diff --git a/playbooks/roles/bifrost-create-dib-image/defaults/main.yml b/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
index 514fc4067..7f0eda68c 100644
--- a/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
+++ b/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
@@ -16,3 +16,9 @@ dib_notmpfs: false
 dib_offline: false
 dib_skipbase: false
 dib_packages: ""
+# Settings related to installing bifrost in a virtual environment
+enable_venv: false
+bifrost_venv_dir: "{{ lookup('env', 'VENV') | default('/opt/stack/bifrost') }}"
+bifrost_venv_env:
+  VIRTUAL_ENV: "{{ bifrost_venv_dir }}"
+  PATH: "{{ bifrost_venv_dir }}/bin:{{ ansible_env.PATH }}" # include regular path via lookup env
diff --git a/playbooks/roles/bifrost-create-dib-image/tasks/main.yml b/playbooks/roles/bifrost-create-dib-image/tasks/main.yml
index 699701592..07b9aaac9 100644
--- a/playbooks/roles/bifrost-create-dib-image/tasks/main.yml
+++ b/playbooks/roles/bifrost-create-dib-image/tasks/main.yml
@@ -120,11 +120,11 @@
     dib_arglist: "{{dib_trace_arg|default('')}} {{dib_uncompressed_arg|default('')}} {{dib_clearenv_arg|default('')}} {{dib_notmpfs_arg|default('')}} {{dib_offline_arg|default('')}} {{dib_skipbase_arg|default('')}} {{dib_arch_arg|default('')}} {{dib_imagename_arg|default('')}} {{dib_imagetype_arg|default('')}} {{dib_imagesize_arg|default('')}} {{dib_imagecache_arg|default('')}} {{dib_maxresize_arg|default('')}} {{dib_mintmpfs_arg|default('')}} {{dib_mkfsopts_arg|default('')}} {{dib_qemuopts_arg|default('')}} {{dib_rootlabel_arg|default('')}} {{dib_rdelement_arg|default('')}} {{dib_installtype_arg|default('')}} {{dib_packages_arg|default('')}} {{dib_os_element}} {{dib_elements|default('')}}"
 - name: "Initiate image build"
   command: disk-image-create {{dib_arglist}}
-  environment: "{{ dib_env_vars_final }}"
+  environment: "{{ dib_env_vars_final | combine(bifrost_venv_env if enable_venv|bool else '{}') }}"
   when: build_ramdisk | bool == false and test_image_present.stat.exists == false and test_image_dib_present.stat.exists == false and test_image_initramfs_present.stat.exists == false
 - name: "Initiate ramdisk build"
   command: ramdisk-image-create {{dib_arglist}}
-  environment: "{{ dib_env_vars_final }}"
+  environment: "{{ dib_env_vars_final | combine(bifrost_venv_env if enable_venv|bool else '{}') }}"
   when: build_ramdisk | bool == true and test_image_present.stat.exists == false and test_image_dib_present.stat.exists == false and test_image_initramfs_present.stat.exists == false
 - name: "Update permission of generated image"
   file:
diff --git a/playbooks/roles/bifrost-create-vm-nodes/defaults/main.yml b/playbooks/roles/bifrost-create-vm-nodes/defaults/main.yml
index e76fb64fb..cb6cf8c3d 100644
--- a/playbooks/roles/bifrost-create-vm-nodes/defaults/main.yml
+++ b/playbooks/roles/bifrost-create-vm-nodes/defaults/main.yml
@@ -32,3 +32,9 @@ test_vm_emulator: "/usr/bin/qemu-system-x86_64"
 test_vm_machine: "pc-1.0"
 # NOTE(pas-ha) not really tested with non-local qemu connections
 test_vm_libvirt_uri: "{{ lookup('env', 'LIBVIRT_CONNECT_URI') | default('qemu:///system', true) }}"
+# Settings related to installing bifrost in a virtual environment
+enable_venv: false
+bifrost_venv_dir: "{{ lookup('env', 'VENV') | default('/opt/stack/bifrost') }}"
+bifrost_venv_env:
+  VIRTUAL_ENV: "{{ bifrost_venv_dir }}"
+  PATH: "{{ bifrost_venv_dir }}/bin:{{ ansible_env.PATH }}" # include regular path via lookup env
diff --git a/playbooks/roles/bifrost-create-vm-nodes/tasks/create_vm.yml b/playbooks/roles/bifrost-create-vm-nodes/tasks/create_vm.yml
index e945d9479..37be5089a 100644
--- a/playbooks/roles/bifrost-create-vm-nodes/tasks/create_vm.yml
+++ b/playbooks/roles/bifrost-create-vm-nodes/tasks/create_vm.yml
@@ -98,10 +98,12 @@
 - name: get list of nodes from virtualbmc
   command: vbmc list
   register: vbmc_list
+  environment: "{{ bifrost_venv_env if enable_venv else '{}' }}"
 
 # NOTE(NobodyCam): Space at the end of the find clause is required for proper matching.
 - name: delete vm from virtualbmc if it is there
   command: vbmc delete {{ vm_name }}
+  environment: "{{ bifrost_venv_env if enable_venv else '{}' }}"
   when: vbmc_list.stdout.find("{{ vm_name }} ") != -1
 
 - set_fact:
@@ -109,9 +111,11 @@
 
 - name: plug vm into vbmc
   command: vbmc add {{ vm_name }} --libvirt-uri {{ test_vm_libvirt_uri }} --port {{ virtual_ipmi_port }}
+  environment: "{{ bifrost_venv_env if enable_venv else '{}' }}"
 
 - name: start virtualbmc
   command: vbmc start {{ vm_name }}
+  environment: "{{ bifrost_venv_env if enable_venv else '{}' }}"
 
 - name: get XML of the vm
   virt: