diff --git a/docs/changelog/1679.bugfix.rst b/docs/changelog/1679.bugfix.rst
new file mode 100644
index 000000000..b42782b65
--- /dev/null
+++ b/docs/changelog/1679.bugfix.rst
@@ -0,0 +1 @@
+Fix Batch activation script shell prompt to display environment name by default - by :user:`spetafree`.
diff --git a/src/virtualenv/activation/batch/activate.bat b/src/virtualenv/activation/batch/activate.bat
index 96e835b52..c0949ba83 100644
--- a/src/virtualenv/activation/batch/activate.bat
+++ b/src/virtualenv/activation/batch/activate.bat
@@ -13,7 +13,12 @@ if defined _OLD_VIRTUAL_PROMPT (
     )
 )
 if not defined VIRTUAL_ENV_DISABLE_PROMPT (
-    set "PROMPT=__VIRTUAL_PROMPT__%PROMPT%"
+    set "ENV_PROMPT=__VIRTUAL_PROMPT__"
+    if NOT DEFINED ENV_PROMPT (
+        for %%d in ("%VIRTUAL_ENV%") do set "ENV_PROMPT=(%%~nxd) "
+    )
+    )
+    set "PROMPT=%ENV_PROMPT%%PROMPT%"
 )
 
 REM Don't use () to avoid problems with them in %PATH%
diff --git a/tests/unit/activation/conftest.py b/tests/unit/activation/conftest.py
index 712ee1411..c016b4052 100644
--- a/tests/unit/activation/conftest.py
+++ b/tests/unit/activation/conftest.py
@@ -205,10 +205,13 @@ def raise_on_non_source_class():
     return RaiseOnNonSourceCall
 
 
-@pytest.fixture(scope="session")
-def activation_python(tmp_path_factory, special_char_name, current_fastest):
+@pytest.fixture(scope="session", params=[True, False], ids=["with_prompt", "no_prompt"])
+def activation_python(request, tmp_path_factory, special_char_name, current_fastest):
     dest = os.path.join(ensure_text(str(tmp_path_factory.mktemp("activation-tester-env"))), special_char_name)
-    session = cli_run(["--without-pip", dest, "--prompt", special_char_name, "--creator", current_fastest, "-vv"])
+    cmd = ["--without-pip", dest, "--creator", current_fastest, "-vv"]
+    if request.param:
+        cmd += ["--prompt", special_char_name]
+    session = cli_run(cmd)
     pydoc_test = session.creator.purelib / "pydoc_test.py"
     pydoc_test.write_text('"""This is pydoc_test.py"""')
     yield session