diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3aa974e7fd88..8024554e7442 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Changed
 
+- Fix `XFunc` and `RPC` environment activation.
 - Fix exception on Rhino Mac.
 - Fix missing import on `compas_rhino.geometry`.
 
diff --git a/src/compas/_os.py b/src/compas/_os.py
index bfae7528f7cd..04094c70aa36 100644
--- a/src/compas/_os.py
+++ b/src/compas/_os.py
@@ -6,6 +6,11 @@
 import os
 import sys
 
+try:
+    NotADirectoryError
+except NameError:
+    class NotADirectoryError(Exception):
+        pass
 
 PY3 = sys.version_info[0] == 3
 system = sys.platform
@@ -14,6 +19,16 @@
 if 'ironpython' in sys.version.lower() and os.name == 'nt':
     system = 'win32'
 
+try:
+    from compas_bootstrapper import PYTHON_DIRECTORY
+except:
+    # We re-map CONDA_PREFIX for backwards compatibility reasons
+    # In a few releases down the line, we can get rid of this bit
+    try:
+        from compas_bootstrapper import CONDA_PREFIX as PYTHON_DIRECTORY
+    except:
+        PYTHON_DIRECTORY = None
+
 
 def select_python(python_executable):
     """Selects the most likely python interpreter to run.
@@ -29,16 +44,6 @@ def select_python(python_executable):
     """
     python_executable = python_executable or 'pythonw'
 
-    try:
-        from compas_bootstrapper import PYTHON_DIRECTORY
-    except:
-        # We re-map CONDA_PREFIX for backwards compatibility reasons
-        # In a few releases down the line, we can get rid of this bit
-        try:
-            from compas_bootstrapper import CONDA_PREFIX as PYTHON_DIRECTORY
-        except:
-            PYTHON_DIRECTORY = None
-
     if PYTHON_DIRECTORY and os.path.exists(PYTHON_DIRECTORY):
         python = os.path.join(PYTHON_DIRECTORY, python_executable)
         if os.path.exists(python):
@@ -63,6 +68,26 @@ def select_python(python_executable):
     return python_executable
 
 
+def prepare_environment():
+    """Prepares an environment context to run Python on.
+
+    If Python is being used from a conda environment, this is roughly equivalent
+    to activating the conda environment by setting up the correct environment
+    variables.
+    """
+    env = os.environ.copy()
+
+    if PYTHON_DIRECTORY:
+        lib_bin = os.path.join(PYTHON_DIRECTORY, 'Library', 'bin')
+        if os.path.exists(lib_bin):
+            env['PATH'] += os.pathsep + lib_bin
+
+        lib_bin = os.path.join(PYTHON_DIRECTORY, 'lib')
+        if os.path.exists(lib_bin):
+            env['PATH'] += os.pathsep + lib_bin
+
+    return env
+
 def absjoin(*parts):
     return os.path.abspath(os.path.join(*parts))
 
diff --git a/src/compas/rpc/proxy.py b/src/compas/rpc/proxy.py
index daf92146c0f8..f0e257a6aba1 100644
--- a/src/compas/rpc/proxy.py
+++ b/src/compas/rpc/proxy.py
@@ -223,11 +223,13 @@ def start_server(self):
 
         """
         python = self.python
+        env = compas._os.prepare_environment()
 
         try:
             Popen
         except NameError:
             self._process = Process()
+            self._process.StartInfo.EvironmentVariables = env
             self._process.StartInfo.UseShellExecute = False
             self._process.StartInfo.RedirectStandardOutput = True
             self._process.StartInfo.RedirectStandardError = True
@@ -236,7 +238,7 @@ def start_server(self):
             self._process.Start()
         else:
             args = [python, '-m', self.service, str(self._port)]
-            self._process = Popen(args, stdout=PIPE, stderr=STDOUT)
+            self._process = Popen(args, stdout=PIPE, stderr=STDOUT, env=env)
 
         server = ServerProxy(self.address)
 
diff --git a/src/compas/utilities/xfunc.py b/src/compas/utilities/xfunc.py
index de0e72cfa2a7..e39506204b8d 100644
--- a/src/compas/utilities/xfunc.py
+++ b/src/compas/utilities/xfunc.py
@@ -376,7 +376,8 @@ def __call__(self, *args, **kwargs):
                         self.opath,
                         self.serializer]
 
-        process = Popen(process_args, stderr=PIPE, stdout=PIPE)
+        env = compas._os.prepare_environment()
+        process = Popen(process_args, stderr=PIPE, stdout=PIPE, env=env)
 
         while process.poll() is None:
             line = process.stdout.readline().strip()