diff --git a/package.json b/package.json
index 3d0cd34bbf17..43736a65c2a5 100644
--- a/package.json
+++ b/package.json
@@ -82,7 +82,8 @@
         "onLanguageModelTool:get_python_environment_details",
         "onLanguageModelTool:get_python_executable_details",
         "onLanguageModelTool:install_python_packages",
-        "onLanguageModelTool:configure_python_environment"
+        "onLanguageModelTool:configure_python_environment",
+        "onLanguageModelTool:create_virtual_environment"
     ],
     "main": "./out/client/extension",
     "browser": "./dist/extension.browser.js",
@@ -1523,6 +1524,7 @@
                 "modelDescription": "Installs Python packages in the given workspace. Use this tool to install packages in the user's chosen environment. ALWAYS call configure_python_environment before using this tool.",
                 "toolReferenceName": "pythonInstallPackage",
                 "tags": [
+                    "install python package",
                     "extension_installed_by_tool",
                     "enable_other_tool_configure_python_environment"
                 ],
@@ -1576,9 +1578,7 @@
                 "name": "create_virtual_environment",
                 "displayName": "Create a Virtual Environment",
                 "modelDescription": "This tool will create a Virual Environment",
-                "tags": [
-                    "extension_installed_by_tool"
-                ],
+                "tags": [],
                 "canBeReferencedInPrompt": false,
                 "inputSchema": {
                     "type": "object",
@@ -1596,9 +1596,7 @@
                 "name": "selectEnvironment",
                 "displayName": "Select a Python Environment",
                 "modelDescription": "This tool will prompt the user to select an existing Python Environment",
-                "tags": [
-                    "extension_installed_by_tool"
-                ],
+                "tags": [],
                 "canBeReferencedInPrompt": false,
                 "inputSchema": {
                     "type": "object",
diff --git a/src/client/chat/configurePythonEnvTool.ts b/src/client/chat/configurePythonEnvTool.ts
index a8a18a1d3852..6117285a523e 100644
--- a/src/client/chat/configurePythonEnvTool.ts
+++ b/src/client/chat/configurePythonEnvTool.ts
@@ -28,6 +28,7 @@ import { ITerminalHelper } from '../common/terminal/types';
 import { IRecommendedEnvironmentService } from '../interpreter/configuration/types';
 import { CreateVirtualEnvTool } from './createVirtualEnvTool';
 import { ISelectPythonEnvToolArguments, SelectPythonEnvTool } from './selectEnvTool';
+import { useEnvExtension } from '../envExt/api.internal';
 
 export class ConfigurePythonEnvTool implements LanguageModelTool<IResourceReference> {
     private readonly terminalExecutionService: TerminalCodeExecutionProvider;
@@ -77,7 +78,10 @@ export class ConfigurePythonEnvTool implements LanguageModelTool<IResourceRefere
 
         if (await this.createEnvTool.shouldCreateNewVirtualEnv(resource, token)) {
             try {
-                return await lm.invokeTool(CreateVirtualEnvTool.toolName, options, token);
+                // If the Python Env extension is available, then use that.
+                // create_quick_virtual_environment
+                const toolName = useEnvExtension() ? 'create_quick_virtual_environment' : CreateVirtualEnvTool.toolName;
+                return await lm.invokeTool(toolName, options, token);
             } catch (ex) {
                 if (isCancellationError(ex)) {
                     const input: ISelectPythonEnvToolArguments = {
diff --git a/src/client/chat/createVirtualEnvTool.ts b/src/client/chat/createVirtualEnvTool.ts
index b62fa33ea02f..b27845a0ec2f 100644
--- a/src/client/chat/createVirtualEnvTool.ts
+++ b/src/client/chat/createVirtualEnvTool.ts
@@ -161,6 +161,7 @@ export class CreateVirtualEnvTool implements LanguageModelTool<IResourceReferenc
                 title: l10n.t('Create a Virtual Environment{0}?', version ? ` (${version})` : ''),
                 message: l10n.t(`Virtual Environments provide the benefit of package isolation and more.`),
             },
+            invocationMessage: l10n.t('Creating a Virtual Environment'),
         };
     }
     async hasAlreadyGotAWorkspaceSpecificEnvironment(resource: Uri | undefined) {