diff --git a/src/features/terminal/runInTerminal.ts b/src/features/terminal/runInTerminal.ts
index b650b9e3..24ac7eb3 100644
--- a/src/features/terminal/runInTerminal.ts
+++ b/src/features/terminal/runInTerminal.ts
@@ -1,10 +1,10 @@
 import { Terminal, TerminalShellExecution } from 'vscode';
 import { PythonEnvironment, PythonTerminalExecutionOptions } from '../../api';
-import { onDidEndTerminalShellExecution } from '../../common/window.apis';
 import { createDeferred } from '../../common/utils/deferred';
-import { quoteArgs } from '../execution/execUtils';
-import { identifyTerminalShell } from '../common/shellDetector';
+import { onDidEndTerminalShellExecution } from '../../common/window.apis';
 import { ShellConstants } from '../common/shellConstants';
+import { identifyTerminalShell } from '../common/shellDetector';
+import { quoteArgs } from '../execution/execUtils';
 
 export async function runInTerminal(
     environment: PythonEnvironment,
@@ -15,11 +15,10 @@ export async function runInTerminal(
         terminal.show();
     }
 
-    const executable =
-        environment.execInfo?.activatedRun?.executable ?? environment.execInfo?.run.executable ?? 'python';
+    let executable = environment.execInfo?.activatedRun?.executable ?? environment.execInfo?.run.executable ?? 'python';
     const args = environment.execInfo?.activatedRun?.args ?? environment.execInfo?.run.args ?? [];
     const allArgs = [...args, ...(options.args ?? [])];
-
+    const shellType = identifyTerminalShell(terminal);
     if (terminal.shellIntegration) {
         let execution: TerminalShellExecution | undefined;
         const deferred = createDeferred<void>();
@@ -29,10 +28,21 @@ export async function runInTerminal(
                 deferred.resolve();
             }
         });
+
+        const shouldSurroundWithQuotes =
+            executable.includes(' ') && !executable.startsWith('"') && !executable.endsWith('"');
+        // Handle case where executable contains white-spaces.
+        if (shouldSurroundWithQuotes) {
+            executable = `"${executable}"`;
+        }
+
+        if (shellType === ShellConstants.PWSH && !executable.startsWith('&')) {
+            // PowerShell requires commands to be prefixed with '&' to run them.
+            executable = `& ${executable}`;
+        }
         execution = terminal.shellIntegration.executeCommand(executable, allArgs);
         await deferred.promise;
     } else {
-        const shellType = identifyTerminalShell(terminal);
         let text = quoteArgs([executable, ...allArgs]).join(' ');
         if (shellType === ShellConstants.PWSH && !text.startsWith('&')) {
             // PowerShell requires commands to be prefixed with '&' to run them.