diff --git a/.vscode/launch.json b/.vscode/launch.json
index ba8900b0a5d0..12c7c3ce5dc0 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -160,7 +160,7 @@
                 "--ui=tdd",
                 "--recursive",
                 "--colors",
-                "--grep", "Terminal Environment Variable Collection",
+                //"--grep", "Terminal Environment Variable Collection Pr",
                 "--timeout=300000"
             ],
             "outFiles": ["${workspaceFolder}/out/**/*.js", "!${workspaceFolder}/**/node_modules**/*"],
diff --git a/src/client/interpreter/activation/terminalEnvVarCollectionService.ts b/src/client/interpreter/activation/terminalEnvVarCollectionService.ts
index 4f3ea9ea6cbf..81edb852dda4 100644
--- a/src/client/interpreter/activation/terminalEnvVarCollectionService.ts
+++ b/src/client/interpreter/activation/terminalEnvVarCollectionService.ts
@@ -191,8 +191,14 @@ export class TerminalEnvVarCollectionService implements IExtensionActivationServ
                                 applyAtShellIntegration: true,
                                 applyAtProcessCreation: true,
                             });
-                            return;
+                        } else {
+                            traceVerbose(`Prepending environment variable ${key} in collection to ${value}`);
+                            envVarCollection.prepend(key, value, {
+                                applyAtShellIntegration: true,
+                                applyAtProcessCreation: true,
+                            });
                         }
+                        return;
                     }
                     traceVerbose(`Setting environment variable ${key} in collection to ${value}`);
                     envVarCollection.replace(key, value, {