diff --git a/.github/workflows/insiders.yml b/.github/workflows/insiders.yml
index 9f3aa6fb94cc..3834931e8c68 100644
--- a/.github/workflows/insiders.yml
+++ b/.github/workflows/insiders.yml
@@ -174,6 +174,16 @@ jobs:
           python -m pip install pipenv
           python -m pipenv run python ./build/ci/addEnvPath.py ${{env.PYTHON_VIRTUAL_ENVS_LOCATION}} pipenvPath
 
+      - name: Prepare poetry for venv tests
+        env:
+          TEST_FILES_SUFFIX: testvirtualenvs
+        shell: pwsh
+        if: matrix.test-suite == 'venv'
+        run: |
+          python -m pip install poetry
+          Move-Item -Path ".\build\ci\pyproject.toml" -Destination .
+          poetry env use python
+
       - name: Prepare virtualenv for venv tests
         env:
           TEST_FILES_SUFFIX: testvirtualenvs
diff --git a/.github/workflows/nightly-coverage.yml b/.github/workflows/nightly-coverage.yml
index 14ec3f310a1f..ad67d7870b0f 100644
--- a/.github/workflows/nightly-coverage.yml
+++ b/.github/workflows/nightly-coverage.yml
@@ -67,6 +67,16 @@ jobs:
           python -m pip install pipenv
           python -m pipenv run python ./build/ci/addEnvPath.py ${{env.PYTHON_VIRTUAL_ENVS_LOCATION}} pipenvPath
 
+      - name: Prepare poetry for venv tests
+        env:
+          TEST_FILES_SUFFIX: testvirtualenvs
+        shell: pwsh
+        if: matrix.test-suite == 'venv'
+        run: |
+          python -m pip install poetry
+          Move-Item -Path ".\build\ci\pyproject.toml" -Destination .
+          poetry env use python
+
       - name: Prepare virtualenv for venv tests
         env:
           TEST_FILES_SUFFIX: testvirtualenvs
diff --git a/.github/workflows/pr-check.yml b/.github/workflows/pr-check.yml
index dff8e3e10c2c..0dfb9bd2a1e9 100644
--- a/.github/workflows/pr-check.yml
+++ b/.github/workflows/pr-check.yml
@@ -177,6 +177,16 @@ jobs:
           python -m pip install pipenv
           python -m pipenv run python ./build/ci/addEnvPath.py ${{env.PYTHON_VIRTUAL_ENVS_LOCATION}} pipenvPath
 
+      - name: Prepare poetry for venv tests
+        env:
+          TEST_FILES_SUFFIX: testvirtualenvs
+        shell: pwsh
+        if: matrix.test-suite == 'venv'
+        run: |
+          python -m pip install poetry
+          Move-Item -Path ".\build\ci\pyproject.toml" -Destination .
+          poetry env use python
+
       - name: Prepare virtualenv for venv tests
         env:
           TEST_FILES_SUFFIX: testvirtualenvs
@@ -485,6 +495,15 @@ jobs:
           python -m pip install pipenv
           python -m pipenv run python ./build/ci/addEnvPath.py ${{env.PYTHON_VIRTUAL_ENVS_LOCATION}} pipenvPath
 
+      - name: Prepare poetry for venv tests
+        env:
+          TEST_FILES_SUFFIX: testvirtualenvs
+        shell: pwsh
+        run: |
+          python -m pip install poetry
+          Move-Item -Path ".\build\ci\pyproject.toml" -Destination .
+          poetry env use python
+
       - name: Prepare virtualenv for venv tests
         env:
           TEST_FILES_SUFFIX: testvirtualenvs
diff --git a/.github/workflows/pr-file-check.yml b/.github/workflows/pr-file-check.yml
index 4e270f1dab9c..93bf1b033b06 100644
--- a/.github/workflows/pr-file-check.yml
+++ b/.github/workflows/pr-file-check.yml
@@ -44,6 +44,7 @@ jobs:
           prereq-pattern: src/**/*.ts
           file-pattern: |
             src/**/*.test.ts
+            src/**/*.testvirtualenvs.ts
             .github/test_plan.md
           skip-label: 'skip tests'
           failure-message: 'TypeScript code was edited without also editing a ${file-pattern} file; see the Testing page in our wiki on testing guidelines (the ${skip-label} label can be used to pass this check)'
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 02e00dbf0a7d..377d6539849c 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -170,6 +170,16 @@ jobs:
           python -m pip install pipenv
           python -m pipenv run python ./build/ci/addEnvPath.py ${{env.PYTHON_VIRTUAL_ENVS_LOCATION}} pipenvPath
 
+      - name: Prepare poetry for venv tests
+        env:
+          TEST_FILES_SUFFIX: testvirtualenvs
+        shell: pwsh
+        if: matrix.test-suite == 'venv'
+        run: |
+          python -m pip install poetry
+          Move-Item -Path ".\build\ci\pyproject.toml" -Destination .
+          poetry env use python
+
       - name: Prepare virtualenv for venv tests
         env:
           TEST_FILES_SUFFIX: testvirtualenvs
diff --git a/build/ci/pyproject.toml b/build/ci/pyproject.toml
new file mode 100644
index 000000000000..6335f021a637
--- /dev/null
+++ b/build/ci/pyproject.toml
@@ -0,0 +1,8 @@
+[tool.poetry]
+name = "poetry-tutorial-project"
+version = "0.1.0"
+description = ""
+authors = [""]
+
+[tool.poetry.dependencies]
+python = "*"
diff --git a/src/test/pythonEnvironments/discovery/locators/poetryLocator.testvirtualenvs.ts b/src/test/pythonEnvironments/discovery/locators/poetryLocator.testvirtualenvs.ts
index b814a996fc76..6c80ffd14f58 100644
--- a/src/test/pythonEnvironments/discovery/locators/poetryLocator.testvirtualenvs.ts
+++ b/src/test/pythonEnvironments/discovery/locators/poetryLocator.testvirtualenvs.ts
@@ -1,16 +1,20 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 
+import { expect } from 'chai';
 import * as path from 'path';
 import * as sinon from 'sinon';
 import { ExecutionResult, ShellOptions } from '../../../../client/common/process/types';
 import { PythonEnvKind } from '../../../../client/pythonEnvironments/base/info';
+import { ILocator } from '../../../../client/pythonEnvironments/base/locator';
+import { getEnvs } from '../../../../client/pythonEnvironments/base/locatorUtils';
 import * as externalDependencies from '../../../../client/pythonEnvironments/common/externalDependencies';
 import { PoetryLocator } from '../../../../client/pythonEnvironments/discovery/locators/services/poetryLocator';
+import { EXTENSION_ROOT_DIR_FOR_TESTS } from '../../../constants';
 import { TEST_LAYOUT_ROOT } from '../../common/commonTestConstants';
 import { testLocatorWatcher } from './watcherTestUtils';
 
-suite('Poetry Locator', async () => {
+suite('Poetry Watcher', async () => {
     let shellExecute: sinon.SinonStub;
     const testPoetryDir = path.join(TEST_LAYOUT_ROOT, 'poetry');
     const project1 = path.join(testPoetryDir, 'project1');
@@ -38,3 +42,23 @@ suite('Poetry Locator', async () => {
 
     suiteTeardown(() => sinon.restore());
 });
+
+suite('Poetry Locator', async function () {
+    let locator: ILocator;
+    suiteSetup(async function () {
+        if (process.env.CI_PYTHON_VERSION && process.env.CI_PYTHON_VERSION.startsWith('2.')) {
+            // Poetry is soon to be deprecated for Python2.7, and tests do not pass
+            // as it is with pip installation of poetry, hence skip.
+            this.skip();
+        }
+        locator = new PoetryLocator(EXTENSION_ROOT_DIR_FOR_TESTS);
+    });
+
+    test('Discovers existing poetry environments', async () => {
+        const items = await getEnvs(locator.iterEnvs());
+        const isLocated = items.some(
+            (item) => item.kind === PythonEnvKind.Poetry && item.name.startsWith('poetry-tutorial-project'),
+        );
+        expect(isLocated).to.equal(true);
+    });
+});