diff --git a/tutorial/3-1-configure-vscode.md b/tutorial/3-1-configure-vscode.md
index 10493ce225d67043bcfcf9914905f19d270f060f..34d204b305be2a79a3101ceec3adf6223da54ed1 100644
--- a/tutorial/3-1-configure-vscode.md
+++ b/tutorial/3-1-configure-vscode.md
@@ -88,5 +88,10 @@ This step installs Python extensions in VSCode server running in the VM.
 - In VSCode (connected to the VM), click left button "Explorer"
 - Click "Ctrl+Alt+P" and type "Python: Select Interpreter". Select option "Python: 3.9.13 64-bit ('tfs')"
 
-in terminal: set python path to be used by VSCode:
-`echo "PYTHONPATH=./src" > ~/tfs-ctrl/.env`
+## 3.1.6. Define environment variables for VSCode
+The source code in the TFS controller project is hosted in folder `src/`. To help VSCode find the Python modules and
+packages, add the following file into your working space root folder:
+
+```bash
+echo "PYTHONPATH=./src" >> ~/tfs-ctrl/.env
+```