diff --git a/cmd/vclusterctl/cmd/connect.go b/cmd/vclusterctl/cmd/connect.go
index 7252c5d88e..08f2ea049b 100644
--- a/cmd/vclusterctl/cmd/connect.go
+++ b/cmd/vclusterctl/cmd/connect.go
@@ -422,7 +422,16 @@ func (cmd *ConnectCmd) getVClusterProKubeConfig(ctx context.Context, proClient p
 
 	// make sure kube context name is set
 	if cmd.KubeConfigContextName == "" {
-		cmd.KubeConfigContextName = find.VClusterProContextName(vCluster.VirtualCluster.Name, vCluster.Project.Name, rawConfig.CurrentContext)
+		// use parent context if this is a vcluster context
+		kubeContext := rawConfig.CurrentContext
+		_, _, parentContext := find.VClusterProFromContext(kubeContext)
+		if parentContext == "" {
+			_, _, parentContext = find.VClusterFromContext(kubeContext)
+		}
+		if parentContext != "" {
+			kubeContext = parentContext
+		}
+		cmd.KubeConfigContextName = find.VClusterProContextName(vCluster.VirtualCluster.Name, vCluster.Project.Name, kubeContext)
 	}
 
 	// set insecure true?
diff --git a/cmd/vclusterctl/cmd/create.go b/cmd/vclusterctl/cmd/create.go
index 459f181280..3452ed5970 100644
--- a/cmd/vclusterctl/cmd/create.go
+++ b/cmd/vclusterctl/cmd/create.go
@@ -471,6 +471,9 @@ func (cmd *CreateCmd) prepare(ctx context.Context, vClusterName string) error {
 
 	// check if vcluster in vcluster
 	_, _, previousContext := find.VClusterFromContext(rawConfig.CurrentContext)
+	if previousContext == "" {
+		_, _, previousContext = find.VClusterProFromContext(rawConfig.CurrentContext)
+	}
 	if previousContext != "" {
 		if terminal.IsTerminalIn {
 			switchBackOption := "No, switch back to context " + previousContext
diff --git a/cmd/vclusterctl/cmd/find/find.go b/cmd/vclusterctl/cmd/find/find.go
index d953cef36d..dab378f9e7 100644
--- a/cmd/vclusterctl/cmd/find/find.go
+++ b/cmd/vclusterctl/cmd/find/find.go
@@ -163,7 +163,7 @@ func ListVClusters(ctx context.Context, proClient proclient.Client, context, nam
 	}
 
 	var proVClusters []pro.VirtualClusterInstanceProject
-	if namespace == "" && proClient != nil {
+	if proClient != nil {
 		proVClusters, err = pro.ListVClusters(ctx, proClient, name, project)
 		if err != nil {
 			log.Warnf("Error retrieving pro vclusters: %v", err)
@@ -176,20 +176,20 @@ func ListVClusters(ctx context.Context, proClient proclient.Client, context, nam
 func ListOSSVClusters(ctx context.Context, context, name, namespace string) ([]VCluster, error) {
 	var err error
 
+	_, _, proParentContext := VClusterProFromContext(context)
+	if proParentContext != "" {
+		return nil, nil
+	}
+
 	vClusterName, _, vClusterContext := VClusterFromContext(context)
 	timeout := time.Minute
 	if vClusterName != "" {
 		timeout = time.Second * 5
 	}
 
-	vclusters := []VCluster{}
-	isPro := strings.HasPrefix(context, "vcluster-pro_")
-	if !isPro {
-		// In case of error in vcluster listing in vcluster context, the below check will skip the error and try searching for parent context vclusters.
-		vclusters, err = findInContext(ctx, context, name, namespace, timeout, false)
-		if err != nil && vClusterName == "" {
-			return nil, errors.Wrap(err, "find vcluster")
-		}
+	vclusters, err := findInContext(ctx, context, name, namespace, timeout, false)
+	if err != nil && vClusterName == "" {
+		return nil, errors.Wrap(err, "find vcluster")
 	}
 
 	if vClusterName != "" {
@@ -204,8 +204,8 @@ func ListOSSVClusters(ctx context.Context, context, name, namespace string) ([]V
 	return vclusters, nil
 }
 
-func VClusterProContextName(vClusterName string, vClusterNamespace string, currentContext string) string {
-	return "vcluster-pro_" + vClusterName + "_" + vClusterNamespace + "_" + currentContext
+func VClusterProContextName(vClusterName string, projectName string, currentContext string) string {
+	return "vcluster-pro_" + vClusterName + "_" + projectName + "_" + currentContext
 }
 
 func VClusterContextName(vClusterName string, vClusterNamespace string, currentContext string) string {
diff --git a/cmd/vclusterctl/cmd/list.go b/cmd/vclusterctl/cmd/list.go
index ae1c09de8c..f425ecfa3d 100644
--- a/cmd/vclusterctl/cmd/list.go
+++ b/cmd/vclusterctl/cmd/list.go
@@ -5,7 +5,6 @@ import (
 	"strings"
 	"time"
 
-	"github.com/loft-sh/loftctl/v3/pkg/kubeconfig"
 	"github.com/loft-sh/vcluster/cmd/vclusterctl/cmd/find"
 	"github.com/loft-sh/vcluster/pkg/pro"
 	"github.com/sirupsen/logrus"
@@ -115,7 +114,7 @@ func (cmd *ListCmd) Run(cobraCmd *cobra.Command, _ []string) error {
 		header := []string{"NAME", "NAMESPACE", "STATUS", "VERSION", "CONNECTED", "CREATED", "AGE", "PRO"}
 		values := toValues(output)
 		table.PrintTable(cmd.log, header, values)
-		if strings.HasPrefix(cmd.Context, "vcluster_") {
+		if strings.HasPrefix(cmd.Context, "vcluster_") || strings.HasPrefix(cmd.Context, "vcluster-pro_") {
 			cmd.log.Infof("Run `vcluster disconnect` to switch back to the parent context")
 		}
 	}
@@ -156,13 +155,11 @@ func proToVClusters(vClusters []pro.VirtualClusterInstanceProject, currentContex
 			status = "Pending"
 		}
 
-		context := kubeconfig.VirtualClusterInstanceContextName(vCluster.Project.Name, vCluster.VirtualCluster.Name)
-
+		connected := strings.HasPrefix(currentContext, "vcluster-pro_"+vCluster.VirtualCluster.Name+"_"+vCluster.Project.Name)
 		vClusterOutput := VCluster{
 			Name:       vCluster.VirtualCluster.Spec.ClusterRef.VirtualCluster,
 			Namespace:  vCluster.VirtualCluster.Spec.ClusterRef.Namespace,
-			Context:    context,
-			Connected:  currentContext == context,
+			Connected:  connected,
 			Created:    vCluster.VirtualCluster.CreationTimestamp.Time,
 			AgeSeconds: int(time.Since(vCluster.VirtualCluster.CreationTimestamp.Time).Round(time.Second).Seconds()),
 			Status:     status,