diff --git a/sidecars/python/Dockerfile b/sidecars/python/Dockerfile
index 8883d8b80b..53bc5a5748 100644
--- a/sidecars/python/Dockerfile
+++ b/sidecars/python/Dockerfile
@@ -12,13 +12,6 @@ FROM python:3.8.6-slim
 
 ENV HOME=/home/theia
 
-RUN mkdir /projects ${HOME} && \
-    # Change permissions to let any arbitrary user
-    for f in "${HOME}" "/etc/passwd" "/projects"; do \
-      echo "Changing permissions on ${f}" && chgrp -R 0 ${f} && \
-      chmod -R g+rwX ${f}; \
-    done
-
 RUN apt-get update && \
     apt-get install exuberant-ctags && \
     apt-get install wget -y && \
@@ -29,6 +22,24 @@ RUN apt-get update && \
     apt-get purge -y --auto-remove gcc build-essential && \
     apt-get clean && apt-get -y autoremove && rm -rf /var/lib/apt/lists/*
 
+
+SHELL ["/bin/bash", "-c"]
+RUN command -v source || (echo "ERROR: Could not find 'source' command. SHELL may not supported. If you are using podman, try again with the '--format docker' flag." && exit 126)
+
+RUN cd "${HOME}"; \
+    python -m venv .venv ; \
+    source .venv/bin/activate; \
+    pip install -U ipykernel jupyter; \
+    python -m ipykernel install --name=.venv --user; \
+    mv "${HOME}"/.venv "${HOME}"/.venv-tmp
+
+RUN mkdir /projects && \
+    # Change permissions to let any arbitrary user
+    for f in "${HOME}" "/etc/passwd" "/projects"; do \
+      echo "Changing permissions on ${f}" && chgrp -R 0 ${f} && \
+      chmod -R g+rwX ${f}; \
+    done
+
 ADD etc/entrypoint.sh /entrypoint.sh
 ENTRYPOINT [ "/entrypoint.sh" ]
 CMD ${PLUGIN_REMOTE_ENDPOINT_EXECUTABLE}
diff --git a/sidecars/python/etc/entrypoint.sh b/sidecars/python/etc/entrypoint.sh
index bd789673b2..62baac8459 100755
--- a/sidecars/python/etc/entrypoint.sh
+++ b/sidecars/python/etc/entrypoint.sh
@@ -1,4 +1,4 @@
-#!/bin/sh
+#!/bin/bash
 #
 # Copyright (c) 2018-2020 Red Hat, Inc.
 # This program and the accompanying materials are made
@@ -20,7 +20,7 @@ GROUP_ID=$(id -g)
 export GROUP_ID
 
 if ! whoami >/dev/null 2>&1; then
-    echo "${USER_NAME:-user}:x:${USER_ID}:0:${USER_NAME:-user} user:${HOME}:/bin/sh" >> /etc/passwd
+    echo "${USER_NAME:-user}:x:${USER_ID}:0:${USER_NAME:-user} user:${HOME}:/bin/bash" >> /etc/passwd
 fi
 
 # Grant access to projects volume in case of non root user with sudo rights
@@ -28,4 +28,13 @@ if [ "${USER_ID}" -ne 0 ] && command -v sudo >/dev/null 2>&1 && sudo -n true > /
     sudo chown "${USER_ID}:${GROUP_ID}" /projects
 fi
 
+# Setup .venv in the 'venv' volume that should be mounted in HOME/.venv
+mkdir -p "${HOME}"/.venv
+if [ ! -f "${HOME}"/.venv/bin/activate ]; then
+  echo "${HOME}"/.venv is empty, moving files from "${HOME}"/.venv-tmp/
+  mv "${HOME}"/.venv-tmp/* "${HOME}"/.venv
+fi
+
+# shellcheck source=/dev/null
+source "${HOME}"/.venv/bin/activate
 exec "$@"