diff --git a/plugins/virtualenvwrapper/virtualenvwrapper.plugin.zsh b/plugins/virtualenvwrapper/virtualenvwrapper.plugin.zsh
index f58bda1ad..166f6fc4f 100644
--- a/plugins/virtualenvwrapper/virtualenvwrapper.plugin.zsh
+++ b/plugins/virtualenvwrapper/virtualenvwrapper.plugin.zsh
@@ -11,6 +11,9 @@ if (( $+commands[$virtualenvwrapper] )); then
             WORKON_CWD=1
             # Check if this is a Git repo
             PROJECT_ROOT=`git rev-parse --show-toplevel 2> /dev/null`
+            if (( $? != 0 )); then
+                PROJECT_ROOT=`hg prompt '{root}' 2>/dev/null`
+            fi
             if (( $? != 0 )); then
                 PROJECT_ROOT="."
             fi