diff --git a/src/managers/common/nativePythonFinder.ts b/src/managers/common/nativePythonFinder.ts
index a09b83e9..e4fc2823 100644
--- a/src/managers/common/nativePythonFinder.ts
+++ b/src/managers/common/nativePythonFinder.ts
@@ -1544,6 +1544,9 @@ function getPythonSettingAndUntildify<T>(name: string, scope?: Uri): T | undefin
     if (typeof value === 'string') {
         return value ? (untildify(value as string) as unknown as T) : undefined;
     }
+    if (Array.isArray(value)) {
+        return untildifyArray(value) as unknown as T;
+    }
     return value;
 }
 
diff --git a/src/test/managers/common/nativePythonFinder.getAllExtraSearchPaths.unit.test.ts b/src/test/managers/common/nativePythonFinder.getAllExtraSearchPaths.unit.test.ts
index 617d38d7..ee711588 100644
--- a/src/test/managers/common/nativePythonFinder.getAllExtraSearchPaths.unit.test.ts
+++ b/src/test/managers/common/nativePythonFinder.getAllExtraSearchPaths.unit.test.ts
@@ -206,10 +206,8 @@ suite('getAllExtraSearchPaths Integration Tests', () => {
 
         test('Legacy paths with untildify support', async () => {
             // Mock → Legacy paths with tilde expansion
-            // Note: getPythonSettingAndUntildify only untildifies strings, not array items
-            // So we return the venvPath with tilde (will be untildified) and venvFolders pre-expanded
             pythonConfig.get.withArgs('venvPath').returns('~/virtualenvs');
-            pythonConfig.get.withArgs('venvFolders').returns(['/home/user/conda/envs']); // Pre-expanded
+            pythonConfig.get.withArgs('venvFolders').returns(['~/conda/envs']);
             envConfig.inspect.withArgs('globalSearchPaths').returns({ globalValue: [] });
             envConfig.inspect.withArgs('workspaceSearchPaths').returns({});