diff --git a/python/pluginResources/messages/PyBundle.properties b/python/pluginResources/messages/PyBundle.properties
index fa2be8f19ebe..64bcece6c638 100644
--- a/python/pluginResources/messages/PyBundle.properties
+++ b/python/pluginResources/messages/PyBundle.properties
@@ -568,7 +568,7 @@ sdk.create.custom.venv.install.fix.title=Install {0} {1}
 sdk.create.custom.venv.run.error.message=Error Running {0}
 sdk.create.custom.venv.progress.title.detect.executable=Detect executable
 sdk.create.custom.existing.env.title=Environment:
-sdk.create.custom.existing.error.no.interpreters.to.select=No interpreters were found. Please select one manually using the Browse button.
+sdk.create.custom.existing.error.no.interpreters.to.select=No interpreters were found. Select manually using the Browse button.
 sdk.create.custom.hatch.environment=Environment:
 sdk.create.custom.hatch.environment.loading=Loading environments\u2026
 sdk.create.custom.hatch.environment.exists=Environment already exists
@@ -1209,6 +1209,7 @@ python.add.sdk.panel.name.system.interpreter=System interpreter
 python.add.sdk.panel.name.virtualenv.environment=Virtualenv environment
 python.add.sdk.panel.name.poetry.environment=Poetry Environment
 python.add.sdk.wait.for.validation=Wait for the executable validation
+python.add.sdk.press.enter.to.validate=Press Enter to validate
 python.add.sdk.version=Version: {0}
 python.add.sdk.already.contains.python.with.version=Already contains Python with version {0}
 
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/FileSystem.kt b/python/src/com/jetbrains/python/sdk/add/v2/FileSystem.kt
index 444cf9a15064..4c1316e1f6b7 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/FileSystem.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/FileSystem.kt
@@ -13,12 +13,7 @@ import com.intellij.platform.eel.EelApi
 import com.intellij.platform.eel.provider.asNioPath
 import com.intellij.platform.eel.provider.localEel
 import com.intellij.platform.eel.where
-import com.intellij.python.community.execService.Args
-import com.intellij.python.community.execService.BinOnEel
-import com.intellij.python.community.execService.BinOnTarget
-import com.intellij.python.community.execService.BinaryToExec
-import com.intellij.python.community.execService.ExecService
-import com.intellij.python.community.execService.execGetStdout
+import com.intellij.python.community.execService.*
 import com.intellij.python.community.execService.python.validatePythonAndGetInfo
 import com.intellij.python.community.services.internal.impl.VanillaPythonWithPythonInfoImpl
 import com.intellij.python.community.services.shared.VanillaPythonWithPythonInfo
@@ -48,6 +43,7 @@ import java.nio.file.InvalidPathException
 import java.nio.file.Path
 import kotlin.io.path.Path
 import kotlin.io.path.exists
+import kotlin.io.path.isDirectory
 
 
 private val LOG: Logger = fileLogger()
@@ -64,6 +60,7 @@ sealed interface FileSystem<P : PathHolder> {
   val isBrowseable: Boolean
 
   fun parsePath(raw: String): PyResult<P>
+  fun validateExecutable(path: P): PyResult<Unit>
 
   suspend fun getSystemPythonFromSelection(pathToPython: P): PyResult<DetectedSelectableInterpreter<P>>
 
@@ -95,6 +92,14 @@ sealed interface FileSystem<P : PathHolder> {
       PyResult.localizedError(e.localizedMessage)
     }
 
+    override fun validateExecutable(path: PathHolder.Eel): PyResult<Unit> {
+      return when {
+        !path.path.exists() -> PyResult.localizedError(message("sdk.create.not.executable.does.not.exist.error"))
+        path.path.isDirectory() -> PyResult.localizedError(message("sdk.create.executable.directory.error"))
+        else -> PyResult.success(Unit)
+      }
+    }
+
     override suspend fun validateVenv(homePath: PathHolder.Eel): PyResult<Unit> = withContext(Dispatchers.IO) {
       val validationResult = when {
         !homePath.path.isAbsolute -> PyResult.localizedError(message("python.sdk.new.error.no.absolute"))
@@ -202,6 +207,11 @@ sealed interface FileSystem<P : PathHolder> {
       return PyResult.success(PathHolder.Target(raw))
     }
 
+    /**
+     * Currently, we don't validate executable on target because there is no API to check path existence and its type on target.
+     */
+    override fun validateExecutable(path: PathHolder.Target): PyResult<Unit> = PyResult.success(Unit)
+
     override suspend fun validateVenv(homePath: PathHolder.Target): PyResult<Unit> = withContext(Dispatchers.IO) {
       val pythonBinaryPath = resolvePythonBinary(homePath)
 
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/ToolValidator.kt b/python/src/com/jetbrains/python/sdk/add/v2/ToolValidator.kt
index 187335236f14..57db3a92bcd6 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/ToolValidator.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/ToolValidator.kt
@@ -16,9 +16,9 @@ class ToolValidator<P : PathHolder>(
   override val backProperty: ObservableMutableProperty<ValidatedPath.Executable<P>?>,
   propertyGraph: PropertyGraph,
   val defaultPathSupplier: suspend () -> P?,
-  val pathValidator: suspend (P) -> PyResult<Version> = { fileSystem.getBinaryToExec(it).getToolVersion(toolVersionPrefix) },
+  val toolValidator: suspend (P) -> PyResult<Version> = { fileSystem.getBinaryToExec(it).getToolVersion(toolVersionPrefix) },
 ) : PathValidator<Version, P, ValidatedPath.Executable<P>> {
-  override val isDirtyValue: ObservableMutableProperty<Boolean> = propertyGraph.property(true)
+  override val isDirtyValue: ObservableMutableProperty<Boolean> = propertyGraph.property(false)
   override val isValidationInProgress: Boolean
     get() = validationJob.isActive
 
@@ -44,8 +44,13 @@ class ToolValidator<P : PathHolder>(
           val path = fileSystem.parsePath(input).getOr { error ->
             return@withContext ValidatedPath.Executable<P>(null, error)
           }
-          val validationResult = pathValidator(path)
-          ValidatedPath.Executable(path, validationResult)
+
+          fileSystem.validateExecutable(path).getOr {
+            return@withContext ValidatedPath.Executable(path, it)
+          }
+
+          val toolValidationResult = toolValidator(path)
+          ValidatedPath.Executable(path, toolValidationResult)
         }
 
         withContext(Dispatchers.UI) { backProperty.set(exec) }
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/ValidatedPathField.kt b/python/src/com/jetbrains/python/sdk/add/v2/ValidatedPathField.kt
index a2d649f24854..cfe5dc2d13e4 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/ValidatedPathField.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/ValidatedPathField.kt
@@ -7,6 +7,7 @@ import com.intellij.execution.target.getTargetType
 import com.intellij.icons.AllIcons
 import com.intellij.openapi.actionSystem.AnActionEvent
 import com.intellij.openapi.actionSystem.CustomShortcutSet
+import com.intellij.openapi.application.UI
 import com.intellij.openapi.fileChooser.FileChooserDescriptor
 import com.intellij.openapi.fileChooser.FileChooserDescriptorFactory
 import com.intellij.openapi.observable.properties.ObservableMutableProperty
@@ -36,30 +37,23 @@ import com.intellij.ui.dsl.builder.components.ValidationType
 import com.intellij.ui.dsl.builder.components.validationTooltip
 import com.intellij.util.asDisposable
 import com.jetbrains.python.PyBundle.message
-import com.jetbrains.python.onFailure
 import com.jetbrains.python.onSuccess
 import kotlinx.coroutines.CoroutineScope
+import kotlinx.coroutines.Dispatchers
 import kotlinx.coroutines.FlowPreview
 import kotlinx.coroutines.flow.MutableStateFlow
-import kotlinx.coroutines.flow.collectLatest
 import kotlinx.coroutines.flow.debounce
 import kotlinx.coroutines.flow.map
 import kotlinx.coroutines.launch
 import org.jetbrains.annotations.Nls
-import java.awt.AlphaComposite
-import java.awt.Component
-import java.awt.Graphics
-import java.awt.Graphics2D
 import java.awt.event.ActionListener
 import java.awt.event.KeyEvent
-import java.util.concurrent.atomic.AtomicLong
 import javax.swing.Icon
 import javax.swing.JTextField
 import javax.swing.KeyStroke
 import javax.swing.event.DocumentEvent
 import kotlin.concurrent.atomics.AtomicBoolean
 import kotlin.concurrent.atomics.ExperimentalAtomicApi
-import kotlin.math.cos
 
 interface PathValidator<T, P : PathHolder, VP : ValidatedPath<T, P>> {
   val backProperty: ObservableMutableProperty<VP?>
@@ -72,7 +66,9 @@ interface PathValidator<T, P : PathHolder, VP : ValidatedPath<T, P>> {
   }
 }
 
-private class ValidationSuccessExtension<T>(val validationInfo: T) : ExtendableTextComponent.Extension {
+private interface ValidationStatusExtension
+
+private class ValidationSuccessExtension<T>(val validationInfo: T) : ExtendableTextComponent.Extension, ValidationStatusExtension {
   override fun getIcon(hovered: Boolean): Icon = AllIcons.General.GreenCheckmark
   override fun getTooltip(): @NlsContexts.Tooltip String? {
     val tooltip = when (validationInfo) {
@@ -83,68 +79,13 @@ private class ValidationSuccessExtension<T>(val validationInfo: T) : ExtendableT
   }
 }
 
-private object ValidationErrorExtension : ExtendableTextComponent.Extension {
-  override fun getIcon(hovered: Boolean): Icon = AllIcons.Status.FailedInProgress
-}
-
-private object ValidationInProgressExtension : ExtendableTextComponent.Extension {
+private object ValidationInProgressExtension : ExtendableTextComponent.Extension, ValidationStatusExtension {
   override fun getIcon(hovered: Boolean): Icon = AnimatedIcon.Default()
   override fun getTooltip(): @NlsContexts.Tooltip String {
     return message("python.add.sdk.wait.for.validation")
   }
 }
 
-private class DebounceCounterIcon(val icon: Icon, val period: Int) : Icon {
-  private val time: AtomicLong = AtomicLong(System.currentTimeMillis())
-
-  fun reset() {
-    time.set(System.currentTimeMillis())
-  }
-
-  override fun getIconWidth(): Int {
-    return icon.iconWidth
-  }
-
-  override fun getIconHeight(): Int {
-    return icon.iconHeight
-  }
-
-  override fun paintIcon(c: Component?, g: Graphics?, x: Int, y: Int) {
-    assert(period > 0) { "unexpected" }
-    val time = (System.currentTimeMillis() - this.time.get()) % period
-    val alpha = ((cos(2 * Math.PI * time / period) + 1) / 2).toFloat()
-    if (alpha > 0) {
-      if (alpha < 1 && g is Graphics2D) {
-        val g2d = g.create() as Graphics2D
-        try {
-          g2d.composite = AlphaComposite.SrcAtop.derive(alpha)
-          icon.paintIcon(c, g2d, x, y)
-        }
-        finally {
-          g2d.dispose()
-        }
-      }
-      else {
-        icon.paintIcon(c, g, x, y)
-      }
-    }
-  }
-}
-
-private class AnimatedFadingIcon(private val icon: DebounceCounterIcon) : AnimatedIcon(50, icon) {
-  fun reset() {
-    icon.reset()
-  }
-
-  companion object {
-    fun build(icon: Icon, period: Int = VALIDATION_DELAY * 2): AnimatedFadingIcon {
-      return AnimatedFadingIcon(DebounceCounterIcon(icon, period))
-    }
-  }
-}
-
-private const val VALIDATION_DELAY = 2000
-
 @OptIn(FlowPreview::class, ExperimentalAtomicApi::class)
 internal class ValidatedPathField<T, P : PathHolder, VP : ValidatedPath<T, P>>(
   val fileSystem: FileSystem<P>,
@@ -170,23 +111,12 @@ internal class ValidatedPathField<T, P : PathHolder, VP : ValidatedPath<T, P>>(
     }
 
     override fun actionPerformed(e: AnActionEvent) {
-      with(textField as ExtendableTextComponent) {
-        if (extensions.contains(validationWaitExtension)) {
-          doValidate()
-        }
-      }
+      doValidate()
     }
   }.apply {
     registerCustomShortcutSet(CustomShortcutSet(KeyStroke.getKeyStroke(KeyEvent.VK_ENTER, 0)), this@ValidatedPathField)
   }
 
-  private val validationWaitIcon = AnimatedFadingIcon.build(AllIcons.Gutter.SuggestedRefactoringBulb)
-  private val validationWaitExtension: ExtendableTextComponent.Extension = ExtendableTextComponent.Extension.create(
-    validationWaitIcon, message("python.add.sdk.wait.for.validation")
-  ) {
-    validationAction.doValidate()
-  }
-
   private val fieldAccessor = object : TextComponentAccessor<JTextField> {
     override fun getText(component: JTextField): @NlsSafe String {
       return component.text
@@ -227,27 +157,22 @@ internal class ValidatedPathField<T, P : PathHolder, VP : ValidatedPath<T, P>>(
 
     pathValidator.isDirtyValue.afterChange(scope.asDisposable()) { isDirtyValue ->
       with(textField as ExtendableTextComponent) {
-        extensions.forEach { removeExtension(it) }
+        extensions
+          .filter { it is ValidationStatusExtension }
+          .forEach { removeExtension(it) }
 
         if (isDirtyValue) {
           if (pathValidator.isValidationInProgress) {
             isEnabled = false
             addExtension(ValidationInProgressExtension)
           }
-          else {
-            addExtension(validationWaitExtension)
-          }
         }
         else {
           editorMode.store(false)
-          browseFolderActionLister?.let { setButtonVisible(true) }
           isEnabled = true
 
           pathValidator.backProperty.get()?.validationResult?.let { validationResult ->
             validationResult
-              .onFailure {
-                addExtension(ValidationErrorExtension)
-              }
               .onSuccess {
                 addExtension(ValidationSuccessExtension(it))
               }
@@ -261,27 +186,20 @@ internal class ValidatedPathField<T, P : PathHolder, VP : ValidatedPath<T, P>>(
     this.scope = scope
     registerPropertyCallbacks()
 
-    scope.launch {
+    scope.launch(Dispatchers.UI) {
       textInputFlow
         .debounce(50) // setText method is a combination of two calls - remove + insert, should count them as 1
         .map {
           if (it == null) return@map null
 
-          if (editorMode.load()) {
-            validationWaitIcon.reset()
-          }
-          else if ((pathValidator.backProperty.get()?.pathHolder?.toString() ?: "") != it) {
+          if (!editorMode.load() && (pathValidator.backProperty.get()?.pathHolder?.toString() ?: "") != it) {
             editorMode.store(true)
             pathValidator.markDirty()
           }
 
           it
         }
-        .debounce(VALIDATION_DELAY.toLong())
-        .collectLatest {
-          if (it == null) return@collectLatest
-          validationAction.doValidate()
-        }
+        .collect {}
     }
   }
 
@@ -399,9 +317,12 @@ internal fun <T, P : PathHolder, VP : ValidatedPath<T, P>> Panel.validatablePath
           pyErrorMessage != null -> {
             ValidationInfo(pyErrorMessage)
           }
-          pathValidator.isDirtyValue.get() -> {
+          pathValidator.isValidationInProgress -> {
             ValidationInfo(message("python.add.sdk.wait.for.validation"))
           }
+          pathValidator.isDirtyValue.get() -> {
+            ValidationInfo(message("python.add.sdk.press.enter.to.validate")).asWarning()
+          }
           else -> null
         }
       }
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaExistingEnvironmentSelector.kt b/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaExistingEnvironmentSelector.kt
index c501c7a7ed64..696ad1251dcb 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaExistingEnvironmentSelector.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaExistingEnvironmentSelector.kt
@@ -18,7 +18,6 @@ import com.intellij.ui.dsl.builder.bindItem
 import com.intellij.util.ui.JBUI
 import com.jetbrains.python.PyBundle.message
 import com.jetbrains.python.Result
-import com.jetbrains.python.errorProcessing.ErrorSink
 import com.jetbrains.python.errorProcessing.PyResult
 import com.jetbrains.python.newProject.collector.InterpreterStatisticsInfo
 import com.jetbrains.python.sdk.ModuleOrProject
@@ -130,10 +129,6 @@ internal class CondaExistingEnvironmentSelector<P : PathHolder>(model: PythonAdd
       scope = scope,
     )
     condaExecutable.initialize(scope)
-    condaExecutable.displayLoaderWhen(
-      loading = model.condaViewModel.condaEnvironmentsLoading,
-      scope = scope,
-    )
   }
 
   override suspend fun getOrCreateSdk(moduleOrProject: ModuleOrProject): PyResult<Sdk> {
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaNewEnvironmentCreator.kt b/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaNewEnvironmentCreator.kt
index 90e2ac4188d4..f8bf7c253db5 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaNewEnvironmentCreator.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/conda/CondaNewEnvironmentCreator.kt
@@ -10,7 +10,6 @@ import com.intellij.ui.dsl.builder.bindItem
 import com.intellij.ui.dsl.builder.bindText
 import com.intellij.ui.dsl.listCellRenderer.textListCellRenderer
 import com.jetbrains.python.PyBundle.message
-import com.jetbrains.python.errorProcessing.ErrorSink
 import com.jetbrains.python.errorProcessing.PyResult
 import com.jetbrains.python.newProject.collector.InterpreterStatisticsInfo
 import com.jetbrains.python.psi.LanguageLevel
@@ -56,10 +55,6 @@ internal class CondaNewEnvironmentCreator<P: PathHolder>(model: PythonMutableTar
 
   override fun onShown(scope: CoroutineScope) {
     condaExecutable.initialize(scope)
-    condaExecutable.displayLoaderWhen(
-      loading = model.condaViewModel.condaEnvironmentsLoading,
-      scope = scope,
-    )
   }
 
   override suspend fun getOrCreateSdk(moduleOrProject: ModuleOrProject): PyResult<Sdk> {
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchUIComponents.kt b/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchUIComponents.kt
index 61c1da08fcb8..2a7bbb49ef4f 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchUIComponents.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchUIComponents.kt
@@ -6,6 +6,7 @@ import com.intellij.openapi.application.EDT
 import com.intellij.openapi.observable.properties.AtomicBooleanProperty
 import com.intellij.openapi.observable.util.transform
 import com.intellij.openapi.ui.ComboBox
+import com.intellij.openapi.ui.FixedComboBoxEditor
 import com.intellij.openapi.ui.ValidationInfo
 import com.intellij.openapi.ui.validation.DialogValidationRequestor
 import com.intellij.openapi.ui.validation.WHEN_PROPERTY_CHANGED
@@ -73,12 +74,10 @@ private class HatchEnvComboBoxListCellRenderer(val contentFlow: StateFlow<PyResu
         append(message("sdk.create.custom.hatch.environment.loading"), SimpleTextAttributes.GRAYED_ITALIC_ATTRIBUTES)
       }
       is Result.Failure -> {
-        icon = AllIcons.General.ShowWarning
         append(message("sdk.create.custom.hatch.error.no.environments.to.select"), SimpleTextAttributes.GRAYED_ITALIC_ATTRIBUTES)
       }
       is Result.Success -> {
         if (result.result.isEmpty() || value == null) {
-          icon = AllIcons.General.ShowWarning
           append(message("sdk.create.custom.hatch.error.no.environments.to.select"), SimpleTextAttributes.GRAYED_ITALIC_ATTRIBUTES)
         }
         else {
@@ -98,14 +97,36 @@ private class HatchEnvComboBoxListCellRenderer(val contentFlow: StateFlow<PyResu
   }
 }
 
+internal class HatchEnvironmentComboBox<P : PathHolder>(
+  model: PythonAddInterpreterModel<P>,
+) : ComboBox<HatchVirtualEnvironment?>() {
+  init {
+    renderer = HatchEnvComboBoxListCellRenderer(model.hatchViewModel.availableEnvironments)
+    editor = FixedComboBoxEditor()
+  }
+
+  @Synchronized
+  internal fun syncWithEnvs(
+    environmentsResult: PyResult<List<HatchVirtualEnvironment>>,
+    isFilterOnlyExisting: Boolean = false,
+  ) {
+    removeAllItems()
+    val environments = environmentsResult.getOr { return }
+    environments.filter { !isFilterOnlyExisting || it.pythonVirtualEnvironment is PythonVirtualEnvironment.Existing }.forEach {
+      addItem(it)
+    }
+  }
+}
+
+
 private fun <P : PathHolder> Panel.addEnvironmentComboBox(
   model: PythonAddInterpreterModel<P>,
   validationRequestor: DialogValidationRequestor,
   isGenerateNewMode: Boolean,
-): ComboBox<HatchVirtualEnvironment> {
+): HatchEnvironmentComboBox<P> {
   val environmentAlreadyExists = AtomicBooleanProperty(false)
 
-  lateinit var environmentComboBox: ComboBox<HatchVirtualEnvironment>
+  val environmentComboBox = HatchEnvironmentComboBox(model)
 
   val hatchEnvironmentProperty = if (isGenerateNewMode)
     model.hatchViewModel.selectedEnvFromAvailable
@@ -113,7 +134,7 @@ private fun <P : PathHolder> Panel.addEnvironmentComboBox(
     model.hatchViewModel.selectedEnvFromExisting
 
   row(message("sdk.create.custom.hatch.environment")) {
-    environmentComboBox = comboBox(emptyList(), HatchEnvComboBoxListCellRenderer(model.hatchViewModel.availableEnvironments))
+    cell(environmentComboBox)
       .bindItem(hatchEnvironmentProperty)
       .validationRequestor(validationRequestor and WHEN_PROPERTY_CHANGED(hatchEnvironmentProperty))
       .validationInfo { component ->
@@ -121,7 +142,7 @@ private fun <P : PathHolder> Panel.addEnvironmentComboBox(
         when {
           !component.isVisible || !component.isEnabled -> null
           component.item == null -> {
-            ValidationInfo(message("sdk.create.custom.hatch.error.no.environments.to.select"))
+            ValidationInfo("")
           }
           isGenerateNewMode && component.item?.pythonVirtualEnvironment is PythonVirtualEnvironment.Existing -> {
             environmentAlreadyExists.set(true)
@@ -134,7 +155,6 @@ private fun <P : PathHolder> Panel.addEnvironmentComboBox(
       .applyToComponent {
         preferredSize = JBUI.size(preferredSize)
       }
-      .component
   }
 
   row("") {
@@ -171,7 +191,7 @@ private fun <P : PathHolder> Panel.addExecutableSelector(
 }
 
 internal data class HatchFormFields<P : PathHolder>(
-  val environmentComboBox: ComboBox<HatchVirtualEnvironment>,
+  val environmentComboBox: HatchEnvironmentComboBox<P>,
   val basePythonComboBox: PythonInterpreterComboBox<P>?,
   val validatedPathField: ValidatedPathField<Version, P, ValidatedPath.Executable<P>>,
 ) {
@@ -213,7 +233,7 @@ internal fun <P : PathHolder> Panel.buildHatchFormFields(
     validationRequestor,
     installHatchActionLink
   )
-  var environmentComboBox: ComboBox<HatchVirtualEnvironment> by lateinitVal()
+  var environmentComboBox: HatchEnvironmentComboBox<P> by lateinitVal()
   var basePythonComboBox: PythonInterpreterComboBox<P>? = null
 
   rowsRange {
@@ -238,15 +258,3 @@ internal fun <P : PathHolder> Panel.buildHatchFormFields(
   return HatchFormFields(environmentComboBox, basePythonComboBox, executablePath)
 }
 
-@Synchronized
-internal fun ComboBox<HatchVirtualEnvironment>.syncWithEnvs(
-  environmentsResult: PyResult<List<HatchVirtualEnvironment>>,
-  isFilterOnlyExisting: Boolean = false,
-) {
-  removeAllItems()
-  val environments = environmentsResult.getOr { return }
-  environments.filter { !isFilterOnlyExisting || it.pythonVirtualEnvironment is PythonVirtualEnvironment.Existing }.forEach {
-    addItem(it)
-  }
-}
-
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchViewModel.kt b/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchViewModel.kt
index fd4864130ebf..e768c9372ce9 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchViewModel.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/hatch/HatchViewModel.kt
@@ -56,7 +56,7 @@ class HatchViewModel<P : PathHolder>(
 
     hatchExecutable.afterChange { hatchExecutable ->
       if (hatchExecutable?.validationResult?.successOrNull == null) {
-        availableEnvironments.value = null
+        availableEnvironments.value = PyResult.success(emptyList())
         return@afterChange
       }
 
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/uiUtils.kt b/python/src/com/jetbrains/python/sdk/add/v2/uiUtils.kt
index 05a8e40214fe..6497bfaa7811 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/uiUtils.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/uiUtils.kt
@@ -178,7 +178,6 @@ internal fun <P : PathHolder> SimpleColoredComponent.customizeForPythonInterpret
       return
     }
     interpreter == null -> {
-      icon = AllIcons.General.ShowWarning
       append(message("sdk.create.custom.existing.error.no.interpreters.to.select"), SimpleTextAttributes.GRAYED_ITALIC_ATTRIBUTES)
       return
     }
@@ -304,7 +303,7 @@ internal fun <P : PathHolder> Panel.pythonInterpreterComboBox(
           when {
             !it.isVisible -> null
             it.isLoading.get() -> ValidationInfo(message("python.add.sdk.panel.wait"))
-            selectedSdkProperty.get() == null -> ValidationInfo(message("sdk.create.custom.existing.error.no.interpreters.to.select"))
+            selectedSdkProperty.get() == null -> ValidationInfo("")
             else -> null
           }
         }
diff --git a/python/src/com/jetbrains/python/sdk/add/v2/uv/UvExistingEnvironmentSelector.kt b/python/src/com/jetbrains/python/sdk/add/v2/uv/UvExistingEnvironmentSelector.kt
index 2e636e7f173e..6c99ee3166e7 100644
--- a/python/src/com/jetbrains/python/sdk/add/v2/uv/UvExistingEnvironmentSelector.kt
+++ b/python/src/com/jetbrains/python/sdk/add/v2/uv/UvExistingEnvironmentSelector.kt
@@ -3,25 +3,30 @@ package com.jetbrains.python.sdk.add.v2.uv
 
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.projectRoots.Sdk
+import com.intellij.python.community.execService.python.validatePythonAndGetInfo
 import com.jetbrains.python.PyBundle
-import com.jetbrains.python.PythonInfo
 import com.jetbrains.python.Result
 import com.jetbrains.python.errorProcessing.PyResult
+import com.jetbrains.python.getOrNull
 import com.jetbrains.python.sdk.ModuleOrProject
 import com.jetbrains.python.sdk.add.v2.*
 import com.jetbrains.python.sdk.associatedModulePath
 import com.jetbrains.python.sdk.basePath
+import com.jetbrains.python.sdk.impl.resolvePythonBinary
 import com.jetbrains.python.sdk.isAssociatedWithModule
 import com.jetbrains.python.sdk.legacy.PythonSdkUtil
 import com.jetbrains.python.sdk.uv.isUv
 import com.jetbrains.python.sdk.uv.setupExistingEnvAndSdk
 import com.jetbrains.python.statistics.InterpreterType
-import com.jetbrains.python.statistics.version
 import com.jetbrains.python.venvReader.VirtualEnvReader
 import com.jetbrains.python.venvReader.tryResolvePath
+import java.nio.file.Files
 import java.nio.file.Path
+import java.util.stream.Collectors
+import kotlin.io.path.exists
 import kotlin.io.path.pathString
 
+
 internal class UvExistingEnvironmentSelector<P : PathHolder>(model: PythonMutableTargetAddInterpreterModel<P>, module: Module?)
   : CustomExistingEnvironmentSelector<P>("uv", model, module) {
   override val toolState: PathValidator<Version, P, ValidatedPath.Executable<P>> = model.uvViewModel.toolValidator
@@ -58,14 +63,18 @@ internal class UvExistingEnvironmentSelector<P : PathHolder>(model: PythonMutabl
   }
 
   override suspend fun detectEnvironments(modulePath: Path): List<DetectedSelectableInterpreter<P>> {
-    val existingEnvs = PythonSdkUtil.getAllSdks().filter {
-      it.isUv && (it.associatedModulePath == modulePath.pathString || it.associatedModulePath == null)
-    }.mapNotNull { env ->
-      env.homePath?.let { path ->
-        model.fileSystem.parsePath(path).successOrNull?.let { homePath ->
-          DetectedSelectableInterpreter(homePath, PythonInfo(env.version), false)
-        }
-      }
+    val rootFolders = Files.walk(modulePath, 1)
+      .filter(Files::isDirectory)
+      .collect(Collectors.toList())
+
+    val existingEnvs = rootFolders.mapNotNull { possibleVenvHome ->
+      val pythonBinaryPath = possibleVenvHome.resolvePythonBinary()?.takeIf { it.exists() }
+                             ?: return@mapNotNull null
+      val pythonInfo = pythonBinaryPath.validatePythonAndGetInfo().getOrNull()
+                       ?: return@mapNotNull null
+
+      val pathHolder = PathHolder.Eel(pythonBinaryPath) as P
+      DetectedSelectableInterpreter(pathHolder, pythonInfo, false)
     }
     return existingEnvs
   }