diff --git a/setup.cfg b/setup.cfg
index 42dc53bb882..ad0b12a3e32 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -138,6 +138,8 @@ ignore_missing_imports = True
 ignore_missing_imports = True
 [mypy-cftime.*]
 ignore_missing_imports = True
+[mypy-cupy.*]
+ignore_missing_imports = True
 [mypy-dask.*]
 ignore_missing_imports = True
 [mypy-distributed.*]
diff --git a/xarray/core/duck_array_ops.py b/xarray/core/duck_array_ops.py
index df579d23544..e82978ef600 100644
--- a/xarray/core/duck_array_ops.py
+++ b/xarray/core/duck_array_ops.py
@@ -14,7 +14,7 @@
 
 from . import dask_array_compat, dask_array_ops, dtypes, npcompat, nputils
 from .nputils import nanfirst, nanlast
-from .pycompat import dask_array_type
+from .pycompat import cupy_array_type, dask_array_type
 
 try:
     import dask.array as dask_array
@@ -158,17 +158,23 @@ def trapz(y, x, axis):
 )
 
 
-def asarray(data):
+def asarray(data, xp=np):
     return (
         data
         if (isinstance(data, dask_array_type) or hasattr(data, "__array_function__"))
-        else np.asarray(data)
+        else xp.asarray(data)
     )
 
 
 def as_shared_dtype(scalars_or_arrays):
     """Cast a arrays to a shared dtype using xarray's type promotion rules."""
-    arrays = [asarray(x) for x in scalars_or_arrays]
+
+    if any([isinstance(x, cupy_array_type) for x in scalars_or_arrays]):
+        import cupy as cp
+
+        arrays = [asarray(x, xp=cp) for x in scalars_or_arrays]
+    else:
+        arrays = [asarray(x) for x in scalars_or_arrays]
     # Pass arrays directly instead of dtypes to result_type so scalars
     # get handled properly.
     # Note that result_type() safely gets the dtype from dask arrays without
diff --git a/xarray/core/pycompat.py b/xarray/core/pycompat.py
index aaf52b9f295..dcb78d17cf8 100644
--- a/xarray/core/pycompat.py
+++ b/xarray/core/pycompat.py
@@ -17,3 +17,11 @@
     sparse_array_type = (sparse.SparseArray,)
 except ImportError:  # pragma: no cover
     sparse_array_type = ()
+
+try:
+    # solely for isinstance checks
+    import cupy
+
+    cupy_array_type = (cupy.ndarray,)
+except ImportError:  # pragma: no cover
+    cupy_array_type = ()
diff --git a/xarray/core/variable.py b/xarray/core/variable.py
index c505c749557..f9a41b2cee9 100644
--- a/xarray/core/variable.py
+++ b/xarray/core/variable.py
@@ -33,7 +33,7 @@
 )
 from .npcompat import IS_NEP18_ACTIVE
 from .options import _get_keep_attrs
-from .pycompat import dask_array_type, integer_types
+from .pycompat import cupy_array_type, dask_array_type, integer_types
 from .utils import (
     OrderedSet,
     _default,
@@ -45,9 +45,8 @@
 )
 
 NON_NUMPY_SUPPORTED_ARRAY_TYPES = (
-    indexing.ExplicitlyIndexed,
-    pd.Index,
-) + dask_array_type
+    (indexing.ExplicitlyIndexed, pd.Index,) + dask_array_type + cupy_array_type
+)
 # https://github.com/python/mypy/issues/224
 BASIC_INDEXING_TYPES = integer_types + (slice,)  # type: ignore
 
@@ -257,7 +256,10 @@ def _as_array_or_item(data):
 
     TODO: remove this (replace with np.asarray) once these issues are fixed
     """
-    data = np.asarray(data)
+    if isinstance(data, cupy_array_type):
+        data = data.get()
+    else:
+        data = np.asarray(data)
     if data.ndim == 0:
         if data.dtype.kind == "M":
             data = np.datetime64(data, "ns")
diff --git a/xarray/tests/test_cupy.py b/xarray/tests/test_cupy.py
index 624e78d9271..0276b8ebc08 100644
--- a/xarray/tests/test_cupy.py
+++ b/xarray/tests/test_cupy.py
@@ -48,3 +48,13 @@ def test_check_data_stays_on_gpu(toy_weather_data):
     """Perform some operations and check the data stays on the GPU."""
     freeze = (toy_weather_data["tmin"] <= 0).groupby("time.month").mean("time")
     assert isinstance(freeze.data, cp.core.core.ndarray)
+
+
+def test_where():
+    from xarray.core.duck_array_ops import where
+
+    data = cp.zeros(10)
+
+    output = where(data < 1, 1, data).all()
+    assert output
+    assert isinstance(output, cp.ndarray)