diff --git a/src/client/interpreter/activation/terminalEnvVarCollectionPrompt.ts b/src/client/interpreter/activation/terminalEnvVarCollectionPrompt.ts
index 8b7850514874..b5d42f0e7dbe 100644
--- a/src/client/interpreter/activation/terminalEnvVarCollectionPrompt.ts
+++ b/src/client/interpreter/activation/terminalEnvVarCollectionPrompt.ts
@@ -3,6 +3,7 @@
 
 import { inject, injectable } from 'inversify';
 import { Uri } from 'vscode';
+import * as path from 'path';
 import { IActiveResourceService, IApplicationShell, ITerminalManager } from '../../common/application/types';
 import {
     IConfigurationService,
@@ -16,6 +17,7 @@ import { IExtensionSingleActivationService } from '../../activation/types';
 import { ITerminalEnvVarCollectionService } from './types';
 import { inTerminalEnvVarExperiment } from '../../common/experiments/helpers';
 import { IInterpreterService } from '../contracts';
+import { PythonEnvironment } from '../../pythonEnvironments/info';
 
 export const terminalEnvCollectionPromptKey = 'TERMINAL_ENV_COLLECTION_PROMPT_KEY';
 
@@ -70,7 +72,7 @@ export class TerminalEnvVarCollectionPrompt implements IExtensionSingleActivatio
         }
         const prompts = [Common.doNotShowAgain];
         const interpreter = await this.interpreterService.getActiveInterpreter(resource);
-        const terminalPromptName = interpreter?.envName ? ` (${interpreter.envName})` : '';
+        const terminalPromptName = getPromptName(interpreter);
         const selection = await this.appShell.showInformationMessage(
             Interpreters.terminalEnvVarCollectionPrompt.format(terminalPromptName),
             ...prompts,
@@ -83,3 +85,16 @@ export class TerminalEnvVarCollectionPrompt implements IExtensionSingleActivatio
         }
     }
 }
+
+function getPromptName(interpreter?: PythonEnvironment) {
+    if (!interpreter) {
+        return '';
+    }
+    if (interpreter.envName) {
+        return ` "(${interpreter.envName})"`;
+    }
+    if (interpreter.envPath) {
+        return ` "(${path.basename(interpreter.envPath)})"`;
+    }
+    return '';
+}
diff --git a/src/test/interpreters/activation/terminalEnvVarCollectionPrompt.unit.test.ts b/src/test/interpreters/activation/terminalEnvVarCollectionPrompt.unit.test.ts
index e1bc2d171226..7bddbdcbbfe0 100644
--- a/src/test/interpreters/activation/terminalEnvVarCollectionPrompt.unit.test.ts
+++ b/src/test/interpreters/activation/terminalEnvVarCollectionPrompt.unit.test.ts
@@ -35,7 +35,7 @@ suite('Terminal Environment Variable Collection Prompt', () => {
     let interpreterService: IInterpreterService;
     const prompts = [Common.doNotShowAgain];
     const envName = 'env';
-    const expectedMessage = Interpreters.terminalEnvVarCollectionPrompt.format(` (${envName})`);
+    const expectedMessage = Interpreters.terminalEnvVarCollectionPrompt.format(` "(${envName})"`);
 
     setup(async () => {
         shell = mock<IApplicationShell>();