diff --git a/studio/setup.ps1 b/studio/setup.ps1
index 819ca26923..bf0ba754f0 100644
--- a/studio/setup.ps1
+++ b/studio/setup.ps1
@@ -653,7 +653,7 @@ Write-Host "[OK] Using $PythonCmd ($(& $PythonCmd --version 2>&1))" -ForegroundC
 
 # Always create a .venv for isolation -- even for pip installs.
 # Created in the repo root (parent of studio/).
-$VenvDir = Join-Path (Split-Path -Parent $PSScriptRoot) ".venv"
+$VenvDir = Join-Path $env:USERPROFILE ".unsloth\studio\.venv"
 if (-not (Test-Path $VenvDir)) {
     Write-Host "   Creating virtual environment at $VenvDir..." -ForegroundColor Cyan
     & $PythonCmd -m venv $VenvDir
@@ -726,7 +726,7 @@ $ErrorActionPreference = $prevEAP
 # The training subprocess just prepends .venv_t5/ to sys.path — instant switch.
 Write-Host ""
 Write-Host "   Pre-installing transformers 5.x for newer model support..." -ForegroundColor Cyan
-$VenvT5Dir = Join-Path (Split-Path -Parent $PSScriptRoot) ".venv_t5"
+$VenvT5Dir = Join-Path $env:USERPROFILE ".unsloth\studio\.venv_t5"
 if (Test-Path $VenvT5Dir) { Remove-Item -Recurse -Force $VenvT5Dir }
 New-Item -ItemType Directory -Path $VenvT5Dir -Force | Out-Null
 $prevEAP_t5 = $ErrorActionPreference