diff --git a/package.json b/package.json
index 0414e9df1b04..bd99da6f00a5 100644
--- a/package.json
+++ b/package.json
@@ -456,7 +456,8 @@
                             "pythonPromptNewToolsExt",
                             "pythonTerminalEnvVarActivation",
                             "pythonDiscoveryUsingWorkers",
-                            "pythonTestAdapter"
+                            "pythonTestAdapter",
+                            "pythonEnvExtEnabled"
                         ],
                         "enumDescriptions": [
                             "%python.experiments.All.description%",
@@ -464,7 +465,8 @@
                             "%python.experiments.pythonPromptNewToolsExt.description%",
                             "%python.experiments.pythonTerminalEnvVarActivation.description%",
                             "%python.experiments.pythonDiscoveryUsingWorkers.description%",
-                            "%python.experiments.pythonTestAdapter.description%"
+                            "%python.experiments.pythonTestAdapter.description%",
+                            "%python.experiments.pythonEnvExtEnabled.description%"
                         ]
                     },
                     "scope": "window",
@@ -481,7 +483,8 @@
                             "pythonPromptNewToolsExt",
                             "pythonTerminalEnvVarActivation",
                             "pythonDiscoveryUsingWorkers",
-                            "pythonTestAdapter"
+                            "pythonTestAdapter",
+                            "pythonEnvExtEnabled"
                         ],
                         "enumDescriptions": [
                             "%python.experiments.All.description%",
@@ -489,7 +492,8 @@
                             "%python.experiments.pythonPromptNewToolsExt.description%",
                             "%python.experiments.pythonTerminalEnvVarActivation.description%",
                             "%python.experiments.pythonDiscoveryUsingWorkers.description%",
-                            "%python.experiments.pythonTestAdapter.description%"
+                            "%python.experiments.pythonTestAdapter.description%",
+                            "%python.experiments.pythonEnvExtEnabled.description%"
                         ]
                     },
                     "scope": "window",
diff --git a/package.nls.json b/package.nls.json
index b6ba75b332f2..a6ac7dfdcf60 100644
--- a/package.nls.json
+++ b/package.nls.json
@@ -45,6 +45,7 @@
     "python.experiments.pythonSurveyNotification.description": "Denotes the Python Survey Notification experiment.",
     "python.experiments.pythonPromptNewToolsExt.description": "Denotes the Python Prompt New Tools Extension experiment.",
     "python.experiments.pythonTerminalEnvVarActivation.description": "Enables use of environment variables to activate terminals instead of sending activation commands.",
+    "python.experiments.pythonEnvExtEnabled.description": "Enables the Python Environments extension to be enabled by default.",
     "python.experiments.pythonDiscoveryUsingWorkers.description": "Enables use of worker threads to do heavy computation when discovering interpreters.",
     "python.experiments.pythonTestAdapter.description": "Denotes the Python Test Adapter experiment.",
     "python.experiments.pythonRecommendTensorboardExt.description": "Denotes the Tensorboard Extension recommendation experiment.",
diff --git a/src/client/common/experiments/groups.ts b/src/client/common/experiments/groups.ts
index 12f4ef89018b..decc3aa2f481 100644
--- a/src/client/common/experiments/groups.ts
+++ b/src/client/common/experiments/groups.ts
@@ -11,6 +11,10 @@ export enum TerminalEnvVarActivation {
     experiment = 'pythonTerminalEnvVarActivation',
 }
 
+export enum EnvExtEnabled {
+    experiment = 'pythonEnvExtEnabled',
+}
+
 export enum DiscoveryUsingWorkers {
     experiment = 'pythonDiscoveryUsingWorkers',
 }
diff --git a/src/client/common/experiments/helpers.ts b/src/client/common/experiments/helpers.ts
index f6ae39d260f5..973e271fb9bc 100644
--- a/src/client/common/experiments/helpers.ts
+++ b/src/client/common/experiments/helpers.ts
@@ -5,9 +5,10 @@
 
 import { env, workspace } from 'vscode';
 import { IExperimentService } from '../types';
-import { TerminalEnvVarActivation } from './groups';
+import { EnvExtEnabled, TerminalEnvVarActivation } from './groups';
 import { isTestExecution } from '../constants';
 import { traceInfo } from '../../logging';
+import { inExperiment } from '../../pythonEnvironments/common/externalDependencies';
 
 export function inTerminalEnvVarExperiment(experimentService: IExperimentService): boolean {
     if (!isTestExecution() && env.remoteName && workspace.workspaceFolders && workspace.workspaceFolders.length > 1) {
@@ -20,3 +21,7 @@ export function inTerminalEnvVarExperiment(experimentService: IExperimentService
     }
     return true;
 }
+
+export function inEnvExtEnabledExperiment(): boolean {
+    return inExperiment(EnvExtEnabled.experiment);
+}
diff --git a/src/client/envExt/api.internal.ts b/src/client/envExt/api.internal.ts
index 552e31a0598e..71c480200c2d 100644
--- a/src/client/envExt/api.internal.ts
+++ b/src/client/envExt/api.internal.ts
@@ -14,6 +14,7 @@ import {
 } from './types';
 import { executeCommand } from '../common/vscodeApis/commandApis';
 import { IInterpreterPathService } from '../common/types';
+import { inEnvExtEnabledExperiment } from '../common/experiments/helpers';
 
 export const ENVS_EXTENSION_ID = 'ms-python.vscode-python-envs';
 
@@ -22,7 +23,8 @@ export function useEnvExtension(): boolean {
     if (_useExt !== undefined) {
         return _useExt;
     }
-    _useExt = !!getExtension(ENVS_EXTENSION_ID);
+    // If extension is installed and in experiment, then use it.
+    _useExt = !!getExtension(ENVS_EXTENSION_ID) && inEnvExtEnabledExperiment();
     return _useExt;
 }