diff --git a/src/julia-1.9/activate_set.jl b/src/julia-1.9/activate_set.jl
index 20cc47f..b065311 100644
--- a/src/julia-1.9/activate_set.jl
+++ b/src/julia-1.9/activate_set.jl
@@ -11,12 +11,24 @@ function activate(pkg::AbstractString=current_pkg_name(); allow_reresolve=true)
     # This needs to be first as `gen_target_project` fixes `pkgspec.path` if it is nothing
     sandbox_project_override = maybe_gen_project_override!(ctx, pkgspec)
 
-    sandbox_path = joinpath(pkgspec.path::String, "test")
+    source_path = pkgspec.path::String
+    sandbox_path = joinpath(source_path, "test")
     sandbox_project = projectfile_path(sandbox_path)
+    sandbox_preferences = nothing
+    if isfile(sandbox_project)
+        with_load_path([sandbox_path, Base.LOAD_PATH...]) do
+            sandbox_preferences = Base.get_preferences()
+        end
+    else
+        with_load_path([something(projectfile_path(source_path)), Base.LOAD_PATH...]) do
+            sandbox_preferences = Base.get_preferences()
+        end
+    end
 
     tmp = mktempdir()
     tmp_project = projectfile_path(tmp)
     tmp_manifest = manifestfile_path(tmp)
+    tmp_preferences = joinpath(tmp, first(Base.preferences_names))
 
     # Copy env info over to temp env
     if sandbox_project_override !== nothing
@@ -48,6 +60,13 @@ function activate(pkg::AbstractString=current_pkg_name(); allow_reresolve=true)
     end
 
     Types.write_manifest(working_manifest, tmp_manifest)
+    # Copy over preferences
+    if sandbox_preferences !== nothing
+        open(tmp_preferences, "w") do io
+            # TODO: should we separately import TOML?
+            Pkg.TOML.print(io, sandbox_preferences::Dict{String, Any})
+        end
+    end
 
     Base.ACTIVE_PROJECT[] = tmp_project
 
@@ -73,3 +92,14 @@ function activate(pkg::AbstractString=current_pkg_name(); allow_reresolve=true)
 
     return Base.active_project()
 end
+
+with_load_path(f::Function, new_load_path::String) = with_load_path(f, [new_load_path])
+function with_load_path(f::Function, new_load_path::Vector{String})
+    old_load_path = copy(Base.LOAD_PATH)
+    copy!(Base.LOAD_PATH, new_load_path)
+    try
+        f()
+    finally
+        copy!(LOAD_PATH, old_load_path)
+    end
+end