diff --git a/src/features/views/projectView.ts b/src/features/views/projectView.ts
index e6fd7f3b..e8dda9d2 100644
--- a/src/features/views/projectView.ts
+++ b/src/features/views/projectView.ts
@@ -252,7 +252,9 @@ export class ProjectView implements TreeDataProvider<ProjectTreeItem> {
             // Store the reference for refreshing packages
             this.packageRoots.set(uri ? uri.fsPath : 'global', environmentItem);
 
-            return packages.map((p) => new ProjectPackage(environmentItem, p, pkgManager));
+            return packages
+                .sort((a, b) => (a.isTransitive === b.isTransitive ? 0 : a.isTransitive ? 1 : -1))
+                .map((p) => new ProjectPackage(environmentItem, p, pkgManager));
         }
 
         //return nothing if the element is not a project, environment, or undefined
diff --git a/src/features/views/treeViewItems.ts b/src/features/views/treeViewItems.ts
index 0293afb7..04173e79 100644
--- a/src/features/views/treeViewItems.ts
+++ b/src/features/views/treeViewItems.ts
@@ -213,7 +213,7 @@ export class PackageTreeItem implements EnvTreeItem {
         const defaultIcon = pkg.isTransitive ? new ThemeIcon('list-tree') : new ThemeIcon('package');
         item.iconPath = pkg.iconPath ?? defaultIcon;
         item.contextValue = pkg.isTransitive ? 'python-package-transitive' : 'python-package';
-        item.description = (pkg.isTransitive ? l10n.t('(transitive) ') : '') + (pkg.description ?? pkg.version);
+        item.description = (pkg.isTransitive ? l10n.t('(transitive) ') : '') + (pkg.description ?? pkg.version ?? '');
         item.tooltip = pkg.isTransitive
             ? l10n.t('This package is a dependency of another installed package. It may also have been explicitly installed.')
             : pkg.tooltip;
@@ -433,10 +433,16 @@ export class ProjectPackage implements ProjectTreeItem {
     ) {
         this.id = ProjectPackage.getId(parent, pkg);
         const item = new TreeItem(this.pkg.displayName, TreeItemCollapsibleState.None);
-        item.iconPath = this.pkg.iconPath;
+        const defaultIcon = this.pkg.isTransitive ? new ThemeIcon('list-tree') : new ThemeIcon('package');
+        item.iconPath = this.pkg.iconPath ?? defaultIcon;
         item.contextValue = this.pkg.isTransitive ? 'python-package-transitive' : 'python-package';
-        item.description = this.pkg.description ?? this.pkg.version;
-        item.tooltip = this.pkg.tooltip;
+        item.description =
+            (this.pkg.isTransitive ? l10n.t('(transitive) ') : '') + (this.pkg.description ?? this.pkg.version ?? '');
+        item.tooltip = this.pkg.isTransitive
+            ? l10n.t(
+                  'This package is a dependency of another installed package. It may also have been explicitly installed.',
+              )
+            : this.pkg.tooltip;
         this.treeItem = item;
     }
 
diff --git a/src/test/features/views/treeViewItems.unit.test.ts b/src/test/features/views/treeViewItems.unit.test.ts
index eca57557..7e7bc972 100644
--- a/src/test/features/views/treeViewItems.unit.test.ts
+++ b/src/test/features/views/treeViewItems.unit.test.ts
@@ -1,14 +1,17 @@
 import * as assert from 'assert';
-import { Uri } from 'vscode';
+import { ThemeIcon, Uri } from 'vscode';
+import { Package } from '../../../api';
 import { UvInstallStrings, VenvManagerStrings } from '../../../common/localize';
 import {
     EnvManagerTreeItem,
     getEnvironmentParentDirName,
     NoPythonEnvTreeItem,
+    ProjectEnvironment,
+    ProjectPackage,
     PythonEnvTreeItem,
     PythonGroupEnvTreeItem,
 } from '../../../features/views/treeViewItems';
-import { InternalEnvironmentManager, PythonEnvironmentImpl } from '../../../internal.api';
+import { InternalEnvironmentManager, InternalPackageManager, PythonEnvironmentImpl } from '../../../internal.api';
 
 /**
  * Helper to create a mock PythonEnvironmentImpl with minimal required fields.
@@ -487,4 +490,79 @@ suite('Test TreeView Items', () => {
             assert.equal(item.treeItem.command, undefined, 'Should not have a command');
         });
     });
+
+    suite('ProjectPackage', () => {
+        // ProjectPackage only reads parent.id and does not call any manager methods,
+        // so minimal cast mocks are sufficient for exercising the tree item rendering.
+        const parent = { id: 'project>>>env' } as ProjectEnvironment;
+        const manager = {} as InternalPackageManager;
+
+        function createMockPackage(options: Partial<Package> = {}): Package {
+            return {
+                name: options.name ?? 'requests',
+                displayName: options.displayName ?? options.name ?? 'requests',
+                version: options.version,
+                description: options.description,
+                tooltip: options.tooltip,
+                iconPath: options.iconPath,
+                isTransitive: options.isTransitive,
+                pkgId: { id: options.name ?? 'requests', managerId: 'ms-python.python:pip' },
+            } as Package;
+        }
+
+        test('Direct package uses package icon and shows no transitive prefix', () => {
+            // Arrange
+            const pkg = createMockPackage({ name: 'requests', version: '2.31.0', isTransitive: false });
+
+            // Act
+            const item = new ProjectPackage(parent, pkg, manager);
+
+            // Assert
+            assert.strictEqual(item.treeItem.contextValue, 'python-package');
+            assert.strictEqual((item.treeItem.iconPath as ThemeIcon).id, 'package');
+            assert.strictEqual(item.treeItem.description, '2.31.0');
+        });
+
+        test('Transitive package uses list-tree icon and shows transitive prefix', () => {
+            // Arrange
+            const pkg = createMockPackage({ name: 'urllib3', version: '2.0.0', isTransitive: true });
+
+            // Act
+            const item = new ProjectPackage(parent, pkg, manager);
+
+            // Assert
+            assert.strictEqual(item.treeItem.contextValue, 'python-package-transitive');
+            assert.strictEqual((item.treeItem.iconPath as ThemeIcon).id, 'list-tree');
+            assert.ok(
+                (item.treeItem.description as string).startsWith('(transitive) '),
+                'Transitive package description should be prefixed with "(transitive) "',
+            );
+            assert.ok(item.treeItem.tooltip, 'Transitive package should have an explanatory tooltip');
+        });
+
+        test('Prefers package-provided iconPath over default icon', () => {
+            // Arrange
+            const pkg = createMockPackage({ name: 'numpy', isTransitive: true, iconPath: new ThemeIcon('symbol-numeric') });
+
+            // Act
+            const item = new ProjectPackage(parent, pkg, manager);
+
+            // Assert
+            assert.strictEqual((item.treeItem.iconPath as ThemeIcon).id, 'symbol-numeric');
+        });
+
+        test('Falls back to empty description when version and description are missing', () => {
+            // Arrange
+            const directPkg = createMockPackage({ name: 'mypkg', isTransitive: false });
+            const transitivePkg = createMockPackage({ name: 'mypkg', isTransitive: true });
+
+            // Act
+            const directItem = new ProjectPackage(parent, directPkg, manager);
+            const transitiveItem = new ProjectPackage(parent, transitivePkg, manager);
+
+            // Assert
+            assert.strictEqual(directItem.treeItem.description, '');
+            assert.strictEqual(transitiveItem.treeItem.description, '(transitive) ');
+        });
+    });
 });