diff --git a/crates/uv-python/src/lib.rs b/crates/uv-python/src/lib.rs
index f45b901ab8e2b..f5da2caa359c9 100644
--- a/crates/uv-python/src/lib.rs
+++ b/crates/uv-python/src/lib.rs
@@ -1181,19 +1181,21 @@ mod tests {
         let condaenv = context.tempdir.child("condaenv");
         TestContext::mock_conda_prefix(&condaenv, "3.12.0")?;
 
-        let python = context.run_with_vars(
-            &[(EnvVars::CONDA_PREFIX, Some(condaenv.as_os_str()))],
-            || {
-                // Note this python is not treated as a system interpreter
-                find_python_installation(
-                    &PythonRequest::Default,
-                    EnvironmentPreference::OnlyVirtual,
-                    PythonPreference::OnlySystem,
-                    &context.cache,
-                    Preview::default(),
-                )
-            },
-        )??;
+        let python = context
+            .run_with_vars(
+                &[(EnvVars::CONDA_PREFIX, Some(condaenv.as_os_str()))],
+                || {
+                    // Note this python is not treated as a system interpreter
+                    find_python_installation(
+                        &PythonRequest::Default,
+                        EnvironmentPreference::OnlyVirtual,
+                        PythonPreference::OnlySystem,
+                        &context.cache,
+                        Preview::default(),
+                    )
+                },
+            )?
+            .unwrap();
         assert_eq!(
             python.interpreter().python_full_version().to_string(),
             "3.12.0",
@@ -1274,22 +1276,14 @@ mod tests {
         assert_eq!(
             python.interpreter().python_full_version().to_string(),
             "3.12.0",
-            "We should find the conda environment"
+            "We should find the conda environment when name matches"
         );
 
-        // Test _CONDA_ROOT detection of base environment
-        let conda_root_env = context.tempdir.child("conda-root");
-        TestContext::mock_conda_prefix(&conda_root_env, "3.12.2")?;
-
-        // When _CONDA_ROOT matches CONDA_PREFIX, it should be treated as a base environment
+        // When CONDA_DEFAULT_ENV is "base", it should always be treated as base environment
         let result = context.run_with_vars(
             &[
-                (EnvVars::CONDA_PREFIX, Some(conda_root_env.as_os_str())),
-                (EnvVars::CONDA_ROOT, Some(conda_root_env.as_os_str())),
-                (
-                    EnvVars::CONDA_DEFAULT_ENV,
-                    Some(&OsString::from("custom-name")),
-                ),
+                ("CONDA_PREFIX", Some(condaenv.as_os_str())),
+                ("CONDA_DEFAULT_ENV", Some(&OsString::from("base"))),
             ],
             || {
                 find_python_installation(
@@ -1304,20 +1298,48 @@ mod tests {
 
         assert!(
             matches!(result, Err(PythonNotFound { .. })),
-            "Base environment detected via _CONDA_ROOT should be excluded from virtual environments; got {result:?}"
+            "We should not allow the base environment when looking for virtual environments"
         );
 
-        // When _CONDA_ROOT doesn't match CONDA_PREFIX, it should be treated as a regular conda environment
-        let other_conda_env = context.tempdir.child("other-conda");
-        TestContext::mock_conda_prefix(&other_conda_env, "3.12.3")?;
+        // When environment name matches directory name, it should be treated as a child environment
+        let myenv_dir = context.tempdir.child("myenv");
+        TestContext::mock_conda_prefix(&myenv_dir, "3.12.5")?;
+        let python = context
+            .run_with_vars(
+                &[
+                    ("CONDA_PREFIX", Some(myenv_dir.as_os_str())),
+                    ("CONDA_DEFAULT_ENV", Some(&OsString::from("myenv"))),
+                ],
+                || {
+                    find_python_installation(
+                        &PythonRequest::Default,
+                        EnvironmentPreference::OnlyVirtual,
+                        PythonPreference::OnlySystem,
+                        &context.cache,
+                        Preview::default(),
+                    )
+                },
+            )?
+            .unwrap();
 
-        let python = context.run_with_vars(
+        assert_eq!(
+            python.interpreter().python_full_version().to_string(),
+            "3.12.5",
+            "We should find the child conda environment"
+        );
+
+        // Test _CONDA_ROOT detection of base environment
+        let conda_root_env = context.tempdir.child("conda-root");
+        TestContext::mock_conda_prefix(&conda_root_env, "3.12.2")?;
+
+        // When _CONDA_ROOT matches CONDA_PREFIX, it should be treated as a base environment
+        let result = context.run_with_vars(
             &[
-                (EnvVars::CONDA_PREFIX, Some(other_conda_env.as_os_str())),
+                (EnvVars::CONDA_PREFIX, Some(conda_root_env.as_os_str())),
                 (EnvVars::CONDA_ROOT, Some(conda_root_env.as_os_str())),
                 (
                     EnvVars::CONDA_DEFAULT_ENV,
-                    Some(&OsString::from("custom-env")),
+                    Some(&OsString::from("custom-name")),
                 ),
             ],
             || {
@@ -1329,7 +1351,38 @@ mod tests {
                     Preview::default(),
                 )
             },
-        )??;
+        )?;
+
+        assert!(
+            matches!(result, Err(PythonNotFound { .. })),
+            "Base environment detected via _CONDA_ROOT should be excluded from virtual environments; got {result:?}"
+        );
+
+        // When _CONDA_ROOT doesn't match CONDA_PREFIX, it should be treated as a regular conda environment
+        let other_conda_env = context.tempdir.child("other-conda");
+        TestContext::mock_conda_prefix(&other_conda_env, "3.12.3")?;
+
+        let python = context
+            .run_with_vars(
+                &[
+                    (EnvVars::CONDA_PREFIX, Some(other_conda_env.as_os_str())),
+                    (EnvVars::CONDA_ROOT, Some(conda_root_env.as_os_str())),
+                    (
+                        EnvVars::CONDA_DEFAULT_ENV,
+                        Some(&OsString::from("other-conda")),
+                    ),
+                ],
+                || {
+                    find_python_installation(
+                        &PythonRequest::Default,
+                        EnvironmentPreference::OnlyVirtual,
+                        PythonPreference::OnlySystem,
+                        &context.cache,
+                        Preview::default(),
+                    )
+                },
+            )?
+            .unwrap();
 
         assert_eq!(
             python.interpreter().python_full_version().to_string(),
diff --git a/crates/uv-python/src/virtualenv.rs b/crates/uv-python/src/virtualenv.rs
index db3c90b48e6ff..92781f2ae5035 100644
--- a/crates/uv-python/src/virtualenv.rs
+++ b/crates/uv-python/src/virtualenv.rs
@@ -104,12 +104,15 @@ impl CondaEnvironmentKind {
             return Self::Child;
         }
 
-        // These are the expected names for the base environment; we may want to remove this
-        // restriction in the future as it's not strictly necessary.
-        if current_env != "base" && current_env != "root" {
-            return Self::Child;
+        // If the environment name is "base" or "root", treat it as a base environment
+        //
+        // These are the expected names for the base environment; and is retained for backwards
+        // compatibility, but in a future breaking release we should remove this special-casing.
+        if current_env == "base" || current_env == "root" {
+            return Self::Base;
         }
 
+        // For other environment names, use the path-based logic
         let Some(name) = path.file_name() else {
             return Self::Child;
         };