diff --git a/install.ps1 b/install.ps1
index 9cd8700aaf..eb9b32f4ff 100644
--- a/install.ps1
+++ b/install.ps1
@@ -100,13 +100,23 @@ function Install-UnslothStudio {
     Write-Host ""
 
     # ── Helper: refresh PATH from registry (deduplicating entries) ──
-    # Process entries first so an activated venv keeps precedence, then
-    # machine/user. Dedup by both raw and expanded form so %VAR% and
-    # already-expanded copies of the same dir don't both survive.
+    # Merge order:
+    #   1. Activated venv Scripts dir (only if $env:VIRTUAL_ENV is set) so an
+    #      explicitly-activated venv keeps precedence.
+    #   2. Machine, then User PATH freshly read from registry so a tool we
+    #      just installed wins over any stale shim still in $env:Path.
+    #   3. Current $env:Path as fallback so process-only entries that nothing
+    #      else covers are not lost.
+    # Dedup compares both raw and expanded forms so %VAR% references don't
+    # survive twice (once as %VAR%\foo and once as the expanded literal).
     function Refresh-SessionPath {
         $machine = [System.Environment]::GetEnvironmentVariable("Path", "Machine")
         $user    = [System.Environment]::GetEnvironmentVariable("Path", "User")
-        $merged  = "$env:Path;$machine;$user"
+        $venvScripts = if ($env:VIRTUAL_ENV) { Join-Path $env:VIRTUAL_ENV "Scripts" } else { $null }
+        $sources = @()
+        if ($venvScripts) { $sources += $venvScripts }
+        $sources += @($machine, $user, $env:Path)
+        $merged = ($sources | Where-Object { $_ }) -join ";"
         $seen    = @{}
         $unique  = New-Object System.Collections.Generic.List[string]
         foreach ($p in $merged -split ";") {
diff --git a/studio/setup.ps1 b/studio/setup.ps1
index 37df5b1fb1..052bfc8f83 100644
--- a/studio/setup.ps1
+++ b/studio/setup.ps1
@@ -73,10 +73,20 @@ function Refresh-Environment {
     }
     $machinePath = [System.Environment]::GetEnvironmentVariable('Path', 'Machine')
     $userPath = [System.Environment]::GetEnvironmentVariable('Path', 'User')
-    # Process entries first so an activated venv keeps precedence, then
-    # machine/user. Dedup by both raw and expanded form so %VAR% and
-    # already-expanded copies of the same dir don't both survive.
-    $merged = "$env:Path;$machinePath;$userPath"
+    # Merge order:
+    #   1. Activated venv Scripts dir (only if $env:VIRTUAL_ENV is set) so an
+    #      explicitly-activated venv keeps precedence.
+    #   2. Machine, then User PATH freshly read from registry so a tool we
+    #      just installed wins over any stale shim still in $env:Path.
+    #   3. Current $env:Path as fallback so process-only entries that nothing
+    #      else covers are not lost.
+    # Dedup compares both raw and expanded forms so %VAR% references don't
+    # survive twice (once as %VAR%\foo and once as the expanded literal).
+    $venvScripts = if ($env:VIRTUAL_ENV) { Join-Path $env:VIRTUAL_ENV 'Scripts' } else { $null }
+    $sources = @()
+    if ($venvScripts) { $sources += $venvScripts }
+    $sources += @($machinePath, $userPath, $env:Path)
+    $merged = ($sources | Where-Object { $_ }) -join ';'
     $seen = @{}
     $unique = New-Object System.Collections.Generic.List[string]
     foreach ($p in $merged -split ";") {