diff --git a/.github/workflows/e2e-cache.yml b/.github/workflows/e2e-cache.yml
index 0aea4b776..2e903a48a 100644
--- a/.github/workflows/e2e-cache.yml
+++ b/.github/workflows/e2e-cache.yml
@@ -72,15 +72,15 @@ jobs:
       - uses: actions/checkout@v3
       - name: Install poetry
         run: pipx install poetry
+      - name: Init pyproject.toml
+        run: mv ./__tests__/data/pyproject.toml .
       - name: Setup Python
         uses: ./
         with:
           python-version: ${{ matrix.python-version }}
           cache: 'poetry'
-      - name: Init pyproject.toml
-        run: poetry init -n
       - name: Install dependencies
-        run: poetry add flake8
+        run: poetry install
 
   python-pip-dependencies-caching-path:
     name: Test pip (Python ${{ matrix.python-version}}, ${{ matrix.os }})
diff --git a/__tests__/cache-restore.test.ts b/__tests__/cache-restore.test.ts
index b0d44b8f8..8331b8124 100644
--- a/__tests__/cache-restore.test.ts
+++ b/__tests__/cache-restore.test.ts
@@ -1,6 +1,7 @@
 import * as core from '@actions/core';
 import * as cache from '@actions/cache';
 import * as exec from '@actions/exec';
+import * as io from '@actions/io';
 import {getCacheDistributor} from '../src/cache-distributions/cache-factory';
 import * as utils from './../src/utils';
 
@@ -37,6 +38,9 @@ virtualenvs.path = "{cache-dir}/virtualenvs"  # /Users/patrick/Library/Caches/py
   // exec spy
   let getExecOutputSpy: jest.SpyInstance;
 
+  // io spy
+  let whichSpy: jest.SpyInstance;
+
   beforeEach(() => {
     process.env['RUNNER_OS'] = process.env['RUNNER_OS'] ?? 'linux';
 
@@ -77,6 +81,8 @@ virtualenvs.path = "{cache-dir}/virtualenvs"  # /Users/patrick/Library/Caches/py
       }
     );
 
+    whichSpy = jest.spyOn(io, 'which');
+    whichSpy.mockImplementation(() => '/path/to/python');
     getLinuxOSReleaseInfoSpy = jest.spyOn(utils, 'getLinuxOSReleaseInfo');
   });
 
diff --git a/__tests__/data/pyproject.toml b/__tests__/data/pyproject.toml
new file mode 100644
index 000000000..ff4d8bd0b
--- /dev/null
+++ b/__tests__/data/pyproject.toml
@@ -0,0 +1,15 @@
+[tool.poetry]
+name = "testactiontasks"
+version = "0.1.0"
+description = ""
+authors = ["Your Name <you@example.com>"]
+
+[tool.poetry.dependencies]
+python = "^3.8"
+flake8 = "^4.0.1"
+
+[tool.poetry.dev-dependencies]
+
+[build-system]
+requires = ["poetry-core>=1.0.0"]
+build-backend = "poetry.core.masonry.api"
diff --git a/dist/setup/index.js b/dist/setup/index.js
index dec744496..3d373467b 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -64573,9 +64573,12 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
 const glob = __importStar(__nccwpck_require__(8090));
+const io = __importStar(__nccwpck_require__(7436));
 const path = __importStar(__nccwpck_require__(1017));
 const exec = __importStar(__nccwpck_require__(1514));
+const core = __importStar(__nccwpck_require__(2186));
 const cache_distributor_1 = __importDefault(__nccwpck_require__(8953));
+const utils_1 = __nccwpck_require__(1314);
 class PoetryCache extends cache_distributor_1.default {
     constructor(pythonVersion, patterns = '**/poetry.lock') {
         super('poetry', patterns);
@@ -64591,6 +64594,17 @@ class PoetryCache extends cache_distributor_1.default {
             if (poetryConfig['virtualenvs.in-project'] === true) {
                 paths.push(path.join(process.cwd(), '.venv'));
             }
+            const pythonLocation = yield io.which('python');
+            if (pythonLocation) {
+                core.debug(`pythonLocation is ${pythonLocation}`);
+                const { exitCode, stderr } = yield exec.getExecOutput(`poetry env use ${pythonLocation}`, undefined, { ignoreReturnCode: true });
+                if (exitCode) {
+                    utils_1.logWarning(stderr);
+                }
+            }
+            else {
+                utils_1.logWarning('python binaries were not found in PATH');
+            }
             return paths;
         });
     }
@@ -65241,7 +65255,6 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.logWarning = void 0;
 const core = __importStar(__nccwpck_require__(2186));
 const finder = __importStar(__nccwpck_require__(9996));
 const finderPyPy = __importStar(__nccwpck_require__(4003));
@@ -65277,14 +65290,14 @@ function resolveVersionInput() {
         core.info(`Resolved ${versionFile} as ${version}`);
         return version;
     }
-    logWarning("Neither 'python-version' nor 'python-version-file' inputs were supplied. Attempting to find '.python-version' file.");
+    utils_1.logWarning("Neither 'python-version' nor 'python-version-file' inputs were supplied. Attempting to find '.python-version' file.");
     versionFile = '.python-version';
     if (fs_1.default.existsSync(versionFile)) {
         version = fs_1.default.readFileSync(versionFile, 'utf8');
         core.info(`Resolved ${versionFile} as ${version}`);
         return version;
     }
-    logWarning(`${versionFile} doesn't exist.`);
+    utils_1.logWarning(`${versionFile} doesn't exist.`);
     return version;
 }
 function run() {
@@ -65332,11 +65345,6 @@ function run() {
         }
     });
 }
-function logWarning(message) {
-    const warningPrefix = '[warning]';
-    core.info(`${warningPrefix}${message}`);
-}
-exports.logWarning = logWarning;
 run();
 
 
@@ -65379,7 +65387,7 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.getLinuxOSReleaseInfo = exports.isCacheFeatureAvailable = exports.isGhes = exports.validatePythonVersionFormatForPyPy = exports.writeExactPyPyVersionFile = exports.readExactPyPyVersionFile = exports.getPyPyVersionFromPath = exports.isNightlyKeyword = exports.validateVersion = exports.createSymlinkInFolder = exports.WINDOWS_PLATFORMS = exports.WINDOWS_ARCHS = exports.IS_LINUX = exports.IS_WINDOWS = void 0;
+exports.logWarning = exports.getLinuxOSReleaseInfo = exports.isCacheFeatureAvailable = exports.isGhes = exports.validatePythonVersionFormatForPyPy = exports.writeExactPyPyVersionFile = exports.readExactPyPyVersionFile = exports.getPyPyVersionFromPath = exports.isNightlyKeyword = exports.validateVersion = exports.createSymlinkInFolder = exports.WINDOWS_PLATFORMS = exports.WINDOWS_ARCHS = exports.IS_LINUX = exports.IS_WINDOWS = void 0;
 const cache = __importStar(__nccwpck_require__(7799));
 const core = __importStar(__nccwpck_require__(2186));
 const fs_1 = __importDefault(__nccwpck_require__(7147));
@@ -65480,6 +65488,11 @@ function getLinuxOSReleaseInfo() {
     });
 }
 exports.getLinuxOSReleaseInfo = getLinuxOSReleaseInfo;
+function logWarning(message) {
+    const warningPrefix = '[warning]';
+    core.info(`${warningPrefix}${message}`);
+}
+exports.logWarning = logWarning;
 
 
 /***/ }),
diff --git a/src/cache-distributions/poetry-cache.ts b/src/cache-distributions/poetry-cache.ts
index 5e22b5dd7..60ecea2b1 100644
--- a/src/cache-distributions/poetry-cache.ts
+++ b/src/cache-distributions/poetry-cache.ts
@@ -1,9 +1,11 @@
 import * as glob from '@actions/glob';
-import * as os from 'os';
+import * as io from '@actions/io';
 import * as path from 'path';
 import * as exec from '@actions/exec';
+import * as core from '@actions/core';
 
 import CacheDistributor from './cache-distributor';
+import {logWarning} from '../utils';
 
 class PoetryCache extends CacheDistributor {
   constructor(
@@ -28,6 +30,26 @@ class PoetryCache extends CacheDistributor {
       paths.push(path.join(process.cwd(), '.venv'));
     }
 
+    const pythonLocation = await io.which('python');
+
+    if (pythonLocation) {
+      core.debug(`pythonLocation is ${pythonLocation}`);
+      const {
+        exitCode,
+        stderr
+      } = await exec.getExecOutput(
+        `poetry env use ${pythonLocation}`,
+        undefined,
+        {ignoreReturnCode: true}
+      );
+
+      if (exitCode) {
+        logWarning(stderr);
+      }
+    } else {
+      logWarning('python binaries were not found in PATH');
+    }
+
     return paths;
   }
 
diff --git a/src/setup-python.ts b/src/setup-python.ts
index 233568899..1ebcbac3e 100644
--- a/src/setup-python.ts
+++ b/src/setup-python.ts
@@ -5,7 +5,12 @@ import * as path from 'path';
 import * as os from 'os';
 import fs from 'fs';
 import {getCacheDistributor} from './cache-distributions/cache-factory';
-import {isCacheFeatureAvailable, IS_LINUX, IS_WINDOWS} from './utils';
+import {
+  isCacheFeatureAvailable,
+  logWarning,
+  IS_LINUX,
+  IS_WINDOWS
+} from './utils';
 
 function isPyPyVersion(versionSpec: string) {
   return versionSpec.startsWith('pypy');
@@ -115,9 +120,4 @@ async function run() {
   }
 }
 
-export function logWarning(message: string): void {
-  const warningPrefix = '[warning]';
-  core.info(`${warningPrefix}${message}`);
-}
-
 run();
diff --git a/src/utils.ts b/src/utils.ts
index 6eb1388fe..7d4fa02ec 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -136,3 +136,8 @@ export async function getLinuxOSReleaseInfo() {
 
   return `${osVersion}-${osRelease}`;
 }
+
+export function logWarning(message: string): void {
+  const warningPrefix = '[warning]';
+  core.info(`${warningPrefix}${message}`);
+}