diff --git a/.github/workflows/test-pypy.yml b/.github/workflows/test-pypy.yml
index f6362069a..0eb06c393 100644
--- a/.github/workflows/test-pypy.yml
+++ b/.github/workflows/test-pypy.yml
@@ -22,6 +22,7 @@ jobs:
         pypy:
         - 'pypy-2.7'
         - 'pypy-3.7'
+        - 'pypy3.9'
         - 'pypy-2.7-v7.3.4'
         - 'pypy-3.7-v7.3.5'
         - 'pypy-3.7-v7.3.4'
@@ -29,6 +30,7 @@ jobs:
         - 'pypy-3.7-v7.x'
         - 'pypy-2.7-v7.3.4rc1'
         - 'pypy-3.7-nightly'
+        - 'pypy3.8-v7.3.7'
 
     steps:
       - name: Checkout
@@ -54,7 +56,7 @@ jobs:
       - name: Assert expected binaries (or symlinks) are present
         run: |
           EXECUTABLE=${{ matrix.pypy }}
-          EXECUTABLE=${EXECUTABLE/-/}  # remove the first '-' in "pypy-X.Y" -> "pypyX.Y" to match executable name
+          EXECUTABLE=${EXECUTABLE/pypy-/pypy}  # remove the first '-' in "pypy-X.Y" -> "pypyX.Y" to match executable name
           EXECUTABLE=${EXECUTABLE%%-*}  # remove any -* suffixe
           ${EXECUTABLE} --version
         shell: bash
diff --git a/README.md b/README.md
index 689566459..efb85adea 100644
--- a/README.md
+++ b/README.md
@@ -43,7 +43,7 @@ jobs:
     runs-on: ubuntu-latest
     strategy:
       matrix:
-        python-version: [ '2.x', '3.x', 'pypy-2.7', 'pypy-3.7', 'pypy-3.8' ]
+        python-version: [ '2.x', '3.x', 'pypy2.7', 'pypy3.7', 'pypy3.8' ]
     name: Python ${{ matrix.python-version }} sample
     steps:
       - uses: actions/checkout@v3
@@ -63,7 +63,7 @@ jobs:
     strategy:
       matrix:
         os: [ubuntu-latest, macos-latest, windows-latest]
-        python-version: ['2.7', '3.7', '3.8', '3.9', '3.10', 'pypy-2.7', 'pypy-3.8']
+        python-version: ['2.7', '3.7', '3.8', '3.9', '3.10', 'pypy2.7', 'pypy3.8']
         exclude:
           - os: macos-latest
             python-version: '3.8'
@@ -125,9 +125,9 @@ jobs:
     strategy:
       matrix:
         python-version:
-        - 'pypy-3.7' # the latest available version of PyPy that supports Python 3.7
-        - 'pypy-3.7-v7.3.3' # Python 3.7 and PyPy 7.3.3
-        - 'pypy-3.8' # the latest available version of PyPy that supports Python 3.8
+        - 'pypy3.7' # the latest available version of PyPy that supports Python 3.7
+        - 'pypy3.7-v7.3.3' # Python 3.7 and PyPy 7.3.3
+        - 'pypy3.8' # the latest available version of PyPy that supports Python 3.8
     steps:
     - uses: actions/checkout@v3
     - uses: actions/setup-python@v3
@@ -163,7 +163,7 @@ Check out our detailed guide on using [Python with GitHub Actions](https://help.
 - Preinstalled versions of PyPy in the tools cache on GitHub-hosted runners
   - For detailed information regarding the available versions of PyPy that are installed, see [Supported software](https://docs.github.com/en/actions/reference/specifications-for-github-hosted-runners#supported-software).
   - For the latest PyPy release, all versions of Python are cached.
-  - Cache is updated with a 1-2 week delay. If you specify the PyPy version as `pypy-3.7`, the cached version will be used although a newer version is available. If you need to start using the recently released version right after release, you should specify the exact PyPy version using `pypy-3.7-v7.3.3`.
+  - Cache is updated with a 1-2 week delay. If you specify the PyPy version as `pypy3.7`, the cached version will be used although a newer version is available. If you need to start using the recently released version right after release, you should specify the exact PyPy version using `pypy3.7-v7.3.3`.
 
 - Downloadable PyPy versions from the [official PyPy site](https://downloads.python.org/pypy/).
   - All available versions that we can download are listed in [versions.json](https://downloads.python.org/pypy/versions.json) file.
@@ -196,17 +196,17 @@ You should specify only a major and minor version if you are okay with the most
   - Using the most recent patch version will result in a very quick setup since no downloads will be required since a locally installed version Python on the runner will be used.
 
 # Specifying a PyPy version
-The version of PyPy should be specified in the format `pypy-<python_version>[-v<pypy_version>]`.
+The version of PyPy should be specified in the format `pypy<python_version>[-v<pypy_version>]` or `pypy-<python_version>[-v<pypy_version>]`.
 The `<pypy_version>` parameter is optional and can be skipped. The latest version will be used in this case.
 
 ```
-pypy-3.7 # the latest available version of PyPy that supports Python 3.7
-pypy-3.8 # the latest available version of PyPy that supports Python 3.8
-pypy-2.7 # the latest available version of PyPy that supports Python 2.7
-pypy-3.7-v7.3.3 # Python 3.7 and PyPy 7.3.3
-pypy-3.7-v7.x # Python 3.7 and the latest available PyPy 7.x
-pypy-3.7-v7.3.3rc1 # Python 3.7 and preview version of PyPy
-pypy-3.7-nightly # Python 3.7 and nightly PyPy
+pypy3.7 # the latest available version of PyPy that supports Python 3.7
+pypy3.8 # the latest available version of PyPy that supports Python 3.8
+pypy2.7 # the latest available version of PyPy that supports Python 2.7
+pypy3.7-v7.3.3 # Python 3.7 and PyPy 7.3.3
+pypy3.7-v7.x # Python 3.7 and the latest available PyPy 7.x
+pypy3.7-v7.3.3rc1 # Python 3.7 and preview version of PyPy
+pypy3.7-nightly # Python 3.7 and nightly PyPy
 ```
 
 # Caching packages dependencies
diff --git a/__tests__/find-pypy.test.ts b/__tests__/find-pypy.test.ts
index ddf7ebcf4..8cb32509f 100644
--- a/__tests__/find-pypy.test.ts
+++ b/__tests__/find-pypy.test.ts
@@ -37,16 +37,34 @@ describe('parsePyPyVersion', () => {
     ['pypy-3.6-v7.x', {pythonVersion: '3.6', pypyVersion: 'v7.x'}],
     ['pypy-3.6', {pythonVersion: '3.6', pypyVersion: 'x'}],
     ['pypy-3.6-nightly', {pythonVersion: '3.6', pypyVersion: 'nightly'}],
-    ['pypy-3.6-v7.3.3rc1', {pythonVersion: '3.6', pypyVersion: 'v7.3.3-rc.1'}]
+    ['pypy-3.6-v7.3.3rc1', {pythonVersion: '3.6', pypyVersion: 'v7.3.3-rc.1'}],
+    ['pypy3.8-v7.3.7', {pythonVersion: '3.8', pypyVersion: 'v7.3.7'}],
+    ['pypy3.8-v7.3.x', {pythonVersion: '3.8', pypyVersion: 'v7.3.x'}],
+    ['pypy3.8-v7.x', {pythonVersion: '3.8', pypyVersion: 'v7.x'}],
+    ['pypy3.8', {pythonVersion: '3.8', pypyVersion: 'x'}],
+    ['pypy3.9-nightly', {pythonVersion: '3.9', pypyVersion: 'nightly'}],
+    ['pypy3.9-v7.3.8rc1', {pythonVersion: '3.9', pypyVersion: 'v7.3.8-rc.1'}]
   ])('%s -> %s', (input, expected) => {
     expect(finder.parsePyPyVersion(input)).toEqual(expected);
   });
 
-  it('throw on invalid input', () => {
-    expect(() => finder.parsePyPyVersion('pypy-')).toThrowError(
-      "Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy-<python-version>'. See README for examples and documentation."
-    );
-  });
+  it.each(['', 'pypy-', 'pypy', 'p', 'notpypy-'])(
+    'throw on invalid input "%s"',
+    input => {
+      expect(() => finder.parsePyPyVersion(input)).toThrowError(
+        "Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy<python-version>' or 'pypy-<python-version>'. See README for examples and documentation."
+      );
+    }
+  );
+
+  it.each(['pypy-2', 'pypy-3', 'pypy2', 'pypy3', 'pypy3.x', 'pypy3.8.10'])(
+    'throw on invalid input "%s"',
+    input => {
+      expect(() => finder.parsePyPyVersion(input)).toThrowError(
+        "Invalid format of Python version for PyPy. Python version should be specified in format 'x.y'. See README for examples and documentation."
+      );
+    }
+  );
 });
 
 describe('getPyPyVersionFromPath', () => {
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 7c47a470c..362b9eecb 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -6073,7 +6073,7 @@ const os = __importStar(__webpack_require__(87));
 const cache_factory_1 = __webpack_require__(633);
 const utils_1 = __webpack_require__(163);
 function isPyPyVersion(versionSpec) {
-    return versionSpec.startsWith('pypy-');
+    return versionSpec.startsWith('pypy');
 }
 function cacheDependencies(cache, pythonVersion) {
     return __awaiter(this, void 0, void 0, function* () {
@@ -52406,14 +52406,24 @@ function findPyPyToolCache(pythonVersion, pypyVersion, architecture) {
 }
 exports.findPyPyToolCache = findPyPyToolCache;
 function parsePyPyVersion(versionSpec) {
-    const versions = versionSpec.split('-').filter(item => !!item);
-    if (versions.length < 2 || versions[0] != 'pypy') {
-        throw new Error("Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy-<python-version>'. See README for examples and documentation.");
+    let versionsString;
+    if (versionSpec.length > 4 && versionSpec[4] == '-') {
+        versionsString = versionSpec.slice(5);
     }
-    const pythonVersion = versions[1];
+    else if (versionSpec.length > 3) {
+        versionsString = versionSpec.slice(4);
+    }
+    else {
+        versionsString = '';
+    }
+    const versions = versionsString.split('-').filter(item => !!item);
+    if (!versionSpec.startsWith('pypy') || versions.length == 0) {
+        throw new Error("Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy<python-version>' or 'pypy-<python-version>'. See README for examples and documentation.");
+    }
+    const pythonVersion = versions[0];
     let pypyVersion;
-    if (versions.length > 2) {
-        pypyVersion = pypyInstall.pypyVersionToSemantic(versions[2]);
+    if (versions.length > 1) {
+        pypyVersion = pypyInstall.pypyVersionToSemantic(versions[1]);
     }
     else {
         pypyVersion = 'x';
diff --git a/src/find-pypy.ts b/src/find-pypy.ts
index 75b6abb03..4580b2f4f 100644
--- a/src/find-pypy.ts
+++ b/src/find-pypy.ts
@@ -95,18 +95,27 @@ export function findPyPyToolCache(
 }
 
 export function parsePyPyVersion(versionSpec: string): IPyPyVersionSpec {
-  const versions = versionSpec.split('-').filter(item => !!item);
+  let versionsString: string;
+  if (versionSpec.length > 4 && versionSpec[4] == '-') {
+    versionsString = versionSpec.slice(5);
+  } else if (versionSpec.length > 3) {
+    versionsString = versionSpec.slice(4);
+  } else {
+    versionsString = '';
+  }
+
+  const versions = versionsString.split('-').filter(item => !!item);
 
-  if (versions.length < 2 || versions[0] != 'pypy') {
+  if (!versionSpec.startsWith('pypy') || versions.length == 0) {
     throw new Error(
-      "Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy-<python-version>'. See README for examples and documentation."
+      "Invalid 'version' property for PyPy. PyPy version should be specified as 'pypy<python-version>' or 'pypy-<python-version>'. See README for examples and documentation."
     );
   }
 
-  const pythonVersion = versions[1];
+  const pythonVersion = versions[0];
   let pypyVersion: string;
-  if (versions.length > 2) {
-    pypyVersion = pypyInstall.pypyVersionToSemantic(versions[2]);
+  if (versions.length > 1) {
+    pypyVersion = pypyInstall.pypyVersionToSemantic(versions[1]);
   } else {
     pypyVersion = 'x';
   }
diff --git a/src/setup-python.ts b/src/setup-python.ts
index 62c76dba9..b9247d357 100644
--- a/src/setup-python.ts
+++ b/src/setup-python.ts
@@ -7,7 +7,7 @@ import {getCacheDistributor} from './cache-distributions/cache-factory';
 import {isCacheFeatureAvailable} from './utils';
 
 function isPyPyVersion(versionSpec: string) {
-  return versionSpec.startsWith('pypy-');
+  return versionSpec.startsWith('pypy');
 }
 
 async function cacheDependencies(cache: string, pythonVersion: string) {