diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index 1f9a98d7ec..b3fa6d4932 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -4,53 +4,60 @@
   "postCreateCommand": [
     "script/devcontainer-post-create"
   ],
+  "containerEnv": {
+    "DEVCONTAINER": "1"
+  },
   "runArgs": [
     "--privileged",
     "-e",
     "ESPHOME_DASHBOARD_USE_PING=1"
   ],
   "appPort": 6052,
-  "extensions": [
-    // python
-    "ms-python.python",
-    "visualstudioexptteam.vscodeintellicode",
-    // yaml
-    "redhat.vscode-yaml",
-    // cpp
-    "ms-vscode.cpptools",
-    // editorconfig
-    "editorconfig.editorconfig",
-  ],
-  "settings": {
-    "python.languageServer": "Pylance",
-    "python.pythonPath": "/usr/bin/python3",
-    "python.linting.pylintEnabled": true,
-    "python.linting.enabled": true,
-    "python.formatting.provider": "black",
-    "editor.formatOnPaste": false,
-    "editor.formatOnSave": true,
-    "editor.formatOnType": true,
-    "files.trimTrailingWhitespace": true,
-    "terminal.integrated.defaultProfile.linux": "bash",
-    "yaml.customTags": [
-      "!secret scalar",
-      "!lambda scalar",
-      "!include_dir_named scalar",
-      "!include_dir_list scalar",
-      "!include_dir_merge_list scalar",
-      "!include_dir_merge_named scalar"
-    ],
-    "files.exclude": {
-      "**/.git": true,
-      "**/.DS_Store": true,
-      "**/*.pyc": {
-        "when": "$(basename).py"
-      },
-      "**/__pycache__": true
-    },
-    "files.associations": {
-      "**/.vscode/*.json": "jsonc"
-    },
-    "C_Cpp.clang_format_path": "/usr/bin/clang-format-13",
+  "customizations": {
+    "vscode": {
+      "extensions": [
+        // python
+        "ms-python.python",
+        "visualstudioexptteam.vscodeintellicode",
+        // yaml
+        "redhat.vscode-yaml",
+        // cpp
+        "ms-vscode.cpptools",
+        // editorconfig
+        "editorconfig.editorconfig",
+      ],
+      "settings": {
+        "python.languageServer": "Pylance",
+        "python.pythonPath": "/usr/bin/python3",
+        "python.linting.pylintEnabled": true,
+        "python.linting.enabled": true,
+        "python.formatting.provider": "black",
+        "editor.formatOnPaste": false,
+        "editor.formatOnSave": true,
+        "editor.formatOnType": true,
+        "files.trimTrailingWhitespace": true,
+        "terminal.integrated.defaultProfile.linux": "bash",
+        "yaml.customTags": [
+          "!secret scalar",
+          "!lambda scalar",
+          "!include_dir_named scalar",
+          "!include_dir_list scalar",
+          "!include_dir_merge_list scalar",
+          "!include_dir_merge_named scalar"
+        ],
+        "files.exclude": {
+          "**/.git": true,
+          "**/.DS_Store": true,
+          "**/*.pyc": {
+            "when": "$(basename).py"
+          },
+          "**/__pycache__": true
+        },
+        "files.associations": {
+          "**/.vscode/*.json": "jsonc"
+        },
+        "C_Cpp.clang_format_path": "/usr/bin/clang-format-13"
+      }
+    }
   }
 }
diff --git a/.vscode/tasks.json b/.vscode/tasks.json
index b6584bc735..307dd496f0 100644
--- a/.vscode/tasks.json
+++ b/.vscode/tasks.json
@@ -2,15 +2,24 @@
   "version": "2.0.0",
   "tasks": [
     {
-      "label": "run",
+      "label": "Run Dashboard",
       "type": "shell",
-      "command": "python3 -m esphome dashboard config/",
+      "command": "${command:python.interpreterPath}",
+      "args": [
+        "-m",
+        "esphome",
+        "dashboard",
+        "config/"
+      ],
       "problemMatcher": []
     },
     {
       "label": "clang-tidy",
       "type": "shell",
-      "command": "./script/clang-tidy",
+      "command": "${command:python.interpreterPath}",
+      "args": [
+        "./script/clang-tidy"
+      ],
       "problemMatcher": [
         {
           "owner": "clang-tidy",
diff --git a/script/setup b/script/setup
index 71828deeaa..c650960f05 100755
--- a/script/setup
+++ b/script/setup
@@ -4,6 +4,12 @@
 set -e
 
 cd "$(dirname "$0")/.."
+
+if [ ! -n "$DEVCONTAINER" ] && [ ! -n "$VIRTUAL_ENV" ]; then
+  python3 -m venv venv
+  source venv/bin/activate
+fi
+
 pip3 install -r requirements.txt -r requirements_optional.txt -r requirements_test.txt
 pip3 install --no-use-pep517 -e .