diff --git a/template/pyproject.toml.jinja b/template/pyproject.toml.jinja
index 747c3eda..d8ab2b1c 100644
--- a/template/pyproject.toml.jinja
+++ b/template/pyproject.toml.jinja
@@ -104,7 +104,7 @@ commands = [
     [
         "{{ type_checker }}",
         {% if type_checker=="pyright" %}"--pythonpath",
-        ".venv/bin/python",
+        "{env:VIRTUAL_ENV}/bin/python",
         {% endif %}"src",
         "tests",
         { replace = "posargs", default = [
@@ -116,7 +116,7 @@ commands = [
 description = "Run tests with coverage"
 commands = [
     [
-        "pytest", 
+        "pytest",
         "--cov={{ package_name }}",
         "--cov-report",
         "term",
diff --git a/tests/test_example.py b/tests/test_example.py
index 4b149e6b..ea94347b 100644
--- a/tests/test_example.py
+++ b/tests/test_example.py
@@ -1,5 +1,6 @@
 import functools
 import json
+import os
 import shlex
 import subprocess
 import tomllib
@@ -27,12 +28,13 @@ def copy_project(project_path: Path, **kwargs):
     run_pipe("git add .", cwd=str(project_path))
 
 
-def run_pipe(cmd: str, cwd=None) -> str:
+def run_pipe(cmd: str, cwd=None, venv="") -> str:
     sp = subprocess.run(
         shlex.split(cmd),
         stdout=subprocess.PIPE,
         stderr=subprocess.STDOUT,
         cwd=cwd,
+        env=dict(os.environ, UV_PROJECT_ENVIRONMENT="", VIRTUAL_ENV=venv),
     )
     output = sp.stdout.decode()
     assert sp.returncode == 0, output
@@ -41,7 +43,7 @@ def run_pipe(cmd: str, cwd=None) -> str:
 
 def make_venv(project_path: Path) -> Callable[[str], str]:
     venv_path = project_path / ".venv"
-    run = functools.partial(run_pipe, cwd=str(project_path))
+    run = functools.partial(run_pipe, cwd=str(project_path), venv=venv_path)
     run("uv sync")  # Create a lockfile and install packages
 
     for exe_path in [