diff --git a/src/crewai/cli/install_crew.py b/src/crewai/cli/install_crew.py
index d1d0ab9dae..9b7dcdc87a 100644
--- a/src/crewai/cli/install_crew.py
+++ b/src/crewai/cli/install_crew.py
@@ -1,19 +1,37 @@
+import logging
 import subprocess
+from typing import List
 
 import click
 
+UV_COMMAND = "uv"
+SYNC_COMMAND = "sync"
+ACTIVE_FLAG = "--active"
 
-def install_crew(proxy_options: list[str]) -> None:
+logger = logging.getLogger(__name__)
+
+def install_crew(proxy_options: List[str]) -> None:
     """
     Install the crew by running the UV command to lock and install.
+    
+    Args:
+        proxy_options (List[str]): List of proxy-related command options.
+    
+    Note:
+        Uses --active flag to ensure proper virtual environment detection.
     """
+    if not isinstance(proxy_options, list):
+        raise ValueError("proxy_options must be a list")
+
     try:
-        command = ["uv", "sync"] + proxy_options
+        command = [UV_COMMAND, SYNC_COMMAND, ACTIVE_FLAG] + proxy_options
+        logger.debug(f"Executing command: {' '.join(command)}")
         subprocess.run(command, check=True, capture_output=False, text=True)
 
     except subprocess.CalledProcessError as e:
         click.echo(f"An error occurred while running the crew: {e}", err=True)
-        click.echo(e.output, err=True)
+        if e.output is not None:
+            click.echo(e.output, err=True)
 
     except Exception as e:
         click.echo(f"An unexpected error occurred: {e}", err=True)
diff --git a/tests/cli/install_crew_test.py b/tests/cli/install_crew_test.py
new file mode 100644
index 0000000000..6fe02bee22
--- /dev/null
+++ b/tests/cli/install_crew_test.py
@@ -0,0 +1,79 @@
+from unittest import mock
+from typing import List, Any
+import pytest
+import subprocess
+
+from crewai.cli.install_crew import install_crew, UV_COMMAND, SYNC_COMMAND, ACTIVE_FLAG
+
+
+@pytest.mark.parametrize(
+    "proxy_options,expected_command",
+    [
+        ([], [UV_COMMAND, SYNC_COMMAND, ACTIVE_FLAG]),
+        (
+            ["--index-url", "https://custom-pypi.org/simple"],
+            [UV_COMMAND, SYNC_COMMAND, ACTIVE_FLAG, "--index-url", "https://custom-pypi.org/simple"],
+        ),
+    ],
+)
+@mock.patch("subprocess.run")
+def test_install_crew_with_options(
+    mock_subprocess: mock.MagicMock, proxy_options: List[str], expected_command: List[str]
+) -> None:
+    """Test that install_crew correctly passes options to the command."""
+    install_crew(proxy_options)
+    mock_subprocess.assert_called_once_with(
+        expected_command, check=True, capture_output=False, text=True
+    )
+
+
+@mock.patch("subprocess.run")
+@mock.patch("click.echo")
+def test_install_crew_with_subprocess_error(
+    mock_echo: mock.MagicMock, mock_subprocess: mock.MagicMock
+) -> None:
+    """Test that install_crew handles subprocess errors correctly."""
+    error = subprocess.CalledProcessError(1, f"{UV_COMMAND} {SYNC_COMMAND} {ACTIVE_FLAG}")
+    error.output = "Error output"
+    mock_subprocess.side_effect = error
+    
+    install_crew([])
+    
+    assert mock_echo.call_count == 2
+    mock_echo.assert_any_call(f"An error occurred while running the crew: {error}", err=True)
+    mock_echo.assert_any_call("Error output", err=True)
+
+
+@mock.patch("subprocess.run")
+@mock.patch("click.echo")
+def test_install_crew_with_subprocess_error_empty_output(
+    mock_echo: mock.MagicMock, mock_subprocess: mock.MagicMock
+) -> None:
+    """Test that install_crew handles subprocess errors with empty output correctly."""
+    error = subprocess.CalledProcessError(1, f"{UV_COMMAND} {SYNC_COMMAND} {ACTIVE_FLAG}")
+    error.output = None
+    mock_subprocess.side_effect = error
+    
+    install_crew([])
+    
+    mock_echo.assert_called_once_with(f"An error occurred while running the crew: {error}", err=True)
+
+
+@mock.patch("subprocess.run")
+@mock.patch("click.echo")
+def test_install_crew_with_generic_exception(
+    mock_echo: mock.MagicMock, mock_subprocess: mock.MagicMock
+) -> None:
+    """Test that install_crew handles generic exceptions correctly."""
+    error = Exception("Generic error")
+    mock_subprocess.side_effect = error
+    
+    install_crew([])
+    
+    mock_echo.assert_called_once_with(f"An unexpected error occurred: {error}", err=True)
+
+
+def test_install_crew_with_invalid_proxy_options() -> None:
+    """Test that install_crew validates the proxy_options parameter."""
+    with pytest.raises(ValueError, match="proxy_options must be a list"):
+        install_crew("not a list")  # type: ignore