diff --git a/src/vs/platform/terminal/node/terminalProcess.ts b/src/vs/platform/terminal/node/terminalProcess.ts
index 968009e20e6..707bfa7fc0f 100644
--- a/src/vs/platform/terminal/node/terminalProcess.ts
+++ b/src/vs/platform/terminal/node/terminalProcess.ts
@@ -244,7 +244,11 @@ export class TerminalProcess extends Disposable implements ITerminalChildProcess
 			return undefined;
 		} catch (err) {
 			this._logService.trace('node-pty.node-pty.IPty#spawn native exception', err);
-			return { message: `A native exception occurred during launch (${err.message})` };
+			const errorMessage = err.message;
+			if (errorMessage?.includes('Cannot launch conpty')) {
+				return { message: localize('conptyLaunchFailed', "A native exception occurred during launch (Cannot launch conpty). Winpty has been removed, see {0} for more details. You can also try enabling the `{1}` setting.", 'https://code.visualstudio.com/updates/v1_109#_removal-of-winpty-support', 'terminal.integrated.windowsUseConptyDll') };
+			}
+			return { message: `A native exception occurred during launch (${errorMessage})` };
 		}
 	}
 
diff --git a/src/vs/workbench/contrib/terminal/test/browser/terminalInstance.test.ts b/src/vs/workbench/contrib/terminal/test/browser/terminalInstance.test.ts
index 81bc2516e21..0eb0cf84c48 100644
--- a/src/vs/workbench/contrib/terminal/test/browser/terminalInstance.test.ts
+++ b/src/vs/workbench/contrib/terminal/test/browser/terminalInstance.test.ts
@@ -288,6 +288,12 @@ suite('Workbench - TerminalInstance', () => {
 				{ code: 1260, message: `The terminal process failed to launch: Windows cannot open this program because it has been prevented by a software restriction policy. For more information, open Event Viewer or contact your system Administrator.` }
 			);
 		});
+		test('should format conpty launch failure', () => {
+			deepStrictEqual(
+				parseExitResult({ message: 'A native exception occurred during launch (Cannot launch conpty). Winpty has been removed, see https://code.visualstudio.com/updates/v1_109#_removal-of-winpty-support for more details. You can also try enabling the `terminal.integrated.windowsUseConptyDll` setting.' }, {}, ProcessState.KilledDuringLaunch, undefined),
+				{ code: undefined, message: `The terminal process failed to launch: A native exception occurred during launch (Cannot launch conpty). Winpty has been removed, see https://code.visualstudio.com/updates/v1_109#_removal-of-winpty-support for more details. You can also try enabling the \`terminal.integrated.windowsUseConptyDll\` setting..` }
+			);
+		});
 		test('should format generic failures', () => {
 			deepStrictEqual(
 				parseExitResult({ code: 123, message: 'A native exception occurred during launch (Cannot create process, error code: 123)' }, {}, ProcessState.KilledDuringLaunch, undefined),