diff --git a/src/vs/workbench/api/browser/mainThreadTerminalService.ts b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
index 03858de675f..b98e024f441 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
@@ -326,7 +326,7 @@ export class MainThreadTerminalService implements MainThreadTerminalServiceShape
 	public $sendResolvedLaunchConfig(terminalId: number, shellLaunchConfig: IShellLaunchConfig): void {
 		const instance = this._terminalService.getInstanceFromId(terminalId);
 		if (instance) {
-			instance.shellLaunchConfig = shellLaunchConfig;
+			this._getTerminalProcess(terminalId).then(e => e.emitOverrideShellLaunchConfig(shellLaunchConfig));
 		}
 	}
 
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 1e385d4c223..dc9e137d713 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -223,7 +223,6 @@ export class TerminalInstance implements ITerminalInstance {
 	public get hadFocusOnExit(): boolean { return this._hadFocusOnExit; }
 	public get isTitleSetByProcess(): boolean { return !!this._messageTitleDisposable; }
 	public get shellLaunchConfig(): IShellLaunchConfig { return this._shellLaunchConfig; }
-	public set shellLaunchConfig(shellLaunchConfig: IShellLaunchConfig) { this._shellLaunchConfig = shellLaunchConfig; }
 	public get commandTracker(): TerminalCommandTracker { return this._commandTracker; }
 
 	private readonly _onExit = new Emitter<number>();
@@ -969,6 +968,7 @@ export class TerminalInstance implements ITerminalInstance {
 		this._processManager.onProcessExit(exitCode => this._onProcessExit(exitCode));
 		this._processManager.onProcessData(data => this._onData.fire(data));
 		this._processManager.onProcessOverrideDimensions(e => this.setDimensions(e));
+		this._processManager.onProcessOverrideShellLaunchConfig(e => this.setShellLaunchConfig(e));
 
 		if (this._shellLaunchConfig.name) {
 			this.setTitle(this._shellLaunchConfig.name, false);
@@ -1380,6 +1380,13 @@ export class TerminalInstance implements ITerminalInstance {
 		this._resize();
 	}
 
+	private setShellLaunchConfig(shellLaunchConfig: IShellLaunchConfig): void {
+		this._shellLaunchConfig.args = shellLaunchConfig.args;
+		this._shellLaunchConfig.cwd = shellLaunchConfig.cwd;
+		this._shellLaunchConfig.executable = shellLaunchConfig.executable;
+		this._shellLaunchConfig.env = shellLaunchConfig.env;
+	}
+
 	private _getXtermTheme(theme?: ITheme): any {
 		if (!theme) {
 			theme = this._themeService.getTheme();
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
index 0d898575cd3..de751c71dea 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
@@ -70,6 +70,8 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 	public get onProcessExit(): Event<number> { return this._onProcessExit.event; }
 	private readonly _onProcessOverrideDimensions = new Emitter<ITerminalDimensions | undefined>();
 	public get onProcessOverrideDimensions(): Event<ITerminalDimensions | undefined> { return this._onProcessOverrideDimensions.event; }
+	private readonly _onProcessOverrideShellLaunchConfig = new Emitter<IShellLaunchConfig>();
+	public get onProcessOverrideShellLaunchConfig(): Event<IShellLaunchConfig> { return this._onProcessOverrideShellLaunchConfig.event; }
 
 	constructor(
 		private readonly _terminalId: number,
@@ -170,6 +172,9 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 		if (this._process.onProcessOverrideDimensions) {
 			this._process.onProcessOverrideDimensions(e => this._onProcessOverrideDimensions.fire(e));
 		}
+		if (this._process.onProcessOverrideShelllaunchConfig) {
+			this._process.onProcessOverrideShelllaunchConfig(e => this._onProcessOverrideShellLaunchConfig.fire(e));
+		}
 
 		setTimeout(() => {
 			if (this.processState === ProcessState.LAUNCHING) {
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index fbbfd48fae7..5967be511d6 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -709,6 +709,7 @@ export interface ITerminalProcessManager extends IDisposable {
 	readonly onProcessTitle: Event<string>;
 	readonly onProcessExit: Event<number>;
 	readonly onProcessOverrideDimensions: Event<ITerminalDimensions | undefined>;
+	readonly onProcessOverrideShellLaunchConfig: Event<IShellLaunchConfig>;
 
 	dispose(immediate?: boolean): void;
 	createProcess(shellLaunchConfig: IShellLaunchConfig, cols: number, rows: number, isScreenReaderModeEnabled: boolean): Promise<void>;
@@ -747,6 +748,7 @@ export interface ITerminalProcessExtHostProxy extends IDisposable {
 	emitReady(pid: number, cwd: string): void;
 	emitExit(exitCode: number): void;
 	emitOverrideDimensions(dimensions: ITerminalDimensions | undefined): void;
+	emitOverrideShellLaunchConfig(shellLaunchConfig: IShellLaunchConfig): void;
 	emitInitialCwd(initialCwd: string): void;
 	emitCwd(cwd: string): void;
 	emitLatency(latency: number): void;
@@ -802,6 +804,7 @@ export interface ITerminalChildProcess {
 	onProcessReady: Event<{ pid: number, cwd: string }>;
 	onProcessTitleChanged: Event<string>;
 	onProcessOverrideDimensions?: Event<ITerminalDimensions | undefined>;
+	onProcessOverrideShelllaunchConfig?: Event<IShellLaunchConfig>;
 
 	/**
 	 * Shutdown the terminal process.
diff --git a/src/vs/workbench/contrib/terminal/common/terminalProcessExtHostProxy.ts b/src/vs/workbench/contrib/terminal/common/terminalProcessExtHostProxy.ts
index 0c44e01d94c..518e16bb3a3 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalProcessExtHostProxy.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalProcessExtHostProxy.ts
@@ -24,6 +24,8 @@ export class TerminalProcessExtHostProxy extends Disposable implements ITerminal
 	public readonly onProcessTitleChanged: Event<string> = this._onProcessTitleChanged.event;
 	private readonly _onProcessOverrideDimensions = new Emitter<ITerminalDimensions | undefined>();
 	public get onProcessOverrideDimensions(): Event<ITerminalDimensions | undefined> { return this._onProcessOverrideDimensions.event; }
+	private readonly _onProcessOverrideShellLaunchConfig = new Emitter<IShellLaunchConfig>();
+	public get onProcessOverrideShelllaunchConfig(): Event<IShellLaunchConfig> { return this._onProcessOverrideShellLaunchConfig.event; }
 
 	private readonly _onInput = this._register(new Emitter<string>());
 	public readonly onInput: Event<string> = this._onInput.event;
@@ -93,6 +95,10 @@ export class TerminalProcessExtHostProxy extends Disposable implements ITerminal
 		this._onProcessOverrideDimensions.fire(dimensions);
 	}
 
+	public emitOverrideShellLaunchConfig(shellLaunchConfig: IShellLaunchConfig): void {
+		this._onProcessOverrideShellLaunchConfig.fire(shellLaunchConfig);
+	}
+
 	public emitInitialCwd(initialCwd: string): void {
 		while (this._pendingInitialCwdRequests.length > 0) {
 			this._pendingInitialCwdRequests.pop()!(initialCwd);