diff --git a/src/config.ts b/src/config.ts
index ee1fb3d6e..8c0a24117 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -92,6 +92,10 @@ export namespace ESP {
       export const VERSION = "2.39.2";
       export const IDF_EMBED_GIT_URL = `https://dl.espressif.com/dl/idf-git/idf-git-${VERSION}-win64.zip`;
     }
+    export namespace OLD_IDF_EMBED_PYTHON {
+      export const VERSION = "3.8.7";
+      export const IDF_EMBED_PYTHON_URL = `https://dl.espressif.com/dl/idf-python/idf-python-${VERSION}-embed-win64.zip`;
+    }
     export namespace IDF_EMBED_PYTHON {
       export const VERSION = "3.11.2";
       export const IDF_EMBED_PYTHON_URL = `https://dl.espressif.com/dl/idf-python/idf-python-${VERSION}-embed-win64.zip`;
diff --git a/src/idfToolsManager.ts b/src/idfToolsManager.ts
index 98e33c40a..69590e10c 100644
--- a/src/idfToolsManager.ts
+++ b/src/idfToolsManager.ts
@@ -336,7 +336,7 @@ export class IdfToolsManager {
       const expectedVersions = pkgVersionsForPlatform.map((p) => p.name);
       let isToolVersionCorrect =
         expectedVersions.indexOf(versions[pkg.name]) > -1 ||
-        versions[pkg.name] === "No command version";
+        (versions[pkg.name] && versions[pkg.name] === "No command version");
       const versionToUse = this.getVersionToUse(pkg);
       let pkgExportedPath: string = "";
       let pkgVars = pkg.export_vars;
diff --git a/src/setup/SetupPanel.ts b/src/setup/SetupPanel.ts
index ea7dba044..9c7db549b 100644
--- a/src/setup/SetupPanel.ts
+++ b/src/setup/SetupPanel.ts
@@ -33,7 +33,7 @@ import { createPyReqs } from "./pyReqsInstallStep";
 import { downloadIdfTools } from "./toolsDownloadStep";
 import { installIdfGit, installIdfPython } from "./embedGitPy";
 import { getOpenOcdRules } from "./addOpenOcdRules";
-import { checkSpacesInPath } from "../utils";
+import { checkSpacesInPath, getEspIdfFromCMake } from "../utils";
 import { useIdfSetupSettings } from "./setupValidation/espIdfSetup";
 import { clearPreviousIdfSetups } from "./existingIdfSetups";
 
@@ -264,9 +264,8 @@ export class SetupPanel {
             });
             SetupPanel.postMessage({
               command: "setEspIdfErrorStatus",
-              errorMsg: `ESP-IDF is installed in ${
-                setupArgs.existingIdfSetups[message.selectedIdfSetup].idfPath
-              }`,
+              errorMsg: `ESP-IDF is installed in ${setupArgs.existingIdfSetups[message.selectedIdfSetup].idfPath
+                }`,
             });
             this.panel.webview.postMessage({
               command: "updateEspIdfToolsStatus",
@@ -369,16 +368,31 @@ export class SetupPanel {
           let idfPythonPath = pyPath,
             idfGitPath = "git";
           if (process.platform === "win32") {
+            let idfVersion = "";
+            if (selectedIdfVersion.filename === "manual") {
+              idfVersion = await getEspIdfFromCMake(espIdfPath);
+            } else if (selectedIdfVersion.filename === "master") {
+              idfVersion = "5.1";
+            } else {
+              const matches = selectedIdfVersion.name.split(" ")[0].match(/v(.+)/);
+              if (matches && matches.length) {
+                idfVersion = matches[1];
+              } else {
+                idfVersion = "5.0";
+              }
+            }
             const embedPaths = await this.installEmbedPyGit(
               toolsPath,
+              idfVersion,
               progress,
               cancelToken
             );
             idfGitPath = embedPaths.idfGitPath;
             idfPythonPath = embedPaths.idfPythonPath;
           }
+          const pathToCheck = selectedIdfVersion.filename === "manual" ? espIdfPath : idfContainerPath;
           this.checkSpacesInPaths(
-            espIdfPath,
+            pathToCheck,
             toolsPath,
             idfGitPath,
             idfPythonPath
@@ -422,7 +436,8 @@ export class SetupPanel {
     );
     const updatedToolsInfo = toolsInfo.map((tool) => {
       const isToolVersionCorrect =
-        tool.expected.indexOf(foundVersions[tool.name]) > -1;
+        tool.expected.indexOf(foundVersions[tool.name]) > -1  ||
+        (foundVersions[tool.name] && foundVersions[tool.name] === "No command version");
       tool.doesToolExist = isToolVersionCorrect;
       if (isToolVersionCorrect) {
         tool.progress = "100.00%";
@@ -484,8 +499,10 @@ export class SetupPanel {
           let idfPythonPath = pyPath,
             idfGitPath = gitPath || "/usr/bin/git";
           if (process.platform === "win32") {
+            const idfVersion = await getEspIdfFromCMake(idfPath);
             const embedPaths = await this.installEmbedPyGit(
               toolsPath,
+              idfVersion,
               progress,
               cancelToken
             );
@@ -561,6 +578,7 @@ export class SetupPanel {
 
   private async installEmbedPyGit(
     toolsPath: string,
+    idfVersion: string,
     progress: vscode.Progress<{ message: string; increment?: number }>,
     cancelToken: vscode.CancellationToken
   ) {
@@ -571,6 +589,7 @@ export class SetupPanel {
     });
     const idfPythonPath = await installIdfPython(
       toolsPath,
+      idfVersion,
       progress,
       cancelToken
     );
diff --git a/src/setup/embedGitPy.ts b/src/setup/embedGitPy.ts
index 9dcf4a2cf..e020abf79 100644
--- a/src/setup/embedGitPy.ts
+++ b/src/setup/embedGitPy.ts
@@ -68,7 +68,7 @@ export async function installIdfGit(
     if (!binVersion || binVersion === "Not found") {
       const msg = `Using existing ${idfGitDestPath}`;
       OutputChannel.appendLine(msg);
-      Logger.info(msg)
+      Logger.info(msg);
       return resultGitPath;
     }
   }
@@ -108,28 +108,33 @@ export async function installIdfGit(
 
 export async function installIdfPython(
   idfToolsDir: string,
+  idfVersion: string,
   progress?: Progress<{ message: string; increment?: number }>,
   cancelToken?: CancellationToken
 ) {
   const downloadManager = new DownloadManager(idfToolsDir);
   const installManager = new InstallManager(idfToolsDir);
-  const idfPyZipPath = join(
-    idfToolsDir,
-    "dist",
-    basename(ESP.URL.IDF_EMBED_PYTHON.IDF_EMBED_PYTHON_URL)
-  );
+  const pythonURLToUse =
+    idfVersion >= "5.0"
+      ? ESP.URL.IDF_EMBED_PYTHON.IDF_EMBED_PYTHON_URL
+      : ESP.URL.OLD_IDF_EMBED_PYTHON.IDF_EMBED_PYTHON_URL;
+  const idfPyZipPath = join(idfToolsDir, "dist", basename(pythonURLToUse));
   const pkgProgress = new PackageProgress(
-    basename(ESP.URL.IDF_EMBED_PYTHON.IDF_EMBED_PYTHON_URL),
+    basename(pythonURLToUse),
     sendIdfPythonDownloadProgress,
     null,
     sendIdfPythonDownloadDetail,
     null
   );
+  const pythonVersionToUse =
+    idfVersion >= "5.0"
+      ? ESP.URL.IDF_EMBED_PYTHON.VERSION
+      : ESP.URL.OLD_IDF_EMBED_PYTHON.VERSION;
   const idfPyDestPath = join(
     idfToolsDir,
     "tools",
     "idf-python",
-    ESP.URL.IDF_EMBED_PYTHON.VERSION
+    pythonVersionToUse
   );
   const pyPathExists = await pathExists(idfPyDestPath);
   if (pyPathExists) {
@@ -148,7 +153,7 @@ export async function installIdfPython(
   if (!pyZipPathExists) {
     progress.report({ message: `Downloading ${idfPyZipPath}...` });
     await downloadManager.downloadWithRetries(
-      ESP.URL.IDF_EMBED_PYTHON.IDF_EMBED_PYTHON_URL,
+      pythonURLToUse,
       join(idfToolsDir, "dist"),
       pkgProgress,
       cancelToken
@@ -163,6 +168,18 @@ export async function installIdfPython(
   const extractePyDestMsg = `Extracted ${idfPyDestPath} ...`;
   progress.report({ message: extractePyDestMsg });
   OutputChannel.appendLine(extractePyDestMsg);
-  await spawn(join(idfPyDestPath, "python.exe"), ["-m", "ensurepip", "--upgrade"], { cwd: idfPyDestPath });
+  if (idfVersion >= "5.0") {
+    await spawn(
+      join(idfPyDestPath, "python.exe"),
+      ["-m", "ensurepip", "--upgrade"],
+      { cwd: idfPyDestPath }
+    );
+  } else {
+    await spawn(join(idfPyDestPath, "python.exe"),
+    ["-m", "pip", "install", "virtualenv"],
+    {cwd : idfPyDestPath}
+    );
+  }
+  
   return join(idfPyDestPath, "python.exe");
 }
diff --git a/src/setup/espIdfDownloadStep.ts b/src/setup/espIdfDownloadStep.ts
index 1163f0cdd..ab4042844 100644
--- a/src/setup/espIdfDownloadStep.ts
+++ b/src/setup/espIdfDownloadStep.ts
@@ -97,13 +97,9 @@ export async function expressInstall(
     const idfToolsManager = await IdfToolsManager.createIdfToolsManager(
       espIdfPath
     );
-    const exportedToolsPaths = await idfToolsManager.exportPathsInString(
-      join(toolsPath, "tools"),
-      onReqPkgs
-    );
     const toolsInfo = await idfToolsManager.getRequiredToolsInfo(
       join(toolsPath, "tools"),
-      exportedToolsPaths,
+      undefined,
       onReqPkgs
     );
     SetupPanel.postMessage({
diff --git a/src/setup/toolsDownloadStep.ts b/src/setup/toolsDownloadStep.ts
index 929a22386..9c0e22429 100644
--- a/src/setup/toolsDownloadStep.ts
+++ b/src/setup/toolsDownloadStep.ts
@@ -43,7 +43,7 @@ export async function downloadIdfTools(
   );
   const requiredTools = await idfToolsManager.getRequiredToolsInfo(
     toolsPath,
-    exportPaths,
+    undefined,
     onReqPkgs
   );
   SetupPanel.postMessage({
diff --git a/src/views/setup/ToolsCustom.vue b/src/views/setup/ToolsCustom.vue
index eb6d1c822..92d1beaa0 100644
--- a/src/views/setup/ToolsCustom.vue
+++ b/src/views/setup/ToolsCustom.vue
@@ -5,7 +5,10 @@
         <label for="idf-version-select" class="label">ESP-IDF Tools</label>
         <div class="control">
           <div class="select">
-            <select v-model="selectedIdfTools" data-config-id="select-esp-idf-tools">
+            <select
+              v-model="selectedIdfTools"
+              data-config-id="select-esp-idf-tools"
+            >
               <option value="toolsDownload">Download ESP-IDF Tools</option>
               <option value="toolsExisting">Use existing ESP-IDF Tools</option>
             </select>
@@ -92,6 +95,7 @@ export default class CustomSetup extends Vue {
   }
 
   mounted() {
+    this.checkEspIdfTools();
     const updatedToolsInfo = this.storeToolsResults.map((tool) => {
       if (tool.doesToolExist) {
         tool.progress = "100.00%";
diff --git a/src/views/setup/components/toolDownload.vue b/src/views/setup/components/toolDownload.vue
index ffa051cde..fa0de7a3f 100644
--- a/src/views/setup/components/toolDownload.vue
+++ b/src/views/setup/components/toolDownload.vue
@@ -7,7 +7,7 @@
       </div>
     </div>
     <div class="progressText">
-      <span v-if="tool.progress === '100.00%'">
+      <span v-if="tool.progress === '100.00%' && isInstallationCompleted">
         <span>Checksum :</span>
         {{ tool.hashResult ? "OK" : "Invalid" }}
         <br />