diff --git a/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts b/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
index 86e0b56801cd..9dff50c5586d 100644
--- a/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
+++ b/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
@@ -200,21 +200,30 @@ async function createEnvironment(options?: CreateEnvironmentOptions): Promise<Cr
     let version: string | undefined;
     const versionStep = new MultiStepNode(
         workspaceStep,
-        async () => {
-            try {
-                version = await pickPythonVersion();
-            } catch (ex) {
-                if (ex === MultiStepAction.Back || ex === MultiStepAction.Cancel) {
-                    return ex;
+        async (context) => {
+            if (
+                existingCondaAction === ExistingCondaAction.Recreate ||
+                existingCondaAction === ExistingCondaAction.Create
+            ) {
+                try {
+                    version = await pickPythonVersion();
+                } catch (ex) {
+                    if (ex === MultiStepAction.Back || ex === MultiStepAction.Cancel) {
+                        return ex;
+                    }
+                    throw ex;
+                }
+                if (version === undefined) {
+                    traceError('Python version was not selected for creating conda environment.');
+                    return MultiStepAction.Cancel;
+                }
+                traceInfo(`Selected Python version ${version} for creating conda environment.`);
+            } else if (existingCondaAction === ExistingCondaAction.UseExisting) {
+                if (context === MultiStepAction.Back) {
+                    return MultiStepAction.Back;
                 }
-                throw ex;
             }
 
-            if (version === undefined) {
-                traceError('Python version was not selected for creating conda environment.');
-                return MultiStepAction.Cancel;
-            }
-            traceInfo(`Selected Python version ${version} for creating conda environment.`);
             return MultiStepAction.Continue;
         },
         undefined,
diff --git a/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts b/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
index 3195d1f88ea9..e1344dc5f3ad 100644
--- a/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
+++ b/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
@@ -36,6 +36,7 @@ suite('Conda Creation provider tests', () => {
     let withProgressStub: sinon.SinonStub;
     let showErrorMessageWithLogsStub: sinon.SinonStub;
     let pickExistingCondaActionStub: sinon.SinonStub;
+    let getPrefixCondaEnvPathStub: sinon.SinonStub;
 
     setup(() => {
         pickWorkspaceFolderStub = sinon.stub(wsSelect, 'pickWorkspaceFolder');
@@ -50,6 +51,8 @@ suite('Conda Creation provider tests', () => {
         pickExistingCondaActionStub = sinon.stub(condaUtils, 'pickExistingCondaAction');
         pickExistingCondaActionStub.resolves(condaUtils.ExistingCondaAction.Create);
 
+        getPrefixCondaEnvPathStub = sinon.stub(commonUtils, 'getPrefixCondaEnvPath');
+
         progressMock = typemoq.Mock.ofType<CreateEnvironmentProgress>();
         condaProvider = condaCreationProvider();
     });
@@ -254,4 +257,24 @@ suite('Conda Creation provider tests', () => {
         assert.isTrue(showErrorMessageWithLogsStub.calledOnce);
         assert.isTrue(pickExistingCondaActionStub.calledOnce);
     });
+
+    test('Use existing conda environment', async () => {
+        getCondaBaseEnvStub.resolves('/usr/bin/conda');
+        const workspace1 = {
+            uri: Uri.file(path.join(EXTENSION_ROOT_DIR_FOR_TESTS, 'src', 'testMultiRootWkspc', 'workspace1')),
+            name: 'workspace1',
+            index: 0,
+        };
+        pickWorkspaceFolderStub.resolves(workspace1);
+        pickExistingCondaActionStub.resolves(condaUtils.ExistingCondaAction.UseExisting);
+        getPrefixCondaEnvPathStub.returns('existing_environment');
+
+        const result = await condaProvider.createEnvironment();
+        assert.isTrue(showErrorMessageWithLogsStub.notCalled);
+        assert.isTrue(pickPythonVersionStub.notCalled);
+        assert.isTrue(execObservableStub.notCalled);
+        assert.isTrue(withProgressStub.notCalled);
+
+        assert.deepStrictEqual(result, { path: 'existing_environment', workspaceFolder: workspace1 });
+    });
 });