diff --git a/src/client/pythonEnvironments/creation/provider/venvUtils.ts b/src/client/pythonEnvironments/creation/provider/venvUtils.ts
index 1bfb2c96f224..c47ca1ccf373 100644
--- a/src/client/pythonEnvironments/creation/provider/venvUtils.ts
+++ b/src/client/pythonEnvironments/creation/provider/venvUtils.ts
@@ -50,7 +50,8 @@ export async function getPipRequirementsFiles(
 
 function tomlParse(content: string): tomljs.JsonMap {
     try {
-        return tomljs.parse(content);
+        // Normalize CRLF to LF to prevent @iarna/toml from throwing control-character errors on comments
+        return tomljs.parse(content.replace(/\r\n?/g, '\n'));
     } catch (err) {
         traceError('Failed to parse `pyproject.toml`:', err);
     }
diff --git a/src/test/pythonEnvironments/creation/provider/venvUtils.unit.test.ts b/src/test/pythonEnvironments/creation/provider/venvUtils.unit.test.ts
index 2c8ec2ebce87..3fee12b710c0 100644
--- a/src/test/pythonEnvironments/creation/provider/venvUtils.unit.test.ts
+++ b/src/test/pythonEnvironments/creation/provider/venvUtils.unit.test.ts
@@ -11,6 +11,7 @@ import * as workspaceApis from '../../../../client/common/vscodeApis/workspaceAp
 import {
     ExistingVenvAction,
     OPEN_REQUIREMENTS_BUTTON,
+    isPipInstallableToml,
     pickExistingVenvAction,
     pickPackagesToInstall,
 } from '../../../../client/pythonEnvironments/creation/provider/venvUtils';
@@ -93,6 +94,29 @@ suite('Venv Utils test', () => {
         ]);
     });
 
+    test('Toml with CRLF line endings and comments parses correctly', async () => {
+        findFilesStub.resolves([]);
+        pathExistsStub.resolves(true);
+        readFileStub.resolves(
+            '[project]\r\n# Project comment\r\nname = "spam"\r\nversion = "2020.0.0"\r\n[build-system]\r\n# Build system comment\r\nrequires = ["setuptools ~= 58.0"]\r\n',
+        );
+
+        const actual = await pickPackagesToInstall(workspace1);
+        assert.isTrue(showQuickPickWithBackStub.notCalled);
+        assert.deepStrictEqual(actual, [
+            {
+                installType: 'toml',
+                source: path.join(workspace1.uri.fsPath, 'pyproject.toml'),
+            },
+        ]);
+    });
+
+    test('isPipInstallableToml handles CRLF and comments correctly', () => {
+        const crlfContent =
+            '[project]\r\n# Comment\r\nname = "spam"\r\n[build-system]\r\n# Another comment\r\nrequires = ["setuptools"]\r\n';
+        assert.isTrue(isPipInstallableToml(crlfContent));
+    });
+
     test('Toml found with deps, but user presses escape', async () => {
         findFilesStub.resolves([]);
         pathExistsStub.resolves(true);