diff --git a/src/client/interpreter/configuration/interpreterSelector/commands/resetInterpreter.ts b/src/client/interpreter/configuration/interpreterSelector/commands/resetInterpreter.ts
index c10f90781adb..bb7283a06c64 100644
--- a/src/client/interpreter/configuration/interpreterSelector/commands/resetInterpreter.ts
+++ b/src/client/interpreter/configuration/interpreterSelector/commands/resetInterpreter.ts
@@ -9,8 +9,9 @@ import { Commands } from '../../../../common/constants';
 import { IConfigurationService, IPathUtils } from '../../../../common/types';
 import { IPythonPathUpdaterServiceManager } from '../../types';
 import { BaseInterpreterSelectorCommand } from './base';
-import { useEnvExtension } from '../../../../envExt/api.internal';
+import { shouldEnvExtHandleActivation, useEnvExtension } from '../../../../envExt/api.internal';
 import { resetInterpreterLegacy } from '../../../../envExt/api.legacy';
+import { traceError } from '../../../../logging';
 
 @injectable()
 export class ResetInterpreterCommand extends BaseInterpreterSelectorCommand {
@@ -48,8 +49,10 @@ export class ResetInterpreterCommand extends BaseInterpreterSelectorCommand {
                 const configTarget = targetConfig.configTarget;
                 const wkspace = targetConfig.folderUri;
                 await this.pythonPathUpdaterService.updatePythonPath(undefined, configTarget, 'ui', wkspace);
-                if (useEnvExtension()) {
-                    await resetInterpreterLegacy(wkspace);
+                if (useEnvExtension() || shouldEnvExtHandleActivation()) {
+                    await resetInterpreterLegacy(wkspace).catch((ex) =>
+                        traceError('Failed to report interpreter reset to the Python Environments extension', ex),
+                    );
                 }
             }),
         );
diff --git a/src/client/interpreter/configuration/interpreterSelector/commands/setInterpreter.ts b/src/client/interpreter/configuration/interpreterSelector/commands/setInterpreter.ts
index a629d1bc793c..859d555e5675 100644
--- a/src/client/interpreter/configuration/interpreterSelector/commands/setInterpreter.ts
+++ b/src/client/interpreter/configuration/interpreterSelector/commands/setInterpreter.ts
@@ -45,10 +45,11 @@ import {
     IPythonPathUpdaterServiceManager,
     ISpecialQuickPickItem,
 } from '../../types';
-import { BaseInterpreterSelectorCommand } from './base';
 import { untildify } from '../../../../common/helpers';
-import { useEnvExtension } from '../../../../envExt/api.internal';
+import { shouldEnvExtHandleActivation, useEnvExtension } from '../../../../envExt/api.internal';
+import { traceError } from '../../../../logging';
 import { setInterpreterLegacy } from '../../../../envExt/api.legacy';
+import { BaseInterpreterSelectorCommand } from './base';
 import { CreateEnvironmentResult } from '../../../../pythonEnvironments/creation/proposed.createEnvApis';
 
 export type InterpreterStateArgs = { path?: string; workspace: Resource };
@@ -606,8 +607,10 @@ export class SetInterpreterCommand extends BaseInterpreterSelectorCommand implem
             // an empty string, in which case we should update.
             // Having the value `undefined` means user cancelled the quickpick, so we update nothing in that case.
             await this.pythonPathUpdaterService.updatePythonPath(interpreterState.path, configTarget, 'ui', wkspace);
-            if (useEnvExtension()) {
-                await setInterpreterLegacy(interpreterState.path, wkspace);
+            if (useEnvExtension() || shouldEnvExtHandleActivation()) {
+                await setInterpreterLegacy(interpreterState.path, wkspace).catch((ex) =>
+                    traceError('Failed to report newly-selected interpreter to the Python Environments extension', ex),
+                );
             }
             return { path: interpreterState.path };
         }
diff --git a/src/client/interpreter/interpreterService.ts b/src/client/interpreter/interpreterService.ts
index 54c1e0b585b8..104d7c4db10b 100644
--- a/src/client/interpreter/interpreterService.ts
+++ b/src/client/interpreter/interpreterService.ts
@@ -46,7 +46,7 @@ import {
     TriggerRefreshOptions,
 } from '../pythonEnvironments/base/locator';
 import { sleep } from '../common/utils/async';
-import { useEnvExtension } from '../envExt/api.internal';
+import { shouldEnvExtHandleActivation, useEnvExtension } from '../envExt/api.internal';
 import { getActiveInterpreterLegacy } from '../envExt/api.legacy';
 
 type StoredPythonEnvironment = PythonEnvironment & { store?: boolean };
@@ -318,7 +318,7 @@ export class InterpreterService implements Disposable, IInterpreterService {
     }
 
     private async resolveActiveInterpreter(resource?: Uri): Promise<StoredPythonEnvironment | undefined> {
-        if (useEnvExtension()) {
+        if (useEnvExtension() || shouldEnvExtHandleActivation()) {
             return getActiveInterpreterLegacy(resource);
         }