diff --git a/src/client/envExt/api.internal.ts b/src/client/envExt/api.internal.ts
index c4247f63a3c5..d049ad22602c 100644
--- a/src/client/envExt/api.internal.ts
+++ b/src/client/envExt/api.internal.ts
@@ -89,9 +89,15 @@ export async function runInTerminal(
     args?: string[],
     cwd?: string | Uri,
     show?: boolean,
+    interpreterPath?: string,
 ): Promise<Terminal> {
     const envExtApi = await getEnvExtApi();
-    const env = await getEnvironment(resource);
+    let env;
+    if (interpreterPath) {
+        env = await envExtApi.resolveEnvironment(Uri.file(interpreterPath));
+    } else {
+        env = await getEnvironment(resource);
+    }
     const project = resource ? envExtApi.getPythonProject(resource) : undefined;
     if (env && resource) {
         return envExtApi.runInTerminal(env, {
@@ -108,9 +114,15 @@ export async function runInDedicatedTerminal(
     args?: string[],
     cwd?: string | Uri,
     show?: boolean,
+    interpreterPath?: string,
 ): Promise<Terminal> {
     const envExtApi = await getEnvExtApi();
-    const env = await getEnvironment(resource);
+    let env;
+    if (interpreterPath) {
+        env = await envExtApi.resolveEnvironment(Uri.file(interpreterPath));
+    } else {
+        env = await getEnvironment(resource);
+    }
     const project = resource ? envExtApi.getPythonProject(resource) : undefined;
     if (env) {
         return envExtApi.runInDedicatedTerminal(resource ?? 'global', env, {
diff --git a/src/client/terminals/codeExecution/codeExecutionManager.ts b/src/client/terminals/codeExecution/codeExecutionManager.ts
index 740256ca78b3..51850cfc3bea 100644
--- a/src/client/terminals/codeExecution/codeExecutionManager.ts
+++ b/src/client/terminals/codeExecution/codeExecutionManager.ts
@@ -130,6 +130,12 @@ export class CodeExecutionManager implements ICodeExecutionManager {
         if (!fileToExecute) {
             return;
         }
+
+        const pythonSettings = this.configSettings.getSettings(file);
+
+        // Check on setting python.defaultInterpreterPath
+        const defaultInterpreterPath = pythonSettings.defaultInterpreterPath;
+
         const fileAfterSave = await codeExecutionHelper.saveFileIfDirty(fileToExecute);
         if (fileAfterSave) {
             fileToExecute = fileAfterSave;
@@ -143,6 +149,7 @@ export class CodeExecutionManager implements ICodeExecutionManager {
                 [fileToExecute.fsPath.fileToCommandArgumentForPythonExt()],
                 undefined,
                 show,
+                defaultInterpreterPath,
             );
         } else {
             terminal = await runInTerminal(
@@ -150,6 +157,7 @@ export class CodeExecutionManager implements ICodeExecutionManager {
                 [fileToExecute.fsPath.fileToCommandArgumentForPythonExt()],
                 undefined,
                 show,
+                defaultInterpreterPath,
             );
         }