diff --git a/news/2 Fixes/4642.md b/news/2 Fixes/4642.md
new file mode 100644
index 000000000000..6a541d917370
--- /dev/null
+++ b/news/2 Fixes/4642.md	
@@ -0,0 +1 @@
+Add virtualenvwrapper default virtual environment location to the `python.venvFolders` config setting.
diff --git a/package.json b/package.json
index 3fec8a14ed6a..8928d43da68b 100644
--- a/package.json
+++ b/package.json
@@ -2010,12 +2010,8 @@
                 },
                 "python.venvFolders": {
                     "type": "array",
-                    "default": [
-                        "envs",
-                        ".pyenv",
-                        ".direnv"
-                    ],
-                    "description": "Folders in your home directory to look into for virtual environments.",
+                    "default": [],
+                    "description": "Folders in your home directory to look into for virtual environments (supports pyenv, direnv and virtualenvwrapper by default).",
                     "scope": "resource",
                     "items": {
                         "type": "string"
diff --git a/src/client/interpreter/locators/services/globalVirtualEnvService.ts b/src/client/interpreter/locators/services/globalVirtualEnvService.ts
index 9dd0b827f85e..bcf836350ee9 100644
--- a/src/client/interpreter/locators/services/globalVirtualEnvService.ts
+++ b/src/client/interpreter/locators/services/globalVirtualEnvService.ts
@@ -7,12 +7,15 @@ import { inject, injectable, named } from 'inversify';
 import * as os from 'os';
 import * as path from 'path';
 import { Uri } from 'vscode';
-import { IConfigurationService } from '../../../common/types';
+import { IConfigurationService, ICurrentProcess } from '../../../common/types';
 import { IServiceContainer } from '../../../ioc/types';
 import { IVirtualEnvironmentsSearchPathProvider } from '../../contracts';
 import { IVirtualEnvironmentManager } from '../../virtualEnvs/types';
 import { BaseVirtualEnvService } from './baseVirtualEnvService';
 
+// tslint:disable-next-line:no-require-imports no-var-requires
+const untildify: (value: string) => string = require('untildify');
+
 @injectable()
 export class GlobalVirtualEnvService extends BaseVirtualEnvService {
     public constructor(
@@ -25,17 +28,30 @@ export class GlobalVirtualEnvService extends BaseVirtualEnvService {
 @injectable()
 export class GlobalVirtualEnvironmentsSearchPathProvider implements IVirtualEnvironmentsSearchPathProvider {
     private readonly config: IConfigurationService;
+    private readonly currentProcess: ICurrentProcess;
     private readonly virtualEnvMgr: IVirtualEnvironmentManager;
 
     constructor(@inject(IServiceContainer) serviceContainer: IServiceContainer) {
         this.config = serviceContainer.get<IConfigurationService>(IConfigurationService);
         this.virtualEnvMgr = serviceContainer.get<IVirtualEnvironmentManager>(IVirtualEnvironmentManager);
+        this.currentProcess = serviceContainer.get<ICurrentProcess>(ICurrentProcess);
     }
 
     public async getSearchPaths(resource?: Uri): Promise<string[]> {
         const homedir = os.homedir();
-        const venvFolders = this.config.getSettings(resource).venvFolders;
-        const folders = venvFolders.map(item => path.join(homedir, item));
+        const venvFolders = [
+            'envs',
+            '.pyenv',
+            '.direnv',
+            '.virtualenvs',
+            ...this.config.getSettings(resource).venvFolders];
+        const folders = [...new Set(venvFolders.map(item => path.join(homedir, item)))];
+
+        // Add support for the WORKON_HOME environment variable used by pipenv and virtualenvwrapper.
+        const workonHomePath = this.currentProcess.env.WORKON_HOME;
+        if (workonHomePath) {
+            folders.push(untildify(workonHomePath));
+        }
 
         // tslint:disable-next-line:no-string-literal
         const pyenvRoot = await this.virtualEnvMgr.getPyEnvRoot(resource);
diff --git a/src/test/interpreters/venv.unit.test.ts b/src/test/interpreters/venv.unit.test.ts
index 8ab27cbb71ca..4c0836fb274d 100644
--- a/src/test/interpreters/venv.unit.test.ts
+++ b/src/test/interpreters/venv.unit.test.ts
@@ -18,6 +18,10 @@ import { ServiceContainer } from '../../client/ioc/container';
 import { ServiceManager } from '../../client/ioc/serviceManager';
 import { MockAutoSelectionService } from '../mocks/autoSelector';
 
+// tslint:disable-next-line:no-require-imports no-var-requires
+const untildify: (value: string) => string = require('untildify');
+
+// tslint:disable-next-line: max-func-body-length
 suite('Virtual environments', () => {
     let serviceManager: ServiceManager;
     let serviceContainer: ServiceContainer;
@@ -52,11 +56,16 @@ suite('Virtual environments', () => {
         const pathProvider = new GlobalVirtualEnvironmentsSearchPathProvider(serviceContainer);
 
         const homedir = os.homedir();
-        const folders = ['Envs', '.virtualenvs'];
+        const folders = ['Envs', 'testpath'];
         settings.setup(x => x.venvFolders).returns(() => folders);
         virtualEnvMgr.setup(v => v.getPyEnvRoot(TypeMoq.It.isAny())).returns(() => Promise.resolve(undefined));
         let paths = await pathProvider.getSearchPaths();
-        let expected = folders.map(item => path.join(homedir, item));
+        let expected = [
+            'envs',
+            '.pyenv',
+            '.direnv',
+            '.virtualenvs',
+            ...folders].map(item => path.join(homedir, item));
 
         virtualEnvMgr.verifyAll();
         expect(paths).to.deep.equal(expected, 'Global search folder list is incorrect.');
@@ -70,6 +79,60 @@ suite('Virtual environments', () => {
         expect(paths).to.deep.equal(expected, 'pyenv path not resolved correctly.');
     });
 
+    test('Global search paths with duplicates', async () => {
+        const pathProvider = new GlobalVirtualEnvironmentsSearchPathProvider(serviceContainer);
+
+        const folders = ['.virtualenvs', '.direnv'];
+        settings.setup(x => x.venvFolders).returns(() => folders);
+        const paths = await pathProvider.getSearchPaths();
+
+        expect([...new Set(paths)]).to.deep.equal(paths, 'Duplicates are not removed from the list of global search paths');
+    });
+
+    test('Global search paths with tilde path in the WORKON_HOME environment variable', async () => {
+        const pathProvider = new GlobalVirtualEnvironmentsSearchPathProvider(serviceContainer);
+
+        const homedir = os.homedir();
+        const workonFolder = path.join('~', '.workonFolder');
+        process.setup(p => p.env).returns(() => {
+            return { WORKON_HOME: workonFolder };
+        });
+        settings.setup(x => x.venvFolders).returns(() => []);
+
+        const paths = await pathProvider.getSearchPaths();
+        const expected = [
+            'envs',
+            '.pyenv',
+            '.direnv',
+            '.virtualenvs'
+        ].map(item => path.join(homedir, item));
+        expected.push(untildify(workonFolder));
+
+        expect(paths).to.deep.equal(expected, 'WORKON_HOME environment variable not read.');
+    });
+
+    test('Global search paths with absolute path in the WORKON_HOME environment variable', async () => {
+        const pathProvider = new GlobalVirtualEnvironmentsSearchPathProvider(serviceContainer);
+
+        const homedir = os.homedir();
+        const workonFolder = path.join('path', 'to', '.workonFolder');
+        process.setup(p => p.env).returns(() => {
+            return { WORKON_HOME: workonFolder };
+        });
+        settings.setup(x => x.venvFolders).returns(() => []);
+
+        const paths = await pathProvider.getSearchPaths();
+        const expected = [
+            'envs',
+            '.pyenv',
+            '.direnv',
+            '.virtualenvs'
+        ].map(item => path.join(homedir, item));
+        expected.push(workonFolder);
+
+        expect(paths).to.deep.equal(expected, 'WORKON_HOME environment variable not read.');
+    });
+
     test('Workspace search paths', async () => {
         settings.setup(x => x.venvPath).returns(() => path.join('~', 'foo'));