diff --git a/news/1 Enhancements/17519.md b/news/1 Enhancements/17519.md
new file mode 100644
index 000000000000..71a4d49110f4
--- /dev/null
+++ b/news/1 Enhancements/17519.md	
@@ -0,0 +1 @@
+Declare limited support when running in virtual workspaces by only supporting language servers.
diff --git a/package.json b/package.json
index 700dd23424af..ceb16847f634 100644
--- a/package.json
+++ b/package.json
@@ -11,8 +11,8 @@
             "supported": false
         },
         "virtualWorkspaces": {
-            "supported": false,
-            "description": "Limited support on the web."
+            "supported": "limited",
+            "description": "Only Partial IntelliSense supported."
         }
     },
     "languageServerVersion": "0.5.30",
diff --git a/src/client/activation/activationManager.ts b/src/client/activation/activationManager.ts
index ade44d630004..20f51d33d57f 100644
--- a/src/client/activation/activationManager.ts
+++ b/src/client/activation/activationManager.ts
@@ -39,7 +39,16 @@ export class ExtensionActivationManager implements IExtensionActivationManager {
         @inject(IActiveResourceService) private readonly activeResourceService: IActiveResourceService,
         @inject(IExperimentService) private readonly experiments: IExperimentService,
         @inject(IInterpreterPathService) private readonly interpreterPathService: IInterpreterPathService,
-    ) {}
+    ) {
+        if (this.workspaceService.isVirtualWorkspace) {
+            this.activationServices = this.activationServices.filter(
+                (service) => service.supportedWorkspaceTypes.virtualWorkspace,
+            );
+            this.singleActivationServices = this.singleActivationServices.filter(
+                (service) => service.supportedWorkspaceTypes.virtualWorkspace,
+            );
+        }
+    }
 
     public dispose(): void {
         while (this.disposables.length > 0) {
@@ -56,8 +65,9 @@ export class ExtensionActivationManager implements IExtensionActivationManager {
         await this.initialize();
 
         // Activate all activation services together.
+
         await Promise.all([
-            Promise.all(this.singleActivationServices.map((item) => item.activate())),
+            ...this.singleActivationServices.map((item) => item.activate()),
             this.activateWorkspace(this.activeResourceService.getActiveResource()),
         ]);
     }
diff --git a/src/client/activation/activationService.ts b/src/client/activation/activationService.ts
index ef99d9780caa..d8189412c90b 100644
--- a/src/client/activation/activationService.ts
+++ b/src/client/activation/activationService.ts
@@ -49,6 +49,8 @@ export class LanguageServerExtensionActivationService
 
     private activatedServer?: IActivatedServer;
 
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: true, virtualWorkspace: true };
+
     private readonly workspaceService: IWorkspaceService;
 
     private readonly configurationService: IConfigurationService;
@@ -234,7 +236,6 @@ export class LanguageServerExtensionActivationService
         }
 
         this.sendTelemetryForChosenLanguageServer(serverType).ignoreErrors();
-
         await this.logStartup(serverType);
         let server = this.serviceContainer.get<ILanguageServerActivator>(ILanguageServerActivator, serverType);
         try {
diff --git a/src/client/activation/common/analysisOptions.ts b/src/client/activation/common/analysisOptions.ts
index 48433be0f5b1..f2839a25399d 100644
--- a/src/client/activation/common/analysisOptions.ts
+++ b/src/client/activation/common/analysisOptions.ts
@@ -2,6 +2,7 @@
 // Licensed under the MIT License.
 import { Disposable, Event, EventEmitter, WorkspaceFolder } from 'vscode';
 import { DocumentFilter, LanguageClientOptions, RevealOutputChannelOn } from 'vscode-languageclient/node';
+import { IWorkspaceService } from '../../common/application/types';
 
 import { PYTHON, PYTHON_LANGUAGE } from '../../common/constants';
 import { IOutputChannel, Resource } from '../../common/types';
@@ -15,7 +16,10 @@ export abstract class LanguageServerAnalysisOptionsBase implements ILanguageServ
     protected readonly didChange = new EventEmitter<void>();
     private readonly output: IOutputChannel;
 
-    protected constructor(lsOutputChannel: ILanguageServerOutputChannel) {
+    protected constructor(
+        lsOutputChannel: ILanguageServerOutputChannel,
+        protected readonly workspace: IWorkspaceService,
+    ) {
         this.output = lsOutputChannel.channel;
     }
 
@@ -51,7 +55,7 @@ export abstract class LanguageServerAnalysisOptionsBase implements ILanguageServ
     }
 
     protected getDocumentFilters(_workspaceFolder?: WorkspaceFolder): DocumentFilter[] {
-        return PYTHON;
+        return this.workspace.isVirtualWorkspace ? [{ language: PYTHON_LANGUAGE }] : PYTHON;
     }
 
     protected async getInitializationOptions(): Promise<any> {
@@ -66,8 +70,9 @@ export abstract class LanguageServerAnalysisOptionsWithEnv extends LanguageServe
     protected constructor(
         private readonly envVarsProvider: IEnvironmentVariablesProvider,
         lsOutputChannel: ILanguageServerOutputChannel,
+        workspace: IWorkspaceService,
     ) {
-        super(lsOutputChannel);
+        super(lsOutputChannel, workspace);
     }
 
     public async initialize(_resource: Resource, _interpreter: PythonEnvironment | undefined) {
diff --git a/src/client/activation/common/loadLanguageServerExtension.ts b/src/client/activation/common/loadLanguageServerExtension.ts
index e30decac14b7..87fa5d9e6213 100644
--- a/src/client/activation/common/loadLanguageServerExtension.ts
+++ b/src/client/activation/common/loadLanguageServerExtension.ts
@@ -13,6 +13,8 @@ import { IExtensionSingleActivationService } from '../types';
 
 @injectable()
 export class LoadLanguageServerExtension implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: true, virtualWorkspace: true };
+
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IDisposableRegistry) private readonly disposables: IDisposableRegistry,
diff --git a/src/client/activation/extensionSurvey.ts b/src/client/activation/extensionSurvey.ts
index 463f84e6e36c..885893e9f54e 100644
--- a/src/client/activation/extensionSurvey.ts
+++ b/src/client/activation/extensionSurvey.ts
@@ -28,6 +28,7 @@ const WAIT_TIME_TO_SHOW_SURVEY = 1000 * 60 * 60 * 3; // 3 hours
 
 @injectable()
 export class ExtensionSurveyPrompt implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     constructor(
         @inject(IApplicationShell) private appShell: IApplicationShell,
         @inject(IBrowserService) private browserService: IBrowserService,
diff --git a/src/client/activation/jedi/analysisOptions.ts b/src/client/activation/jedi/analysisOptions.ts
index 396dbbfe8c7e..924e8b79eb6d 100644
--- a/src/client/activation/jedi/analysisOptions.ts
+++ b/src/client/activation/jedi/analysisOptions.ts
@@ -21,9 +21,9 @@ export class JediLanguageServerAnalysisOptions extends LanguageServerAnalysisOpt
         @inject(IEnvironmentVariablesProvider) envVarsProvider: IEnvironmentVariablesProvider,
         @inject(ILanguageServerOutputChannel) lsOutputChannel: ILanguageServerOutputChannel,
         @inject(IConfigurationService) private readonly configurationService: IConfigurationService,
-        @inject(IWorkspaceService) private readonly workspace: IWorkspaceService,
+        @inject(IWorkspaceService) workspace: IWorkspaceService,
     ) {
-        super(envVarsProvider, lsOutputChannel);
+        super(envVarsProvider, lsOutputChannel, workspace);
         this.resource = undefined;
     }
 
diff --git a/src/client/activation/node/analysisOptions.ts b/src/client/activation/node/analysisOptions.ts
index c2aa885c8aac..2bde9f9cafbe 100644
--- a/src/client/activation/node/analysisOptions.ts
+++ b/src/client/activation/node/analysisOptions.ts
@@ -1,14 +1,18 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 import { inject, injectable } from 'inversify';
+import { IWorkspaceService } from '../../common/application/types';
 
 import { LanguageServerAnalysisOptionsBase } from '../common/analysisOptions';
 import { ILanguageServerOutputChannel } from '../types';
 
 @injectable()
 export class NodeLanguageServerAnalysisOptions extends LanguageServerAnalysisOptionsBase {
-    constructor(@inject(ILanguageServerOutputChannel) lsOutputChannel: ILanguageServerOutputChannel) {
-        super(lsOutputChannel);
+    constructor(
+        @inject(ILanguageServerOutputChannel) lsOutputChannel: ILanguageServerOutputChannel,
+        @inject(IWorkspaceService) workspace: IWorkspaceService,
+    ) {
+        super(lsOutputChannel, workspace);
     }
 
     protected async getInitializationOptions() {
diff --git a/src/client/activation/types.ts b/src/client/activation/types.ts
index d2f0d727d0cb..e90b8b8e88ee 100644
--- a/src/client/activation/types.ts
+++ b/src/client/activation/types.ts
@@ -58,6 +58,7 @@ export const IExtensionActivationService = Symbol('IExtensionActivationService')
  * @interface IExtensionActivationService
  */
 export interface IExtensionActivationService {
+    supportedWorkspaceTypes: { untrustedWorkspace: boolean; virtualWorkspace: boolean };
     activate(resource: Resource): Promise<void>;
 }
 
@@ -178,5 +179,6 @@ export const IExtensionSingleActivationService = Symbol('IExtensionSingleActivat
  * @interface IExtensionSingleActivationService
  */
 export interface IExtensionSingleActivationService {
+    supportedWorkspaceTypes: { untrustedWorkspace: boolean; virtualWorkspace: boolean };
     activate(): Promise<void>;
 }
diff --git a/src/client/common/application/commands/reloadCommand.ts b/src/client/common/application/commands/reloadCommand.ts
index 312cb674e7df..fa07f212c5db 100644
--- a/src/client/common/application/commands/reloadCommand.ts
+++ b/src/client/common/application/commands/reloadCommand.ts
@@ -14,6 +14,7 @@ import { IApplicationShell, ICommandManager } from '../types';
  */
 @injectable()
 export class ReloadVSCodeCommandHandler implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IApplicationShell) private readonly appShell: IApplicationShell,
diff --git a/src/client/common/application/commands/reportIssueCommand.ts b/src/client/common/application/commands/reportIssueCommand.ts
index 5ba5bdbd50ba..18c95f669d78 100644
--- a/src/client/common/application/commands/reportIssueCommand.ts
+++ b/src/client/common/application/commands/reportIssueCommand.ts
@@ -22,6 +22,8 @@ import { EnvironmentType } from '../../../pythonEnvironments/info';
  */
 @injectable()
 export class ReportIssueCommandHandler implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
+
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IWorkspaceService) private readonly workspaceService: IWorkspaceService,
diff --git a/src/client/common/application/debugSessionTelemetry.ts b/src/client/common/application/debugSessionTelemetry.ts
index 5e4c67258988..2b1dd7f38917 100644
--- a/src/client/common/application/debugSessionTelemetry.ts
+++ b/src/client/common/application/debugSessionTelemetry.ts
@@ -62,6 +62,7 @@ class TelemetryTracker implements DebugAdapterTracker {
 
 @injectable()
 export class DebugSessionTelemetry implements DebugAdapterTrackerFactory, IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     constructor(
         @inject(IDisposableRegistry) disposableRegistry: IDisposableRegistry,
         @inject(IDebugService) debugService: IDebugService,
diff --git a/src/client/common/application/types.ts b/src/client/common/application/types.ts
index eac770efafa6..ec5c7dcf5cab 100644
--- a/src/client/common/application/types.ts
+++ b/src/client/common/application/types.ts
@@ -729,7 +729,10 @@ export interface IWorkspaceService {
      * @memberof IWorkspaceService
      */
     readonly hasWorkspaceFolders: boolean;
-
+    /**
+     * Returns if we're running in a virtual workspace.
+     */
+    readonly isVirtualWorkspace: boolean;
     /**
      * Returns the [workspace folder](#WorkspaceFolder) that contains a given uri.
      * * returns `undefined` when the given uri doesn't match any workspace folder
diff --git a/src/client/common/application/workspace.ts b/src/client/common/application/workspace.ts
index f3eb57c6156c..5ef4870a8808 100644
--- a/src/client/common/application/workspace.ts
+++ b/src/client/common/application/workspace.ts
@@ -83,6 +83,12 @@ export class WorkspaceService implements IWorkspaceService {
             : defaultValue;
     }
 
+    public get isVirtualWorkspace(): boolean {
+        const isVirtualWorkspace =
+            workspace.workspaceFolders && workspace.workspaceFolders.every((f) => f.uri.scheme !== 'file');
+        return !!isVirtualWorkspace;
+    }
+
     private get searchExcludes() {
         const searchExcludes = this.getConfiguration('search.exclude');
         const enabledSearchExcludes = Object.keys(searchExcludes).filter((key) => searchExcludes.get(key) === true);
diff --git a/src/client/common/insidersBuild/insidersExtensionService.ts b/src/client/common/insidersBuild/insidersExtensionService.ts
index 6a4d01f2c8e9..4d9d91d4a1ca 100644
--- a/src/client/common/insidersBuild/insidersExtensionService.ts
+++ b/src/client/common/insidersBuild/insidersExtensionService.ts
@@ -19,6 +19,7 @@ import { traceDecoratorError } from '../../logging';
 
 @injectable()
 export class InsidersExtensionService implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     constructor(
         @inject(IExtensionChannelService) private readonly extensionChannelService: IExtensionChannelService,
         @inject(IInsiderExtensionPrompt) private readonly insidersPrompt: IInsiderExtensionPrompt,
diff --git a/src/client/common/persistentState.ts b/src/client/common/persistentState.ts
index 188a9b42c1d6..c72e3ab59e21 100644
--- a/src/client/common/persistentState.ts
+++ b/src/client/common/persistentState.ts
@@ -63,6 +63,7 @@ export type KeysStorage = { key: string; defaultValue: unknown };
 
 @injectable()
 export class PersistentStateFactory implements IPersistentStateFactory, IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     public readonly _globalKeysStorage = new PersistentState<KeysStorage[]>(
         this.globalState,
         GLOBAL_PERSISTENT_KEYS,
diff --git a/src/client/debugger/extension/adapter/activator.ts b/src/client/debugger/extension/adapter/activator.ts
index c7618c7ee146..e46d673ea60c 100644
--- a/src/client/debugger/extension/adapter/activator.ts
+++ b/src/client/debugger/extension/adapter/activator.ts
@@ -13,6 +13,7 @@ import { IDebugAdapterDescriptorFactory, IDebugSessionLoggingFactory, IOutdatedD
 
 @injectable()
 export class DebugAdapterActivator implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(
         @inject(IDebugService) private readonly debugService: IDebugService,
         @inject(IDebugAdapterDescriptorFactory) private descriptorFactory: IDebugAdapterDescriptorFactory,
diff --git a/src/client/debugger/extension/configuration/launch.json/completionProvider.ts b/src/client/debugger/extension/configuration/launch.json/completionProvider.ts
index 73f062184670..da6595c5bb2a 100644
--- a/src/client/debugger/extension/configuration/launch.json/completionProvider.ts
+++ b/src/client/debugger/extension/configuration/launch.json/completionProvider.ts
@@ -28,6 +28,7 @@ enum JsonLanguages {
 
 @injectable()
 export class LaunchJsonCompletionProvider implements CompletionItemProvider, IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(
         @inject(ILanguageService) private readonly languageService: ILanguageService,
         @inject(IDisposableRegistry) private readonly disposableRegistry: IDisposableRegistry,
diff --git a/src/client/debugger/extension/configuration/launch.json/interpreterPathCommand.ts b/src/client/debugger/extension/configuration/launch.json/interpreterPathCommand.ts
index d74d7779c8ff..1c0354dd23f5 100644
--- a/src/client/debugger/extension/configuration/launch.json/interpreterPathCommand.ts
+++ b/src/client/debugger/extension/configuration/launch.json/interpreterPathCommand.ts
@@ -12,6 +12,7 @@ import { IConfigurationService, IDisposable, IDisposableRegistry } from '../../.
 
 @injectable()
 export class InterpreterPathCommand implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IConfigurationService) private readonly configurationService: IConfigurationService,
diff --git a/src/client/debugger/extension/configuration/launch.json/updaterService.ts b/src/client/debugger/extension/configuration/launch.json/updaterService.ts
index bd91ca2f20c0..232d068cc47b 100644
--- a/src/client/debugger/extension/configuration/launch.json/updaterService.ts
+++ b/src/client/debugger/extension/configuration/launch.json/updaterService.ts
@@ -146,6 +146,7 @@ export class LaunchJsonUpdaterServiceHelper {
 
 @injectable()
 export class LaunchJsonUpdaterService implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IDisposableRegistry) private readonly disposableRegistry: IDisposableRegistry,
diff --git a/src/client/debugger/extension/debugCommands.ts b/src/client/debugger/extension/debugCommands.ts
index 5d0e3ab7fbcc..071f246879ca 100644
--- a/src/client/debugger/extension/debugCommands.ts
+++ b/src/client/debugger/extension/debugCommands.ts
@@ -15,6 +15,8 @@ import { DebugPurpose, LaunchRequestArguments } from '../types';
 
 @injectable()
 export class DebugCommands implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     constructor(
         @inject(ICommandManager) private readonly commandManager: ICommandManager,
         @inject(IDebugService) private readonly debugService: IDebugService,
diff --git a/src/client/extension.ts b/src/client/extension.ts
index 500a8ecd826a..c04dfb3c3c98 100644
--- a/src/client/extension.ts
+++ b/src/client/extension.ts
@@ -68,6 +68,7 @@ export async function activate(context: IExtensionContext): Promise<IExtensionAp
     }
     // Send the "success" telemetry only if activation did not fail.
     // Otherwise Telemetry is send via the error handler.
+
     sendStartupTelemetry(ready, durations, stopWatch, serviceContainer)
         // Run in the background.
         .ignoreErrors();
@@ -131,8 +132,8 @@ async function activateUnsafe(
 
     setTimeout(async () => {
         if (activatedServiceContainer) {
-            const interpreterManager = activatedServiceContainer.get<IInterpreterService>(IInterpreterService);
             const workspaceService = activatedServiceContainer.get<IWorkspaceService>(IWorkspaceService);
+            const interpreterManager = activatedServiceContainer.get<IInterpreterService>(IInterpreterService);
             const workspaces = workspaceService.workspaceFolders ?? [];
             await interpreterManager
                 .refresh(workspaces.length > 0 ? workspaces[0].uri : undefined)
@@ -159,6 +160,7 @@ async function handleError(ex: Error, startupDurations: IStartupDurations) {
         "Extension activation failed, run the 'Developer: Toggle Developer Tools' command for more information.",
     );
     traceError('extension activation failed', ex);
+
     await sendErrorTelemetry(ex, startupDurations, activatedServiceContainer);
 }
 
diff --git a/src/client/extensionActivation.ts b/src/client/extensionActivation.ts
index 52abe2d840e4..fae6c717e5ff 100644
--- a/src/client/extensionActivation.ts
+++ b/src/client/extensionActivation.ts
@@ -9,16 +9,13 @@ import { registerTypes as activationRegisterTypes } from './activation/serviceRe
 import { IExtensionActivationManager } from './activation/types';
 import { registerTypes as appRegisterTypes } from './application/serviceRegistry';
 import { IApplicationDiagnostics } from './application/types';
-import { DebugService } from './common/application/debugService';
-import { IApplicationEnvironment, ICommandManager } from './common/application/types';
+import { IApplicationEnvironment, ICommandManager, IWorkspaceService } from './common/application/types';
 import { Commands, PYTHON, PYTHON_LANGUAGE, STANDARD_OUTPUT_CHANNEL, UseProposedApi } from './common/constants';
 import { registerTypes as installerRegisterTypes } from './common/installer/serviceRegistry';
 import { IFileSystem } from './common/platform/types';
 import { IConfigurationService, IDisposableRegistry, IExtensions, IOutputChannel } from './common/types';
 import { noop } from './common/utils/misc';
 import { DebuggerTypeName } from './debugger/constants';
-import { DebugSessionEventDispatcher } from './debugger/extension/hooks/eventHandlerDispatcher';
-import { IDebugSessionEventHandlers } from './debugger/extension/hooks/types';
 import { registerTypes as debugConfigurationRegisterTypes } from './debugger/extension/serviceRegistry';
 import { IDebugConfigurationService, IDebuggerBanner } from './debugger/extension/types';
 import { registerTypes as formattersRegisterTypes } from './formatters/serviceRegistry';
@@ -47,6 +44,9 @@ import { ActivationResult, ExtensionState } from './components';
 import { Components } from './extensionInit';
 import { setDefaultLanguageServer } from './activation/common/defaultlanguageServer';
 import { getLoggingLevel } from './logging/settings';
+import { DebugService } from './common/application/debugService';
+import { DebugSessionEventDispatcher } from './debugger/extension/hooks/eventHandlerDispatcher';
+import { IDebugSessionEventHandlers } from './debugger/extension/hooks/types';
 
 export async function activateComponents(
     // `ext` is passed to any extra activation funcs.
@@ -117,8 +117,9 @@ async function activateLegacy(ext: ExtensionState): Promise<ActivationResult> {
     // directly queries VSCode API.
     setLoggingLevel(getLoggingLevel());
 
-    // `IConfigurationService` may depend any of the registered types, so doing it after all registrations are finished.
     const configuration = serviceManager.get<IConfigurationService>(IConfigurationService);
+    // Settings are dependent on Experiment service, so we need to initialize it after experiments are activated.
+    serviceContainer.get<IConfigurationService>(IConfigurationService).getSettings().initialize();
     const languageServerType = configuration.getSettings().languageServer;
 
     // Language feature registrations.
@@ -128,66 +129,68 @@ async function activateLegacy(ext: ExtensionState): Promise<ActivationResult> {
 
     // "initialize" "services"
 
+    const disposables = serviceManager.get<IDisposableRegistry>(IDisposableRegistry);
+    const workspaceService = serviceContainer.get<IWorkspaceService>(IWorkspaceService);
+    const cmdManager = serviceContainer.get<ICommandManager>(ICommandManager);
+    languages.setLanguageConfiguration(PYTHON_LANGUAGE, getLanguageConfiguration());
     const interpreterManager = serviceContainer.get<IInterpreterService>(IInterpreterService);
     interpreterManager.initialize();
+    if (!workspaceService.isVirtualWorkspace) {
+        const handlers = serviceManager.getAll<IDebugSessionEventHandlers>(IDebugSessionEventHandlers);
+        const dispatcher = new DebugSessionEventDispatcher(handlers, DebugService.instance, disposables);
+        dispatcher.registerEventHandlers();
 
-    const handlers = serviceManager.getAll<IDebugSessionEventHandlers>(IDebugSessionEventHandlers);
-    const disposables = serviceManager.get<IDisposableRegistry>(IDisposableRegistry);
-    const dispatcher = new DebugSessionEventDispatcher(handlers, DebugService.instance, disposables);
-    dispatcher.registerEventHandlers();
+        const outputChannel = serviceManager.get<OutputChannel>(IOutputChannel, STANDARD_OUTPUT_CHANNEL);
+        disposables.push(cmdManager.registerCommand(Commands.ViewOutput, () => outputChannel.show()));
+        cmdManager.executeCommand('setContext', 'python.vscode.channel', applicationEnv.channel).then(noop, noop);
 
-    const cmdManager = serviceContainer.get<ICommandManager>(ICommandManager);
-    const outputChannel = serviceManager.get<OutputChannel>(IOutputChannel, STANDARD_OUTPUT_CHANNEL);
-    disposables.push(cmdManager.registerCommand(Commands.ViewOutput, () => outputChannel.show()));
-    cmdManager.executeCommand('setContext', 'python.vscode.channel', applicationEnv.channel).then(noop, noop);
+        serviceContainer.get<IApplicationDiagnostics>(IApplicationDiagnostics).register();
 
-    serviceContainer.get<IApplicationDiagnostics>(IApplicationDiagnostics).register();
+        serviceManager.get<ITerminalAutoActivation>(ITerminalAutoActivation).register();
+        const pythonSettings = configuration.getSettings();
 
-    // "activate" everything else
+        const sortImports = serviceContainer.get<ISortImportsEditingProvider>(ISortImportsEditingProvider);
+        sortImports.registerCommands();
 
-    const manager = serviceContainer.get<IExtensionActivationManager>(IExtensionActivationManager);
-    context.subscriptions.push(manager);
+        serviceManager.get<ICodeExecutionManager>(ICodeExecutionManager).registerCommands();
 
-    // Settings are dependent on Experiment service, so we need to initialize it after experiments are activated.
-    serviceContainer.get<IConfigurationService>(IConfigurationService).getSettings().initialize();
+        context.subscriptions.push(new LinterCommands(serviceManager));
 
-    const activationPromise = manager.activate();
-
-    serviceManager.get<ITerminalAutoActivation>(ITerminalAutoActivation).register();
-    const pythonSettings = configuration.getSettings();
+        if (pythonSettings && pythonSettings.formatting && pythonSettings.formatting.provider !== 'internalConsole') {
+            const formatProvider = new PythonFormattingEditProvider(context, serviceContainer);
+            context.subscriptions.push(languages.registerDocumentFormattingEditProvider(PYTHON, formatProvider));
+            context.subscriptions.push(languages.registerDocumentRangeFormattingEditProvider(PYTHON, formatProvider));
+        }
 
-    const sortImports = serviceContainer.get<ISortImportsEditingProvider>(ISortImportsEditingProvider);
-    sortImports.registerCommands();
+        context.subscriptions.push(new ReplProvider(serviceContainer));
 
-    serviceManager.get<ICodeExecutionManager>(ICodeExecutionManager).registerCommands();
+        const terminalProvider = new TerminalProvider(serviceContainer);
+        terminalProvider.initialize(window.activeTerminal).ignoreErrors();
+        context.subscriptions.push(terminalProvider);
 
-    context.subscriptions.push(new LinterCommands(serviceManager));
+        context.subscriptions.push(
+            languages.registerCodeActionsProvider(PYTHON, new PythonCodeActionProvider(), {
+                providedCodeActionKinds: [CodeActionKind.SourceOrganizeImports],
+            }),
+        );
 
-    languages.setLanguageConfiguration(PYTHON_LANGUAGE, getLanguageConfiguration());
+        serviceContainer
+            .getAll<DebugConfigurationProvider>(IDebugConfigurationService)
+            .forEach((debugConfigProvider) => {
+                context.subscriptions.push(
+                    debug.registerDebugConfigurationProvider(DebuggerTypeName, debugConfigProvider),
+                );
+            });
 
-    if (pythonSettings && pythonSettings.formatting && pythonSettings.formatting.provider !== 'internalConsole') {
-        const formatProvider = new PythonFormattingEditProvider(context, serviceContainer);
-        context.subscriptions.push(languages.registerDocumentFormattingEditProvider(PYTHON, formatProvider));
-        context.subscriptions.push(languages.registerDocumentRangeFormattingEditProvider(PYTHON, formatProvider));
+        serviceContainer.get<IDebuggerBanner>(IDebuggerBanner).initialize();
     }
 
-    context.subscriptions.push(new ReplProvider(serviceContainer));
-
-    const terminalProvider = new TerminalProvider(serviceContainer);
-    terminalProvider.initialize(window.activeTerminal).ignoreErrors();
-    context.subscriptions.push(terminalProvider);
-
-    context.subscriptions.push(
-        languages.registerCodeActionsProvider(PYTHON, new PythonCodeActionProvider(), {
-            providedCodeActionKinds: [CodeActionKind.SourceOrganizeImports],
-        }),
-    );
+    // "activate" everything else
 
-    serviceContainer.getAll<DebugConfigurationProvider>(IDebugConfigurationService).forEach((debugConfigProvider) => {
-        context.subscriptions.push(debug.registerDebugConfigurationProvider(DebuggerTypeName, debugConfigProvider));
-    });
+    const manager = serviceContainer.get<IExtensionActivationManager>(IExtensionActivationManager);
+    context.subscriptions.push(manager);
 
-    serviceContainer.get<IDebuggerBanner>(IDebuggerBanner).initialize();
+    const activationPromise = manager.activate();
 
     return { fullyReady: activationPromise };
 }
diff --git a/src/client/extensionInit.ts b/src/client/extensionInit.ts
index 1a8bba2e7c76..b481325c69d0 100644
--- a/src/client/extensionInit.ts
+++ b/src/client/extensionInit.ts
@@ -5,6 +5,7 @@
 
 import { Container } from 'inversify';
 import { Disposable, Memento, OutputChannel, window } from 'vscode';
+import { instance, mock } from 'ts-mockito';
 import { STANDARD_OUTPUT_CHANNEL } from './common/constants';
 import { registerTypes as platformRegisterTypes } from './common/platform/serviceRegistry';
 import { registerTypes as processRegisterTypes } from './common/process/serviceRegistry';
@@ -28,6 +29,7 @@ import { TEST_OUTPUT_CHANNEL } from './testing/constants';
 import { IDiscoveryAPI } from './pythonEnvironments/base/locator';
 import { registerLogger } from './logging';
 import { OutputChannelLogger } from './logging/outputChannelLogger';
+import { WorkspaceService } from './common/application/workspace';
 
 // The code in this module should do nothing more complex than register
 // objects to DI and simple init (e.g. no side effects).  That implies
@@ -54,7 +56,11 @@ export function initializeGlobals(
     const standardOutputChannel = window.createOutputChannel(OutputChannelNames.python());
     context.subscriptions.push(registerLogger(new OutputChannelLogger(standardOutputChannel)));
 
-    const unitTestOutChannel = window.createOutputChannel(OutputChannelNames.pythonTest());
+    const workspaceService = new WorkspaceService();
+    const unitTestOutChannel = workspaceService.isVirtualWorkspace
+        ? // Do not create any test related output UI when using virtual workspaces.
+          instance(mock<IOutputChannel>())
+        : window.createOutputChannel(OutputChannelNames.pythonTest());
     serviceManager.addSingletonInstance<OutputChannel>(IOutputChannel, standardOutputChannel, STANDARD_OUTPUT_CHANNEL);
     serviceManager.addSingletonInstance<OutputChannel>(IOutputChannel, unitTestOutChannel, TEST_OUTPUT_CHANNEL);
 
diff --git a/src/client/interpreter/configuration/interpreterSelector/commands/base.ts b/src/client/interpreter/configuration/interpreterSelector/commands/base.ts
index 618f698df35a..7ecafae3a04c 100644
--- a/src/client/interpreter/configuration/interpreterSelector/commands/base.ts
+++ b/src/client/interpreter/configuration/interpreterSelector/commands/base.ts
@@ -14,6 +14,7 @@ import { IPythonPathUpdaterServiceManager } from '../../types';
 
 @injectable()
 export abstract class BaseInterpreterSelectorCommand implements IExtensionSingleActivationService, IDisposable {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     protected disposables: Disposable[] = [];
     constructor(
         @unmanaged() protected readonly pythonPathUpdaterService: IPythonPathUpdaterServiceManager,
diff --git a/src/client/interpreter/display/progressDisplay.ts b/src/client/interpreter/display/progressDisplay.ts
index d273b94801ac..d641ae70d2c7 100644
--- a/src/client/interpreter/display/progressDisplay.ts
+++ b/src/client/interpreter/display/progressDisplay.ts
@@ -16,6 +16,8 @@ import { IComponentAdapter } from '../contracts';
 // The parts of IComponentAdapter used here.
 @injectable()
 export class InterpreterLocatorProgressStatubarHandler implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
+
     private deferred: Deferred<void> | undefined;
 
     private isFirstTimeLoadingInterpreters = true;
diff --git a/src/client/interpreter/virtualEnvs/condaInheritEnvPrompt.ts b/src/client/interpreter/virtualEnvs/condaInheritEnvPrompt.ts
index 09f1ea32f10a..c842d5b2c45e 100644
--- a/src/client/interpreter/virtualEnvs/condaInheritEnvPrompt.ts
+++ b/src/client/interpreter/virtualEnvs/condaInheritEnvPrompt.ts
@@ -18,6 +18,7 @@ export const condaInheritEnvPromptKey = 'CONDA_INHERIT_ENV_PROMPT_KEY';
 
 @injectable()
 export class CondaInheritEnvPrompt implements IExtensionActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
     constructor(
         @inject(IInterpreterService) private readonly interpreterService: IInterpreterService,
         @inject(IWorkspaceService) private readonly workspaceService: IWorkspaceService,
diff --git a/src/client/interpreter/virtualEnvs/virtualEnvPrompt.ts b/src/client/interpreter/virtualEnvs/virtualEnvPrompt.ts
index 0f8223647c0a..914a639e0314 100644
--- a/src/client/interpreter/virtualEnvs/virtualEnvPrompt.ts
+++ b/src/client/interpreter/virtualEnvs/virtualEnvPrompt.ts
@@ -18,6 +18,8 @@ import { IComponentAdapter, IInterpreterHelper } from '../contracts';
 const doNotDisplayPromptStateKey = 'MESSAGE_KEY_FOR_VIRTUAL_ENV';
 @injectable()
 export class VirtualEnvironmentPrompt implements IExtensionActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
+
     constructor(
         @inject(IPersistentStateFactory) private readonly persistentStateFactory: IPersistentStateFactory,
         @inject(IInterpreterHelper) private readonly helper: IInterpreterHelper,
diff --git a/src/client/providers/codeActionProvider/main.ts b/src/client/providers/codeActionProvider/main.ts
index b543d3a8baa5..5e3b502a4a03 100644
--- a/src/client/providers/codeActionProvider/main.ts
+++ b/src/client/providers/codeActionProvider/main.ts
@@ -9,6 +9,7 @@ import { LaunchJsonCodeActionProvider } from './launchJsonCodeActionProvider';
 
 @injectable()
 export class CodeActionProviderService implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(@inject(IDisposableRegistry) private disposableRegistry: IDisposableRegistry) {}
     public async activate(): Promise<void> {
         const vscode = require('vscode') as typeof vscodeTypes;
diff --git a/src/client/providers/linterProvider.ts b/src/client/providers/linterProvider.ts
index 8be6be069154..a694e0a891ad 100644
--- a/src/client/providers/linterProvider.ts
+++ b/src/client/providers/linterProvider.ts
@@ -18,6 +18,7 @@ import { ILinterManager, ILintingEngine } from '../linters/types';
 
 @injectable()
 export class LinterProvider implements IExtensionActivationService, Disposable {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     private interpreterService: IInterpreterService;
     private documents: IDocumentManager;
     private configuration: IConfigurationService;
diff --git a/src/client/telemetry/importTracker.ts b/src/client/telemetry/importTracker.ts
index defa79b1ac02..39f278bef9bb 100644
--- a/src/client/telemetry/importTracker.ts
+++ b/src/client/telemetry/importTracker.ts
@@ -47,6 +47,8 @@ const testExecution = isTestExecution();
 
 @injectable()
 export class ImportTracker implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: true };
+
     private pendingChecks = new Map<string, NodeJS.Timer>();
 
     private static sentMatches: Set<string> = new Set<string>();
diff --git a/src/client/tensorBoard/nbextensionCodeLensProvider.ts b/src/client/tensorBoard/nbextensionCodeLensProvider.ts
index 1c477ab4a70a..986e1c74457f 100644
--- a/src/client/tensorBoard/nbextensionCodeLensProvider.ts
+++ b/src/client/tensorBoard/nbextensionCodeLensProvider.ts
@@ -16,6 +16,8 @@ import { containsNotebookExtension } from './helpers';
 
 @injectable()
 export class TensorBoardNbextensionCodeLensProvider implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private sendTelemetryOnce = once(
         sendTelemetryEvent.bind(this, EventName.TENSORBOARD_ENTRYPOINT_SHOWN, undefined, {
             trigger: TensorBoardEntrypointTrigger.nbextension,
diff --git a/src/client/tensorBoard/tensorBoardFileWatcher.ts b/src/client/tensorBoard/tensorBoardFileWatcher.ts
index 4070e481fec3..e35a021db321 100644
--- a/src/client/tensorBoard/tensorBoardFileWatcher.ts
+++ b/src/client/tensorBoard/tensorBoardFileWatcher.ts
@@ -13,6 +13,8 @@ import { TensorBoardPrompt } from './tensorBoardPrompt';
 
 @injectable()
 export class TensorBoardFileWatcher implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private fileSystemWatchers = new Map<WorkspaceFolder, FileSystemWatcher[]>();
 
     private globPatterns = ['*tfevents*', '*/*tfevents*', '*/*/*tfevents*'];
diff --git a/src/client/tensorBoard/tensorBoardImportCodeLensProvider.ts b/src/client/tensorBoard/tensorBoardImportCodeLensProvider.ts
index 81324feba6eb..6ad000dfdd7d 100644
--- a/src/client/tensorBoard/tensorBoardImportCodeLensProvider.ts
+++ b/src/client/tensorBoard/tensorBoardImportCodeLensProvider.ts
@@ -16,6 +16,8 @@ import { containsTensorBoardImport } from './helpers';
 
 @injectable()
 export class TensorBoardImportCodeLensProvider implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private sendTelemetryOnce = once(
         sendTelemetryEvent.bind(this, EventName.TENSORBOARD_ENTRYPOINT_SHOWN, undefined, {
             trigger: TensorBoardEntrypointTrigger.fileimport,
diff --git a/src/client/tensorBoard/tensorBoardSessionProvider.ts b/src/client/tensorBoard/tensorBoardSessionProvider.ts
index 348c2910271d..bc4b9d1130e8 100644
--- a/src/client/tensorBoard/tensorBoardSessionProvider.ts
+++ b/src/client/tensorBoard/tensorBoardSessionProvider.ts
@@ -29,6 +29,8 @@ const PREFERRED_VIEWGROUP = 'PythonTensorBoardWebviewPreferredViewGroup';
 
 @injectable()
 export class TensorBoardSessionProvider implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private knownSessions: TensorBoardSession[] = [];
 
     private preferredViewGroupMemento: IPersistentState<ViewColumn>;
diff --git a/src/client/tensorBoard/tensorBoardUsageTracker.ts b/src/client/tensorBoard/tensorBoardUsageTracker.ts
index 90f6ef7e9b32..423be8868e30 100644
--- a/src/client/tensorBoard/tensorBoardUsageTracker.ts
+++ b/src/client/tensorBoard/tensorBoardUsageTracker.ts
@@ -20,6 +20,8 @@ const testExecution = isTestExecution();
 // contains a valid TensorBoard import.
 @injectable()
 export class TensorBoardUsageTracker implements IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     constructor(
         @inject(IDocumentManager) private documentManager: IDocumentManager,
         @inject(IDisposableRegistry) private disposables: IDisposableRegistry,
diff --git a/src/client/tensorBoard/terminalWatcher.ts b/src/client/tensorBoard/terminalWatcher.ts
index 22412bfc0f9e..5aadc12dc4c0 100644
--- a/src/client/tensorBoard/terminalWatcher.ts
+++ b/src/client/tensorBoard/terminalWatcher.ts
@@ -8,6 +8,8 @@ import { EventName } from '../telemetry/constants';
 // Every 5 min look, through active terminals to see if any are running `tensorboard`
 @injectable()
 export class TerminalWatcher implements IExtensionSingleActivationService, IDisposable {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private handle: NodeJS.Timeout | undefined;
 
     constructor(@inject(IDisposableRegistry) private disposables: IDisposableRegistry) {}
diff --git a/src/client/testing/common/testConfigurationManager.ts b/src/client/testing/common/testConfigurationManager.ts
index 391a26bd4ebf..c2b050cb524a 100644
--- a/src/client/testing/common/testConfigurationManager.ts
+++ b/src/client/testing/common/testConfigurationManager.ts
@@ -1,12 +1,11 @@
 import * as path from 'path';
-import { OutputChannel, QuickPickItem, QuickPickOptions, Uri } from 'vscode';
+import { QuickPickItem, QuickPickOptions, Uri } from 'vscode';
 import { IApplicationShell } from '../../common/application/types';
 import { IFileSystem } from '../../common/platform/types';
-import { IInstaller, IOutputChannel } from '../../common/types';
+import { IInstaller } from '../../common/types';
 import { createDeferred } from '../../common/utils/async';
 import { IServiceContainer } from '../../ioc/types';
 import { traceInfo } from '../../logging';
-import { TEST_OUTPUT_CHANNEL } from '../constants';
 import { UNIT_TEST_PRODUCTS } from './constants';
 import { ITestConfigSettingsService, ITestConfigurationManager, UnitTestProduct } from './types';
 
@@ -16,8 +15,6 @@ function handleCancelled(): void {
 }
 
 export abstract class TestConfigurationManager implements ITestConfigurationManager {
-    protected readonly outputChannel: OutputChannel;
-
     protected readonly installer: IInstaller;
 
     protected readonly testConfigSettingsService: ITestConfigSettingsService;
@@ -30,7 +27,6 @@ export abstract class TestConfigurationManager implements ITestConfigurationMana
         protected readonly serviceContainer: IServiceContainer,
         cfg?: ITestConfigSettingsService,
     ) {
-        this.outputChannel = serviceContainer.get<OutputChannel>(IOutputChannel, TEST_OUTPUT_CHANNEL);
         this.installer = serviceContainer.get<IInstaller>(IInstaller);
         this.testConfigSettingsService =
             cfg || serviceContainer.get<ITestConfigSettingsService>(ITestConfigSettingsService);
diff --git a/src/client/testing/common/updateTestSettings.ts b/src/client/testing/common/updateTestSettings.ts
index 0fb65d56e3a3..c7dd5b182373 100644
--- a/src/client/testing/common/updateTestSettings.ts
+++ b/src/client/testing/common/updateTestSettings.ts
@@ -17,6 +17,7 @@ import { traceDecoratorError, traceError } from '../../logging';
 // TODO: rename the class since it is not used just for test settings
 @injectable()
 export class UpdateTestSettingService implements IExtensionActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     constructor(
         @inject(IFileSystem) private readonly fs: IFileSystem,
         @inject(IApplicationEnvironment) private readonly application: IApplicationEnvironment,
diff --git a/src/client/testing/main.ts b/src/client/testing/main.ts
index bc4d69412a4e..482538a38789 100644
--- a/src/client/testing/main.ts
+++ b/src/client/testing/main.ts
@@ -35,6 +35,7 @@ export class TestingService implements ITestingService {
 @injectable()
 export class UnitTestManagementService implements IExtensionActivationService {
     private activatedOnce: boolean = false;
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
     private readonly disposableRegistry: Disposable[];
     private workspaceService: IWorkspaceService;
     private context: IContextKeyManager;
diff --git a/src/client/testing/testController/controller.ts b/src/client/testing/testController/controller.ts
index af0f56106a1b..91d0f4427a10 100644
--- a/src/client/testing/testController/controller.ts
+++ b/src/client/testing/testController/controller.ts
@@ -16,6 +16,7 @@ import {
     Uri,
     EventEmitter,
 } from 'vscode';
+import { IExtensionSingleActivationService } from '../../activation/types';
 import { IWorkspaceService } from '../../common/application/types';
 import { IConfigurationService, IDisposableRegistry, Resource } from '../../common/types';
 import { DelayedTrigger, IDelayedTrigger } from '../../common/utils/delayTrigger';
@@ -27,7 +28,9 @@ import { DebugTestTag, getNodeByUri, RunTestTag } from './common/testItemUtiliti
 import { ITestController, ITestFrameworkController, TestRefreshOptions } from './common/types';
 
 @injectable()
-export class PythonTestController implements ITestController {
+export class PythonTestController implements ITestController, IExtensionSingleActivationService {
+    public readonly supportedWorkspaceTypes = { untrustedWorkspace: false, virtualWorkspace: false };
+
     private readonly testController: TestController;
 
     private readonly refreshData: IDelayedTrigger;
@@ -90,7 +93,9 @@ export class PythonTestController implements ITestController {
             ),
         );
         this.testController.resolveHandler = this.resolveChildren.bind(this);
+    }
 
+    public async activate(): Promise<void> {
         this.watchForTestChanges();
     }
 
diff --git a/src/client/testing/testController/serviceRegistry.ts b/src/client/testing/testController/serviceRegistry.ts
index 0e8320a4f153..840eb14b1f27 100644
--- a/src/client/testing/testController/serviceRegistry.ts
+++ b/src/client/testing/testController/serviceRegistry.ts
@@ -1,6 +1,7 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 
+import { IExtensionSingleActivationService } from '../../activation/types';
 import { IServiceManager } from '../../ioc/types';
 import { PYTEST_PROVIDER, UNITTEST_PROVIDER } from '../common/constants';
 import { TestDiscoveryHelper } from './common/discoveryHelper';
@@ -24,4 +25,5 @@ export function registerTestControllerTypes(serviceManager: IServiceManager): vo
     );
     serviceManager.addSingleton<ITestsRunner>(ITestsRunner, UnittestRunner, UNITTEST_PROVIDER);
     serviceManager.addSingleton<ITestController>(ITestController, PythonTestController);
+    serviceManager.addBinding(ITestController, IExtensionSingleActivationService);
 }
diff --git a/src/test/activation/node/analysisOptions.unit.test.ts b/src/test/activation/node/analysisOptions.unit.test.ts
index 628282f051e0..3e14130c650e 100644
--- a/src/test/activation/node/analysisOptions.unit.test.ts
+++ b/src/test/activation/node/analysisOptions.unit.test.ts
@@ -1,13 +1,14 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
-import { expect } from 'chai';
+import { assert, expect } from 'chai';
 import * as typemoq from 'typemoq';
 import { WorkspaceFolder } from 'vscode';
 import { DocumentFilter } from 'vscode-languageclient/node';
 
 import { NodeLanguageServerAnalysisOptions } from '../../../client/activation/node/analysisOptions';
 import { ILanguageServerOutputChannel } from '../../../client/activation/types';
-import { PYTHON } from '../../../client/common/constants';
+import { IWorkspaceService } from '../../../client/common/application/types';
+import { PYTHON, PYTHON_LANGUAGE } from '../../../client/common/constants';
 import { IOutputChannel } from '../../../client/common/types';
 
 suite('Pylance Language Server - Analysis Options', () => {
@@ -29,12 +30,15 @@ suite('Pylance Language Server - Analysis Options', () => {
     let analysisOptions: TestClass;
     let outputChannel: IOutputChannel;
     let lsOutputChannel: typemoq.IMock<ILanguageServerOutputChannel>;
+    let workspace: typemoq.IMock<IWorkspaceService>;
 
     setup(() => {
         outputChannel = typemoq.Mock.ofType<IOutputChannel>().object;
+        workspace = typemoq.Mock.ofType<IWorkspaceService>();
+        workspace.setup((w) => w.isVirtualWorkspace).returns(() => false);
         lsOutputChannel = typemoq.Mock.ofType<ILanguageServerOutputChannel>();
         lsOutputChannel.setup((l) => l.channel).returns(() => outputChannel);
-        analysisOptions = new TestClass(lsOutputChannel.object);
+        analysisOptions = new TestClass(lsOutputChannel.object, workspace.object);
     });
 
     test('Workspace folder is undefined', () => {
@@ -42,11 +46,18 @@ suite('Pylance Language Server - Analysis Options', () => {
         expect(workspaceFolder).to.be.equal(undefined);
     });
 
-    test('Document filter matches all python', () => {
+    test('Document filter matches expected python language schemes', () => {
         const filter = analysisOptions.getDocumentFilters();
         expect(filter).to.be.equal(PYTHON);
     });
 
+    test('Document filter matches all python language schemes when in virtual workspace', () => {
+        workspace.reset();
+        workspace.setup((w) => w.isVirtualWorkspace).returns(() => true);
+        const filter = analysisOptions.getDocumentFilters();
+        assert.deepEqual(filter, [{ language: PYTHON_LANGUAGE }]);
+    });
+
     test('Initialization options include experimentation capability', async () => {
         const options = await analysisOptions.getInitializationOptions();
         expect(options?.experimentationSupport).to.be.equal(true);