Python Engineering at Microsoft: Python in Visual Studio Code – March 2026 Release

Search Python Symbols in Installed Packages When working in a new codebase or exploring an unfamiliar library, one of the most common needs is quickly locating where a function or class is defined — even if it lives outside your workspace. With this release, Pylance can now include symbols from packages installed in your active virtual environment in Workspace Symbol search (Cmd/Ctrl+T). This is controlled by a new setting: Python Analysis: Include Venv In Workspace Symbols When enabled: Workspace Symbol search surfaces symbols from packages in your active virtual environment’s site-packages You can navigate into third-party libraries without leaving VS Code or reaching for external documentation For libraries without py.typed, only symbols exported via __init__.py or __all__ are included, keeping results focused and relevant Because indexing installed packages can affect performance, this feature is opt-in by design. You can fine-tune the depth of indexing per-package using Python Analysis: Package Index Depths, which controls how deeply Pylance searches into sub-modules. This gives you richer code exploration when you need it, without changing the default experience for everyone else. To try it: Open Settings (Cmd+, / Ctrl+,) Search for “Include Venv In Workspace Symbols” Check the box under Python Analysis Experimental: Rust-Based Parallel Indexer We’re shipping an experimental setting that switches Pylance’s indexer — the engine behind completions, auto-imports, and workspace symbol search — to a new Rust-based parallel implementation that runs out-of-process. In our testing, this indexer is on average 10× faster on large Python projects, which means faster completions after workspace open and a more responsive IntelliSense experience overall. Python Analysis: Enable Parallel Indexing This is intentionally experimental. We want to validate the performance gains and reliability across the wide variety of project setups and environments our users have before making it the default. To try it: Open Settings (Cmd+, / Ctrl+,) Search for “Parallel Indexing” Check Enable Parallel Indexing (Experimental) under Python Analysis Or add this to your settings.json: python.analysis.enableParallelIndexing: true After enabling, reload VS Code (Cmd/Ctrl+Shift+P Reload Window) to ensure the new indexer starts cleanly. This setting has the most impact on larger projects — small projects may see little difference. We want your feedback. If you try it and notice faster completions, slower behavior, or anything unexpected, please let us know by filing an issue on the Pylance GitHub repo. Your real-world reports are what will help us get this to stable. This is an experimental feature. If you run into issues, you can disable it at any time by unchecking the setting. Python Environments extension Various bug fixes in the Python Environments extension for env file notifications and environment manager selection priority: The workspace’s saved interpreter selection now takes precedence over terminal-activated virtual or conda environments across restarts. The env file change notification now includes a “Don’t Show Again” option to permanently dismiss it. vscode-python25867, vscode-python-environments1347, vscode-python-environments1393 The Python Environments extension now recommends the community Pixi extension when Pixi environments are detected, and includes Pixi in the environment manager priority order. vscode-python-environments1291 Try out these new improvements by downloading the Python extension and the Pylance extension from the Marketplace, or install them directly from the extensions view in Visual Studio Code (Ctrl + Shift + X or + + X). You can learn more about Python support in Visual Studio Code in the documentation. If you run into any problems or have suggestions, please file an issue on the Python VS Code GitHub page. The post Python in Visual Studio Code – March 2026 Release appeared first on Microsoft for Python Developers Blog.