diff --git a/src/develop.rs b/src/develop.rs
index 2f500eb45..8f441f39b 100644
--- a/src/develop.rs
+++ b/src/develop.rs
@@ -125,6 +125,25 @@ fn find_uv_bin() -> Result<(PathBuf, Vec<&'static str>)> {
     }
 }
 
+/// Detect the Python uv package
+fn find_uv_python(python_path: &Path) -> Result<(PathBuf, Vec<&'static str>)> {
+    let output = Command::new(python_path)
+        .args(["-m", "uv", "--version"])
+        .output()?;
+    if output.status.success() {
+        let version_str =
+            str::from_utf8(&output.stdout).context("`uv --version` didn't return utf8 output")?;
+        debug!(version = %version_str, "Found Python uv module");
+        Ok((python_path.to_path_buf(), vec!["-m", "uv"]))
+    } else {
+        bail!(
+            "`{} -m uv --version` failed with status: {}",
+            python_path.display(),
+            output.status
+        );
+    }
+}
+
 fn check_pip_exists(python_path: &Path, pip_path: Option<&PathBuf>) -> Result<()> {
     let output = if let Some(pip_path) = pip_path {
         Command::new(pip_path).args(["--version"]).output()?
@@ -143,22 +162,15 @@ fn check_pip_exists(python_path: &Path, pip_path: Option<&PathBuf>) -> Result<()
     }
 }
 
-/// Detect the Python uv package
-fn find_uv_python(python_path: &Path) -> Result<(PathBuf, Vec<&'static str>)> {
-    let output = Command::new(python_path)
-        .args(["-m", "uv", "--version"])
-        .output()?;
-    if output.status.success() {
-        let version_str =
-            str::from_utf8(&output.stdout).context("`uv --version` didn't return utf8 output")?;
-        debug!(version = %version_str, "Found Python uv module");
-        Ok((python_path.to_path_buf(), vec!["-m", "uv"]))
-    } else {
-        bail!(
-            "`{} -m uv --version` failed with status: {}",
-            python_path.display(),
-            output.status
-        );
+/// Check if a virtualenv is created by uv by reading pyvenv.cfg
+fn is_uv_venv(venv_dir: &Path) -> bool {
+    let pyvenv_cfg = venv_dir.join("pyvenv.cfg");
+    if !pyvenv_cfg.exists() {
+        return false;
+    }
+    match fs::read_to_string(&pyvenv_cfg) {
+        Ok(content) => content.contains("\nuv = "),
+        Err(_) => false,
     }
 }
 
@@ -212,7 +224,8 @@ pub struct DevelopOptions {
 fn install_dependencies(
     build_context: &BuildContext,
     extras: &[String],
-    interpreter: &PythonInterpreter,
+    python: &Path,
+    venv_dir: &Path,
     install_backend: &InstallBackend,
 ) -> Result<()> {
     if !build_context.metadata24.requires_dist.is_empty() {
@@ -244,12 +257,17 @@ fn install_dependencies(
             pkg.to_string()
         }));
         let status = install_backend
-            .make_command(&interpreter.executable)
+            .make_command(python)
             .args(&args)
+            .env("VIRTUAL_ENV", venv_dir)
             .status()
-            .context("Failed to run pip install")?;
+            .with_context(|| format!("Failed to run {} install", install_backend.name()))?;
         if !status.success() {
-            bail!(r#"pip install finished with "{}""#, status)
+            bail!(
+                r#"{} install finished with "{}""#,
+                install_backend.name(),
+                status
+            )
         }
     }
     Ok(())
@@ -267,6 +285,7 @@ fn install_wheel(
     let output = cmd
         .args(["install", "--no-deps", "--force-reinstall"])
         .arg(dunce::simplified(wheel_filename))
+        .env("VIRTUAL_ENV", venv_dir)
         .output()
         .context(format!(
             "{} install failed (ran {:?} with {:?})",
@@ -312,7 +331,7 @@ fn configure_as_editable(
     python: &Path,
     install_backend: &InstallBackend,
 ) -> Result<()> {
-    println!("✏️  Setting installed package as editable");
+    println!("✏️ Setting installed package as editable");
     install_backend.check_supports_show_files(python)?;
     let mut cmd = install_backend.make_command(python);
     let cmd = cmd.args(["show", "--files", &build_context.metadata24.name]);
@@ -418,10 +437,24 @@ pub fn develop(develop_options: DevelopOptions, venv_dir: &Path) -> Result<()> {
             || anyhow!("Expected `python` to be a python interpreter inside a virtualenv ಠ_ಠ"),
         )?;
 
-    let install_backend = if uv {
-        let (uv_path, uv_args) = find_uv_python(&interpreter.executable)
-            .or_else(|_| find_uv_bin())
-            .context("Failed to find uv")?;
+    let uv_venv = is_uv_venv(venv_dir);
+    let uv_info = if uv || uv_venv {
+        match find_uv_python(&interpreter.executable).or_else(|_| find_uv_bin()) {
+            Ok(uv_info) => Some(Ok(uv_info)),
+            Err(e) => {
+                if uv {
+                    Some(Err(e))
+                } else {
+                    // Ignore error and try pip instead if it's a uv venv but `--uv` is not specified
+                    None
+                }
+            }
+        }
+    } else {
+        None
+    };
+    let install_backend = if let Some(uv_info) = uv_info {
+        let (uv_path, uv_args) = uv_info?;
         InstallBackend::Uv {
             path: uv_path,
             args: uv_args,
@@ -434,7 +467,7 @@ pub fn develop(develop_options: DevelopOptions, venv_dir: &Path) -> Result<()> {
         }
     };
 
-    install_dependencies(&build_context, &extras, &interpreter, &install_backend)?;
+    install_dependencies(&build_context, &extras, &python, venv_dir, &install_backend)?;
 
     let wheels = build_context.build_wheels()?;
     if !skip_install {