diff --git a/dist/index.js b/dist/index.js
index 41cfa78b7..5362e846b 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -6738,6 +6738,10 @@ function usePyPy(majorVersion, architecture) {
     core.exportVariable('pythonLocation', pythonLocation);
     core.addPath(installDir);
     core.addPath(_binDir);
+    // Starting from PyPy 7.3.1, the folder that is used for pip and anything that pip installs should be "Scripts" on Windows.
+    if (IS_WINDOWS) {
+        core.addPath(path.join(installDir, 'Scripts'));
+    }
     const impl = 'pypy' + majorVersion.toString();
     core.setOutput('python-version', impl);
     return { impl: impl, version: versionFromPath(installDir) };
diff --git a/src/find-python.ts b/src/find-python.ts
index 6702430c5..6cc21d484 100644
--- a/src/find-python.ts
+++ b/src/find-python.ts
@@ -66,6 +66,10 @@ function usePyPy(
 
   core.addPath(installDir);
   core.addPath(_binDir);
+  // Starting from PyPy 7.3.1, the folder that is used for pip and anything that pip installs should be "Scripts" on Windows.
+  if (IS_WINDOWS) {
+    core.addPath(path.join(installDir, 'Scripts'));
+  }
 
   const impl = 'pypy' + majorVersion.toString();
   core.setOutput('python-version', impl);