diff --git a/crates/uv-virtualenv/src/virtualenv.rs b/crates/uv-virtualenv/src/virtualenv.rs
index 7c65ec1bf..dceb1c5a6 100644
--- a/crates/uv-virtualenv/src/virtualenv.rs
+++ b/crates/uv-virtualenv/src/virtualenv.rs
@@ -109,15 +109,27 @@ pub(crate) fn create(
                 }
                 OnExisting::Remove => {
                     debug!("Removing existing {name} due to `--clear`");
-                    remove_virtualenv(location)?;
-                    fs::create_dir_all(location)?;
+                    // Before removing the virtual environment, we need to canonicalize the path
+                    // because `Path::metadata` will follow the symlink but we're still operating on
+                    // the unresolved path and will remove the symlink itself.
+                    let location = location
+                        .canonicalize()
+                        .unwrap_or_else(|_| location.to_path_buf());
+                    remove_virtualenv(&location)?;
+                    fs::create_dir_all(&location)?;
                 }
                 OnExisting::Fail => {
                     match confirm_clear(location, name)? {
                         Some(true) => {
                             debug!("Removing existing {name} due to confirmation");
-                            remove_virtualenv(location)?;
-                            fs::create_dir_all(location)?;
+                            // Before removing the virtual environment, we need to canonicalize the
+                            // path because `Path::metadata` will follow the symlink but we're still
+                            // operating on the unresolved path and will remove the symlink itself.
+                            let location = location
+                                .canonicalize()
+                                .unwrap_or_else(|_| location.to_path_buf());
+                            remove_virtualenv(&location)?;
+                            fs::create_dir_all(&location)?;
                         }
                         Some(false) => {
                             let hint = format!(
diff --git a/crates/uv/tests/it/venv.rs b/crates/uv/tests/it/venv.rs
index 726d1731b..b97299625 100644
--- a/crates/uv/tests/it/venv.rs
+++ b/crates/uv/tests/it/venv.rs
@@ -6,6 +6,9 @@ use predicates::prelude::*;
 use uv_python::{PYTHON_VERSION_FILENAME, PYTHON_VERSIONS_FILENAME};
 use uv_static::EnvVars;
 
+#[cfg(unix)]
+use fs_err::os::unix::fs::symlink;
+
 use crate::common::{TestContext, uv_snapshot};
 
 #[test]
@@ -1388,3 +1391,184 @@ fn venv_python_preference() {
     Activate with: source .venv/[BIN]/activate
     ");
 }
+
+#[test]
+#[cfg(unix)]
+fn create_venv_symlink_clear_preservation() -> Result<()> {
+    let context = TestContext::new_with_versions(&["3.12"]);
+
+    // Create a target directory
+    let target_dir = context.temp_dir.child("target");
+    target_dir.create_dir_all()?;
+
+    // Create a symlink pointing to the target directory
+    let symlink_path = context.temp_dir.child(".venv");
+    symlink(&target_dir, &symlink_path)?;
+
+    // Verify symlink exists
+    assert!(symlink_path.path().is_symlink());
+
+    // Create virtual environment at symlink location
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify symlink is still preserved after creation
+    assert!(symlink_path.path().is_symlink());
+
+    // Run uv venv with --clear to test symlink preservation during clear
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--clear")
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify symlink is STILL preserved after --clear
+    assert!(symlink_path.path().is_symlink());
+
+    Ok(())
+}
+
+#[test]
+#[cfg(unix)]
+fn create_venv_symlink_recreate_preservation() -> Result<()> {
+    let context = TestContext::new_with_versions(&["3.12"]);
+
+    // Create a target directory
+    let target_dir = context.temp_dir.child("target");
+    target_dir.create_dir_all()?;
+
+    // Create a symlink pointing to the target directory
+    let symlink_path = context.temp_dir.child(".venv");
+    symlink(&target_dir, &symlink_path)?;
+
+    // Verify symlink exists
+    assert!(symlink_path.path().is_symlink());
+
+    // Create virtual environment at symlink location
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify symlink is preserved after first creation
+    assert!(symlink_path.path().is_symlink());
+
+    // Run uv venv again WITHOUT --clear to test recreation behavior
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    warning: A virtual environment already exists at `.venv`. In the future, uv will require `--clear` to replace it
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify symlink is STILL preserved after recreation
+    assert!(symlink_path.path().is_symlink());
+
+    Ok(())
+}
+
+#[test]
+#[cfg(unix)]
+fn create_venv_nested_symlink_preservation() -> Result<()> {
+    let context = TestContext::new_with_versions(&["3.12"]);
+
+    // Create a target directory
+    let target_dir = context.temp_dir.child("target");
+    target_dir.create_dir_all()?;
+
+    // Create first symlink level: intermediate -> target
+    let intermediate_link = context.temp_dir.child("intermediate");
+    symlink(&target_dir, &intermediate_link)?;
+
+    // Create second symlink level: .venv -> intermediate (nested symlink)
+    let symlink_path = context.temp_dir.child(".venv");
+    symlink(&intermediate_link, &symlink_path)?;
+
+    // Verify nested symlink exists
+    assert!(symlink_path.path().is_symlink());
+    assert!(intermediate_link.path().is_symlink());
+
+    // Create virtual environment at nested symlink location
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify both symlinks are preserved
+    assert!(symlink_path.path().is_symlink());
+    assert!(intermediate_link.path().is_symlink());
+
+    // Run uv venv again to test nested symlink preservation during recreation
+    uv_snapshot!(context.filters(), context.venv()
+        .arg(symlink_path.as_os_str())
+        .arg("--python")
+        .arg("3.12"), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Using CPython 3.12.[X] interpreter at: [PYTHON-3.12]
+    Creating virtual environment at: .venv
+    warning: A virtual environment already exists at `.venv`. In the future, uv will require `--clear` to replace it
+    Activate with: source .venv/[BIN]/activate
+    "###
+    );
+
+    // Verify nested symlinks are STILL preserved
+    assert!(symlink_path.path().is_symlink());
+    assert!(intermediate_link.path().is_symlink());
+
+    Ok(())
+}