diff --git a/news/6362.bugfix.rst b/news/6362.bugfix.rst
new file mode 100644
index 000000000..2a4ff2472
--- /dev/null
+++ b/news/6362.bugfix.rst
@@ -0,0 +1 @@
+Fix for PEP660 editable VCS dependencies not reinstalled correctly.
diff --git a/pipenv/environment.py b/pipenv/environment.py
index 71009d507..2001e6348 100644
--- a/pipenv/environment.py
+++ b/pipenv/environment.py
@@ -15,6 +15,7 @@
 import pipenv
 from pipenv.patched.pip._internal.commands.install import InstallCommand
 from pipenv.patched.pip._internal.index.package_finder import PackageFinder
+from pipenv.patched.pip._internal.locations.base import get_src_prefix
 from pipenv.patched.pip._internal.req.req_install import InstallRequirement
 from pipenv.patched.pip._vendor.packaging.specifiers import SpecifierSet
 from pipenv.patched.pip._vendor.packaging.utils import canonicalize_name
@@ -745,6 +746,24 @@ def is_satisfied(self, req: InstallRequirement):
                     match.version, prereleases=True
                 )
             if req.link is None:
+                return True
+            elif req.editable and req.link.is_vcs:
+                # For editable VCS dependencies, check if the source directory exists
+                # This ensures we reinstall if the source checkout is missing
+                # Use get_src_prefix() to get the appropriate src directory
+                # This handles both virtualenv and non-virtualenv cases
+                src_dir = get_src_prefix()
+
+                # If the src directory doesn't exist, the requirement is not satisfied
+                if not os.path.exists(src_dir):
+                    return False
+
+                # If we have a specific package directory, check that too
+                if req.name:
+                    pkg_dir = os.path.join(src_dir, req.name)
+                    if not os.path.exists(pkg_dir):
+                        return False
+
                 return True
             elif req.editable and req.link.is_file:
                 requested_path = req.link.file_path
diff --git a/tests/integration/test_editable_vcs.py b/tests/integration/test_editable_vcs.py
new file mode 100644
index 000000000..52f38b267
--- /dev/null
+++ b/tests/integration/test_editable_vcs.py
@@ -0,0 +1,64 @@
+import shutil
+from pathlib import Path
+
+import pytest
+
+
+@pytest.mark.integration
+@pytest.mark.install
+@pytest.mark.editable
+@pytest.mark.vcs
+def test_editable_vcs_reinstall(pipenv_instance_private_pypi):
+    """Test that editable VCS dependencies are reinstalled when the source checkout is missing."""
+    with pipenv_instance_private_pypi() as p:
+        # Create a Pipfile with an editable VCS dependency
+        with open(p.pipfile_path, "w") as f:
+            f.write("""
+[[source]]
+url = "https://pypi.org/simple"
+verify_ssl = true
+name = "pypi"
+
+[packages]
+gunicorn = {git = "https://github.com/benoitc/gunicorn", ref = "23.0.0", editable = true}
+            """.strip())
+
+        # Install the dependency
+        c = p.pipenv("install")
+        assert c.returncode == 0, f"Failed to install: {c.stderr}"
+
+        # Verify the src directory was created
+        # The src directory could be in the project directory or in the virtualenv directory
+        src_dir_project = Path(p.path) / "src"
+        src_dir_venv = Path(p.virtualenv_location) / "src"
+
+        # Check if either src directory exists
+        src_dir = src_dir_project if src_dir_project.exists() else src_dir_venv
+        assert src_dir.exists(), f"src directory was not created in either {src_dir_project} or {src_dir_venv}"
+        assert any(src_dir.iterdir()), "src directory is empty"
+
+        # Import the package to verify it's installed correctly
+        c = p.pipenv("run python -c 'import gunicorn'")
+        assert c.returncode == 0, f"Failed to import gunicorn: {c.stderr}"
+
+        # Remove the src directory to simulate the issue
+        shutil.rmtree(src_dir)
+        assert not src_dir.exists(), "Failed to remove src directory"
+
+        # Run pipenv install again to see if it reinstalls the dependency
+        c = p.pipenv("install")
+        assert c.returncode == 0, f"Failed to reinstall: {c.stderr}"
+
+        # Verify the src directory was recreated
+        # Check both possible locations again
+        src_dir_project = Path(p.path) / "src"
+        src_dir_venv = Path(p.virtualenv_location) / "src"
+
+        # Check if either src directory exists
+        src_dir = src_dir_project if src_dir_project.exists() else src_dir_venv
+        assert src_dir.exists(), f"src directory was not recreated in either {src_dir_project} or {src_dir_venv}"
+        assert any(src_dir.iterdir()), "recreated src directory is empty"
+
+        # Import the package again to verify it's reinstalled correctly
+        c = p.pipenv("run python -c 'import gunicorn'")
+        assert c.returncode == 0, f"Failed to import gunicorn after reinstall: {c.stderr}"