Create a file with name createiso.ps1 and fill this code into it.

function New-IsoFile 
{  
  <# .Synopsis Creates a new .iso file .Description The New-IsoFile cmdlet creates a new .iso file containing content from chosen folders .Example New-IsoFile "c:\tools","c:Downloads\utils" This command creates a .iso file in $env:temp folder (default location) that contains c:\tools and c:\downloads\utils folders. The folders themselves are included at the root of the .iso image. .Example New-IsoFile -FromClipboard -Verbose Before running this command, select and copy (Ctrl-C) files/folders in Explorer first. .Example dir c:\WinPE | New-IsoFile -Path c:\temp\WinPE.iso -BootFile "${env:ProgramFiles(x86)}\Windows Kits\10\Assessment and Deployment Kit\Deployment Tools\amd64\Oscdimg\efisys.bin" -Media DVDPLUSR -Title "WinPE" This command creates a bootable .iso file containing the content from c:\WinPE folder, but the folder itself isn't included. Boot file etfsboot.com can be found in Windows ADK. Refer to IMAPI_MEDIA_PHYSICAL_TYPE enumeration for possible media types: http://msdn.microsoft.com/en-us/library/windows/desktop/aa366217(v=vs.85).aspx .Notes NAME: New-IsoFile AUTHOR: Chris Wu LASTEDIT: 03/23/2016 14:46:50 #> 
   
  [CmdletBinding(DefaultParameterSetName='Source')]Param( 
    [parameter(Position=1,Mandatory=$true,ValueFromPipeline=$true, ParameterSetName='Source')]$Source,  
    [parameter(Position=2)][string]$Path = "$env:temp\$((Get-Date).ToString('yyyyMMdd-HHmmss.ffff')).iso",  
    [ValidateScript({Test-Path -LiteralPath $_ -PathType Leaf})][string]$BootFile = $null, 
    [ValidateSet('CDR','CDRW','DVDRAM','DVDPLUSR','DVDPLUSRW','DVDPLUSR_DUALLAYER','DVDDASHR','DVDDASHRW','DVDDASHR_DUALLAYER','DISK','DVDPLUSRW_DUALLAYER','BDR','BDRE')][string] $Media = 'DVDPLUSRW_DUALLAYER', 
    [string]$Title = (Get-Date).ToString("yyyyMMdd-HHmmss.ffff"),  
    [switch]$Force, 
    [parameter(ParameterSetName='Clipboard')][switch]$FromClipboard 
  ) 
  
  Begin {  
    ($cp = new-object System.CodeDom.Compiler.CompilerParameters).CompilerOptions = '/unsafe' 
    if (!('ISOFile' -as [type])) {  
      Add-Type -CompilerParameters $cp -TypeDefinition @'
public class ISOFile  
{ 
  public unsafe static void Create(string Path, object Stream, int BlockSize, int TotalBlocks)  
  {  
    int bytes = 0;  
    byte[] buf = new byte[BlockSize];  
    var ptr = (System.IntPtr)(&bytes);  
    var o = System.IO.File.OpenWrite(Path);  
    var i = Stream as System.Runtime.InteropServices.ComTypes.IStream;  
   
    if (o != null) { 
      while (TotalBlocks-- > 0) {  
        i.Read(buf, BlockSize, ptr); o.Write(buf, 0, bytes);  
      }  
      o.Flush(); o.Close();  
    } 
  } 
}  
'@  
    } 
   
    if ($BootFile) { 
      if('BDR','BDRE' -contains $Media) { Write-Warning "Bootable image doesn't seem to work with media type $Media" } 
      ($Stream = New-Object -ComObject ADODB.Stream -Property @{Type=1}).Open()  # adFileTypeBinary 
      $Stream.LoadFromFile((Get-Item -LiteralPath $BootFile).Fullname) 
      ($Boot = New-Object -ComObject IMAPI2FS.BootOptions).AssignBootImage($Stream) 
    } 
  
    $MediaType = @('UNKNOWN','CDROM','CDR','CDRW','DVDROM','DVDRAM','DVDPLUSR','DVDPLUSRW','DVDPLUSR_DUALLAYER','DVDDASHR','DVDDASHRW','DVDDASHR_DUALLAYER','DISK','DVDPLUSRW_DUALLAYER','HDDVDROM','HDDVDR','HDDVDRAM','BDROM','BDR','BDRE') 
  
    Write-Verbose -Message "Selected media type is $Media with value $($MediaType.IndexOf($Media))"
    ($Image = New-Object -com IMAPI2FS.MsftFileSystemImage -Property @{VolumeName=$Title}).ChooseImageDefaultsForMediaType($MediaType.IndexOf($Media)) 
   
    if (!($Target = New-Item -Path $Path -ItemType File -Force:$Force -ErrorAction SilentlyContinue)) { Write-Error -Message "Cannot create file $Path. Use -Force parameter to overwrite if the target file already exists."; break } 
  }  
  
  Process { 
    if($FromClipboard) { 
      if($PSVersionTable.PSVersion.Major -lt 5) { Write-Error -Message 'The -FromClipboard parameter is only supported on PowerShell v5 or higher'; break } 
      $Source = Get-Clipboard -Format FileDropList 
    } 
  
    foreach($item in $Source) { 
      if($item -isnot [System.IO.FileInfo] -and $item -isnot [System.IO.DirectoryInfo]) { 
        $item = Get-Item -LiteralPath $item
      } 
  
      if($item) { 
        Write-Verbose -Message "Adding item to the target image: $($item.FullName)"
        try { $Image.Root.AddTree($item.FullName, $true) } catch { Write-Error -Message ($_.Exception.Message.Trim() + ' Try a different media type.') } 
      } 
    } 
  } 
  
  End {  
    if ($Boot) { $Image.BootImageOptions=$Boot }  
    $Result = $Image.CreateResultImage()  
    [ISOFile]::Create($Target.FullName,$Result.ImageStream,$Result.BlockSize,$Result.TotalBlocks) 
    Write-Verbose -Message "Target image ($($Target.FullName)) has been created"
    $Target
  } 
} 

After file creation, you must import this module to your open powershell session.

Import-Module .\createiso.ps1

Now you can define on powershell your source folder

$source_dir = "Z:\isofilel\"

We can create our ISO file
get-childitem "$source_dir" | New-ISOFile -path C:\iso\mydmz.iso