diff --git a/news/2 Fixes/17546.md b/news/2 Fixes/17546.md
new file mode 100644
index 000000000000..353af438fdca
--- /dev/null
+++ b/news/2 Fixes/17546.md	
@@ -0,0 +1 @@
+Fix for `pytest` run all tests when using `pytest.ini`.
diff --git a/src/client/testing/testController/pytest/runner.ts b/src/client/testing/testController/pytest/runner.ts
index bd53f82baedb..f4ed5637e050 100644
--- a/src/client/testing/testController/pytest/runner.ts
+++ b/src/client/testing/testController/pytest/runner.ts
@@ -97,7 +97,9 @@ export class PytestRunner implements ITestsRunner {
             if (!rawData) {
                 throw new Error(`Trying to run unknown node: ${testNode.id}`);
             }
-            testArgs.push(rawData.rawId);
+            if (testNode.id !== options.workspaceFolder.fsPath) {
+                testArgs.push(rawData.rawId);
+            }
 
             runInstance.appendOutput(`Running test with arguments: ${testArgs.join(' ')}\r\n`);
             runInstance.appendOutput(`Current working directory: ${options.cwd}\r\n`);