diff --git a/clearml_agent/commands/worker.py b/clearml_agent/commands/worker.py
index f1e98f4..aa8b0f4 100644
--- a/clearml_agent/commands/worker.py
+++ b/clearml_agent/commands/worker.py
@@ -3453,8 +3453,6 @@ class Worker(ServiceCommandSection):
             self.uv.initialize(cwd=lockfile_path)
             api = self.uv.get_api(lockfile_path)
             if api.enabled:
-                # TODO: what should this be? This controls where uv installs its venv
-                os.environ["UV_PROJECT_ENVIRONMENT"] = None
                 print('UV Enabled: Ignoring requested python packages, using repository uv lock file!')
                 api.install()
                 return api
diff --git a/clearml_agent/helper/package/uv_api.py b/clearml_agent/helper/package/uv_api.py
index 295d018..55576a2 100644
--- a/clearml_agent/helper/package/uv_api.py
+++ b/clearml_agent/helper/package/uv_api.py
@@ -73,8 +73,12 @@ class UvConfig:
                 kwargs["env"]["PATH"] = path
 
         if self.session and self.session.config and args and args[0] == "sync":
+            # Set the cache dir to venvs dir
+            if (cache_dir := self.session.config.get("agent.venvs_dir", None)) is not None:
+                os.environ["UV_CACHE_DIR"] = cache_dir
+            
             extra_args = self.session.config.get(
-                "agent.package_manager.uv_install_extra_args", None
+                "agent.package_manager.uv_sync_extra_args", None
             )
             if extra_args:
                 args = args + tuple(extra_args)