diff --git a/src/lib/settings/ProjectSettings.cpp b/src/lib/settings/ProjectSettings.cpp
index 7c1f3ad0..da50169d 100644
--- a/src/lib/settings/ProjectSettings.cpp
+++ b/src/lib/settings/ProjectSettings.cpp
@@ -23,7 +23,7 @@ const std::wstring ProjectSettings::BOOKMARK_DB_FILE_EXTENSION = L".srctrlbm";
 const std::wstring ProjectSettings::INDEX_DB_FILE_EXTENSION = L".srctrldb";
 const std::wstring ProjectSettings::TEMP_INDEX_DB_FILE_EXTENSION = L".srctrldb_tmp";
 
-const size_t ProjectSettings::VERSION = 7;
+const size_t ProjectSettings::VERSION = 8;
 
 LanguageType ProjectSettings::getLanguageOfProject(const FilePath& filePath)
 {
@@ -395,6 +395,12 @@ SettingsMigrator ProjectSettings::getMigrations() const
 		migrator.addMigration(7, std::make_shared<SettingsMigrationMoveKey>(key + "/standard", key + "/" + languageName + "_standard"));
 	}
 
+	for (std::shared_ptr<SourceGroupSettings> sourceGroupSettings : getAllSourceGroupSettings())
+	{
+		const std::string key = SourceGroupSettings::s_keyPrefix + sourceGroupSettings->getId();
+		migrator.addMigration(8, std::make_shared<SettingsMigrationMoveKey>(key + "/python_environment_directory_path", key + "/python_environment_path"));
+	}
+
 	return migrator;
 }
 
diff --git a/src/lib/settings/SourceGroupSettingsPythonEmpty.cpp b/src/lib/settings/SourceGroupSettingsPythonEmpty.cpp
index 45c807f9..4a618495 100644
--- a/src/lib/settings/SourceGroupSettingsPythonEmpty.cpp
+++ b/src/lib/settings/SourceGroupSettingsPythonEmpty.cpp
@@ -23,7 +23,7 @@ void SourceGroupSettingsPythonEmpty::load(std::shared_ptr<const ConfigManager> c
 	SourceGroupSettingsWithSourcePaths::load(config, key);
 	SourceGroupSettingsWithSourceExtensions::load(config, key);
 
-	setEnvironmentDirectoryPath(config->getValueOrDefault(key + "/python_environment_directory_path", FilePath(L"")));
+	setEnvironmentPath(config->getValueOrDefault(key + "/python_environment_path", FilePath(L"")));
 }
 
 void SourceGroupSettingsPythonEmpty::save(std::shared_ptr<ConfigManager> config)
@@ -36,7 +36,7 @@ void SourceGroupSettingsPythonEmpty::save(std::shared_ptr<ConfigManager> config)
 	SourceGroupSettingsWithSourcePaths::save(config, key);
 	SourceGroupSettingsWithSourceExtensions::save(config, key);
 
-	config->setValue(key + "/python_environment_directory_path", getEnvironmentDirectoryPath().wstr());
+	config->setValue(key + "/python_environment_path", getEnvironmentPath().wstr());
 }
 
 bool SourceGroupSettingsPythonEmpty::equals(std::shared_ptr<SourceGroupSettings> other) const
@@ -49,23 +49,23 @@ bool SourceGroupSettingsPythonEmpty::equals(std::shared_ptr<SourceGroupSettings>
 		SourceGroupSettingsWithExcludeFilters::equals(otherPython) &&
 		SourceGroupSettingsWithSourcePaths::equals(otherPython) &&
 		SourceGroupSettingsWithSourceExtensions::equals(otherPython) &&
-		m_environmentDirectoryPath == otherPython->m_environmentDirectoryPath
+		m_environmentPath == otherPython->m_environmentPath
 	);
 }
 
-FilePath SourceGroupSettingsPythonEmpty::getEnvironmentDirectoryPath() const
+FilePath SourceGroupSettingsPythonEmpty::getEnvironmentPath() const
 {
-	return m_environmentDirectoryPath;
+	return m_environmentPath;
 }
 
-FilePath SourceGroupSettingsPythonEmpty::getEnvironmentDirectoryPathExpandedAndAbsolute() const
+FilePath SourceGroupSettingsPythonEmpty::getEnvironmentPathExpandedAndAbsolute() const
 {
-	return m_projectSettings->makePathExpandedAndAbsolute(getEnvironmentDirectoryPath());
+	return m_projectSettings->makePathExpandedAndAbsolute(getEnvironmentPath());
 }
 
-void SourceGroupSettingsPythonEmpty::setEnvironmentDirectoryPath(const FilePath& environmentDirectoryPath)
+void SourceGroupSettingsPythonEmpty::setEnvironmentPath(const FilePath& environmentPath)
 {
-	m_environmentDirectoryPath = environmentDirectoryPath;
+	m_environmentPath = environmentPath;
 }
 
 std::vector<std::wstring> SourceGroupSettingsPythonEmpty::getDefaultSourceExtensions() const
diff --git a/src/lib/settings/SourceGroupSettingsPythonEmpty.h b/src/lib/settings/SourceGroupSettingsPythonEmpty.h
index 4e6e76cb..fac240eb 100644
--- a/src/lib/settings/SourceGroupSettingsPythonEmpty.h
+++ b/src/lib/settings/SourceGroupSettingsPythonEmpty.h
@@ -23,14 +23,14 @@ public:
 
 	bool equals(std::shared_ptr<SourceGroupSettings> other) const override;
 
-	FilePath getEnvironmentDirectoryPath() const;
-	FilePath getEnvironmentDirectoryPathExpandedAndAbsolute() const;
-	void setEnvironmentDirectoryPath(const FilePath& environmentDirectoryPath);
+	FilePath getEnvironmentPath() const;
+	FilePath getEnvironmentPathExpandedAndAbsolute() const;
+	void setEnvironmentPath(const FilePath& environmentPath);
 
 private:
 	std::vector<std::wstring> getDefaultSourceExtensions() const override;
 
-	FilePath m_environmentDirectoryPath;
+	FilePath m_environmentPath;
 };
 
 #endif // SOURCE_GROUP_SETTINGS_PYTHON_EMPTY_H
diff --git a/src/lib_gui/qt/window/project_wizzard/QtProjectWizzardContentPath.cpp b/src/lib_gui/qt/window/project_wizzard/QtProjectWizzardContentPath.cpp
index 92e5dd8f..52c11d39 100644
--- a/src/lib_gui/qt/window/project_wizzard/QtProjectWizzardContentPath.cpp
+++ b/src/lib_gui/qt/window/project_wizzard/QtProjectWizzardContentPath.cpp
@@ -735,12 +735,18 @@ QtProjectWizzardContentPathPythonEnvironment::QtProjectWizzardContentPathPythonE
 	: QtProjectWizzardContentPath(window)
 	, m_settings(settings)
 {
-	setTitleString("Python Environment Directory");
+	setTitleString("Python Environment");
 	setHelpString(
-		"Here you can specify the path to the directory that contains the Python environment that should be used to resolve "
-		"dependencies within the indexed source code. Leave blank to use the default Python environment.<br />"
+		"Here you can specify the path to the directory or to the executable of the (virtual) Python environment that should be used to resolve "
+		"dependencies within the indexed source code. <br />"
 		"<br />"
-		"You can make use of environment variables with ${ENV_VAR}."
+		"If you would run:<br />"
+		"<br />"
+		"$ cd C:\\dev\\python\\envs<br />"
+		"$ virtualenv py37<br />"
+		"<br />"
+		"you would set it to \"C:\\dev\\python\\envs\\py37\" or \"C:\\dev\\python\\envs\\py37\\Scripts\\python.exe\". <br />"
+		"Leave blank to use the default Python environment. You can make use of environment variables with ${ENV_VAR}."
 	);
 	setPlaceholderString("Use Default");
 	setAllowEmpty(true);
@@ -762,12 +768,12 @@ void QtProjectWizzardContentPathPythonEnvironment::populate(QGridLayout* layout,
 
 void QtProjectWizzardContentPathPythonEnvironment::load()
 {
-	m_picker->setText(QString::fromStdWString(m_settings->getEnvironmentDirectoryPath().wstr()));
+	m_picker->setText(QString::fromStdWString(m_settings->getEnvironmentPath().wstr()));
 }
 
 void QtProjectWizzardContentPathPythonEnvironment::save()
 {
-	m_settings->setEnvironmentDirectoryPath(FilePath(m_picker->getText().toStdWString()));
+	m_settings->setEnvironmentPath(FilePath(m_picker->getText().toStdWString()));
 }
 
 void QtProjectWizzardContentPathPythonEnvironment::onTextChanged(const QString& text)
diff --git a/src/lib_python/project/SourceGroupPythonEmpty.cpp b/src/lib_python/project/SourceGroupPythonEmpty.cpp
index c1eecd1e..6403c420 100644
--- a/src/lib_python/project/SourceGroupPythonEmpty.cpp
+++ b/src/lib_python/project/SourceGroupPythonEmpty.cpp
@@ -47,9 +47,9 @@ std::vector<std::shared_ptr<IndexerCommand>> SourceGroupPythonEmpty::getIndexerC
 	args += L" --source-file-path=%{SOURCE_FILE_PATH}";
 	args += L" --database-file-path=%{DATABASE_FILE_PATH}";
 
-	if (!m_settings->getEnvironmentDirectoryPath().empty())
+	if (!m_settings->getEnvironmentPath().empty())
 	{
-		args += L" --environment-path=" + m_settings->getEnvironmentDirectoryPathExpandedAndAbsolute().wstr();
+		args += L" --environment-path=" + m_settings->getEnvironmentPathExpandedAndAbsolute().wstr();
 	}
 
 	if (ApplicationSettings::getInstance()->getVerboseIndexerLoggingEnabled())