diff --git a/.github/workflows/default.yml b/.github/workflows/default.yml
index c240034..f6fcb10 100644
--- a/.github/workflows/default.yml
+++ b/.github/workflows/default.yml
@@ -2,16 +2,14 @@ name: default
 on:
   pull_request:
   push:
-    branches:
-      - main
 
 jobs:
   # run linters and unit tests
   lint-and-test-units:
     runs-on: ubuntu-latest
     steps:
-      - uses: actions/checkout@v3
-      - uses: actions/cache@v3
+      - uses: actions/checkout@v4
+      - uses: actions/cache@v4
         id: npm-cache
         with:
           path: ~/.npm
@@ -43,11 +41,22 @@ jobs:
       fail-fast: true
 
     steps:
-      - uses: actions/checkout@v3
-      - uses: actions/setup-python@v4
+      - uses: actions/checkout@v4
+      - uses: actions/setup-python@v5
         with:
           python-version: ${{ matrix.python-version }}
       - uses: ./
         with:
           uv-version: ${{ matrix.uv-version }}
-      - run: uv --version
\ No newline at end of file
+          uv-venv: "my_virt_env"
+      - run: uv --version
+      - name: Get python executable on Windows
+        if: runner.os == 'Windows'
+        run: |
+          Get-Command python
+      - name: Get python executable on non-Windows
+        if: runner.os != 'Windows'
+        run: |
+          which python
+      - name: Check inside virtual environment
+        run: python -c "import sys; exit(0 if sys.prefix != sys.base_prefix else 1)"
\ No newline at end of file
diff --git a/README.md b/README.md
index 61b761e..3af33b1 100644
--- a/README.md
+++ b/README.md
@@ -51,6 +51,20 @@ steps:
   - run: uv --version
 ```
 
+### Create and activate a virtual environment using uv
+
+```yaml
+steps:
+  - uses: actions/checkout@v3
+  - uses: actions/setup-python@v4
+    with:
+      python-version: "3.11"
+  - uses: yezz123/setup-uv@v1
+    with:
+      uv-venv: "your_venv_name"
+  - run: uv pip install black # this command will run in the uv environment
+```
+
 ## Contributing
 
 ### Create issues
diff --git a/__tests__/input.test.ts b/__tests__/input.test.ts
index 4e932dc..e063c19 100644
--- a/__tests__/input.test.ts
+++ b/__tests__/input.test.ts
@@ -1,4 +1,10 @@
-import { getBooleanInput, getInputs, getVersionInput } from '../src/inputs'
+import { getInput } from '@actions/core'
+import {
+  getBooleanInput,
+  getInputs,
+  getVenvInput,
+  getVersionInput
+} from '../src/inputs'
 
 const TEST_ENV_VARS = {
   INPUT_MISSING: '',
@@ -9,7 +15,8 @@ const TEST_ENV_VARS = {
   INPUT_VERSION_ALPHA: '0.1.3.0a1',
 
   'INPUT_UV-PREVIEW': 'true',
-  'INPUT_UV-VERSION': '0.1.2'
+  'INPUT_UV-VERSION': '0.1.2',
+  'INPUT_UV-VENV': 'my_venv'
 }
 
 describe('options', () => {
@@ -42,7 +49,11 @@ describe('options', () => {
   })
 
   it('getInputs returns inputs', () => {
-    expect(getInputs()).toStrictEqual({ preview: true, version: '0.1.2' })
+    expect(getInputs()).toStrictEqual({
+      preview: true,
+      version: '0.1.2',
+      venv: 'my_venv'
+    })
   })
 
   it('getVersionInput throws if input is not valid', () => {
@@ -58,4 +69,12 @@ describe('options', () => {
   it('getVersionInput returns version if input is alpha', () => {
     expect(getVersionInput('version_alpha')).toBe('0.1.3.0a1')
   })
+
+  it('getVenvInput returns venv name if input is valid', () => {
+    expect(getVenvInput('uv-venv')).toBe('my_venv')
+  })
+
+  it('getVenvInput returns null if input is not provided', () => {
+    expect(getVenvInput('SOMETHING')).toBeNull()
+  })
 })
diff --git a/action.yml b/action.yml
index 5d31e3a..e6d97c7 100644
--- a/action.yml
+++ b/action.yml
@@ -9,6 +9,9 @@ inputs:
   uv-version:
     description: uv version to use, if version is not provided then latest stable version will be used
     required: false
+  uv-venv:
+    description: virtual environment name to create and activate.
+    required: false
 runs:
   using: node20
   main: dist/index.js
diff --git a/dist/index.js b/dist/index.js
index 00fea83..50dcc60 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -31906,13 +31906,14 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.getVersionInput = exports.getBooleanInput = exports.getInputs = void 0;
+exports.getVenvInput = exports.getVersionInput = exports.getBooleanInput = exports.getInputs = void 0;
 const core_1 = __nccwpck_require__(2186);
 const semver_1 = __importDefault(__nccwpck_require__(1383));
 function getInputs() {
     return {
         preview: getBooleanInput('uv-preview'),
-        version: getVersionInput('uv-version')
+        version: getVersionInput('uv-version'),
+        venv: getVenvInput('uv-venv')
     };
 }
 exports.getInputs = getInputs;
@@ -31940,6 +31941,47 @@ function getVersionInput(name) {
     return version.trim();
 }
 exports.getVersionInput = getVersionInput;
+function getVenvInput(name) {
+    const venv = (0, core_1.getInput)(name);
+    if (!venv) {
+        return null;
+    }
+    return venv.trim();
+}
+exports.getVenvInput = getVenvInput;
+
+
+/***/ }),
+
+/***/ 667:
+/***/ (function(__unused_webpack_module, exports, __nccwpck_require__) {
+
+"use strict";
+
+var __importDefault = (this && this.__importDefault) || function (mod) {
+    return (mod && mod.__esModule) ? mod : { "default": mod };
+};
+Object.defineProperty(exports, "__esModule", ({ value: true }));
+exports.activateVenv = exports.createVenv = void 0;
+const exec_1 = __nccwpck_require__(1514);
+const core_1 = __nccwpck_require__(2186);
+const os_1 = __importDefault(__nccwpck_require__(2037));
+async function createVenv(venv) {
+    await (0, exec_1.exec)('uv', ['venv', venv]);
+}
+exports.createVenv = createVenv;
+async function activateVenv(venv) {
+    if (os_1.default.platform() === 'win32') {
+        await (0, exec_1.exec)('powershell', [`${venv}\\Scripts\\activate.ps1`]);
+        (0, core_1.addPath)(`${venv}/Scripts`);
+    }
+    else {
+        await (0, exec_1.exec)('/bin/bash', ['-c', `source ${venv}/bin/activate`]);
+        (0, core_1.addPath)(`${venv}/bin`);
+    }
+    (0, core_1.exportVariable)('VIRTUAL_ENV', venv);
+}
+exports.activateVenv = activateVenv;
 
 
 /***/ }),
@@ -33851,10 +33893,15 @@ Object.defineProperty(exports, "__esModule", ({ value: true }));
 const core_1 = __nccwpck_require__(2186);
 const find_1 = __nccwpck_require__(3288);
 const inputs_1 = __nccwpck_require__(7063);
+const venv_1 = __nccwpck_require__(667);
 async function run() {
     try {
         const inputs = (0, inputs_1.getInputs)();
         await (0, find_1.findUv)(inputs);
+        if (inputs.venv) {
+            await (0, venv_1.createVenv)(inputs.venv);
+            await (0, venv_1.activateVenv)(inputs.venv);
+        }
     }
     catch (error) {
         (0, core_1.setFailed)(errorAsMessage(error));
diff --git a/src/inputs.ts b/src/inputs.ts
index b47b42b..0d25c4b 100644
--- a/src/inputs.ts
+++ b/src/inputs.ts
@@ -1,16 +1,17 @@
 import { getInput } from '@actions/core'
 import semver from 'semver'
-
 export interface Inputs {
   // Finder related inputs
   preview: boolean
   version: string | null
+  venv: string | null
 }
 
 export function getInputs(): Inputs {
   return {
     preview: getBooleanInput('uv-preview'),
-    version: getVersionInput('uv-version')
+    version: getVersionInput('uv-version'),
+    venv: getVenvInput('uv-venv')
   }
 }
 
@@ -41,3 +42,11 @@ export function getVersionInput(name: string): string | null {
 
   return version.trim()
 }
+
+export function getVenvInput(name: string): string | null {
+  const venv = getInput(name)
+  if (!venv) {
+    return null
+  }
+  return venv.trim()
+}
diff --git a/src/main.ts b/src/main.ts
index 9e0a1ab..af6b80b 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -1,12 +1,17 @@
 import { setFailed } from '@actions/core'
 import { findUv } from './find'
 import { getInputs } from './inputs'
-
+import { activateVenv, createVenv } from './venv'
+import { exec } from '@actions/exec'
 async function run(): Promise<void> {
   try {
     const inputs = getInputs()
 
     await findUv(inputs)
+    if (inputs.venv) {
+      await createVenv(inputs.venv)
+      await activateVenv(inputs.venv)
+    }
   } catch (error) {
     setFailed(errorAsMessage(error))
   }
diff --git a/src/venv.ts b/src/venv.ts
new file mode 100644
index 0000000..7e68701
--- /dev/null
+++ b/src/venv.ts
@@ -0,0 +1,18 @@
+import { exec } from '@actions/exec'
+import { exportVariable, addPath } from '@actions/core'
+import os from 'os'
+
+export async function createVenv(venv: string) {
+  await exec('uv', ['venv', venv])
+}
+
+export async function activateVenv(venv: string) {
+  if (os.platform() === 'win32') {
+    await exec('powershell', [`${venv}\\Scripts\\activate.ps1`])
+    addPath(`${venv}/Scripts`)
+  } else {
+    await exec('/bin/bash', ['-c', `source ${venv}/bin/activate`])
+    addPath(`${venv}/bin`)
+  }
+  exportVariable('VIRTUAL_ENV', venv)
+}