diff --git a/src/client/pythonEnvironments/base/locators/common/nativePythonFinder.ts b/src/client/pythonEnvironments/base/locators/common/nativePythonFinder.ts
index a05fcb8b4de4..55c5ed9f83a3 100644
--- a/src/client/pythonEnvironments/base/locators/common/nativePythonFinder.ts
+++ b/src/client/pythonEnvironments/base/locators/common/nativePythonFinder.ts
@@ -422,7 +422,10 @@ function getCustomVirtualEnvDirs(): string[] {
     const venvFolders = getPythonSettingAndUntildify<string[]>(VENVFOLDERS_SETTING_KEY) ?? [];
     const homeDir = getUserHomeDir();
     if (homeDir) {
-        venvFolders.map((item) => path.join(homeDir, item)).forEach((d) => venvDirs.push(d));
+        venvFolders
+            .map((item) => (item.startsWith(homeDir) ? item : path.join(homeDir, item)))
+            .forEach((d) => venvDirs.push(d));
+        venvFolders.forEach((item) => venvDirs.push(untildify(item)));
     }
     return Array.from(new Set(venvDirs));
 }
diff --git a/src/client/pythonEnvironments/base/locators/lowLevel/customVirtualEnvLocator.ts b/src/client/pythonEnvironments/base/locators/lowLevel/customVirtualEnvLocator.ts
index 4c6a05af4acc..6aa83bbc376b 100644
--- a/src/client/pythonEnvironments/base/locators/lowLevel/customVirtualEnvLocator.ts
+++ b/src/client/pythonEnvironments/base/locators/lowLevel/customVirtualEnvLocator.ts
@@ -41,7 +41,10 @@ async function getCustomVirtualEnvDirs(): Promise<string[]> {
     const venvFolders = getPythonSetting<string[]>(VENVFOLDERS_SETTING_KEY) ?? [];
     const homeDir = getUserHomeDir();
     if (homeDir && (await pathExists(homeDir))) {
-        venvFolders.map((item) => path.join(homeDir, item)).forEach((d) => venvDirs.push(d));
+        venvFolders
+            .map((item) => (item.startsWith(homeDir) ? item : path.join(homeDir, item)))
+            .forEach((d) => venvDirs.push(d));
+        venvFolders.forEach((item) => venvDirs.push(untildify(item)));
     }
     return asyncFilter(uniq(venvDirs), pathExists);
 }