We construct a basis for a modified quantum group of finite type, extending the PBW bases of positive and negative halves of a quantum group. Generalizing Lusztigs classic results on PBW bases, we show that this basis is orthogonal with respect to its natural bilinear form (and hence called a PBW basis), and moreover, the matrix for the PBW-expansion of the canonical basis is unital triangular. All these follow by a new construction of the modified quantum group of arbitrary type, which is built on limits of sequences of elements in tensor products of lowest and highest weight modules. Explicitly formulas are worked out in the rank one case.
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