diff --git a/pure.zsh b/pure.zsh
index 508b935..1e5a51f 100644
--- a/pure.zsh
+++ b/pure.zsh
@@ -233,7 +233,7 @@ prompt_pure_precmd() {
 	if zstyle -T ":prompt:pure:environment:virtualenv" show; then
 		# Check if a Conda environment is active and display its name.
 		if [[ -n $CONDA_DEFAULT_ENV ]]; then
-			psvar[20]="${CONDA_DEFAULT_ENV//[$'\t\r\n']}"
+			psvar[20]="${${CONDA_DEFAULT_ENV:t}//[$'\t\r\n']}"
 		fi
 		# When VIRTUAL_ENV_DISABLE_PROMPT is empty, it was unset by the user and
 		# Pure should take back control.
diff --git a/tests/virtualenv.zsh b/tests/virtualenv.zsh
index c8ca421..e4b7578 100644
--- a/tests/virtualenv.zsh
+++ b/tests/virtualenv.zsh
@@ -33,6 +33,11 @@ main() {
 	prompt_pure_precmd
 	assert_equal "myenv" "$psvar[20]" "conda env should be shown by default"
 
+	# Conda env with full path should show only the basename.
+	CONDA_DEFAULT_ENV=/path/to/envs/myenv
+	prompt_pure_precmd
+	assert_equal "myenv" "$psvar[20]" "conda env should show basename when set to full path"
+
 	# Conda env should be hidden when virtualenv style is off.
 	zstyle ':prompt:pure:environment:virtualenv' show no
 	prompt_pure_precmd