diff --git a/setupenv.sh b/setupenv.sh
index 561b78c..744d343 100644
--- a/setupenv.sh
+++ b/setupenv.sh
@@ -2,7 +2,21 @@
 
 CURR_DIR=$(pwd)
 
-# setup PYTHONPATH
-python3 -m pip install pip -U
-python3 -m pip install "cctrusted_base @ git+https://github.com/cc-api/cc-trusted-api.git#subdirectory=common/python"
-export PYTHONPATH=$PYTHONPATH:$CURR_DIR/src/python
+# setup virtualenv and PYTHONPATH
+apt-get install -y python3-virtualenv
+
+if [[ ! -d ${CURR_DIR}/venv ]]; then
+    python3 -m virtualenv -p python3 ${CURR_DIR}/venv
+    source ${CURR_DIR}/venv/bin/activate
+    python3 -m pip install "cctrusted_base @ git+https://github.com/cc-api/cc-trusted-api.git#subdirectory=common/python"
+    python3 -m pip install -r $CURR_DIR/src/python/requirements.txt
+    export PYTHONPATH=$PYTHONPATH:$CURR_DIR/src/python
+    if [ ! $? -eq 0 ]; then
+        echo "Failed to install python PIP packages, please check your proxy (https_proxy) or setup PyPi mirror."
+        deactivate
+        rm ${CURR_DIR}/venv -fr
+        return 1
+    fi
+else
+    source ${CURR_DIR}/venv/bin/activate
+fi