diff --git a/src/develop.rs b/src/develop.rs
index 9e09770b9..6d01822b8 100644
--- a/src/develop.rs
+++ b/src/develop.rs
@@ -38,8 +38,8 @@ impl InstallBackend {
         }
     }
 
-    fn version(&self, python_path: &Path) -> Result<semver::Version> {
-        let mut cmd = self.make_command(python_path);
+    fn version(&self, python_path: &Path, venv_dir: &Path) -> Result<semver::Version> {
+        let mut cmd = self.make_command(python_path, venv_dir);
         let output = cmd
             .arg("--version")
             .output()
@@ -62,12 +62,12 @@ impl InstallBackend {
     }
 
     /// check whether this install backend supports `show --files`. Returns Ok(()) if it does.
-    fn check_supports_show_files(&self, python_path: &Path) -> Result<()> {
+    fn check_supports_show_files(&self, python_path: &Path, venv_dir: &Path) -> Result<()> {
         match self {
             InstallBackend::Pip { .. } => Ok(()),
             InstallBackend::Uv { .. } => {
                 // https://github.com/astral-sh/uv/releases/tag/0.4.25
-                let version = self.version(python_path)?;
+                let version = self.version(python_path, venv_dir)?;
                 if version < semver::Version::new(0, 4, 25) {
                     bail!(
                         "uv >= 0.4.25 is required for `show --files`. Version {} was found.",
@@ -87,7 +87,7 @@ impl InstallBackend {
         }
     }
 
-    fn make_command(&self, python_path: &Path) -> Command {
+    fn make_command(&self, python_path: &Path, venv_dir: &Path) -> Command {
         match self {
             InstallBackend::Pip { path } => match &path {
                 Some(path) => {
@@ -106,6 +106,9 @@ impl InstallBackend {
             InstallBackend::Uv { path, args } => {
                 let mut cmd = Command::new(path);
                 cmd.args(args).arg("pip");
+                if std::env::var_os("VIRTUAL_ENV").is_none() {
+                    cmd.env("VIRTUAL_ENV", venv_dir);
+                }
                 cmd
             }
         }
@@ -225,6 +228,7 @@ fn install_dependencies(
     build_context: &BuildContext,
     extras: &[String],
     interpreter: &PythonInterpreter,
+    venv_dir: &Path,
     install_backend: &InstallBackend,
 ) -> Result<()> {
     if !build_context.metadata24.requires_dist.is_empty() {
@@ -256,7 +260,7 @@ fn install_dependencies(
             pkg.to_string()
         }));
         let status = install_backend
-            .make_command(&interpreter.executable)
+            .make_command(&interpreter.executable, venv_dir)
             .args(&args)
             .status()
             .context("Failed to run pip install")?;
@@ -275,7 +279,7 @@ fn install_wheel(
     wheel_filename: &Path,
     install_backend: &InstallBackend,
 ) -> Result<()> {
-    let mut cmd = install_backend.make_command(python);
+    let mut cmd = install_backend.make_command(python, venv_dir);
     let output = cmd
         .args(["install", "--no-deps", "--force-reinstall"])
         .arg(dunce::simplified(wheel_filename))
@@ -305,7 +309,7 @@ fn install_wheel(
             String::from_utf8_lossy(&output.stderr).trim(),
         );
     }
-    if let Err(err) = configure_as_editable(build_context, python, install_backend) {
+    if let Err(err) = configure_as_editable(build_context, python, venv_dir, install_backend) {
         eprintln!("⚠️ Warning: failed to set package as editable: {}", err);
     }
     Ok(())
@@ -322,11 +326,12 @@ fn install_wheel(
 fn configure_as_editable(
     build_context: &BuildContext,
     python: &Path,
+    venv_dir: &Path,
     install_backend: &InstallBackend,
 ) -> Result<()> {
     println!("✏️ Setting installed package as editable");
-    install_backend.check_supports_show_files(python)?;
-    let mut cmd = install_backend.make_command(python);
+    install_backend.check_supports_show_files(python, venv_dir)?;
+    let mut cmd = install_backend.make_command(python, venv_dir);
     let cmd = cmd.args(["show", "--files", &build_context.metadata24.name]);
     debug!("running {:?}", cmd);
     let output = cmd.output()?;
@@ -460,7 +465,13 @@ pub fn develop(develop_options: DevelopOptions, venv_dir: &Path) -> Result<()> {
         }
     };
 
-    install_dependencies(&build_context, &extras, &interpreter, &install_backend)?;
+    install_dependencies(
+        &build_context,
+        &extras,
+        &interpreter,
+        venv_dir,
+        &install_backend,
+    )?;
 
     let wheels = build_context.build_wheels()?;
     if !skip_install {