diff --git a/bundle/artifacts/artifacts.go b/bundle/artifacts/artifacts.go
index b7a22d09..101b598d 100644
--- a/bundle/artifacts/artifacts.go
+++ b/bundle/artifacts/artifacts.go
@@ -12,7 +12,6 @@ import (
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/artifacts/whl"
 	"github.com/databricks/cli/bundle/config"
-	"github.com/databricks/cli/bundle/libraries"
 	"github.com/databricks/cli/libs/cmdio"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/filer"
@@ -117,8 +116,6 @@ func (m *basicUpload) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnost
 }
 
 func uploadArtifact(ctx context.Context, b *bundle.Bundle, a *config.Artifact, uploadPath string, client filer.Filer) error {
-	filesToLibraries := libraries.MapFilesToTaskLibraries(ctx, b)
-
 	for i := range a.Files {
 		f := &a.Files[i]
 
@@ -133,24 +130,32 @@ func uploadArtifact(ctx context.Context, b *bundle.Bundle, a *config.Artifact, u
 		log.Infof(ctx, "Upload succeeded")
 		f.RemotePath = path.Join(uploadPath, filepath.Base(f.Source))
 
-		// Lookup all tasks that reference this file.
-		libs, ok := filesToLibraries[f.Source]
-		if !ok {
-			log.Debugf(ctx, "No tasks reference %s", f.Source)
-			continue
-		}
+		// TODO: confirm if we still need to update the remote path to start with /Workspace
+		wsfsBase := "/Workspace"
+		remotePath := path.Join(wsfsBase, f.RemotePath)
 
-		// Update all tasks that reference this file.
-		for _, lib := range libs {
-			wsfsBase := "/Workspace"
-			remotePath := path.Join(wsfsBase, f.RemotePath)
-			if lib.Whl != "" {
-				lib.Whl = remotePath
-				continue
+		for _, job := range b.Config.Resources.Jobs {
+			for i := range job.Tasks {
+				task := &job.Tasks[i]
+				for j := range task.Libraries {
+					lib := &task.Libraries[j]
+					if lib.Whl != "" && isArtifactMatchLibrary(f, lib.Whl, b) {
+						lib.Whl = remotePath
+					}
+					if lib.Jar != "" && isArtifactMatchLibrary(f, lib.Jar, b) {
+						lib.Jar = remotePath
+					}
+				}
 			}
-			if lib.Jar != "" {
-				lib.Jar = remotePath
-				continue
+
+			for i := range job.Environments {
+				env := &job.Environments[i]
+				for j := range env.Spec.Dependencies {
+					lib := env.Spec.Dependencies[j]
+					if isArtifactMatchLibrary(f, lib, b) {
+						env.Spec.Dependencies[j] = remotePath
+					}
+				}
 			}
 		}
 	}
@@ -158,6 +163,26 @@ func uploadArtifact(ctx context.Context, b *bundle.Bundle, a *config.Artifact, u
 	return nil
 }
 
+func isArtifactMatchLibrary(f *config.ArtifactFile, libPath string, b *bundle.Bundle) bool {
+	if !filepath.IsAbs(libPath) {
+		libPath = filepath.Join(b.RootPath, libPath)
+	}
+
+	// libPath can be a glob pattern, so do the match first
+	matches, err := filepath.Glob(libPath)
+	if err != nil {
+		return false
+	}
+
+	for _, m := range matches {
+		if m == f.Source {
+			return true
+		}
+	}
+
+	return false
+}
+
 // Function to upload artifact file to Workspace
 func uploadArtifactFile(ctx context.Context, file string, client filer.Filer) error {
 	raw, err := os.ReadFile(file)
diff --git a/bundle/artifacts/artifacts_test.go b/bundle/artifacts/artifacts_test.go
new file mode 100644
index 00000000..ca0e578b
--- /dev/null
+++ b/bundle/artifacts/artifacts_test.go
@@ -0,0 +1,91 @@
+package artifacts
+
+import (
+	"context"
+	"path/filepath"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/config/resources"
+	mockfiler "github.com/databricks/cli/internal/mocks/libs/filer"
+	"github.com/databricks/cli/internal/testutil"
+	"github.com/databricks/cli/libs/filer"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+	"github.com/databricks/databricks-sdk-go/service/jobs"
+	"github.com/stretchr/testify/mock"
+	"github.com/stretchr/testify/require"
+)
+
+func TestArtifactUpload(t *testing.T) {
+	tmpDir := t.TempDir()
+	whlFolder := filepath.Join(tmpDir, "whl")
+	testutil.Touch(t, whlFolder, "source.whl")
+	whlLocalPath := filepath.Join(whlFolder, "source.whl")
+
+	b := &bundle.Bundle{
+		RootPath: tmpDir,
+		Config: config.Root{
+			Workspace: config.Workspace{
+				ArtifactPath: "/foo/bar/artifacts",
+			},
+			Artifacts: config.Artifacts{
+				"whl": {
+					Type: config.ArtifactPythonWheel,
+					Files: []config.ArtifactFile{
+						{Source: whlLocalPath},
+					},
+				},
+			},
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Tasks: []jobs.Task{
+								{
+									Libraries: []compute.Library{
+										{
+											Whl: filepath.Join("whl", "*.whl"),
+										},
+										{
+											Whl: "/Workspace/Users/foo@bar.com/mywheel.whl",
+										},
+									},
+								},
+							},
+							Environments: []jobs.JobEnvironment{
+								{
+									Spec: &compute.Environment{
+										Dependencies: []string{
+											filepath.Join("whl", "source.whl"),
+											"/Workspace/Users/foo@bar.com/mywheel.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	artifact := b.Config.Artifacts["whl"]
+	mockFiler := mockfiler.NewMockFiler(t)
+	mockFiler.EXPECT().Write(
+		mock.Anything,
+		filepath.Join("source.whl"),
+		mock.AnythingOfType("*bytes.Reader"),
+		filer.OverwriteIfExists,
+		filer.CreateParentDirectories,
+	).Return(nil)
+
+	err := uploadArtifact(context.Background(), b, artifact, "/foo/bar/artifacts", mockFiler)
+	require.NoError(t, err)
+
+	// Test that libraries path is updated
+	require.Equal(t, "/Workspace/foo/bar/artifacts/source.whl", b.Config.Resources.Jobs["job"].JobSettings.Tasks[0].Libraries[0].Whl)
+	require.Equal(t, "/Workspace/Users/foo@bar.com/mywheel.whl", b.Config.Resources.Jobs["job"].JobSettings.Tasks[0].Libraries[1].Whl)
+	require.Equal(t, "/Workspace/foo/bar/artifacts/source.whl", b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[0])
+	require.Equal(t, "/Workspace/Users/foo@bar.com/mywheel.whl", b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[1])
+}
diff --git a/bundle/artifacts/whl/from_libraries.go b/bundle/artifacts/whl/from_libraries.go
index 84ef712a..ad321557 100644
--- a/bundle/artifacts/whl/from_libraries.go
+++ b/bundle/artifacts/whl/from_libraries.go
@@ -30,24 +30,18 @@ func (*fromLibraries) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnost
 	tasks := libraries.FindAllWheelTasksWithLocalLibraries(b)
 	for _, task := range tasks {
 		for _, lib := range task.Libraries {
-			matches, err := filepath.Glob(filepath.Join(b.RootPath, lib.Whl))
-			// File referenced from libraries section does not exists, skipping
-			if err != nil {
-				continue
-			}
+			matchAndAdd(ctx, lib.Whl, b)
+		}
+	}
 
-			for _, match := range matches {
-				name := filepath.Base(match)
-				if b.Config.Artifacts == nil {
-					b.Config.Artifacts = make(map[string]*config.Artifact)
-				}
-
-				log.Debugf(ctx, "Adding an artifact block for %s", match)
-				b.Config.Artifacts[name] = &config.Artifact{
-					Files: []config.ArtifactFile{
-						{Source: match},
-					},
-					Type: config.ArtifactPythonWheel,
+	envs := libraries.FindAllEnvironments(b)
+	for _, jobEnvs := range envs {
+		for _, env := range jobEnvs {
+			if env.Spec != nil {
+				for _, dep := range env.Spec.Dependencies {
+					if libraries.IsEnvironmentDependencyLocal(dep) {
+						matchAndAdd(ctx, dep, b)
+					}
 				}
 			}
 		}
@@ -55,3 +49,26 @@ func (*fromLibraries) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnost
 
 	return nil
 }
+
+func matchAndAdd(ctx context.Context, lib string, b *bundle.Bundle) {
+	matches, err := filepath.Glob(filepath.Join(b.RootPath, lib))
+	// File referenced from libraries section does not exists, skipping
+	if err != nil {
+		return
+	}
+
+	for _, match := range matches {
+		name := filepath.Base(match)
+		if b.Config.Artifacts == nil {
+			b.Config.Artifacts = make(map[string]*config.Artifact)
+		}
+
+		log.Debugf(ctx, "Adding an artifact block for %s", match)
+		b.Config.Artifacts[name] = &config.Artifact{
+			Files: []config.ArtifactFile{
+				{Source: match},
+			},
+			Type: config.ArtifactPythonWheel,
+		}
+	}
+}
diff --git a/bundle/config/mutator/translate_paths.go b/bundle/config/mutator/translate_paths.go
index 8fab3abb..018fd79c 100644
--- a/bundle/config/mutator/translate_paths.go
+++ b/bundle/config/mutator/translate_paths.go
@@ -152,6 +152,13 @@ func translateNoOp(literal, localFullPath, localRelPath, remotePath string) (str
 	return localRelPath, nil
 }
 
+func translateNoOpWithPrefix(literal, localFullPath, localRelPath, remotePath string) (string, error) {
+	if !strings.HasPrefix(localRelPath, ".") {
+		localRelPath = "." + string(filepath.Separator) + localRelPath
+	}
+	return localRelPath, nil
+}
+
 func (m *translatePaths) rewriteValue(b *bundle.Bundle, p dyn.Path, v dyn.Value, fn rewriteFunc, dir string) (dyn.Value, error) {
 	out := v.MustString()
 	err := m.rewritePath(dir, b, &out, fn)
diff --git a/bundle/config/mutator/translate_paths_jobs.go b/bundle/config/mutator/translate_paths_jobs.go
index e761bda0..d4166072 100644
--- a/bundle/config/mutator/translate_paths_jobs.go
+++ b/bundle/config/mutator/translate_paths_jobs.go
@@ -5,39 +5,51 @@ import (
 	"slices"
 
 	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/libraries"
 	"github.com/databricks/cli/libs/dyn"
 )
 
-type jobTaskRewritePattern struct {
-	pattern dyn.Pattern
-	fn      rewriteFunc
+type jobRewritePattern struct {
+	pattern     dyn.Pattern
+	fn          rewriteFunc
+	skipRewrite func(string) bool
 }
 
-func rewritePatterns(base dyn.Pattern) []jobTaskRewritePattern {
-	return []jobTaskRewritePattern{
+func noSkipRewrite(string) bool {
+	return false
+}
+
+func rewritePatterns(base dyn.Pattern) []jobRewritePattern {
+	return []jobRewritePattern{
 		{
 			base.Append(dyn.Key("notebook_task"), dyn.Key("notebook_path")),
 			translateNotebookPath,
+			noSkipRewrite,
 		},
 		{
 			base.Append(dyn.Key("spark_python_task"), dyn.Key("python_file")),
 			translateFilePath,
+			noSkipRewrite,
 		},
 		{
 			base.Append(dyn.Key("dbt_task"), dyn.Key("project_directory")),
 			translateDirectoryPath,
+			noSkipRewrite,
 		},
 		{
 			base.Append(dyn.Key("sql_task"), dyn.Key("file"), dyn.Key("path")),
 			translateFilePath,
+			noSkipRewrite,
 		},
 		{
 			base.Append(dyn.Key("libraries"), dyn.AnyIndex(), dyn.Key("whl")),
 			translateNoOp,
+			noSkipRewrite,
 		},
 		{
 			base.Append(dyn.Key("libraries"), dyn.AnyIndex(), dyn.Key("jar")),
 			translateNoOp,
+			noSkipRewrite,
 		},
 	}
 }
@@ -73,9 +85,28 @@ func (m *translatePaths) applyJobTranslations(b *bundle.Bundle, v dyn.Value) (dy
 	)
 
 	// Compile list of patterns and their respective rewrite functions.
+	jobEnvironmentsPatterns := []jobRewritePattern{
+		{
+			dyn.NewPattern(
+				dyn.Key("resources"),
+				dyn.Key("jobs"),
+				dyn.AnyKey(),
+				dyn.Key("environments"),
+				dyn.AnyIndex(),
+				dyn.Key("spec"),
+				dyn.Key("dependencies"),
+				dyn.AnyIndex(),
+			),
+			translateNoOpWithPrefix,
+			func(s string) bool {
+				return !libraries.IsEnvironmentDependencyLocal(s)
+			},
+		},
+	}
 	taskPatterns := rewritePatterns(base)
 	forEachPatterns := rewritePatterns(base.Append(dyn.Key("for_each_task"), dyn.Key("task")))
-	allPatterns := append(taskPatterns, forEachPatterns...)
+	allPatterns := append(taskPatterns, jobEnvironmentsPatterns...)
+	allPatterns = append(allPatterns, forEachPatterns...)
 
 	for _, t := range allPatterns {
 		v, err = dyn.MapByPattern(v, t.pattern, func(p dyn.Path, v dyn.Value) (dyn.Value, error) {
@@ -91,6 +122,10 @@ func (m *translatePaths) applyJobTranslations(b *bundle.Bundle, v dyn.Value) (dy
 				return dyn.InvalidValue, fmt.Errorf("unable to determine directory for job %s: %w", key, err)
 			}
 
+			sv := v.MustString()
+			if t.skipRewrite(sv) {
+				return v, nil
+			}
 			return m.rewriteRelativeTo(b, p, v, t.fn, dir, fallback[key])
 		})
 		if err != nil {
diff --git a/bundle/config/mutator/translate_paths_test.go b/bundle/config/mutator/translate_paths_test.go
index 9650ae8b..29afb997 100644
--- a/bundle/config/mutator/translate_paths_test.go
+++ b/bundle/config/mutator/translate_paths_test.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"os"
 	"path/filepath"
+	"strings"
 	"testing"
 
 	"github.com/databricks/cli/bundle"
@@ -651,3 +652,45 @@ func TestPipelineFileLibraryWithNotebookSourceError(t *testing.T) {
 	diags := bundle.Apply(context.Background(), b, mutator.TranslatePaths())
 	assert.ErrorContains(t, diags.Error(), `expected a file for "resources.pipelines.pipeline.libraries[0].file.path" but got a notebook`)
 }
+
+func TestTranslatePathJobEnvironments(t *testing.T) {
+	dir := t.TempDir()
+	touchEmptyFile(t, filepath.Join(dir, "env1.py"))
+	touchEmptyFile(t, filepath.Join(dir, "env2.py"))
+
+	b := &bundle.Bundle{
+		RootPath: dir,
+		Config: config.Root{
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Environments: []jobs.JobEnvironment{
+								{
+									Spec: &compute.Environment{
+										Dependencies: []string{
+											"./dist/env1.whl",
+											"../dist/env2.whl",
+											"simplejson",
+											"/Workspace/Users/foo@bar.com/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	bundletest.SetLocation(b, "resources.jobs", filepath.Join(dir, "job/resource.yml"))
+
+	diags := bundle.Apply(context.Background(), b, mutator.TranslatePaths())
+	require.NoError(t, diags.Error())
+
+	assert.Equal(t, strings.Join([]string{".", "job", "dist", "env1.whl"}, string(os.PathSeparator)), b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[0])
+	assert.Equal(t, strings.Join([]string{".", "dist", "env2.whl"}, string(os.PathSeparator)), b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[1])
+	assert.Equal(t, "simplejson", b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[2])
+	assert.Equal(t, "/Workspace/Users/foo@bar.com/test.whl", b.Config.Resources.Jobs["job"].JobSettings.Environments[0].Spec.Dependencies[3])
+}
diff --git a/bundle/deploy/terraform/tfdyn/convert_job.go b/bundle/deploy/terraform/tfdyn/convert_job.go
index 65ac8b9b..d1e7e73e 100644
--- a/bundle/deploy/terraform/tfdyn/convert_job.go
+++ b/bundle/deploy/terraform/tfdyn/convert_job.go
@@ -24,6 +24,7 @@ func convertJobResource(ctx context.Context, vin dyn.Value) (dyn.Value, error) {
 		"tasks":        "task",
 		"job_clusters": "job_cluster",
 		"parameters":   "parameter",
+		"environments": "environment",
 	})
 	if err != nil {
 		return dyn.InvalidValue, err
diff --git a/bundle/libraries/libraries.go b/bundle/libraries/libraries.go
index 8dd63a75..a79adedb 100644
--- a/bundle/libraries/libraries.go
+++ b/bundle/libraries/libraries.go
@@ -1,45 +1,71 @@
 package libraries
 
 import (
-	"context"
-	"fmt"
-	"path/filepath"
-
 	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/bundle/config"
-	"github.com/databricks/cli/libs/cmdio"
-	"github.com/databricks/cli/libs/log"
-	"github.com/databricks/databricks-sdk-go/service/compute"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
 )
 
-func findAllTasks(b *bundle.Bundle) []*jobs.Task {
+func findAllTasks(b *bundle.Bundle) map[string]([]jobs.Task) {
 	r := b.Config.Resources
-	result := make([]*jobs.Task, 0)
+	result := make(map[string]([]jobs.Task), 0)
 	for k := range b.Config.Resources.Jobs {
-		tasks := r.Jobs[k].JobSettings.Tasks
-		for i := range tasks {
-			task := &tasks[i]
-			result = append(result, task)
-		}
+		result[k] = append(result[k], r.Jobs[k].JobSettings.Tasks...)
 	}
 
 	return result
 }
 
+func FindAllEnvironments(b *bundle.Bundle) map[string]([]jobs.JobEnvironment) {
+	jobEnvs := make(map[string]([]jobs.JobEnvironment), 0)
+	for jobKey, job := range b.Config.Resources.Jobs {
+		if len(job.Environments) == 0 {
+			continue
+		}
+
+		jobEnvs[jobKey] = job.Environments
+	}
+
+	return jobEnvs
+}
+
+func isEnvsWithLocalLibraries(envs []jobs.JobEnvironment) bool {
+	for _, e := range envs {
+		for _, l := range e.Spec.Dependencies {
+			if IsEnvironmentDependencyLocal(l) {
+				return true
+			}
+		}
+	}
+
+	return false
+}
+
 func FindAllWheelTasksWithLocalLibraries(b *bundle.Bundle) []*jobs.Task {
 	tasks := findAllTasks(b)
+	envs := FindAllEnvironments(b)
+
 	wheelTasks := make([]*jobs.Task, 0)
-	for _, task := range tasks {
-		if task.PythonWheelTask != nil && IsTaskWithLocalLibraries(task) {
-			wheelTasks = append(wheelTasks, task)
+	for k, jobTasks := range tasks {
+		for i := range jobTasks {
+			task := &jobTasks[i]
+			if task.PythonWheelTask == nil {
+				continue
+			}
+
+			if isTaskWithLocalLibraries(*task) {
+				wheelTasks = append(wheelTasks, task)
+			}
+
+			if envs[k] != nil && isEnvsWithLocalLibraries(envs[k]) {
+				wheelTasks = append(wheelTasks, task)
+			}
 		}
 	}
 
 	return wheelTasks
 }
 
-func IsTaskWithLocalLibraries(task *jobs.Task) bool {
+func isTaskWithLocalLibraries(task jobs.Task) bool {
 	for _, l := range task.Libraries {
 		if IsLocalLibrary(&l) {
 			return true
@@ -49,7 +75,7 @@ func IsTaskWithLocalLibraries(task *jobs.Task) bool {
 	return false
 }
 
-func IsTaskWithWorkspaceLibraries(task *jobs.Task) bool {
+func IsTaskWithWorkspaceLibraries(task jobs.Task) bool {
 	for _, l := range task.Libraries {
 		if IsWorkspaceLibrary(&l) {
 			return true
@@ -58,73 +84,3 @@ func IsTaskWithWorkspaceLibraries(task *jobs.Task) bool {
 
 	return false
 }
-
-func findLibraryMatches(lib *compute.Library, b *bundle.Bundle) ([]string, error) {
-	path := libraryPath(lib)
-	if path == "" {
-		return nil, nil
-	}
-
-	fullPath := filepath.Join(b.RootPath, path)
-	return filepath.Glob(fullPath)
-}
-
-func findArtifactFiles(ctx context.Context, lib *compute.Library, b *bundle.Bundle) ([]*config.ArtifactFile, error) {
-	matches, err := findLibraryMatches(lib, b)
-	if err != nil {
-		return nil, err
-	}
-
-	if len(matches) == 0 && IsLocalLibrary(lib) {
-		return nil, fmt.Errorf("file %s is referenced in libraries section but doesn't exist on the local file system", libraryPath(lib))
-	}
-
-	var out []*config.ArtifactFile
-	for _, match := range matches {
-		af, err := findArtifactFileByLocalPath(match, b)
-		if err != nil {
-			cmdio.LogString(ctx, fmt.Sprintf("%s. Skipping uploading. In order to use the define 'artifacts' section", err.Error()))
-		} else {
-			out = append(out, af)
-		}
-	}
-
-	return out, nil
-}
-
-func findArtifactFileByLocalPath(path string, b *bundle.Bundle) (*config.ArtifactFile, error) {
-	for _, a := range b.Config.Artifacts {
-		for k := range a.Files {
-			if a.Files[k].Source == path {
-				return &a.Files[k], nil
-			}
-		}
-	}
-
-	return nil, fmt.Errorf("artifact section is not defined for file at %s", path)
-}
-
-func MapFilesToTaskLibraries(ctx context.Context, b *bundle.Bundle) map[string][]*compute.Library {
-	tasks := findAllTasks(b)
-	out := make(map[string][]*compute.Library)
-	for _, task := range tasks {
-		for j := range task.Libraries {
-			lib := &task.Libraries[j]
-			if !IsLocalLibrary(lib) {
-				continue
-			}
-
-			matches, err := findLibraryMatches(lib, b)
-			if err != nil {
-				log.Warnf(ctx, "Error matching library to files: %s", err.Error())
-				continue
-			}
-
-			for _, match := range matches {
-				out[match] = append(out[match], lib)
-			}
-		}
-	}
-
-	return out
-}
diff --git a/bundle/libraries/libraries_test.go b/bundle/libraries/libraries_test.go
deleted file mode 100644
index 3da10d47..00000000
--- a/bundle/libraries/libraries_test.go
+++ /dev/null
@@ -1,88 +0,0 @@
-package libraries
-
-import (
-	"context"
-	"path/filepath"
-	"testing"
-
-	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/bundle/config"
-	"github.com/databricks/cli/bundle/config/resources"
-	"github.com/databricks/databricks-sdk-go/service/compute"
-	"github.com/databricks/databricks-sdk-go/service/jobs"
-	"github.com/stretchr/testify/assert"
-)
-
-func TestMapFilesToTaskLibrariesNoGlob(t *testing.T) {
-	b := &bundle.Bundle{
-		RootPath: "testdata",
-		Config: config.Root{
-			Resources: config.Resources{
-				Jobs: map[string]*resources.Job{
-					"job1": {
-						JobSettings: &jobs.JobSettings{
-							Tasks: []jobs.Task{
-								{
-									Libraries: []compute.Library{
-										{
-											Whl: "library1",
-										},
-										{
-											Whl: "library2",
-										},
-										{
-											Whl: "/absolute/path/in/workspace/library3",
-										},
-									},
-								},
-								{
-									Libraries: []compute.Library{
-										{
-											Whl: "library1",
-										},
-										{
-											Whl: "library2",
-										},
-									},
-								},
-							},
-						},
-					},
-					"job2": {
-						JobSettings: &jobs.JobSettings{
-							Tasks: []jobs.Task{
-								{
-									Libraries: []compute.Library{
-										{
-											Whl: "library1",
-										},
-										{
-											Whl: "library2",
-										},
-									},
-								},
-							},
-						},
-					},
-				},
-			},
-		},
-	}
-
-	out := MapFilesToTaskLibraries(context.Background(), b)
-	assert.Len(t, out, 2)
-
-	// Pointer equality for "library1"
-	assert.Equal(t, []*compute.Library{
-		&b.Config.Resources.Jobs["job1"].JobSettings.Tasks[0].Libraries[0],
-		&b.Config.Resources.Jobs["job1"].JobSettings.Tasks[1].Libraries[0],
-		&b.Config.Resources.Jobs["job2"].JobSettings.Tasks[0].Libraries[0],
-	}, out[filepath.Clean("testdata/library1")])
-
-	// Pointer equality for "library2"
-	assert.Equal(t, []*compute.Library{
-		&b.Config.Resources.Jobs["job1"].JobSettings.Tasks[0].Libraries[1],
-		&b.Config.Resources.Jobs["job1"].JobSettings.Tasks[1].Libraries[1],
-		&b.Config.Resources.Jobs["job2"].JobSettings.Tasks[0].Libraries[1],
-	}, out[filepath.Clean("testdata/library2")])
-}
diff --git a/bundle/libraries/local_path.go b/bundle/libraries/local_path.go
index a5c0cc96..f1e3788f 100644
--- a/bundle/libraries/local_path.go
+++ b/bundle/libraries/local_path.go
@@ -38,6 +38,25 @@ func IsLocalPath(p string) bool {
 	return !path.IsAbs(p)
 }
 
+// IsEnvironmentDependencyLocal returns true if the specified dependency
+// should be interpreted as a local path.
+// We use this to check if the dependency in environment spec is local.
+// We can't use IsLocalPath beacuse environment dependencies can be
+// a pypi package name which can be misinterpreted as a local path by IsLocalPath.
+func IsEnvironmentDependencyLocal(dep string) bool {
+	possiblePrefixes := []string{
+		".",
+	}
+
+	for _, prefix := range possiblePrefixes {
+		if strings.HasPrefix(dep, prefix) {
+			return true
+		}
+	}
+
+	return false
+}
+
 func isRemoteStorageScheme(path string) bool {
 	url, err := url.Parse(path)
 	if err != nil {
diff --git a/bundle/libraries/local_path_test.go b/bundle/libraries/local_path_test.go
index 640afa85..d2492d6b 100644
--- a/bundle/libraries/local_path_test.go
+++ b/bundle/libraries/local_path_test.go
@@ -5,6 +5,7 @@ import (
 
 	"github.com/databricks/databricks-sdk-go/service/compute"
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 )
 
 func TestIsLocalPath(t *testing.T) {
@@ -41,3 +42,31 @@ func TestIsLocalLibrary(t *testing.T) {
 	// Empty.
 	assert.False(t, IsLocalLibrary(&compute.Library{}))
 }
+
+func TestIsEnvironmentDependencyLocal(t *testing.T) {
+	testCases := [](struct {
+		path     string
+		expected bool
+	}){
+		{path: "./local/*.whl", expected: true},
+		{path: ".\\local\\*.whl", expected: true},
+		{path: "./local/mypath.whl", expected: true},
+		{path: ".\\local\\mypath.whl", expected: true},
+		{path: "../local/*.whl", expected: true},
+		{path: "..\\local\\*.whl", expected: true},
+		{path: "./../local/*.whl", expected: true},
+		{path: ".\\..\\local\\*.whl", expected: true},
+		{path: "../../local/*.whl", expected: true},
+		{path: "..\\..\\local\\*.whl", expected: true},
+		{path: "pypipackage", expected: false},
+		{path: "pypipackage/test.whl", expected: false},
+		{path: "pypipackage/*.whl", expected: false},
+		{path: "/Volumes/catalog/schema/volume/path.whl", expected: false},
+		{path: "/Workspace/my_project/dist.whl", expected: false},
+		{path: "-r /Workspace/my_project/requirements.txt", expected: false},
+	}
+
+	for _, tc := range testCases {
+		require.Equal(t, IsEnvironmentDependencyLocal(tc.path), tc.expected)
+	}
+}
diff --git a/bundle/libraries/match.go b/bundle/libraries/match.go
index d051e163..096cdf4a 100644
--- a/bundle/libraries/match.go
+++ b/bundle/libraries/match.go
@@ -2,44 +2,77 @@ package libraries
 
 import (
 	"context"
+	"fmt"
+	"path/filepath"
 
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/databricks-sdk-go/service/compute"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
 )
 
 type match struct {
 }
 
-func MatchWithArtifacts() bundle.Mutator {
+func ValidateLocalLibrariesExist() bundle.Mutator {
 	return &match{}
 }
 
 func (a *match) Name() string {
-	return "libraries.MatchWithArtifacts"
+	return "libraries.ValidateLocalLibrariesExist"
 }
 
 func (a *match) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	tasks := findAllTasks(b)
-	for _, task := range tasks {
-		if isMissingRequiredLibraries(task) {
-			return diag.Errorf("task '%s' is missing required libraries. Please include your package code in task libraries block", task.TaskKey)
+	for _, job := range b.Config.Resources.Jobs {
+		err := validateEnvironments(job.Environments, b)
+		if err != nil {
+			return diag.FromErr(err)
 		}
-		for j := range task.Libraries {
-			lib := &task.Libraries[j]
-			_, err := findArtifactFiles(ctx, lib, b)
+
+		for _, task := range job.JobSettings.Tasks {
+			err := validateTaskLibraries(task.Libraries, b)
 			if err != nil {
 				return diag.FromErr(err)
 			}
 		}
 	}
+
 	return nil
 }
 
-func isMissingRequiredLibraries(task *jobs.Task) bool {
-	if task.Libraries != nil {
-		return false
+func validateTaskLibraries(libs []compute.Library, b *bundle.Bundle) error {
+	for _, lib := range libs {
+		path := libraryPath(&lib)
+		if path == "" || !IsLocalPath(path) {
+			continue
+		}
+
+		matches, err := filepath.Glob(filepath.Join(b.RootPath, path))
+		if err != nil {
+			return err
+		}
+
+		if len(matches) == 0 {
+			return fmt.Errorf("file %s is referenced in libraries section but doesn't exist on the local file system", libraryPath(&lib))
+		}
 	}
 
-	return task.PythonWheelTask != nil || task.SparkJarTask != nil
+	return nil
+}
+
+func validateEnvironments(envs []jobs.JobEnvironment, b *bundle.Bundle) error {
+	for _, env := range envs {
+		for _, dep := range env.Spec.Dependencies {
+			matches, err := filepath.Glob(filepath.Join(b.RootPath, dep))
+			if err != nil {
+				return err
+			}
+
+			if len(matches) == 0 && IsEnvironmentDependencyLocal(dep) {
+				return fmt.Errorf("file %s is referenced in environments section but doesn't exist on the local file system", dep)
+			}
+		}
+	}
+
+	return nil
 }
diff --git a/bundle/libraries/match_test.go b/bundle/libraries/match_test.go
index 828c6564..bb4b1510 100644
--- a/bundle/libraries/match_test.go
+++ b/bundle/libraries/match_test.go
@@ -1 +1,148 @@
 package libraries
+
+import (
+	"context"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/config/resources"
+	"github.com/databricks/cli/internal/testutil"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+	"github.com/databricks/databricks-sdk-go/service/jobs"
+	"github.com/stretchr/testify/require"
+)
+
+func TestValidateEnvironments(t *testing.T) {
+	tmpDir := t.TempDir()
+	testutil.Touch(t, tmpDir, "wheel.whl")
+
+	b := &bundle.Bundle{
+		RootPath: tmpDir,
+		Config: config.Root{
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Environments: []jobs.JobEnvironment{
+								{
+									Spec: &compute.Environment{
+										Dependencies: []string{
+											"./wheel.whl",
+											"simplejson",
+											"/Workspace/Users/foo@bar.com/artifacts/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, ValidateLocalLibrariesExist())
+	require.Nil(t, diags)
+}
+
+func TestValidateEnvironmentsNoFile(t *testing.T) {
+	tmpDir := t.TempDir()
+
+	b := &bundle.Bundle{
+		RootPath: tmpDir,
+		Config: config.Root{
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Environments: []jobs.JobEnvironment{
+								{
+									Spec: &compute.Environment{
+										Dependencies: []string{
+											"./wheel.whl",
+											"simplejson",
+											"/Workspace/Users/foo@bar.com/artifacts/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, ValidateLocalLibrariesExist())
+	require.Len(t, diags, 1)
+	require.Equal(t, "file ./wheel.whl is referenced in environments section but doesn't exist on the local file system", diags[0].Summary)
+}
+
+func TestValidateTaskLibraries(t *testing.T) {
+	tmpDir := t.TempDir()
+	testutil.Touch(t, tmpDir, "wheel.whl")
+
+	b := &bundle.Bundle{
+		RootPath: tmpDir,
+		Config: config.Root{
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Tasks: []jobs.Task{
+								{
+									Libraries: []compute.Library{
+										{
+											Whl: "./wheel.whl",
+										},
+										{
+											Whl: "/Workspace/Users/foo@bar.com/artifacts/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, ValidateLocalLibrariesExist())
+	require.Nil(t, diags)
+}
+
+func TestValidateTaskLibrariesNoFile(t *testing.T) {
+	tmpDir := t.TempDir()
+
+	b := &bundle.Bundle{
+		RootPath: tmpDir,
+		Config: config.Root{
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"job": {
+						JobSettings: &jobs.JobSettings{
+							Tasks: []jobs.Task{
+								{
+									Libraries: []compute.Library{
+										{
+											Whl: "./wheel.whl",
+										},
+										{
+											Whl: "/Workspace/Users/foo@bar.com/artifacts/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, ValidateLocalLibrariesExist())
+	require.Len(t, diags, 1)
+	require.Equal(t, "file ./wheel.whl is referenced in libraries section but doesn't exist on the local file system", diags[0].Summary)
+}
diff --git a/bundle/phases/deploy.go b/bundle/phases/deploy.go
index de94c5a0..fce98b03 100644
--- a/bundle/phases/deploy.go
+++ b/bundle/phases/deploy.go
@@ -26,7 +26,7 @@ func Deploy() bundle.Mutator {
 				terraform.StatePull(),
 				deploy.StatePull(),
 				mutator.ValidateGitDetails(),
-				libraries.MatchWithArtifacts(),
+				libraries.ValidateLocalLibrariesExist(),
 				artifacts.CleanUp(),
 				artifacts.UploadAll(),
 				python.TransformWheelTask(),
diff --git a/bundle/python/transform.go b/bundle/python/transform.go
index 728d4e83..457b45f7 100644
--- a/bundle/python/transform.go
+++ b/bundle/python/transform.go
@@ -104,7 +104,7 @@ func (t *pythonTrampoline) GetTasks(b *bundle.Bundle) []mutator.TaskWithJobKey {
 			// At this point of moment we don't have local paths in Libraries sections anymore
 			// Local paths have been replaced with the remote when the artifacts where uploaded
 			// in artifacts.UploadAll mutator.
-			if task.PythonWheelTask == nil || !needsTrampoline(task) {
+			if task.PythonWheelTask == nil || !needsTrampoline(*task) {
 				continue
 			}
 
@@ -117,7 +117,7 @@ func (t *pythonTrampoline) GetTasks(b *bundle.Bundle) []mutator.TaskWithJobKey {
 	return result
 }
 
-func needsTrampoline(task *jobs.Task) bool {
+func needsTrampoline(task jobs.Task) bool {
 	return libraries.IsTaskWithWorkspaceLibraries(task)
 }
 
diff --git a/bundle/tests/enviroment_key_test.go b/bundle/tests/enviroment_key_test.go
new file mode 100644
index 00000000..3e12ddb6
--- /dev/null
+++ b/bundle/tests/enviroment_key_test.go
@@ -0,0 +1,12 @@
+package config_tests
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestEnvironmentKeySupported(t *testing.T) {
+	_, diags := loadTargetWithDiags("./python_wheel/environment_key", "default")
+	require.Empty(t, diags)
+}
diff --git a/bundle/tests/python_wheel/environment_key/.gitignore b/bundle/tests/python_wheel/environment_key/.gitignore
new file mode 100644
index 00000000..f03e23bc
--- /dev/null
+++ b/bundle/tests/python_wheel/environment_key/.gitignore
@@ -0,0 +1,3 @@
+build/
+*.egg-info
+.databricks
diff --git a/bundle/tests/python_wheel/environment_key/databricks.yml b/bundle/tests/python_wheel/environment_key/databricks.yml
new file mode 100644
index 00000000..198f8c0d
--- /dev/null
+++ b/bundle/tests/python_wheel/environment_key/databricks.yml
@@ -0,0 +1,26 @@
+bundle:
+  name: environment_key
+
+artifacts:
+    my_test_code:
+      type: whl
+      path: "./my_test_code"
+      build: "python3 setup.py bdist_wheel"
+
+resources:
+  jobs:
+    test_job:
+      name: "My Wheel Job"
+      tasks:
+        - task_key: TestTask
+          existing_cluster_id: "0717-132531-5opeqon1"
+          python_wheel_task:
+            package_name: "my_test_code"
+            entry_point: "run"
+          environment_key:  "test_env"
+      environments:
+        - environment_key:  "test_env"
+          spec:
+            client: "1"
+            dependencies:
+              - ./my_test_code/dist/*.whl
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/setup.py b/bundle/tests/python_wheel/environment_key/my_test_code/setup.py
new file mode 100644
index 00000000..0bd871dd
--- /dev/null
+++ b/bundle/tests/python_wheel/environment_key/my_test_code/setup.py
@@ -0,0 +1,15 @@
+from setuptools import setup, find_packages
+
+import src
+
+setup(
+    name="my_test_code",
+    version=src.__version__,
+    author=src.__author__,
+    url="https://databricks.com",
+    author_email="john.doe@databricks.com",
+    description="my test wheel",
+    packages=find_packages(include=["src"]),
+    entry_points={"group_1": "run=src.__main__:main"},
+    install_requires=["setuptools"],
+)
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/src/__init__.py b/bundle/tests/python_wheel/environment_key/my_test_code/src/__init__.py
new file mode 100644
index 00000000..909f1f32
--- /dev/null
+++ b/bundle/tests/python_wheel/environment_key/my_test_code/src/__init__.py
@@ -0,0 +1,2 @@
+__version__ = "0.0.1"
+__author__ = "Databricks"
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/src/__main__.py b/bundle/tests/python_wheel/environment_key/my_test_code/src/__main__.py
new file mode 100644
index 00000000..73d045af
--- /dev/null
+++ b/bundle/tests/python_wheel/environment_key/my_test_code/src/__main__.py
@@ -0,0 +1,16 @@
+"""
+The entry point of the Python Wheel
+"""
+
+import sys
+
+
+def main():
+    # This method will print the provided arguments
+    print('Hello from my func')
+    print('Got arguments:')
+    print(sys.argv)
+
+
+if __name__ == '__main__':
+    main()
diff --git a/bundle/tests/python_wheel_test.go b/bundle/tests/python_wheel_test.go
index e2266516..8d0036a7 100644
--- a/bundle/tests/python_wheel_test.go
+++ b/bundle/tests/python_wheel_test.go
@@ -23,7 +23,7 @@ func TestPythonWheelBuild(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, 1, len(matches))
 
-	match := libraries.MatchWithArtifacts()
+	match := libraries.ValidateLocalLibrariesExist()
 	diags = bundle.Apply(ctx, b, match)
 	require.NoError(t, diags.Error())
 }
@@ -40,7 +40,7 @@ func TestPythonWheelBuildAutoDetect(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, 1, len(matches))
 
-	match := libraries.MatchWithArtifacts()
+	match := libraries.ValidateLocalLibrariesExist()
 	diags = bundle.Apply(ctx, b, match)
 	require.NoError(t, diags.Error())
 }
@@ -53,7 +53,7 @@ func TestPythonWheelWithDBFSLib(t *testing.T) {
 	diags := bundle.Apply(ctx, b, bundle.Seq(phases.Load(), phases.Build()))
 	require.NoError(t, diags.Error())
 
-	match := libraries.MatchWithArtifacts()
+	match := libraries.ValidateLocalLibrariesExist()
 	diags = bundle.Apply(ctx, b, match)
 	require.NoError(t, diags.Error())
 }
@@ -66,7 +66,7 @@ func TestPythonWheelBuildNoBuildJustUpload(t *testing.T) {
 	diags := bundle.Apply(ctx, b, bundle.Seq(phases.Load(), phases.Build()))
 	require.NoError(t, diags.Error())
 
-	match := libraries.MatchWithArtifacts()
+	match := libraries.ValidateLocalLibrariesExist()
 	diags = bundle.Apply(ctx, b, match)
 	require.ErrorContains(t, diags.Error(), "./non-existing/*.whl")
 
@@ -79,3 +79,20 @@ func TestPythonWheelBuildNoBuildJustUpload(t *testing.T) {
 		"my_test_code-0.0.1-py3-none-any.whl",
 	))
 }
+
+func TestPythonWheelBuildWithEnvironmentKey(t *testing.T) {
+	ctx := context.Background()
+	b, err := bundle.Load(ctx, "./python_wheel/environment_key")
+	require.NoError(t, err)
+
+	diags := bundle.Apply(ctx, b, bundle.Seq(phases.Load(), phases.Build()))
+	require.NoError(t, diags.Error())
+
+	matches, err := filepath.Glob("./python_wheel/environment_key/my_test_code/dist/my_test_code-*.whl")
+	require.NoError(t, err)
+	require.Equal(t, 1, len(matches))
+
+	match := libraries.ValidateLocalLibrariesExist()
+	diags = bundle.Apply(ctx, b, match)
+	require.NoError(t, diags.Error())
+}
diff --git a/internal/bundle/artifacts_test.go b/internal/bundle/artifacts_test.go
index 866a1f6e..222b2304 100644
--- a/internal/bundle/artifacts_test.go
+++ b/internal/bundle/artifacts_test.go
@@ -89,3 +89,67 @@ func TestAccUploadArtifactFileToCorrectRemotePath(t *testing.T) {
 		b.Config.Resources.Jobs["test"].JobSettings.Tasks[0].Libraries[0].Whl,
 	)
 }
+
+func TestAccUploadArtifactFileToCorrectRemotePathWithEnvironments(t *testing.T) {
+	ctx, wt := acc.WorkspaceTest(t)
+	w := wt.W
+	dir := t.TempDir()
+	whlPath := filepath.Join(dir, "dist", "test.whl")
+	touchEmptyFile(t, whlPath)
+
+	wsDir := internal.TemporaryWorkspaceDir(t, w)
+
+	b := &bundle.Bundle{
+		RootPath: dir,
+		Config: config.Root{
+			Bundle: config.Bundle{
+				Target: "whatever",
+			},
+			Workspace: config.Workspace{
+				ArtifactPath: wsDir,
+			},
+			Artifacts: config.Artifacts{
+				"test": &config.Artifact{
+					Type: "whl",
+					Files: []config.ArtifactFile{
+						{
+							Source: whlPath,
+						},
+					},
+				},
+			},
+			Resources: config.Resources{
+				Jobs: map[string]*resources.Job{
+					"test": {
+						JobSettings: &jobs.JobSettings{
+							Environments: []jobs.JobEnvironment{
+								{
+									Spec: &compute.Environment{
+										Dependencies: []string{
+											"dist/test.whl",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(ctx, b, artifacts.BasicUpload("test"))
+	require.NoError(t, diags.Error())
+
+	// The remote path attribute on the artifact file should have been set.
+	require.Regexp(t,
+		regexp.MustCompile(path.Join(regexp.QuoteMeta(wsDir), `.internal/test\.whl`)),
+		b.Config.Artifacts["test"].Files[0].RemotePath,
+	)
+
+	// The job environment deps path should have been updated to the remote path.
+	require.Regexp(t,
+		regexp.MustCompile(path.Join("/Workspace", regexp.QuoteMeta(wsDir), `.internal/test\.whl`)),
+		b.Config.Resources.Jobs["test"].JobSettings.Environments[0].Spec.Dependencies[0],
+	)
+}
diff --git a/internal/bundle/bundles/python_wheel_task_with_environments/databricks_template_schema.json b/internal/bundle/bundles/python_wheel_task_with_environments/databricks_template_schema.json
new file mode 100644
index 00000000..ae765c58
--- /dev/null
+++ b/internal/bundle/bundles/python_wheel_task_with_environments/databricks_template_schema.json
@@ -0,0 +1,13 @@
+{
+    "properties": {
+        "project_name": {
+            "type": "string",
+            "default": "my_test_code",
+            "description": "Unique name for this project"
+        },
+        "unique_id": {
+            "type": "string",
+            "description": "Unique ID for job name"
+        }
+    }
+}
diff --git a/internal/bundle/bundles/python_wheel_task_with_environments/template/databricks.yml.tmpl b/internal/bundle/bundles/python_wheel_task_with_environments/template/databricks.yml.tmpl
new file mode 100644
index 00000000..4a674dce
--- /dev/null
+++ b/internal/bundle/bundles/python_wheel_task_with_environments/template/databricks.yml.tmpl
@@ -0,0 +1,25 @@
+bundle:
+  name: wheel-task-with-environments
+
+workspace:
+  root_path: "~/.bundle/{{.unique_id}}"
+
+resources:
+  jobs:
+    some_other_job:
+      name: "[${bundle.target}] Test Wheel Job With Environments {{.unique_id}}"
+      tasks:
+        - task_key: TestTask
+          python_wheel_task:
+            package_name: my_test_code
+            entry_point: run
+            parameters:
+              - "one"
+              - "two"
+          environment_key: "test"
+      environments:
+        - environment_key: "test"
+          spec:
+            client: "1"
+            dependencies:
+              - ./dist/*.whl
diff --git a/internal/bundle/bundles/python_wheel_task_with_environments/template/setup.py.tmpl b/internal/bundle/bundles/python_wheel_task_with_environments/template/setup.py.tmpl
new file mode 100644
index 00000000..b528657b
--- /dev/null
+++ b/internal/bundle/bundles/python_wheel_task_with_environments/template/setup.py.tmpl
@@ -0,0 +1,15 @@
+from setuptools import setup, find_packages
+
+import {{.project_name}}
+
+setup(
+    name="{{.project_name}}",
+    version={{.project_name}}.__version__,
+    author={{.project_name}}.__author__,
+    url="https://databricks.com",
+    author_email="john.doe@databricks.com",
+    description="my example wheel",
+    packages=find_packages(include=["{{.project_name}}"]),
+    entry_points={"group1": "run={{.project_name}}.__main__:main"},
+    install_requires=["setuptools"],
+)
diff --git a/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__init__.py b/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__init__.py
new file mode 100644
index 00000000..909f1f32
--- /dev/null
+++ b/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__init__.py
@@ -0,0 +1,2 @@
+__version__ = "0.0.1"
+__author__ = "Databricks"
diff --git a/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__main__.py b/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__main__.py
new file mode 100644
index 00000000..ea918ce2
--- /dev/null
+++ b/internal/bundle/bundles/python_wheel_task_with_environments/template/{{.project_name}}/__main__.py
@@ -0,0 +1,16 @@
+"""
+The entry point of the Python Wheel
+"""
+
+import sys
+
+
+def main():
+    # This method will print the provided arguments
+    print("Hello from my func")
+    print("Got arguments:")
+    print(sys.argv)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/internal/bundle/environments_test.go b/internal/bundle/environments_test.go
new file mode 100644
index 00000000..5cffe885
--- /dev/null
+++ b/internal/bundle/environments_test.go
@@ -0,0 +1,39 @@
+package bundle
+
+import (
+	"testing"
+
+	"github.com/databricks/cli/internal/acc"
+	"github.com/google/uuid"
+	"github.com/stretchr/testify/require"
+)
+
+func TestAccPythonWheelTaskWithEnvironmentsDeployAndRun(t *testing.T) {
+	t.Skip("Skipping test until serveless is enabled")
+
+	ctx, _ := acc.WorkspaceTest(t)
+
+	bundleRoot, err := initTestTemplate(t, ctx, "python_wheel_task_with_environments", map[string]any{
+		"unique_id": uuid.New().String(),
+	})
+	require.NoError(t, err)
+
+	err = deployBundle(t, ctx, bundleRoot)
+	require.NoError(t, err)
+
+	t.Cleanup(func() {
+		destroyBundle(t, ctx, bundleRoot)
+	})
+
+	out, err := runResource(t, ctx, bundleRoot, "some_other_job")
+	require.NoError(t, err)
+	require.Contains(t, out, "Hello from my func")
+	require.Contains(t, out, "Got arguments:")
+	require.Contains(t, out, "['my_test_code', 'one', 'two']")
+
+	out, err = runResourceWithParams(t, ctx, bundleRoot, "some_other_job", "--python-params=param1,param2")
+	require.NoError(t, err)
+	require.Contains(t, out, "Hello from my func")
+	require.Contains(t, out, "Got arguments:")
+	require.Contains(t, out, "['my_test_code', 'param1', 'param2']")
+}
diff --git a/internal/bundle/python_wheel_test.go b/internal/bundle/python_wheel_test.go
index 1299194b..bf246292 100644
--- a/internal/bundle/python_wheel_test.go
+++ b/internal/bundle/python_wheel_test.go
@@ -43,7 +43,6 @@ func runPythonWheelTest(t *testing.T, sparkVersion string, pythonWheelWrapper bo
 }
 
 func TestAccPythonWheelTaskDeployAndRunWithoutWrapper(t *testing.T) {
-	// This is the first DBR version where we can install Python wheels from the Workspace File System.
 	runPythonWheelTest(t, "13.3.x-snapshot-scala2.12", false)
 }