diff --git a/src/managers/pipenv/pipenvUtils.ts b/src/managers/pipenv/pipenvUtils.ts
index f6875c29..4c2bacf8 100644
--- a/src/managers/pipenv/pipenvUtils.ts
+++ b/src/managers/pipenv/pipenvUtils.ts
@@ -1,6 +1,8 @@
 // Utility functions for Pipenv environment management
 
+import * as nativeFs from 'fs';
 import * as fs from 'fs-extra';
+import * as os from 'os';
 import * as path from 'path';
 import { Uri } from 'vscode';
 import which from 'which';
@@ -285,3 +287,59 @@ export async function setPipenvForWorkspaces(fsPath: string[], envPath: string |
     });
     await state.set(PIPENV_WORKSPACE_KEY, data);
 }
+
+/**
+ * Get the directories where pipenv virtualenvs may be stored.
+ *
+ * Pipenv can store virtualenvs in multiple locations with this priority:
+ * 1. WORKON_HOME (if set) - commonly shared with virtualenvwrapper
+ * 2. XDG_DATA_HOME/virtualenvs (Linux, if XDG_DATA_HOME is set)
+ * 3. ~/.local/share/virtualenvs (Linux/macOS default)
+ * 4. ~/.virtualenvs (Windows default)
+ *
+ * @returns Array of existing virtualenv directories
+ */
+export function getPipenvVirtualenvDirs(): string[] {
+    const dirs: string[] = [];
+
+    // WORKON_HOME takes precedence (shared with virtualenvwrapper)
+    const workonHome = process.env.WORKON_HOME;
+    if (workonHome) {
+        const resolved = untildify(workonHome);
+        if (nativeFs.existsSync(resolved)) {
+            dirs.push(resolved);
+            traceVerbose(`Pipenv: WORKON_HOME found at ${resolved}`);
+        } else {
+            traceVerbose(`Pipenv: WORKON_HOME set but does not exist: ${resolved}`);
+        }
+    }
+
+    // XDG_DATA_HOME/virtualenvs (primarily Linux, but check on all platforms)
+    const xdgDataHome = process.env.XDG_DATA_HOME;
+    if (xdgDataHome) {
+        const xdgVenvs = path.join(untildify(xdgDataHome), 'virtualenvs');
+        if (nativeFs.existsSync(xdgVenvs) && !dirs.includes(xdgVenvs)) {
+            dirs.push(xdgVenvs);
+            traceVerbose(`Pipenv: XDG_DATA_HOME/virtualenvs found at ${xdgVenvs}`);
+        }
+    }
+
+    // Platform-specific defaults
+    if (process.platform === 'linux' || process.platform === 'darwin') {
+        // Linux/macOS: ~/.local/share/virtualenvs
+        const defaultUnix = path.join(os.homedir(), '.local', 'share', 'virtualenvs');
+        if (nativeFs.existsSync(defaultUnix) && !dirs.includes(defaultUnix)) {
+            dirs.push(defaultUnix);
+            traceVerbose(`Pipenv: Platform default found at ${defaultUnix}`);
+        }
+    } else if (process.platform === 'win32') {
+        // Windows: ~/.virtualenvs
+        const defaultWin = path.join(os.homedir(), '.virtualenvs');
+        if (nativeFs.existsSync(defaultWin) && !dirs.includes(defaultWin)) {
+            dirs.push(defaultWin);
+            traceVerbose(`Pipenv: Platform default found at ${defaultWin}`);
+        }
+    }
+
+    return dirs;
+}
diff --git a/src/test/managers/pipenv/pipenvUtils.getPipenvVirtualenvDirs.unit.test.ts b/src/test/managers/pipenv/pipenvUtils.getPipenvVirtualenvDirs.unit.test.ts
new file mode 100644
index 00000000..f4c7bdcf
--- /dev/null
+++ b/src/test/managers/pipenv/pipenvUtils.getPipenvVirtualenvDirs.unit.test.ts
@@ -0,0 +1,175 @@
+import assert from 'assert';
+import * as fs from 'fs';
+import * as os from 'os';
+import * as path from 'path';
+import { getPipenvVirtualenvDirs } from '../../../managers/pipenv/pipenvUtils';
+
+/**
+ * Tests for getPipenvVirtualenvDirs.
+ *
+ * The function should return directories where pipenv virtualenvs are stored,
+ * checking these locations in priority order:
+ * 1. WORKON_HOME (if set and exists)
+ * 2. XDG_DATA_HOME/virtualenvs (if XDG_DATA_HOME is set and path exists)
+ * 3. ~/.local/share/virtualenvs (Linux/macOS default)
+ * 4. ~/.virtualenvs (Windows default)
+ *
+ * These tests use real temp directories for filesystem operations since
+ * native fs.existsSync cannot be stubbed (non-configurable property).
+ */
+suite('Pipenv Utils - getPipenvVirtualenvDirs', () => {
+    let originalEnv: NodeJS.ProcessEnv;
+    let tempDir: string;
+
+    setup(() => {
+        // Save original env
+        originalEnv = { ...process.env };
+
+        // Clear relevant env vars
+        delete process.env.WORKON_HOME;
+        delete process.env.XDG_DATA_HOME;
+
+        // Create a temp directory for tests
+        tempDir = fs.mkdtempSync(path.join(os.tmpdir(), 'pipenv-test-'));
+    });
+
+    teardown(() => {
+        // Restore original env
+        process.env = originalEnv;
+
+        // Clean up temp directory
+        if (tempDir && fs.existsSync(tempDir)) {
+            fs.rmSync(tempDir, { recursive: true, force: true });
+        }
+    });
+
+    test('Returns WORKON_HOME when set and exists', () => {
+        const workonPath = path.join(tempDir, 'workon_home');
+        fs.mkdirSync(workonPath);
+        process.env.WORKON_HOME = workonPath;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        assert.ok(dirs.includes(workonPath), 'WORKON_HOME should be included');
+    });
+
+    test('Ignores WORKON_HOME when set but does not exist', () => {
+        const workonPath = path.join(tempDir, 'nonexistent_workon');
+        // Don't create the directory
+        process.env.WORKON_HOME = workonPath;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        assert.ok(!dirs.includes(workonPath), 'Non-existent WORKON_HOME should not be included');
+    });
+
+    test('Returns XDG_DATA_HOME/virtualenvs when set and exists', () => {
+        const xdgBase = path.join(tempDir, 'xdg_data');
+        const xdgVenvs = path.join(xdgBase, 'virtualenvs');
+        fs.mkdirSync(xdgBase);
+        fs.mkdirSync(xdgVenvs);
+        process.env.XDG_DATA_HOME = xdgBase;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        assert.ok(dirs.includes(xdgVenvs), 'XDG_DATA_HOME/virtualenvs should be included');
+    });
+
+    test('Ignores XDG_DATA_HOME when virtualenvs subdir does not exist', () => {
+        const xdgBase = path.join(tempDir, 'xdg_data_novenvs');
+        fs.mkdirSync(xdgBase);
+        // Don't create virtualenvs subdir
+        process.env.XDG_DATA_HOME = xdgBase;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        const xdgVenvs = path.join(xdgBase, 'virtualenvs');
+        assert.ok(!dirs.includes(xdgVenvs), 'Non-existent XDG_DATA_HOME/virtualenvs should not be included');
+    });
+
+    test('WORKON_HOME takes precedence and appears first', () => {
+        const workonPath = path.join(tempDir, 'workon');
+        const xdgBase = path.join(tempDir, 'xdg');
+        const xdgVenvs = path.join(xdgBase, 'virtualenvs');
+
+        fs.mkdirSync(workonPath);
+        fs.mkdirSync(xdgBase);
+        fs.mkdirSync(xdgVenvs);
+
+        process.env.WORKON_HOME = workonPath;
+        process.env.XDG_DATA_HOME = xdgBase;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        assert.strictEqual(dirs[0], workonPath, 'WORKON_HOME should be first');
+        assert.ok(dirs.includes(xdgVenvs), 'XDG path should also be included');
+    });
+
+    test('Does not include duplicate paths', () => {
+        // This test only makes sense on non-Windows platforms where
+        // XDG_DATA_HOME/virtualenvs might match the default path
+        if (process.platform === 'win32') {
+            return;
+        }
+
+        // Create a unique path that will be used for both XDG and checked for duplicates
+        const venvBase = path.join(tempDir, 'unique_venvs');
+        const virtualenvsPath = path.join(venvBase, 'virtualenvs');
+        fs.mkdirSync(venvBase);
+        fs.mkdirSync(virtualenvsPath);
+
+        // Set XDG_DATA_HOME to the same base
+        process.env.XDG_DATA_HOME = venvBase;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        // Count occurrences of the path
+        const count = dirs.filter((d) => d === virtualenvsPath).length;
+        assert.strictEqual(count, 1, 'Path should not be duplicated');
+    });
+
+    test('Returns multiple directories when all exist', () => {
+        const workonPath = path.join(tempDir, 'workon_multi');
+        const xdgBase = path.join(tempDir, 'xdg_multi');
+        const xdgPath = path.join(xdgBase, 'virtualenvs');
+
+        fs.mkdirSync(workonPath);
+        fs.mkdirSync(xdgBase);
+        fs.mkdirSync(xdgPath);
+
+        process.env.WORKON_HOME = workonPath;
+        process.env.XDG_DATA_HOME = xdgBase;
+
+        const dirs = getPipenvVirtualenvDirs();
+
+        assert.ok(dirs.length >= 2, 'Should return at least two directories');
+        assert.strictEqual(dirs[0], workonPath, 'WORKON_HOME should be first');
+        assert.ok(dirs.includes(xdgPath), 'XDG path should be included');
+    });
+
+    test('Handles tilde expansion in WORKON_HOME', () => {
+        // Create the target directory in user's home
+        const customVenvsName = `.pipenv-test-tilde-${Date.now()}`;
+        const expandedPath = path.join(os.homedir(), customVenvsName);
+        let created = false;
+
+        try {
+            fs.mkdirSync(expandedPath);
+            created = true;
+            // Use path.sep for cross-platform compatibility
+            process.env.WORKON_HOME = `~${path.sep}${customVenvsName}`;
+
+            const dirs = getPipenvVirtualenvDirs();
+
+            // Normalize paths for comparison since untildify might produce different path formats
+            const normalizedDirs = dirs.map((d) => path.normalize(d));
+            const normalizedExpected = path.normalize(expandedPath);
+            assert.ok(normalizedDirs.includes(normalizedExpected), 'Tilde-expanded path should be included');
+        } finally {
+            // Clean up - only if directory was successfully created
+            if (created && fs.existsSync(expandedPath)) {
+                fs.rmSync(expandedPath, { recursive: true, force: true });
+            }
+        }
+    });
+});