diff --git a/src/plugins/python/pythoneditor.cpp b/src/plugins/python/pythoneditor.cpp
index f758ae3d9b6..42771fc91a2 100644
--- a/src/plugins/python/pythoneditor.cpp
+++ b/src/plugins/python/pythoneditor.cpp
@@ -163,6 +163,7 @@ void PythonEditorWidget::setUserDefinedPython(const Interpreter &interpreter)
         }
     }
     definePythonForDocument(textDocument()->filePath(), interpreter.command);
+    updateInterpretersSelector();
     pythonDocument->checkForPyls();
 }
 
@@ -212,33 +213,51 @@ void PythonEditorWidget::updateInterpretersSelector()
         m_interpreters->setText(text);
     };
 
-    const FilePath currentInterpreter = detectPython(textDocument()->filePath());
+    const FilePath currentInterpreterPath = detectPython(textDocument()->filePath());
     const QList<Interpreter> configuredInterpreters = PythonSettings::interpreters();
-    bool foundCurrentInterpreter = false;
     auto interpretersGroup = new QActionGroup(menu);
     interpretersGroup->setExclusive(true);
+    std::optional<Interpreter> currentInterpreter;
     for (const Interpreter &interpreter : configuredInterpreters) {
         QAction *action = interpretersGroup->addAction(interpreter.name);
         connect(action, &QAction::triggered, this, [this, interpreter]() {
             setUserDefinedPython(interpreter);
         });
         action->setCheckable(true);
-        if (!foundCurrentInterpreter && interpreter.command == currentInterpreter) {
-            foundCurrentInterpreter = true;
+        if (!currentInterpreter && interpreter.command == currentInterpreterPath) {
+            currentInterpreter = interpreter;
             action->setChecked(true);
             setButtonText(interpreter.name);
             m_interpreters->setToolTip(interpreter.command.toUserOutput());
         }
     }
     menu->addActions(interpretersGroup->actions());
-    if (!foundCurrentInterpreter) {
-        if (currentInterpreter.exists())
-            setButtonText(currentInterpreter.toUserOutput());
+    if (!currentInterpreter) {
+        if (currentInterpreterPath.exists())
+            setButtonText(currentInterpreterPath.toUserOutput());
         else
             setButtonText(Tr::tr("No Python Selected"));
     }
-    if (!interpretersGroup->actions().isEmpty())
-       menu->addSeparator();
+    if (!interpretersGroup->actions().isEmpty()) {
+        menu->addSeparator();
+        auto venvAction = menu->addAction(Tr::tr("Create Virtual Environment"));
+        connect(venvAction,
+                &QAction::triggered,
+                this,
+                [self = QPointer<PythonEditorWidget>(this), currentInterpreter]() {
+                    if (!currentInterpreter)
+                        return;
+                    auto callback = [self](const std::optional<Interpreter> &venvInterpreter) {
+                        if (self && venvInterpreter)
+                            self->setUserDefinedPython(*venvInterpreter);
+                    };
+                    PythonSettings::createVirtualEnvironment(self->textDocument()
+                                                                 ->filePath()
+                                                                 .parentDir(),
+                                                             *currentInterpreter,
+                                                             callback);
+                });
+    }
     auto settingsAction = menu->addAction(Tr::tr("Manage Python Interpreters"));
     connect(settingsAction, &QAction::triggered, this, []() {
         Core::ICore::showOptionsDialog(Constants::C_PYTHONOPTIONS_PAGE_ID);
diff --git a/src/plugins/python/pythonsettings.cpp b/src/plugins/python/pythonsettings.cpp
index 9306fe3b6f4..f22f0c3c8ce 100644
--- a/src/plugins/python/pythonsettings.cpp
+++ b/src/plugins/python/pythonsettings.cpp
@@ -6,6 +6,7 @@
 #include "pythonconstants.h"
 #include "pythonplugin.h"
 #include "pythontr.h"
+#include "pythonutils.h"
 
 #include <coreplugin/dialogs/ioptionspage.h>
 #include <coreplugin/icore.h>
@@ -30,19 +31,22 @@
 #include <utils/treemodel.h>
 #include <utils/utilsicons.h>
 
+#include <QCheckBox>
+#include <QComboBox>
+#include <QDialogButtonBox>
 #include <QDir>
+#include <QFormLayout>
+#include <QGroupBox>
+#include <QJsonDocument>
+#include <QJsonObject>
 #include <QLabel>
-#include <QPushButton>
 #include <QPointer>
+#include <QPushButton>
 #include <QSettings>
 #include <QStackedWidget>
 #include <QTreeView>
-#include <QWidget>
 #include <QVBoxLayout>
-#include <QGroupBox>
-#include <QCheckBox>
-#include <QJsonDocument>
-#include <QJsonObject>
+#include <QWidget>
 
 using namespace ProjectExplorer;
 using namespace Utils;
@@ -69,7 +73,7 @@ static Interpreter createInterpreter(const FilePath &python,
         result.name = defaultName;
     QDir pythonDir(python.parentDir().toString());
     if (pythonDir.exists() && pythonDir.exists("activate") && pythonDir.cdUp())
-        result.name += QString(" (%1 Virtual Environment)").arg(pythonDir.dirName());
+        result.name += QString(" (%1)").arg(pythonDir.dirName());
     if (!suffix.isEmpty())
         result.name += ' ' + suffix;
 
@@ -769,12 +773,75 @@ void PythonSettings::addInterpreter(const Interpreter &interpreter, bool isDefau
     saveSettings();
 }
 
+Interpreter PythonSettings::addInterpreter(const FilePath &interpreterPath, bool isDefault)
+{
+    const Interpreter interpreter = createInterpreter(interpreterPath, {});
+    addInterpreter(interpreter, isDefault);
+    return interpreter;
+}
+
 PythonSettings *PythonSettings::instance()
 {
     QTC_CHECK(settingsInstance);
     return settingsInstance;
 }
 
+void PythonSettings::createVirtualEnvironment(
+    const FilePath &startDirectory,
+    const Interpreter &defaultInterpreter,
+    const std::function<void(std::optional<Interpreter>)> &callback)
+{
+    QDialog dialog;
+    dialog.setModal(true);
+    auto layout = new QFormLayout(&dialog);
+    auto interpreters = new QComboBox;
+    const QString preselectedId = defaultInterpreter.id.isEmpty()
+                                      ? PythonSettings::defaultInterpreter().id
+                                      : defaultInterpreter.id;
+    for (const Interpreter &interpreter : PythonSettings::interpreters()) {
+        interpreters->addItem(interpreter.name, interpreter.id);
+        if (!preselectedId.isEmpty() && interpreter.id == preselectedId)
+            interpreters->setCurrentIndex(interpreters->count() - 1);
+    }
+    layout->addRow(Tr::tr("Python Interpreter"), interpreters);
+    auto pathChooser = new PathChooser();
+    pathChooser->setInitialBrowsePathBackup(startDirectory);
+    pathChooser->setExpectedKind(PathChooser::Directory);
+    pathChooser->setPromptDialogTitle(Tr::tr("New Python Virtual Environment Directory"));
+    layout->addRow(Tr::tr("Virtual Environment Directory"), pathChooser);
+    auto buttons = new QDialogButtonBox(QDialogButtonBox::Cancel);
+    auto createButton = buttons->addButton(Tr::tr("Create"), QDialogButtonBox::AcceptRole);
+    createButton->setEnabled(false);
+    connect(pathChooser,
+            &PathChooser::validChanged,
+            createButton,
+            [createButton](bool valid) { createButton->setEnabled(valid); });
+    connect(buttons, &QDialogButtonBox::accepted, &dialog, &QDialog::accept);
+    connect(buttons, &QDialogButtonBox::rejected, &dialog, &QDialog::reject);
+    layout->addRow(buttons);
+    dialog.setLayout(layout);
+    if (dialog.exec() == QDialog::Rejected) {
+        callback({});
+        return;
+    }
+
+    const Interpreter interpreter = PythonSettings::interpreter(
+        interpreters->currentData().toString());
+
+    auto venvDir = pathChooser->filePath();
+    createVenv(interpreter.command, venvDir, [venvDir, callback](bool success){
+        std::optional<Interpreter> result;
+        if (success) {
+            FilePath venvPython = venvDir.osType() == Utils::OsTypeWindows ? venvDir / "Scripts"
+                                                                           : venvDir / "bin";
+            venvPython = venvPython.pathAppended("python").withExecutableSuffix();
+            if (venvPython.exists())
+                result = PythonSettings::addInterpreter(venvPython);
+        }
+        callback(result);
+    });
+}
+
 QList<Interpreter> PythonSettings::detectPythonVenvs(const FilePath &path)
 {
     QList<Interpreter> result;
diff --git a/src/plugins/python/pythonsettings.h b/src/plugins/python/pythonsettings.h
index 693c7322085..2e27e266162 100644
--- a/src/plugins/python/pythonsettings.h
+++ b/src/plugins/python/pythonsettings.h
@@ -24,12 +24,14 @@ public:
     static Interpreter interpreter(const QString &interpreterId);
     static void setInterpreter(const QList<Interpreter> &interpreters, const QString &defaultId);
     static void addInterpreter(const Interpreter &interpreter, bool isDefault = false);
+    static Interpreter addInterpreter(const Utils::FilePath &interpreterPath,
+                                      bool isDefault = false);
     static void setPyLSConfiguration(const QString &configuration);
     static bool pylsEnabled();
     static void setPylsEnabled(const bool &enabled);
     static QString pylsConfiguration();
     static PythonSettings *instance();
-
+    static void createVirtualEnvironment(const Utils::FilePath &startDirectory, const Interpreter &defaultInterpreter, const std::function<void (std::optional<Interpreter>)> &callback);
     static QList<Interpreter> detectPythonVenvs(const Utils::FilePath &path);
 
 signals:
diff --git a/src/plugins/python/pythonutils.cpp b/src/plugins/python/pythonutils.cpp
index 86356050928..1f89eef5b5f 100644
--- a/src/plugins/python/pythonutils.cpp
+++ b/src/plugins/python/pythonutils.cpp
@@ -8,6 +8,7 @@
 #include "pythontr.h"
 
 #include <coreplugin/messagemanager.h>
+#include <coreplugin/progressmanager/processprogress.h>
 
 #include <projectexplorer/project.h>
 #include <projectexplorer/projectmanager.h>
@@ -164,4 +165,24 @@ PythonProject *pythonProjectForFile(const FilePath &pythonFile)
     return nullptr;
 }
 
+void createVenv(const Utils::FilePath &python,
+                const Utils::FilePath &venvPath,
+                const std::function<void(bool)> &callback)
+{
+    QTC_ASSERT(python.isExecutableFile(), callback(false); return);
+    QTC_ASSERT(!venvPath.exists() || venvPath.isDir(), callback(false); return);
+
+    const CommandLine command(python, QStringList{"-m", "venv", venvPath.toUserOutput()});
+
+    auto process = new QtcProcess;
+    auto progress = new Core::ProcessProgress(process);
+    progress->setDisplayName(Tr::tr("Create Python venv"));
+    QObject::connect(process, &QtcProcess::done, [process, callback](){
+        callback(process->result() == ProcessResult::FinishedWithSuccess);
+        process->deleteLater();
+    });
+    process->setCommand(command);
+    process->start();
+}
+
 } // Python::Internal
diff --git a/src/plugins/python/pythonutils.h b/src/plugins/python/pythonutils.h
index 8d5b06974ef..f3e685b4ae0 100644
--- a/src/plugins/python/pythonutils.h
+++ b/src/plugins/python/pythonutils.h
@@ -16,4 +16,8 @@ QString pythonName(const Utils::FilePath &pythonPath);
 class PythonProject;
 PythonProject *pythonProjectForFile(const Utils::FilePath &pythonFile);
 
+void createVenv(const Utils::FilePath &python,
+                const Utils::FilePath &venvPath,
+                const std::function<void(bool)> &callback);
+
 } // Python::Internal