAPABILITY_HIGHER_THAN_9"),
+            new BuiltInDefaultKnobSource(string.Empty));
+    }
 }
diff --git a/src/Misc/layoutbin/powershell/Add-JavaCapabilities.ps1 b/src/Misc/layoutbin/powershell/Add-JavaCapabilities.ps1
index adbbb1d386..06e68bb8a8 100644
--- a/src/Misc/layoutbin/powershell/Add-JavaCapabilities.ps1
+++ b/src/Misc/layoutbin/powershell/Add-JavaCapabilities.ps1
@@ -9,6 +9,13 @@ $jdk6KeyName = "Software\JavaSoft\Java Development Kit\1.6"
 $jdk7KeyName = "Software\JavaSoft\Java Development Kit\1.7"
 $jdk8KeyName = "Software\JavaSoft\Java Development Kit\1.8"
 
+# JRE/JDK keys for major version >= 9
+$jdk9AndGreaterNameOracle = "Software\JavaSoft\JDK"
+$jre9AndGreaterNameOracle = "Software\JavaSoft\JRE"
+$jre9AndGreaterName = "Software\JavaSoft\Java Runtime Environment"
+$jdk9AndGreaterName = "Software\JavaSoft\Java Development Kit"
+$minimumMajorVersion9 = 9
+
 # Check for JRE.
 $latestJre = $null
 $null = Add-CapabilityFromRegistry -Name 'java_6' -Hive 'LocalMachine' -View 'Registry32' -KeyName $jre6KeyName -ValueName 'JavaHome' -Value ([ref]$latestJre)
@@ -17,6 +24,19 @@ $null = Add-CapabilityFromRegistry -Name 'java_8' -Hive 'LocalMachine' -View 'Re
 $null = Add-CapabilityFromRegistry -Name 'java_6_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jre6KeyName -ValueName 'JavaHome' -Value ([ref]$latestJre)
 $null = Add-CapabilityFromRegistry -Name 'java_7_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jre7KeyName -ValueName 'JavaHome' -Value ([ref]$latestJre)
 $null = Add-CapabilityFromRegistry -Name 'java_8_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jre8KeyName -ValueName 'JavaHome' -Value ([ref]$latestJre)
+
+if  (-not (Test-Path env:DISABLE_JAVA_CAPABILITY_HIGHER_THAN_9)) {
+    try {
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'java_' -Hive 'LocalMachine' -View 'Registry32' -KeyName $jre9AndGreaterName -ValueName 'JavaHome' -Value ([ref]$latestJre) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'java_' -Hive 'LocalMachine' -View 'Registry32' -KeyName $jre9AndGreaterNameOracle -ValueName 'JavaHome' -Value ([ref]$latestJre) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'java_' -PostfixName '_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jre9AndGreaterName -ValueName 'JavaHome' -Value ([ref]$latestJre) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'java_' -PostfixName '_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jre9AndGreaterNameOracle -ValueName 'JavaHome' -Value ([ref]$latestJre) -MinimumMajorVersion $minimumMajorVersion9
+    } catch {
+        Write-Host "An error occured while trying to check if there are JRE >= 9"
+        Write-Host $_
+    }
+}
+
 if ($latestJre) {
     # Favor x64.
     Write-Capability -Name 'java' -Value $latestJre
@@ -30,6 +50,19 @@ $null = Add-CapabilityFromRegistry -Name 'jdk_8' -Hive 'LocalMachine' -View 'Reg
 $null = Add-CapabilityFromRegistry -Name 'jdk_6_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jdk6KeyName -ValueName 'JavaHome' -Value ([ref]$latestJdk)
 $null = Add-CapabilityFromRegistry -Name 'jdk_7_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jdk7KeyName -ValueName 'JavaHome' -Value ([ref]$latestJdk)
 $null = Add-CapabilityFromRegistry -Name 'jdk_8_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jdk8KeyName -ValueName 'JavaHome' -Value ([ref]$latestJdk)
+
+if  (-not (Test-Path env:DISABLE_JAVA_CAPABILITY_HIGHER_THAN_9)) {
+    try {
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'jdk_' -Hive 'LocalMachine' -View 'Registry32' -KeyName $jdk9AndGreaterName -ValueName 'JavaHome' -Value ([ref]$latestJdk) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'jdk_' -Hive 'LocalMachine' -View 'Registry32' -KeyName $jdk9AndGreaterNameOracle -ValueName 'JavaHome' -Value ([ref]$latestJdk) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'jdk_' -PostfixName '_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jdk9AndGreaterName -ValueName 'JavaHome' -Value ([ref]$latestJdk) -MinimumMajorVersion $minimumMajorVersion9
+        $null = Add-CapabilityFromRegistryWithLastVersionAvailable -PrefixName 'jdk_' -PostfixName '_x64' -Hive 'LocalMachine' -View 'Registry64' -KeyName $jdk9AndGreaterNameOracle -ValueName 'JavaHome' -Value ([ref]$latestJdk) -MinimumMajorVersion $minimumMajorVersion9
+    } catch {
+        Write-Host "An error occured while trying to check if there are JDK >= 9"
+        Write-Host $_
+    }
+}
+
 if ($latestJdk) {
     # Favor x64.
     Write-Capability -Name 'jdk' -Value $latestJdk
diff --git a/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityFunctions.ps1 b/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityFunctions.ps1
index ac301bca47..d436aa1e04 100644
--- a/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityFunctions.ps1
+++ b/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityFunctions.ps1
@@ -83,6 +83,146 @@ function Add-CapabilityFromRegistry {
     return $true
 }
 
+
+function Add-CapabilityFromRegistryWithLastVersionAvailableForSubkey {
+    <#
+        .SYNOPSIS
+            Retrieves capability from registry for specified key and subkey. Considers that subkey has semver format
+    #>
+    [CmdletBinding()]
+    param(
+        # Prefix name of capability
+        [Parameter(Mandatory = $true)]
+        [string]$PrefixName,
+        # Postfix name of capability
+        [Parameter(Mandatory = $false)]
+        [string]$PostfixName,
+
+        [Parameter(Mandatory = $true)]
+        [ValidateSet('CurrentUser', 'LocalMachine')]
+        [string]$Hive,
+
+        [Parameter(Mandatory = $true)]
+        [ValidateSet('Default', 'Registry32', 'Registry64')]
+        [string]$View,
+        # Registry key
+        [Parameter(Mandatory = $true)]
+        [string]$KeyName,
+
+        [Parameter(Mandatory = $true)]
+        [string]$ValueName,
+        # Registry subkey
+        [Parameter(Mandatory = $true)]
+        [string]$Subkey,
+        # Major version of tool to be added as capability
+        [Parameter(Mandatory = $true)]
+        [int]$MajorVersion,
+        # Minimum major version of tool to be added as capability. All versions detected less than this version - will be ignored. 
+        # This is helpful for backward compatibility with already existing logic for previous versions
+        [Parameter(Mandatory = $false)]
+        [int]$MinimumMajorVersion,
+
+        [ref]$Value)
+    try {
+        Write-Host $MajorVersion $MinimumMajorVersion
+        if ($MajorVersion -lt $MinimumMajorVersion) {
+            return $false
+        }
+
+        $wholeKey = Join-Path -Path $KeyName -ChildPath $Subkey
+
+        $capabilityValue = Get-RegistryValue -Hive $Hive -View $View -KeyName $wholeKey -ValueName $ValueName
+
+        if ([string]::IsNullOrEmpty($capabilityValue)) {
+            return $false
+        }
+   
+        $capabilityName = $PrefixName + $MajorVersion + $PostfixName
+
+        Write-Capability -Name $capabilityName -Value $capabilityValue
+        if ($Value) {
+            $Value.Value = $capabilityValue
+        }
+
+        return $true
+    } catch {
+        return $false
+    }
+}
+
+function Add-CapabilityFromRegistryWithLastVersionAvailable {
+    <#
+        .SYNOPSIS
+            Retrieves capability from registry with last version. Considers that subkeys for specified key name are versions (in semver format like 1.2.3)
+            This is useful to detect last version of tools as agent capabilities
+
+        .EXAMPLE
+            If KeyName = 'SOFTWARE\JavaSoft\JDK', and this registry key contains subkeys: 14.0.1, 16.0 - it will write the last one as specified capability
+    #>
+    [CmdletBinding()]
+    param(
+        # Prefix name of capability
+        [Parameter(Mandatory = $true)]
+        [string]$PrefixName,
+        # Postfix name of capability
+        [Parameter(Mandatory = $false)]
+        [string]$PostfixName,
+
+        [Parameter(Mandatory = $true)]
+        [ValidateSet('CurrentUser', 'LocalMachine')]
+        [string]$Hive,
+
+        [Parameter(Mandatory = $true)]
+        [ValidateSet('Default', 'Registry32', 'Registry64')]
+        [string]$View,
+        # Registry key
+        [Parameter(Mandatory = $true)]
+        [string]$KeyName,
+
+        [Parameter(Mandatory = $true)]
+        [string]$ValueName,
+        # Minimum major version of tool to be added as capability. All versions detected less than this version - will be ignored. 
+        # This is helpful for backward compatibility with already existing logic for previous versions
+        [Parameter(Mandatory = $false)]
+        [string]$MinimumMajorVersion,
+
+        [ref]$Value)
+
+    try {
+        $subkeys = Get-RegistrySubKeyNames -Hive $Hive -View $View -KeyName $KeyName | Sort-Object
+
+        $versionSubkeys = $subkeys | ForEach {[tuple]::Create((Parse-Version -Version $_), $_)} | Where { ![string]::IsNullOrEmpty($_.Item1)}
+
+        $sortedVersionSubkeys = $versionSubkeys | Sort-Object -Property @{Expression = {$_.Item1}; Descending = $False}
+        Write-Host $sortedVersionSubkeys[-1].Item1.Major
+        $res = Add-CapabilityFromRegistryWithLastVersionAvailableForSubkey -PrefixName $PrefixName -PostfixName $PostfixName -Hive $Hive -View $View -KeyName $KeyName -ValueName $ValueName -Subkey $sortedVersionSubkeys[-1].Item2 -MajorVersion $sortedVersionSubkeys[-1].Item1.Major -Value $Value  -MinimumMajorVersion $MinimumMajorVersion
+
+        if (!$res) {
+            Write-Host "An error occured while trying to get last available version for capability: " $PrefixName + "<version>" + $PostfixName
+            Write-Host $_ 
+
+            $major = (Parse-Version -Version $subkeys[-1]).Major
+
+            $res = Add-CapabilityFromRegistryWithLastVersionAvailableForSubkey -PrefixName $PrefixName -PostfixName $PostfixName -Hive $Hive -View $View -KeyName $KeyName -ValueName $ValueName -Subkey $subkeys[-1] -MajorVersion $major -Value $Value -MinimumMajorVersion $MinimumMajorVersion
+
+            if(!$res) {
+                Write-Host "An error occured while trying to set capability for first found subkey: " $subkeys[-1]
+                Write-Host $_
+
+                return $false
+            }
+        }
+
+        return $true
+    } catch {
+        Write-Host "An error occured while trying to sort subkeys for capability as versions: " $PrefixName + "<version>" + $PostfixName
+        Write-Host $_ 
+
+        return $false
+    }
+}
+
+
 function Write-Capability {
     [CmdletBinding()]
     param(
diff --git a/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityHelpers.psm1 b/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityHelpers.psm1
index d960beff82..97d2e3a8df 100644
--- a/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityHelpers.psm1
+++ b/src/Misc/layoutbin/powershell/CapabilityHelpers/CapabilityHelpers.psm1
@@ -8,6 +8,7 @@ $ErrorActionPreference = 'Stop'
 . $PSScriptRoot\PathFunctions
 . $PSScriptRoot\RegistryFunctions
 . $PSScriptRoot\VisualStudioFunctions
+. $PSScriptRoot\VersionFunctions
 
 # Export the public functions.
 Export-ModuleMember -Function @(
@@ -15,6 +16,7 @@ Export-ModuleMember -Function @(
     'Add-CapabilityFromApplication'
     'Add-CapabilityFromEnvironment'
     'Add-CapabilityFromRegistry'
+    'Add-CapabilityFromRegistryWithLastVersionAvailable'
     'Write-Capability'
     # File system functions with tracing built-in.
     'Test-Container'
diff --git a/src/Misc/layoutbin/powershell/CapabilityHelpers/RegistryFunctions.ps1 b/src/Misc/layoutbin/powershell/CapabilityHelpers/RegistryFunctions.ps1
index ad2032e3fc..f74adf7b14 100644
--- a/src/Misc/layoutbin/powershell/CapabilityHelpers/RegistryFunctions.ps1
+++ b/src/Misc/layoutbin/powershell/CapabilityHelpers/RegistryFunctions.ps1
@@ -172,4 +172,4 @@ function Get-RegistryValueNames {
             $null = $baseKey.Dispose()
         }
     }
-}
+}
\ No newline at end of file
diff --git a/src/Misc/layoutbin/powershell/CapabilityHelpers/VersionFunctions.ps1 b/src/Misc/layoutbin/powershell/CapabilityHelpers/VersionFunctions.ps1
new file mode 100644
index 0000000000..c95575a92a
--- /dev/null
+++ b/src/Misc/layoutbin/powershell/CapabilityHelpers/VersionFunctions.ps1
@@ -0,0 +1,25 @@
+function Parse-Version  {
+    <#
+        .SYNOPSIS
+            Parses version from provided. Allows incomplete versions like 16.0. Returns empty string if there is more than 4 numbers divided by dot or string is not in semver format
+
+        .EXAMPLE
+            Parse-Version -Version "1.3.5" 
+            
+    #>
+    [CmdletBinding()]
+    param(
+        [Parameter(Mandatory = $true)]
+        [string]$Version)
+
+    if ($Version.IndexOf(".") -lt 0) {
+        return [System.Version]::Parse("$($Version).0")
+    }
+    try {
+        $res = [System.Version]::Parse($Version)
+
+        return $res
+    } catch {
+        return ""
+    }
+}
\ No newline at end of file