diff --git a/src/client/terminals/envCollectionActivation/service.ts b/src/client/terminals/envCollectionActivation/service.ts
index 43b8ceeb8e06..bd2ce1c6f717 100644
--- a/src/client/terminals/envCollectionActivation/service.ts
+++ b/src/client/terminals/envCollectionActivation/service.ts
@@ -44,6 +44,7 @@ import {
 } from '../types';
 import { ProgressService } from '../../common/application/progressService';
 import { useEnvExtension } from '../../envExt/api.internal';
+import { registerPythonStartup } from '../pythonStartup';
 
 @injectable()
 export class TerminalEnvVarCollectionService implements IExtensionActivationService, ITerminalEnvVarCollectionService {
@@ -109,6 +110,7 @@ export class TerminalEnvVarCollectionService implements IExtensionActivationServ
                     );
                     this.registeredOnce = true;
                 }
+                await registerPythonStartup(this.context);
                 return;
             }
             if (!this.registeredOnce) {
diff --git a/src/test/interpreters/activation/terminalEnvVarCollectionService.unit.test.ts b/src/test/interpreters/activation/terminalEnvVarCollectionService.unit.test.ts
index 7016a25c7a4e..dfe3ad8c081a 100644
--- a/src/test/interpreters/activation/terminalEnvVarCollectionService.unit.test.ts
+++ b/src/test/interpreters/activation/terminalEnvVarCollectionService.unit.test.ts
@@ -6,12 +6,14 @@
 import * as sinon from 'sinon';
 import { assert, expect } from 'chai';
 import { mock, instance, when, anything, verify, reset } from 'ts-mockito';
+import * as TypeMoq from 'typemoq';
 import {
     EnvironmentVariableCollection,
     EnvironmentVariableMutatorOptions,
     GlobalEnvironmentVariableCollection,
     ProgressLocation,
     Uri,
+    WorkspaceConfiguration,
     WorkspaceFolder,
 } from 'vscode';
 import {
@@ -55,6 +57,7 @@ suite('Terminal Environment Variable Collection Service', () => {
     let terminalEnvVarCollectionService: TerminalEnvVarCollectionService;
     let terminalDeactivateService: ITerminalDeactivateService;
     let useEnvExtensionStub: sinon.SinonStub;
+    let pythonConfig: TypeMoq.IMock<WorkspaceConfiguration>;
     const progressOptions = {
         location: ProgressLocation.Window,
         title: Interpreters.activatingTerminals,
@@ -122,6 +125,8 @@ suite('Terminal Environment Variable Collection Service', () => {
             instance(shellIntegrationService),
             instance(envVarProvider),
         );
+        pythonConfig = TypeMoq.Mock.ofType<WorkspaceConfiguration>();
+        pythonConfig.setup((p) => p.get('terminal.shellIntegration.enabled')).returns(() => false);
     });
 
     teardown(() => {