diff --git a/src/client/common/application/commands.ts b/src/client/common/application/commands.ts
index 2195fe09aabf..98ea2669d773 100644
--- a/src/client/common/application/commands.ts
+++ b/src/client/common/application/commands.ts
@@ -107,4 +107,5 @@ export interface ICommandNameArgumentTypeMapping extends ICommandNameWithoutArgu
         },
     ];
     ['cursorEnd']: [];
+    ['python-envs.createTerminal']: [undefined | Uri];
 }
diff --git a/src/client/providers/terminalProvider.ts b/src/client/providers/terminalProvider.ts
index 407a5520b29a..841f479269ac 100644
--- a/src/client/providers/terminalProvider.ts
+++ b/src/client/providers/terminalProvider.ts
@@ -60,8 +60,13 @@ export class TerminalProvider implements Disposable {
 
     @captureTelemetry(EventName.TERMINAL_CREATE, { triggeredBy: 'commandpalette' })
     private async onCreateTerminal() {
-        const terminalService = this.serviceContainer.get<ITerminalServiceFactory>(ITerminalServiceFactory);
         const activeResource = this.activeResourceService.getActiveResource();
+        if (useEnvExtension()) {
+            const commandManager = this.serviceContainer.get<ICommandManager>(ICommandManager);
+            await commandManager.executeCommand('python-envs.createTerminal', activeResource);
+        }
+
+        const terminalService = this.serviceContainer.get<ITerminalServiceFactory>(ITerminalServiceFactory);
         await terminalService.createTerminalService(activeResource, 'Python').show(false);
     }
 }