diff --git a/src/client/common/utils/localize.ts b/src/client/common/utils/localize.ts
index 4cda15e15ec0..7ec517f82277 100644
--- a/src/client/common/utils/localize.ts
+++ b/src/client/common/utils/localize.ts
@@ -464,8 +464,10 @@ export namespace CreateEnv {
         export const error = l10n.t('Creating virtual environment failed with error.');
         export const tomlExtrasQuickPickTitle = l10n.t('Select optional dependencies to install from pyproject.toml');
         export const requirementsQuickPickTitle = l10n.t('Select dependencies to install');
-        export const recreate = l10n.t('Recreate');
-        export const recreateDescription = l10n.t('Delete existing ".venv" environment and create a new one');
+        export const recreate = l10n.t('Delete and Recreate');
+        export const recreateDescription = l10n.t(
+            'Delete existing ".venv" directory and create a new ".venv" environment',
+        );
         export const useExisting = l10n.t('Use Existing');
         export const useExistingDescription = l10n.t('Use existing ".venv" environment with no changes to it');
         export const existingVenvQuickPickPlaceholder = l10n.t(
@@ -485,6 +487,16 @@ export namespace CreateEnv {
         );
         export const creating = l10n.t('Creating conda environment...');
         export const providerDescription = l10n.t('Creates a `.conda` Conda environment in the current workspace');
+
+        export const recreate = l10n.t('Delete and Recreate');
+        export const recreateDescription = l10n.t('Delete existing ".conda" environment and create a new one');
+        export const useExisting = l10n.t('Use Existing');
+        export const useExistingDescription = l10n.t('Use existing ".conda" environment with no changes to it');
+        export const existingCondaQuickPickPlaceholder = l10n.t(
+            'Choose an option to handle the existing ".conda" environment',
+        );
+        export const deletingEnvironmentProgress = l10n.t('Deleting existing ".conda" environment...');
+        export const errorDeletingEnvironment = l10n.t('Error while deleting existing ".conda" environment.');
     }
 }
 
diff --git a/src/client/pythonEnvironments/creation/common/commonUtils.ts b/src/client/pythonEnvironments/creation/common/commonUtils.ts
index b4d4a37eae9b..16d8015e3f26 100644
--- a/src/client/pythonEnvironments/creation/common/commonUtils.ts
+++ b/src/client/pythonEnvironments/creation/common/commonUtils.ts
@@ -32,3 +32,11 @@ export function getVenvExecutable(workspaceFolder: WorkspaceFolder): string {
     }
     return path.join(getVenvPath(workspaceFolder), 'bin', 'python');
 }
+
+export function getPrefixCondaEnvPath(workspaceFolder: WorkspaceFolder): string {
+    return path.join(workspaceFolder.uri.fsPath, '.conda');
+}
+
+export async function hasPrefixCondaEnv(workspaceFolder: WorkspaceFolder): Promise<boolean> {
+    return fs.pathExists(getPrefixCondaEnvPath(workspaceFolder));
+}
diff --git a/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts b/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
index 7ca44c1b7eff..86e0b56801cd 100644
--- a/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
+++ b/src/client/pythonEnvironments/creation/provider/condaCreationProvider.ts
@@ -9,11 +9,18 @@ import { CreateEnvironmentProgress } from '../types';
 import { pickWorkspaceFolder } from '../common/workspaceSelection';
 import { execObservable } from '../../../common/process/rawProcessApis';
 import { createDeferred } from '../../../common/utils/async';
-import { getEnvironmentVariable, getOSType, OSType } from '../../../common/utils/platform';
+import { getOSType, OSType } from '../../../common/utils/platform';
 import { createCondaScript } from '../../../common/process/internal/scripts';
 import { Common, CreateEnv } from '../../../common/utils/localize';
-import { getCondaBaseEnv, pickPythonVersion } from './condaUtils';
-import { showErrorMessageWithLogs } from '../common/commonUtils';
+import {
+    ExistingCondaAction,
+    deleteEnvironment,
+    getCondaBaseEnv,
+    getPathEnvVariableForConda,
+    pickExistingCondaAction,
+    pickPythonVersion,
+} from './condaUtils';
+import { getPrefixCondaEnvPath, showErrorMessageWithLogs } from '../common/commonUtils';
 import { MultiStepAction, MultiStepNode, withProgress } from '../../../common/vscodeApis/windowApis';
 import { EventName } from '../../../telemetry/constants';
 import { sendTelemetryEvent } from '../../../telemetry';
@@ -83,22 +90,7 @@ async function createCondaEnv(
     });
 
     const deferred = createDeferred<string>();
-    let pathEnv = getEnvironmentVariable('PATH') || getEnvironmentVariable('Path') || '';
-    if (getOSType() === OSType.Windows) {
-        // On windows `conda.bat` is used, which adds the following bin directories to PATH
-        // then launches `conda.exe` which is a stub to `python.exe -m conda`. Here, we are
-        // instead using the `python.exe` that ships with conda to run a python script that
-        // handles conda env creation and package installation.
-        // See conda issue: https://github.com/conda/conda/issues/11399
-        const root = path.dirname(command);
-        const libPath1 = path.join(root, 'Library', 'bin');
-        const libPath2 = path.join(root, 'Library', 'mingw-w64', 'bin');
-        const libPath3 = path.join(root, 'Library', 'usr', 'bin');
-        const libPath4 = path.join(root, 'bin');
-        const libPath5 = path.join(root, 'Scripts');
-        const libPath = [libPath1, libPath2, libPath3, libPath4, libPath5].join(path.delimiter);
-        pathEnv = `${libPath}${path.delimiter}${pathEnv}`;
-    }
+    const pathEnv = getPathEnvVariableForConda(command);
     traceLog('Running Conda Env creation script: ', [command, ...args]);
     const { proc, out, dispose } = execObservable(command, args, {
         mergeStdOutErr: true,
@@ -182,6 +174,29 @@ async function createEnvironment(options?: CreateEnvironmentOptions): Promise<Cr
         undefined,
     );
 
+    let existingCondaAction: ExistingCondaAction | undefined;
+    const existingEnvStep = new MultiStepNode(
+        workspaceStep,
+        async (context?: MultiStepAction) => {
+            if (workspace && context === MultiStepAction.Continue) {
+                try {
+                    existingCondaAction = await pickExistingCondaAction(workspace);
+                    return MultiStepAction.Continue;
+                } catch (ex) {
+                    if (ex === MultiStepAction.Back || ex === MultiStepAction.Cancel) {
+                        return ex;
+                    }
+                    throw ex;
+                }
+            } else if (context === MultiStepAction.Back) {
+                return MultiStepAction.Back;
+            }
+            return MultiStepAction.Continue;
+        },
+        undefined,
+    );
+    workspaceStep.next = existingEnvStep;
+
     let version: string | undefined;
     const versionStep = new MultiStepNode(
         workspaceStep,
@@ -204,13 +219,39 @@ async function createEnvironment(options?: CreateEnvironmentOptions): Promise<Cr
         },
         undefined,
     );
-    workspaceStep.next = versionStep;
+    existingEnvStep.next = versionStep;
 
     const action = await MultiStepNode.run(workspaceStep);
     if (action === MultiStepAction.Back || action === MultiStepAction.Cancel) {
         throw action;
     }
 
+    if (workspace) {
+        if (existingCondaAction === ExistingCondaAction.Recreate) {
+            sendTelemetryEvent(EventName.ENVIRONMENT_DELETE, undefined, {
+                environmentType: 'conda',
+                status: 'triggered',
+            });
+            if (await deleteEnvironment(workspace, getExecutableCommand(conda))) {
+                sendTelemetryEvent(EventName.ENVIRONMENT_DELETE, undefined, {
+                    environmentType: 'conda',
+                    status: 'deleted',
+                });
+            } else {
+                sendTelemetryEvent(EventName.ENVIRONMENT_DELETE, undefined, {
+                    environmentType: 'conda',
+                    status: 'failed',
+                });
+                throw MultiStepAction.Cancel;
+            }
+        } else if (existingCondaAction === ExistingCondaAction.UseExisting) {
+            sendTelemetryEvent(EventName.ENVIRONMENT_REUSE, undefined, {
+                environmentType: 'conda',
+            });
+            return { path: getPrefixCondaEnvPath(workspace), workspaceFolder: workspace };
+        }
+    }
+
     return withProgress(
         {
             location: ProgressLocation.Notification,
diff --git a/src/client/pythonEnvironments/creation/provider/condaDeleteUtils.ts b/src/client/pythonEnvironments/creation/provider/condaDeleteUtils.ts
new file mode 100644
index 000000000000..e4f4784f15c8
--- /dev/null
+++ b/src/client/pythonEnvironments/creation/provider/condaDeleteUtils.ts
@@ -0,0 +1,37 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+import { WorkspaceFolder } from 'vscode';
+import { plainExec } from '../../../common/process/rawProcessApis';
+import { CreateEnv } from '../../../common/utils/localize';
+import { traceError, traceInfo } from '../../../logging';
+import { getPrefixCondaEnvPath, hasPrefixCondaEnv, showErrorMessageWithLogs } from '../common/commonUtils';
+
+export async function deleteCondaEnvironment(
+    workspace: WorkspaceFolder,
+    interpreter: string,
+    pathEnvVar: string,
+): Promise<boolean> {
+    const condaEnvPath = getPrefixCondaEnvPath(workspace);
+    const command = interpreter;
+    const args = ['-m', 'conda', 'env', 'remove', '--prefix', condaEnvPath, '--yes'];
+    try {
+        traceInfo(`Deleting conda environment: ${condaEnvPath}`);
+        traceInfo(`Running command: ${command} ${args.join(' ')}`);
+        const result = await plainExec(command, args, { mergeStdOutErr: true }, { ...process.env, PATH: pathEnvVar });
+        traceInfo(result.stdout);
+        if (await hasPrefixCondaEnv(workspace)) {
+            // If conda cannot delete files it will name the files as .conda_trash.
+            // These need to be deleted manually.
+            traceError(`Conda environment ${condaEnvPath} could not be deleted.`);
+            traceError(`Please delete the environment manually: ${condaEnvPath}`);
+            showErrorMessageWithLogs(CreateEnv.Conda.errorDeletingEnvironment);
+            return false;
+        }
+    } catch (err) {
+        showErrorMessageWithLogs(CreateEnv.Conda.errorDeletingEnvironment);
+        traceError(`Deleting conda environment ${condaEnvPath} Failed with error: `, err);
+        return false;
+    }
+    return true;
+}
diff --git a/src/client/pythonEnvironments/creation/provider/condaUtils.ts b/src/client/pythonEnvironments/creation/provider/condaUtils.ts
index 8f14ffafcdaa..51c55e414245 100644
--- a/src/client/pythonEnvironments/creation/provider/condaUtils.ts
+++ b/src/client/pythonEnvironments/creation/provider/condaUtils.ts
@@ -1,14 +1,22 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 
-import { CancellationToken, QuickPickItem, Uri } from 'vscode';
-import { Common } from '../../../browser/localize';
-import { Octicons } from '../../../common/constants';
-import { CreateEnv } from '../../../common/utils/localize';
+import * as path from 'path';
+import { CancellationToken, ProgressLocation, QuickPickItem, Uri, WorkspaceFolder } from 'vscode';
+import { Commands, Octicons } from '../../../common/constants';
+import { Common, CreateEnv } from '../../../common/utils/localize';
 import { executeCommand } from '../../../common/vscodeApis/commandApis';
-import { showErrorMessage, showQuickPickWithBack } from '../../../common/vscodeApis/windowApis';
+import {
+    MultiStepAction,
+    showErrorMessage,
+    showQuickPickWithBack,
+    withProgress,
+} from '../../../common/vscodeApis/windowApis';
 import { traceLog } from '../../../logging';
 import { Conda } from '../../common/environmentManagers/conda';
+import { getPrefixCondaEnvPath, hasPrefixCondaEnv } from '../common/commonUtils';
+import { OSType, getEnvironmentVariable, getOSType } from '../../../common/utils/platform';
+import { deleteCondaEnvironment } from './condaDeleteUtils';
 
 const RECOMMENDED_CONDA_PYTHON = '3.10';
 
@@ -59,3 +67,78 @@ export async function pickPythonVersion(token?: CancellationToken): Promise<stri
 
     return undefined;
 }
+
+export function getPathEnvVariableForConda(condaBasePythonPath: string): string {
+    const pathEnv = getEnvironmentVariable('PATH') || getEnvironmentVariable('Path') || '';
+    if (getOSType() === OSType.Windows) {
+        // On windows `conda.bat` is used, which adds the following bin directories to PATH
+        // then launches `conda.exe` which is a stub to `python.exe -m conda`. Here, we are
+        // instead using the `python.exe` that ships with conda to run a python script that
+        // handles conda env creation and package installation.
+        // See conda issue: https://github.com/conda/conda/issues/11399
+        const root = path.dirname(condaBasePythonPath);
+        const libPath1 = path.join(root, 'Library', 'bin');
+        const libPath2 = path.join(root, 'Library', 'mingw-w64', 'bin');
+        const libPath3 = path.join(root, 'Library', 'usr', 'bin');
+        const libPath4 = path.join(root, 'bin');
+        const libPath5 = path.join(root, 'Scripts');
+        const libPath = [libPath1, libPath2, libPath3, libPath4, libPath5].join(path.delimiter);
+        return `${libPath}${path.delimiter}${pathEnv}`;
+    }
+    return pathEnv;
+}
+
+export async function deleteEnvironment(workspaceFolder: WorkspaceFolder, interpreter: string): Promise<boolean> {
+    const condaEnvPath = getPrefixCondaEnvPath(workspaceFolder);
+    return withProgress<boolean>(
+        {
+            location: ProgressLocation.Notification,
+            title: `${CreateEnv.Conda.deletingEnvironmentProgress} ([${Common.showLogs}](command:${Commands.ViewOutput})): ${condaEnvPath}`,
+            cancellable: false,
+        },
+        async () => deleteCondaEnvironment(workspaceFolder, interpreter, getPathEnvVariableForConda(interpreter)),
+    );
+}
+
+export enum ExistingCondaAction {
+    Recreate,
+    UseExisting,
+    Create,
+}
+
+export async function pickExistingCondaAction(
+    workspaceFolder: WorkspaceFolder | undefined,
+): Promise<ExistingCondaAction> {
+    if (workspaceFolder) {
+        if (await hasPrefixCondaEnv(workspaceFolder)) {
+            const items: QuickPickItem[] = [
+                { label: CreateEnv.Conda.recreate, description: CreateEnv.Conda.recreateDescription },
+                {
+                    label: CreateEnv.Conda.useExisting,
+                    description: CreateEnv.Conda.useExistingDescription,
+                },
+            ];
+
+            const selection = (await showQuickPickWithBack(
+                items,
+                {
+                    placeHolder: CreateEnv.Conda.existingCondaQuickPickPlaceholder,
+                    ignoreFocusOut: true,
+                },
+                undefined,
+            )) as QuickPickItem | undefined;
+
+            if (selection?.label === CreateEnv.Conda.recreate) {
+                return ExistingCondaAction.Recreate;
+            }
+
+            if (selection?.label === CreateEnv.Conda.useExisting) {
+                return ExistingCondaAction.UseExisting;
+            }
+        } else {
+            return ExistingCondaAction.Create;
+        }
+    }
+
+    throw MultiStepAction.Cancel;
+}
diff --git a/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts b/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
index e1ac1bafe6ac..3195d1f88ea9 100644
--- a/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
+++ b/src/test/pythonEnvironments/creation/provider/condaCreationProvider.unit.test.ts
@@ -35,6 +35,7 @@ suite('Conda Creation provider tests', () => {
     let execObservableStub: sinon.SinonStub;
     let withProgressStub: sinon.SinonStub;
     let showErrorMessageWithLogsStub: sinon.SinonStub;
+    let pickExistingCondaActionStub: sinon.SinonStub;
 
     setup(() => {
         pickWorkspaceFolderStub = sinon.stub(wsSelect, 'pickWorkspaceFolder');
@@ -46,6 +47,9 @@ suite('Conda Creation provider tests', () => {
         showErrorMessageWithLogsStub = sinon.stub(commonUtils, 'showErrorMessageWithLogs');
         showErrorMessageWithLogsStub.resolves();
 
+        pickExistingCondaActionStub = sinon.stub(condaUtils, 'pickExistingCondaAction');
+        pickExistingCondaActionStub.resolves(condaUtils.ExistingCondaAction.Create);
+
         progressMock = typemoq.Mock.ofType<CreateEnvironmentProgress>();
         condaProvider = condaCreationProvider();
     });
@@ -77,6 +81,7 @@ suite('Conda Creation provider tests', () => {
         pickPythonVersionStub.resolves(undefined);
 
         await assert.isRejected(condaProvider.createEnvironment());
+        assert.isTrue(pickExistingCondaActionStub.calledOnce);
     });
 
     test('Create conda environment', async () => {
@@ -136,6 +141,7 @@ suite('Conda Creation provider tests', () => {
             workspaceFolder: workspace1,
         });
         assert.isTrue(showErrorMessageWithLogsStub.notCalled);
+        assert.isTrue(pickExistingCondaActionStub.calledOnce);
     });
 
     test('Create conda environment failed', async () => {
@@ -188,6 +194,7 @@ suite('Conda Creation provider tests', () => {
         const result = await promise;
         assert.ok(result?.error);
         assert.isTrue(showErrorMessageWithLogsStub.calledOnce);
+        assert.isTrue(pickExistingCondaActionStub.calledOnce);
     });
 
     test('Create conda environment failed (non-zero exit code)', async () => {
@@ -245,5 +252,6 @@ suite('Conda Creation provider tests', () => {
         const result = await promise;
         assert.ok(result?.error);
         assert.isTrue(showErrorMessageWithLogsStub.calledOnce);
+        assert.isTrue(pickExistingCondaActionStub.calledOnce);
     });
 });
diff --git a/src/test/pythonEnvironments/creation/provider/condaDeleteUtils.unit.test.ts b/src/test/pythonEnvironments/creation/provider/condaDeleteUtils.unit.test.ts
new file mode 100644
index 000000000000..b1acd0678714
--- /dev/null
+++ b/src/test/pythonEnvironments/creation/provider/condaDeleteUtils.unit.test.ts
@@ -0,0 +1,71 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+import { assert } from 'chai';
+import * as sinon from 'sinon';
+import * as path from 'path';
+import { Uri } from 'vscode';
+import * as commonUtils from '../../../../client/pythonEnvironments/creation/common/commonUtils';
+import * as rawProcessApis from '../../../../client/common/process/rawProcessApis';
+import { EXTENSION_ROOT_DIR_FOR_TESTS } from '../../../constants';
+import { deleteCondaEnvironment } from '../../../../client/pythonEnvironments/creation/provider/condaDeleteUtils';
+
+suite('Conda Delete test', () => {
+    let plainExecStub: sinon.SinonStub;
+    let getPrefixCondaEnvPathStub: sinon.SinonStub;
+    let hasPrefixCondaEnvStub: sinon.SinonStub;
+    let showErrorMessageWithLogsStub: sinon.SinonStub;
+
+    const workspace1 = {
+        uri: Uri.file(path.join(EXTENSION_ROOT_DIR_FOR_TESTS, 'src', 'testMultiRootWkspc', 'workspace1')),
+        name: 'workspace1',
+        index: 0,
+    };
+
+    setup(() => {
+        plainExecStub = sinon.stub(rawProcessApis, 'plainExec');
+        getPrefixCondaEnvPathStub = sinon.stub(commonUtils, 'getPrefixCondaEnvPath');
+        hasPrefixCondaEnvStub = sinon.stub(commonUtils, 'hasPrefixCondaEnv');
+        showErrorMessageWithLogsStub = sinon.stub(commonUtils, 'showErrorMessageWithLogs');
+    });
+
+    teardown(() => {
+        sinon.restore();
+    });
+
+    test('Delete conda env ', async () => {
+        getPrefixCondaEnvPathStub.returns('condaEnvPath');
+        hasPrefixCondaEnvStub.resolves(false);
+        plainExecStub.resolves({ stdout: 'stdout' });
+        const result = await deleteCondaEnvironment(workspace1, 'interpreter', 'pathEnvVar');
+        assert.isTrue(result);
+        assert.isTrue(plainExecStub.calledOnce);
+        assert.isTrue(getPrefixCondaEnvPathStub.calledOnce);
+        assert.isTrue(hasPrefixCondaEnvStub.calledOnce);
+        assert.isTrue(showErrorMessageWithLogsStub.notCalled);
+    });
+
+    test('Delete conda env with error', async () => {
+        getPrefixCondaEnvPathStub.returns('condaEnvPath');
+        hasPrefixCondaEnvStub.resolves(true);
+        plainExecStub.resolves({ stdout: 'stdout' });
+        const result = await deleteCondaEnvironment(workspace1, 'interpreter', 'pathEnvVar');
+        assert.isFalse(result);
+        assert.isTrue(plainExecStub.calledOnce);
+        assert.isTrue(getPrefixCondaEnvPathStub.calledOnce);
+        assert.isTrue(hasPrefixCondaEnvStub.calledOnce);
+        assert.isTrue(showErrorMessageWithLogsStub.calledOnce);
+    });
+
+    test('Delete conda env with exception', async () => {
+        getPrefixCondaEnvPathStub.returns('condaEnvPath');
+        hasPrefixCondaEnvStub.resolves(false);
+        plainExecStub.rejects(new Error('error'));
+        const result = await deleteCondaEnvironment(workspace1, 'interpreter', 'pathEnvVar');
+        assert.isFalse(result);
+        assert.isTrue(plainExecStub.calledOnce);
+        assert.isTrue(getPrefixCondaEnvPathStub.calledOnce);
+        assert.isTrue(hasPrefixCondaEnvStub.notCalled);
+        assert.isTrue(showErrorMessageWithLogsStub.calledOnce);
+    });
+});
diff --git a/src/test/pythonEnvironments/creation/provider/condaUtils.unit.test.ts b/src/test/pythonEnvironments/creation/provider/condaUtils.unit.test.ts
index 3f115f9f58ed..a3f4a1abe905 100644
--- a/src/test/pythonEnvironments/creation/provider/condaUtils.unit.test.ts
+++ b/src/test/pythonEnvironments/creation/provider/condaUtils.unit.test.ts
@@ -3,9 +3,17 @@
 
 import { assert } from 'chai';
 import * as sinon from 'sinon';
-import { CancellationTokenSource } from 'vscode';
+import * as path from 'path';
+import { CancellationTokenSource, Uri } from 'vscode';
 import * as windowApis from '../../../../client/common/vscodeApis/windowApis';
-import { pickPythonVersion } from '../../../../client/pythonEnvironments/creation/provider/condaUtils';
+import {
+    ExistingCondaAction,
+    pickExistingCondaAction,
+    pickPythonVersion,
+} from '../../../../client/pythonEnvironments/creation/provider/condaUtils';
+import * as commonUtils from '../../../../client/pythonEnvironments/creation/common/commonUtils';
+import { EXTENSION_ROOT_DIR_FOR_TESTS } from '../../../constants';
+import { CreateEnv } from '../../../../client/common/utils/localize';
 
 suite('Conda Utils test', () => {
     let showQuickPickWithBackStub: sinon.SinonStub;
@@ -43,3 +51,60 @@ suite('Conda Utils test', () => {
         assert.isUndefined(actual);
     });
 });
+
+suite('Existing .conda env test', () => {
+    let hasPrefixCondaEnvStub: sinon.SinonStub;
+    let showQuickPickWithBackStub: sinon.SinonStub;
+
+    const workspace1 = {
+        uri: Uri.file(path.join(EXTENSION_ROOT_DIR_FOR_TESTS, 'src', 'testMultiRootWkspc', 'workspace1')),
+        name: 'workspace1',
+        index: 0,
+    };
+
+    setup(() => {
+        hasPrefixCondaEnvStub = sinon.stub(commonUtils, 'hasPrefixCondaEnv');
+        showQuickPickWithBackStub = sinon.stub(windowApis, 'showQuickPickWithBack');
+    });
+
+    teardown(() => {
+        sinon.restore();
+    });
+
+    test('No .conda found', async () => {
+        hasPrefixCondaEnvStub.resolves(false);
+        showQuickPickWithBackStub.resolves(undefined);
+
+        const actual = await pickExistingCondaAction(workspace1);
+        assert.deepStrictEqual(actual, ExistingCondaAction.Create);
+        assert.isTrue(showQuickPickWithBackStub.notCalled);
+    });
+
+    test('User presses escape', async () => {
+        hasPrefixCondaEnvStub.resolves(true);
+        showQuickPickWithBackStub.resolves(undefined);
+        await assert.isRejected(pickExistingCondaAction(workspace1));
+    });
+
+    test('.conda found and user selected to re-create', async () => {
+        hasPrefixCondaEnvStub.resolves(true);
+        showQuickPickWithBackStub.resolves({
+            label: CreateEnv.Conda.recreate,
+            description: CreateEnv.Conda.recreateDescription,
+        });
+
+        const actual = await pickExistingCondaAction(workspace1);
+        assert.deepStrictEqual(actual, ExistingCondaAction.Recreate);
+    });
+
+    test('.conda found and user selected to re-use', async () => {
+        hasPrefixCondaEnvStub.resolves(true);
+        showQuickPickWithBackStub.resolves({
+            label: CreateEnv.Conda.useExisting,
+            description: CreateEnv.Conda.useExistingDescription,
+        });
+
+        const actual = await pickExistingCondaAction(workspace1);
+        assert.deepStrictEqual(actual, ExistingCondaAction.UseExisting);
+    });
+});