diff --git a/package-lock.json b/package-lock.json
index 42751388..1b975f18 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -795,6 +795,7 @@
             "integrity": "sha512-D7DbgGFtsqIPIFMPJwCad9Gfi/hC0PWErRRHFnaCWoEDYi5tQUDiJCTmGUbBiLzjqAck4KcXt9Ayj0CNlIrF+w==",
             "dev": true,
             "license": "BSD-2-Clause",
+            "peer": true,
             "dependencies": {
                 "@typescript-eslint/scope-manager": "8.16.0",
                 "@typescript-eslint/types": "8.16.0",
@@ -1480,6 +1481,7 @@
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             "dev": true,
             "license": "MIT",
+            "peer": true,
             "bin": {
                 "acorn": "bin/acorn"
             },
@@ -1523,6 +1525,7 @@
             "resolved": "https://registry.npmjs.org/ajv/-/ajv-6.12.6.tgz",
             "integrity": "sha512-j3fVLgvTo527anyYyJOGTYJbG+vnnQYvE0m5mmkc1TK+nxAppkCLMIL0aZ4dblVCNoGShhm+kzE4ZUykBoMg4g==",
             "dev": true,
+            "peer": true,
             "dependencies": {
                 "fast-deep-equal": "^3.1.1",
                 "fast-json-stable-stringify": "^2.0.0",
@@ -1713,6 +1716,7 @@
                     "url": "https://github.com/sponsors/ai"
                 }
             ],
+            "peer": true,
             "dependencies": {
                 "caniuse-lite": "^1.0.30001580",
                 "electron-to-chromium": "^1.4.648",
@@ -2423,6 +2427,7 @@
             "integrity": "sha512-XyLmROnACWqSxiGYArdef1fItQd47weqB7iwtfr9JHwRrqIXZdcFMvvEcL9xHCmL0SNsOvF0c42lWyM1U5dgig==",
             "dev": true,
             "license": "MIT",
+            "peer": true,
             "dependencies": {
                 "@eslint-community/eslint-utils": "^4.8.0",
                 "@eslint-community/regexpp": "^4.12.1",
@@ -5176,6 +5181,7 @@
             "resolved": "https://registry.npmjs.org/typescript/-/typescript-5.3.3.tgz",
             "integrity": "sha512-pXWcraxM0uxAS+tN0AG/BF2TyqmHO014Z070UsJ+pFvYuRSq8KH8DmWpnbXe0pEPDHXZV3FcAbJkijJ5oNEnWw==",
             "dev": true,
+            "peer": true,
             "bin": {
                 "tsc": "bin/tsc",
                 "tsserver": "bin/tsserver"
@@ -5301,6 +5307,7 @@
             "resolved": "https://registry.npmjs.org/webpack/-/webpack-5.94.0.tgz",
             "integrity": "sha512-KcsGn50VT+06JH/iunZJedYGUJS5FGjow8wb9c0v5n1Om8O1g4L6LjtfxwlXIATopoQu+vOXXa7gYisWxCoPyg==",
             "dev": true,
+            "peer": true,
             "dependencies": {
                 "@types/estree": "^1.0.5",
                 "@webassemblyjs/ast": "^1.12.1",
@@ -5347,6 +5354,7 @@
             "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-5.1.4.tgz",
             "integrity": "sha512-pIDJHIEI9LR0yxHXQ+Qh95k2EvXpWzZ5l+d+jIo+RdSm9MiHfzazIxwwni/p7+x4eJZuvG1AJwgC4TNQ7NRgsg==",
             "dev": true,
+            "peer": true,
             "dependencies": {
                 "@discoveryjs/json-ext": "^0.5.0",
                 "@webpack-cli/configtest": "^2.1.1",
@@ -6144,6 +6152,7 @@
             "resolved": "https://registry.npmjs.org/@typescript-eslint/parser/-/parser-8.16.0.tgz",
             "integrity": "sha512-D7DbgGFtsqIPIFMPJwCad9Gfi/hC0PWErRRHFnaCWoEDYi5tQUDiJCTmGUbBiLzjqAck4KcXt9Ayj0CNlIrF+w==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "@typescript-eslint/scope-manager": "8.16.0",
                 "@typescript-eslint/types": "8.16.0",
@@ -6639,7 +6648,8 @@
             "version": "8.15.0",
             "resolved": "https://registry.npmjs.org/acorn/-/acorn-8.15.0.tgz",
             "integrity": "sha512-NZyJarBfL7nWwIq+FDL6Zp/yHEhePMNnnJ0y3qfieCrmNvYct8uvtiV41UvlSe6apAfk0fY1FbWx+NwfmpvtTg==",
-            "dev": true
+            "dev": true,
+            "peer": true
         },
         "acorn-import-attributes": {
             "version": "1.9.5",
@@ -6669,6 +6679,7 @@
             "resolved": "https://registry.npmjs.org/ajv/-/ajv-6.12.6.tgz",
             "integrity": "sha512-j3fVLgvTo527anyYyJOGTYJbG+vnnQYvE0m5mmkc1TK+nxAppkCLMIL0aZ4dblVCNoGShhm+kzE4ZUykBoMg4g==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "fast-deep-equal": "^3.1.1",
                 "fast-json-stable-stringify": "^2.0.0",
@@ -6801,6 +6812,7 @@
             "resolved": "https://registry.npmjs.org/browserslist/-/browserslist-4.22.3.tgz",
             "integrity": "sha512-UAp55yfwNv0klWNapjs/ktHoguxuQNGnOzxYmfnXIS+8AsRDZkSDxg7R1AX3GKzn078SBI5dzwzj/Yx0Or0e3A==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "caniuse-lite": "^1.0.30001580",
                 "electron-to-chromium": "^1.4.648",
@@ -7295,6 +7307,7 @@
             "resolved": "https://registry.npmjs.org/eslint/-/eslint-9.37.0.tgz",
             "integrity": "sha512-XyLmROnACWqSxiGYArdef1fItQd47weqB7iwtfr9JHwRrqIXZdcFMvvEcL9xHCmL0SNsOvF0c42lWyM1U5dgig==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "@eslint-community/eslint-utils": "^4.8.0",
                 "@eslint-community/regexpp": "^4.12.1",
@@ -9280,7 +9293,8 @@
             "version": "5.3.3",
             "resolved": "https://registry.npmjs.org/typescript/-/typescript-5.3.3.tgz",
             "integrity": "sha512-pXWcraxM0uxAS+tN0AG/BF2TyqmHO014Z070UsJ+pFvYuRSq8KH8DmWpnbXe0pEPDHXZV3FcAbJkijJ5oNEnWw==",
-            "dev": true
+            "dev": true,
+            "peer": true
         },
         "uc.micro": {
             "version": "1.0.6",
@@ -9366,6 +9380,7 @@
             "resolved": "https://registry.npmjs.org/webpack/-/webpack-5.94.0.tgz",
             "integrity": "sha512-KcsGn50VT+06JH/iunZJedYGUJS5FGjow8wb9c0v5n1Om8O1g4L6LjtfxwlXIATopoQu+vOXXa7gYisWxCoPyg==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "@types/estree": "^1.0.5",
                 "@webassemblyjs/ast": "^1.12.1",
@@ -9397,6 +9412,7 @@
             "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-5.1.4.tgz",
             "integrity": "sha512-pIDJHIEI9LR0yxHXQ+Qh95k2EvXpWzZ5l+d+jIo+RdSm9MiHfzazIxwwni/p7+x4eJZuvG1AJwgC4TNQ7NRgsg==",
             "dev": true,
+            "peer": true,
             "requires": {
                 "@discoveryjs/json-ext": "^0.5.0",
                 "@webpack-cli/configtest": "^2.1.1",
diff --git a/src/managers/poetry/poetryUtils.ts b/src/managers/poetry/poetryUtils.ts
index 6a8abddd..aeb86108 100644
--- a/src/managers/poetry/poetryUtils.ts
+++ b/src/managers/poetry/poetryUtils.ts
@@ -25,6 +25,38 @@ async function findPoetry(): Promise<string | undefined> {
     }
 }
 
+/**
+ * Returns the platform-specific default path for Poetry's virtualenvs directory.
+ * - Linux: ~/.cache/pypoetry/virtualenvs
+ * - macOS: ~/Library/Caches/pypoetry/virtualenvs
+ * - Windows: %LOCALAPPDATA%\pypoetry\Cache\virtualenvs (or %APPDATA%\pypoetry\Cache\virtualenvs)
+ */
+export function getDefaultPoetryVirtualenvsPath(): string | undefined {
+    if (isWindows()) {
+        const localAppData = process.env.LOCALAPPDATA;
+        if (localAppData) {
+            return path.join(localAppData, 'pypoetry', 'Cache', 'virtualenvs');
+        }
+        const appData = process.env.APPDATA;
+        if (appData) {
+            return path.join(appData, 'pypoetry', 'Cache', 'virtualenvs');
+        }
+        return undefined;
+    }
+
+    const home = getUserHomeDir();
+    if (!home) {
+        return undefined;
+    }
+
+    if (process.platform === 'darwin') {
+        return path.join(home, 'Library', 'Caches', 'pypoetry', 'virtualenvs');
+    }
+
+    // Linux default
+    return path.join(home, '.cache', 'pypoetry', 'virtualenvs');
+}
+
 export const POETRY_GLOBAL = 'Global';
 
 export const POETRY_PATH_KEY = `${ENVS_EXTENSION_ID}:poetry:POETRY_PATH`;
@@ -182,10 +214,7 @@ export async function getPoetryVirtualenvsPath(poetryExe?: string): Promise<stri
                 // Poetry might return the path with placeholders like {cache-dir}
                 // If it doesn't start with / or C:\ etc., assume it's using default
                 if (!path.isAbsolute(venvPath) || venvPath.includes('{')) {
-                    const home = getUserHomeDir();
-                    if (home) {
-                        poetryVirtualenvsPath = path.join(home, '.cache', 'pypoetry', 'virtualenvs');
-                    }
+                    poetryVirtualenvsPath = getDefaultPoetryVirtualenvsPath();
                 } else {
                     poetryVirtualenvsPath = venvPath;
                 }
@@ -201,9 +230,8 @@ export async function getPoetryVirtualenvsPath(poetryExe?: string): Promise<stri
     }
 
     // Fallback to default location
-    const home = getUserHomeDir();
-    if (home) {
-        poetryVirtualenvsPath = path.join(home, '.cache', 'pypoetry', 'virtualenvs');
+    poetryVirtualenvsPath = getDefaultPoetryVirtualenvsPath();
+    if (poetryVirtualenvsPath) {
         await state.set(POETRY_VIRTUALENVS_PATH_KEY, poetryVirtualenvsPath);
         return poetryVirtualenvsPath;
     }
@@ -257,9 +285,9 @@ async function nativeToPythonEnv(
         isGlobalPoetryEnv = normalizedPrefix.startsWith(normalizedVirtualenvsPath);
     } else {
         // Fall back to checking the default location if we haven't cached the path yet
-        const homeDir = getUserHomeDir();
-        if (homeDir) {
-            const defaultPath = path.normalize(path.join(homeDir, '.cache', 'pypoetry', 'virtualenvs'));
+        const defaultVirtualenvsPath = getDefaultPoetryVirtualenvsPath();
+        if (defaultVirtualenvsPath) {
+            const defaultPath = path.normalize(defaultVirtualenvsPath);
             isGlobalPoetryEnv = normalizedPrefix.startsWith(defaultPath);
 
             // Try to get the actual path asynchronously for next time
diff --git a/src/test/managers/poetry/poetryUtils.unit.test.ts b/src/test/managers/poetry/poetryUtils.unit.test.ts
new file mode 100644
index 00000000..ff409c81
--- /dev/null
+++ b/src/test/managers/poetry/poetryUtils.unit.test.ts
@@ -0,0 +1,104 @@
+import assert from 'assert';
+import * as path from 'path';
+import * as sinon from 'sinon';
+import * as platformUtils from '../../../common/utils/platformUtils';
+import * as pathUtils from '../../../common/utils/pathUtils';
+import { getDefaultPoetryVirtualenvsPath } from '../../../managers/poetry/poetryUtils';
+
+suite('Poetry Utils - getDefaultPoetryVirtualenvsPath', () => {
+    let isWindowsStub: sinon.SinonStub;
+    let getUserHomeDirStub: sinon.SinonStub;
+    let originalPlatform: PropertyDescriptor | undefined;
+    let originalEnv: NodeJS.ProcessEnv;
+
+    setup(() => {
+        isWindowsStub = sinon.stub(platformUtils, 'isWindows');
+        getUserHomeDirStub = sinon.stub(pathUtils, 'getUserHomeDir');
+        originalPlatform = Object.getOwnPropertyDescriptor(process, 'platform');
+        originalEnv = { ...process.env };
+    });
+
+    teardown(() => {
+        sinon.restore();
+        if (originalPlatform) {
+            Object.defineProperty(process, 'platform', originalPlatform);
+        }
+        process.env = originalEnv;
+    });
+
+    test('should return Linux path on Linux', () => {
+        isWindowsStub.returns(false);
+        Object.defineProperty(process, 'platform', { value: 'linux', configurable: true });
+        getUserHomeDirStub.returns('/home/testuser');
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(result, path.join('/home/testuser', '.cache', 'pypoetry', 'virtualenvs'));
+    });
+
+    test('should return macOS path on darwin', () => {
+        isWindowsStub.returns(false);
+        Object.defineProperty(process, 'platform', { value: 'darwin', configurable: true });
+        getUserHomeDirStub.returns('/Users/testuser');
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(result, path.join('/Users/testuser', 'Library', 'Caches', 'pypoetry', 'virtualenvs'));
+    });
+
+    test('should return LOCALAPPDATA path on Windows when LOCALAPPDATA is set', () => {
+        isWindowsStub.returns(true);
+        process.env.LOCALAPPDATA = 'C:\\Users\\testuser\\AppData\\Local';
+        process.env.APPDATA = 'C:\\Users\\testuser\\AppData\\Roaming';
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(
+            result,
+            path.join('C:\\Users\\testuser\\AppData\\Local', 'pypoetry', 'Cache', 'virtualenvs'),
+        );
+    });
+
+    test('should fall back to APPDATA on Windows when LOCALAPPDATA is not set', () => {
+        isWindowsStub.returns(true);
+        delete process.env.LOCALAPPDATA;
+        process.env.APPDATA = 'C:\\Users\\testuser\\AppData\\Roaming';
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(
+            result,
+            path.join('C:\\Users\\testuser\\AppData\\Roaming', 'pypoetry', 'Cache', 'virtualenvs'),
+        );
+    });
+
+    test('should return undefined on Windows when neither LOCALAPPDATA nor APPDATA is set', () => {
+        isWindowsStub.returns(true);
+        delete process.env.LOCALAPPDATA;
+        delete process.env.APPDATA;
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(result, undefined);
+    });
+
+    test('should return undefined when home directory is empty string on non-Windows', () => {
+        isWindowsStub.returns(false);
+        Object.defineProperty(process, 'platform', { value: 'linux', configurable: true });
+        getUserHomeDirStub.returns('');
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(result, undefined);
+    });
+
+    test('should return undefined when home directory is undefined on non-Windows', () => {
+        isWindowsStub.returns(false);
+        Object.defineProperty(process, 'platform', { value: 'linux', configurable: true });
+        getUserHomeDirStub.returns(undefined);
+
+        const result = getDefaultPoetryVirtualenvsPath();
+
+        assert.strictEqual(result, undefined);
+    });
+});