diff --git a/src/common/localize.ts b/src/common/localize.ts
index fcda9e52..ab39e50e 100644
--- a/src/common/localize.ts
+++ b/src/common/localize.ts
@@ -138,3 +138,8 @@ export namespace ProjectCreatorString {
 
     export const noProjectsFound = l10n.t('No projects found');
 }
+
+export namespace EnvViewStrings {
+    export const selectedGlobalTooltip = l10n.t('This environment is selected for non-workspace files');
+    export const selectedWorkspaceTooltip = l10n.t('This environment is selected for workspace files');
+}
diff --git a/src/common/utils/pythonPath.ts b/src/common/utils/pythonPath.ts
index 451da4b1..bdc469ef 100644
--- a/src/common/utils/pythonPath.ts
+++ b/src/common/utils/pythonPath.ts
@@ -2,7 +2,7 @@ import { Uri, Progress, CancellationToken } from 'vscode';
 import { PythonEnvironment } from '../../api';
 import { InternalEnvironmentManager } from '../../internal.api';
 import { showErrorMessage } from '../errors/utils';
-import { traceInfo, traceVerbose, traceError } from '../logging';
+import { traceVerbose, traceError } from '../logging';
 import { PYTHON_EXTENSION_ID } from '../constants';
 
 const priorityOrder = [
@@ -47,10 +47,10 @@ export async function handlePythonPath(
             return;
         }
         reporter?.report({ message: `Checking ${manager.displayName}` });
-        traceInfo(`Checking ${manager.displayName} (${manager.id}) for ${interpreterUri.fsPath}`);
+        traceVerbose(`Checking ${manager.displayName} (${manager.id}) for ${interpreterUri.fsPath}`);
         const env = await manager.resolve(interpreterUri);
         if (env) {
-            traceInfo(`Using ${manager.displayName} (${manager.id}) to handle ${interpreterUri.fsPath}`);
+            traceVerbose(`Using ${manager.displayName} (${manager.id}) to handle ${interpreterUri.fsPath}`);
             return env;
         }
         traceVerbose(`Manager ${manager.displayName} (${manager.id}) cannot handle ${interpreterUri.fsPath}`);
@@ -66,10 +66,10 @@ export async function handlePythonPath(
             return;
         }
         reporter?.report({ message: `Checking ${manager.displayName}` });
-        traceInfo(`Checking ${manager.displayName} (${manager.id}) for ${interpreterUri.fsPath}`);
+        traceVerbose(`Checking ${manager.displayName} (${manager.id}) for ${interpreterUri.fsPath}`);
         const env = await manager.resolve(interpreterUri);
         if (env) {
-            traceInfo(`Using ${manager.displayName} (${manager.id}) to handle ${interpreterUri.fsPath}`);
+            traceVerbose(`Using ${manager.displayName} (${manager.id}) to handle ${interpreterUri.fsPath}`);
             return env;
         }
     }
diff --git a/src/common/window.apis.ts b/src/common/window.apis.ts
index 55f06c1f..ed9611af 100644
--- a/src/common/window.apis.ts
+++ b/src/common/window.apis.ts
@@ -3,6 +3,7 @@ import {
     CancellationToken,
     Disposable,
     ExtensionTerminalOptions,
+    FileDecorationProvider,
     InputBox,
     InputBoxOptions,
     LogOutputChannel,
@@ -290,3 +291,7 @@ export function createOutputChannel(name: string, languageId?: string): OutputCh
 export function createLogOutputChannel(name: string): LogOutputChannel {
     return window.createOutputChannel(name, { log: true });
 }
+
+export function registerFileDecorationProvider(provider: FileDecorationProvider): Disposable {
+    return window.registerFileDecorationProvider(provider);
+}
diff --git a/src/extension.ts b/src/extension.ts
index 142da287..b6880eed 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -212,6 +212,7 @@ export async function activate(context: ExtensionContext): Promise<PythonEnviron
             updateViewsAndStatus(statusBar, workspaceView, managerView, api);
         }),
         envManagers.onDidChangeEnvironmentFiltered(async (e) => {
+            managerView.environmentChanged(e);
             const location = e.uri?.fsPath ?? 'global';
             traceInfo(
                 `Internal: Changed environment from ${e.old?.displayName} to ${e.new?.displayName} for: ${location}`,
diff --git a/src/features/views/envManagersView.ts b/src/features/views/envManagersView.ts
index 2c04ade5..5a131fcb 100644
--- a/src/features/views/envManagersView.ts
+++ b/src/features/views/envManagersView.ts
@@ -1,5 +1,5 @@
 import { Disposable, Event, EventEmitter, ProviderResult, TreeDataProvider, TreeItem, TreeView, window } from 'vscode';
-import { EnvironmentGroupInfo, PythonEnvironment } from '../../api';
+import { DidChangeEnvironmentEventArgs, EnvironmentGroupInfo, PythonEnvironment } from '../../api';
 import {
     DidChangeEnvironmentManagerEventArgs,
     DidChangePackageManagerEventArgs,
@@ -32,6 +32,7 @@ export class EnvManagerView implements TreeDataProvider<EnvTreeItem>, Disposable
     private revealMap = new Map<string, PythonEnvTreeItem>();
     private managerViews = new Map<string, EnvManagerTreeItem>();
     private packageRoots = new Map<string, PackageRootTreeItem>();
+    private selected: Map<string, string> = new Map();
     private disposables: Disposable[] = [];
 
     public constructor(public providers: EnvironmentManagers) {
@@ -44,6 +45,7 @@ export class EnvManagerView implements TreeDataProvider<EnvTreeItem>, Disposable
                 this.packageRoots.clear();
                 this.revealMap.clear();
                 this.managerViews.clear();
+                this.selected.clear();
             }),
             this.treeView,
             this.treeDataChanged,
@@ -99,7 +101,7 @@ export class EnvManagerView implements TreeDataProvider<EnvTreeItem>, Disposable
             const views: EnvTreeItem[] = [];
             const envs = await manager.getEnvironments('all');
             envs.filter((e) => !e.group).forEach((env) => {
-                const view = new PythonEnvTreeItem(env, element as EnvManagerTreeItem);
+                const view = new PythonEnvTreeItem(env, element as EnvManagerTreeItem, this.selected.get(env.envId.id));
                 views.push(view);
                 this.revealMap.set(env.envId.id, view);
             });
@@ -142,7 +144,7 @@ export class EnvManagerView implements TreeDataProvider<EnvTreeItem>, Disposable
             });
 
             grouped.forEach((env) => {
-                const view = new PythonEnvTreeItem(env, groupItem);
+                const view = new PythonEnvTreeItem(env, groupItem, this.selected.get(env.envId.id));
                 views.push(view);
                 this.revealMap.set(env.envId.id, view);
             });
@@ -227,4 +229,29 @@ export class EnvManagerView implements TreeDataProvider<EnvTreeItem>, Disposable
         const roots = Array.from(this.packageRoots.values()).filter((r) => r.manager.id === args.manager.id);
         this.fireDataChanged(roots);
     }
+
+    public environmentChanged(e: DidChangeEnvironmentEventArgs) {
+        const views = [];
+        if (e.old) {
+            this.selected.delete(e.old.envId.id);
+            let view: EnvTreeItem | undefined = this.packageRoots.get(e.old.envId.id);
+            if (!view) {
+                view = this.managerViews.get(e.old.envId.managerId);
+            }
+            if (view) {
+                views.push(view);
+            }
+        }
+        if (e.new) {
+            this.selected.set(e.new.envId.id, e.uri === undefined ? 'global' : e.uri.fsPath);
+            let view: EnvTreeItem | undefined = this.packageRoots.get(e.new.envId.id);
+            if (!view) {
+                view = this.managerViews.get(e.new.envId.managerId);
+            }
+            if (view && !views.includes(view)) {
+                views.push(view);
+            }
+        }
+        this.fireDataChanged(views);
+    }
 }
diff --git a/src/features/views/treeViewItems.ts b/src/features/views/treeViewItems.ts
index 7197c87d..842ef8c9 100644
--- a/src/features/views/treeViewItems.ts
+++ b/src/features/views/treeViewItems.ts
@@ -3,6 +3,7 @@ import { InternalEnvironmentManager, InternalPackageManager } from '../../intern
 import { PythonEnvironment, IconPath, Package, PythonProject, EnvironmentGroupInfo } from '../../api';
 import { removable } from './utils';
 import { isActivatableEnvironment } from '../common/activation';
+import { EnvViewStrings } from '../../common/localize';
 
 export enum EnvTreeItemKind {
     manager = 'python-env-manager',
@@ -66,11 +67,21 @@ export class PythonEnvTreeItem implements EnvTreeItem {
     constructor(
         public readonly environment: PythonEnvironment,
         public readonly parent: EnvManagerTreeItem | PythonGroupEnvTreeItem,
+        public readonly selected?: string,
     ) {
-        const item = new TreeItem(environment.displayName ?? environment.name, TreeItemCollapsibleState.Collapsed);
+        let name = environment.displayName ?? environment.name;
+        let tooltip = environment.tooltip;
+        if (selected) {
+            const tooltipEnd = environment.tooltip ?? environment.description;
+            tooltip =
+                selected === 'global' ? EnvViewStrings.selectedGlobalTooltip : EnvViewStrings.selectedWorkspaceTooltip;
+            tooltip = tooltipEnd ? `${tooltip} ● ${tooltipEnd}` : tooltip;
+        }
+
+        const item = new TreeItem(name, TreeItemCollapsibleState.Collapsed);
         item.contextValue = this.getContextValue();
         item.description = environment.description;
-        item.tooltip = environment.tooltip;
+        item.tooltip = tooltip;
         item.iconPath = environment.iconPath;
         this.treeItem = item;
     }
diff --git a/src/internal.api.ts b/src/internal.api.ts
index 59165bd0..fb38d49d 100644
--- a/src/internal.api.ts
+++ b/src/internal.api.ts
@@ -71,8 +71,26 @@ export interface EnvironmentManagers extends Disposable {
     registerEnvironmentManager(manager: EnvironmentManager): Disposable;
     registerPackageManager(manager: PackageManager): Disposable;
 
+    /**
+     * This event is fired when any environment manager changes its collection of environments.
+     * This can be any environment manager even if it is not the one selected by the user for the workspace.
+     */
     onDidChangeEnvironments: Event<InternalDidChangeEnvironmentsEventArgs>;
+
+    /**
+     * This event is fired when an environment manager changes the environment for
+     * a particular scope (global, uri, workspace, etc). This can be any environment manager even if it is not the
+     * one selected by the user for the workspace. It is also fired if the change
+     * involves unselected to selected or selected to unselected.
+     */
     onDidChangeEnvironment: Event<DidChangeEnvironmentEventArgs>;
+
+    /**
+     * This event is fired when a selected environment manager changes the environment
+     * for a particular scope (global, uri, workspace, etc). This is also only fired if
+     * the previous and current environments are different. It is also fired if the change
+     * involves unselected to selected or selected to unselected.
+     */
     onDidChangeEnvironmentFiltered: Event<DidChangeEnvironmentEventArgs>;
     onDidChangePackages: Event<InternalDidChangePackagesEventArgs>;