diff --git a/src/client/common/application/commands.ts b/src/client/common/application/commands.ts
index 41bbe8b4f4ea..69ae15cceb93 100644
--- a/src/client/common/application/commands.ts
+++ b/src/client/common/application/commands.ts
@@ -8,6 +8,7 @@ import { Commands as LSCommands } from '../../activation/commands';
 import { TensorBoardEntrypoint, TensorBoardEntrypointTrigger } from '../../tensorBoard/constants';
 import { Channel, Commands, CommandSource } from '../constants';
 import { CreateEnvironmentOptions } from '../../pythonEnvironments/creation/proposed.createEnvApis';
+import { EnvsExtensionCommands, TerminalPythonExecutionOptions } from '../../envsExt/commands';
 
 export type CommandsWithoutArgs = keyof ICommandNameWithoutArgumentTypeMapping;
 
@@ -115,4 +116,5 @@ export interface ICommandNameArgumentTypeMapping extends ICommandNameWithoutArgu
         },
     ];
     ['cursorEnd']: [];
+    [EnvsExtensionCommands.RUN_IN_TERMINAL]: [Uri | TerminalPythonExecutionOptions];
 }
diff --git a/src/client/envsExt/commands.ts b/src/client/envsExt/commands.ts
new file mode 100644
index 000000000000..1e630c6c5d56
--- /dev/null
+++ b/src/client/envsExt/commands.ts
@@ -0,0 +1,15 @@
+/* eslint-disable @typescript-eslint/no-namespace */
+
+import { Uri } from 'vscode';
+import { PythonEnvironment, PythonProject } from './types';
+
+export namespace EnvsExtensionCommands {
+    export const RUN_IN_TERMINAL = 'python-envs.runInTerminal';
+}
+
+export interface TerminalPythonExecutionOptions {
+    project: PythonProject;
+    args: string[];
+    useDedicatedTerminal?: Uri;
+    environment?: PythonEnvironment;
+}
diff --git a/src/client/envsExt/envsExtension.ts b/src/client/envsExt/envsExtension.ts
index 640b66f95beb..ac5b4fb455b0 100644
--- a/src/client/envsExt/envsExtension.ts
+++ b/src/client/envsExt/envsExtension.ts
@@ -1,5 +1,7 @@
+import { Uri } from 'vscode';
 import { getExtension } from '../common/vscodeApis/extensionsApi';
-import { PythonEnvironmentApi } from './types';
+import { PythonEnvironmentApi, PythonProject } from './types';
+import { TerminalPythonExecutionOptions } from './commands';
 
 export const ENVS_EXTENSION_ID = 'ms-python.vscode-python-envs';
 
@@ -8,14 +10,42 @@ export async function getEnvsApi(): Promise<PythonEnvironmentApi | undefined> {
     if (api) {
         return api;
     }
-
     const extension = getExtension<PythonEnvironmentApi>(ENVS_EXTENSION_ID);
     if (extension) {
         if (!extension.isActive) {
             await extension.activate();
-            api = extension.exports;
-            return api;
         }
+        api = extension.exports;
+        return api;
     }
     return undefined;
 }
+
+let isInstalled: boolean | undefined;
+export function isEnvsExtensionInstalled(): boolean {
+    if (isInstalled !== undefined) {
+        return !!isInstalled;
+    }
+
+    const extension = getExtension<PythonEnvironmentApi>(ENVS_EXTENSION_ID);
+    isInstalled = extension && extension.isActive;
+    return !!isInstalled;
+}
+
+export function getPythonProject(uri: Uri): PythonProject | undefined {
+    return api?.getPythonProject(uri);
+}
+
+export function getRunInTerminalOptions(uri: Uri, useDedicated: boolean): Uri | TerminalPythonExecutionOptions {
+    if (useDedicated) {
+        const pr = getPythonProject(uri);
+        if (pr) {
+            return {
+                project: pr,
+                args: [uri.fsPath],
+                useDedicatedTerminal: uri,
+            };
+        }
+    }
+    return uri;
+}
diff --git a/src/client/extensionActivation.ts b/src/client/extensionActivation.ts
index 429004e951cb..292d3bc3dbce 100644
--- a/src/client/extensionActivation.ts
+++ b/src/client/extensionActivation.ts
@@ -55,6 +55,7 @@ import { StopWatch } from './common/utils/stopWatch';
 import { registerReplCommands, registerReplExecuteOnEnter, registerStartNativeReplCommand } from './repl/replCommands';
 import { registerTriggerForTerminalREPL } from './terminals/codeExecution/terminalReplWatcher';
 import { registerPythonStartup } from './terminals/pythonStartup';
+import { getEnvsApi } from './envsExt/envsExtension';
 
 export async function activateComponents(
     // `ext` is passed to any extra activation funcs.
@@ -167,6 +168,9 @@ async function activateLegacy(ext: ExtensionState, startupStopWatch: StopWatch):
         const interpreterManager = serviceContainer.get<IInterpreterService>(IInterpreterService);
         interpreterManager.initialize();
         if (!workspaceService.isVirtualWorkspace) {
+            setImmediate(async () => {
+                await getEnvsApi();
+            });
             const handlers = serviceManager.getAll<IDebugSessionEventHandlers>(IDebugSessionEventHandlers);
             const dispatcher = new DebugSessionEventDispatcher(handlers, DebugService.instance, disposables);
             dispatcher.registerEventHandlers();
diff --git a/src/client/terminals/codeExecution/codeExecutionManager.ts b/src/client/terminals/codeExecution/codeExecutionManager.ts
index 061918b7a74a..ebd9bdb0099d 100644
--- a/src/client/terminals/codeExecution/codeExecutionManager.ts
+++ b/src/client/terminals/codeExecution/codeExecutionManager.ts
@@ -22,6 +22,8 @@ import {
     CreateEnvironmentCheckKind,
     triggerCreateEnvironmentCheckNonBlocking,
 } from '../../pythonEnvironments/creation/createEnvironmentTrigger';
+import { EnvsExtensionCommands } from '../../envsExt/commands';
+import { getPythonProject, getRunInTerminalOptions, isEnvsExtensionInstalled } from '../../envsExt/envsExtension';
 
 @injectable()
 export class CodeExecutionManager implements ICodeExecutionManager {
@@ -45,6 +47,17 @@ export class CodeExecutionManager implements ICodeExecutionManager {
                 this.disposableRegistry.push(
                     this.commandManager.registerCommand(cmd as any, async (file: Resource) => {
                         traceVerbose(`Attempting to run Python file`, file?.fsPath);
+
+                        if (file && isEnvsExtensionInstalled()) {
+                            this.commandManager
+                                .executeCommand(
+                                    EnvsExtensionCommands.RUN_IN_TERMINAL,
+                                    getRunInTerminalOptions(file, cmd === Commands.Exec_In_Separate_Terminal),
+                                )
+                                .then(noop, noop);
+                            return;
+                        }
+
                         const interpreterService = this.serviceContainer.get<IInterpreterService>(IInterpreterService);
                         const interpreter = await interpreterService.getActiveInterpreter(file);
                         if (!interpreter) {