diff --git a/news/3307.bugfix.rst b/news/3307.bugfix.rst
new file mode 100644
index 00000000..0f095c1a
--- /dev/null
+++ b/news/3307.bugfix.rst
@@ -0,0 +1 @@
+Quote command arguments with carets (``^``) on Windows to work around unintended shell escapes.
diff --git a/pipenv/cmdparse.py b/pipenv/cmdparse.py
index cec19273..21aba77e 100644
--- a/pipenv/cmdparse.py
+++ b/pipenv/cmdparse.py
@@ -70,14 +70,29 @@ class Script(object):
         Foul characters include:
 
         * Whitespaces.
+        * Carets (^). (pypa/pipenv#3307)
         * Parentheses in the command. (pypa/pipenv#3168)
 
+        Carets introduce a difficult situation since they are essentially
+        "lossy" when parsed. Consider this in cmd.exe::
+
+            > echo "foo^bar"
+            "foo^bar"
+            > echo foo^^bar
+            foo^bar
+
+        The two commands produce different results, but are both parsed by the
+        shell as `foo^bar`, and there's essentially no sensible way to tell
+        what was actually passed in. This implementation assumes the quoted
+        variation (the first) since it is easier to implement, and arguably
+        the more common case.
+
         The intended use of this function is to pre-process an argument list
         before passing it into ``subprocess.Popen(..., shell=True)``.
 
         See also: https://docs.python.org/3/library/subprocess.html#converting-argument-sequence
         """
         return " ".join(itertools.chain(
-            [_quote_if_contains(self.command, r'[\s()]')],
-            (_quote_if_contains(arg, r'\s') for arg in self.args),
+            [_quote_if_contains(self.command, r'[\s^()]')],
+            (_quote_if_contains(arg, r'[\s^]') for arg in self.args),
         ))
diff --git a/tests/unit/test_cmdparse.py b/tests/unit/test_cmdparse.py
index 1b329a53..912031e9 100644
--- a/tests/unit/test_cmdparse.py
+++ b/tests/unit/test_cmdparse.py
@@ -64,3 +64,12 @@ def test_cmdify_quote_if_paren_in_command():
         '-c',
         "print(123)",
     ]), script
+
+
+@pytest.mark.run
+@pytest.mark.script
+def test_cmdify_quote_if_carets():
+    """Ensure arguments are quoted if they contain carets.
+    """
+    script = Script('foo^bar', ['baz^rex'])
+    assert script.cmdify() == '"foo^bar" "baz^rex"', script