diff --git a/src/vs/workbench/api/browser/mainThreadTerminalService.ts b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
index daf65dbc0f7..7c81d6928d0 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
@@ -92,8 +92,6 @@ export class MainThreadTerminalService implements MainThreadTerminalServiceShape
 			this._updateDefaultProfile();
 		});
 		this._terminalService.onDidChangeAvailableProfiles(() => this._updateDefaultProfile());
-
-		this._terminalService.extHostReady(_extHostContext.remoteAuthority!); // TODO@Tyriar: remove null assertion
 	}
 
 	public dispose(): void {
diff --git a/src/vs/workbench/contrib/terminal/browser/terminal.ts b/src/vs/workbench/contrib/terminal/browser/terminal.ts
index f4f04433bed..e09e62b1868 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminal.ts
@@ -187,7 +187,6 @@ export interface ITerminalService {
 
 	setContainers(panelContainer: HTMLElement, terminalContainer: HTMLElement): void;
 
-	extHostReady(remoteAuthority: string): void;
 	requestStartExtensionTerminal(proxy: ITerminalProcessExtHostProxy, cols: number, rows: number): Promise<ITerminalLaunchError | undefined>;
 	isAttachedToTerminal(remoteTerm: IRemoteTerminalAttachTarget): boolean;
 }
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index 3ec1bcee3ef..cfe460afd8a 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -52,7 +52,6 @@ export class TerminalService implements ITerminalService {
 	private _terminalGroups: ITerminalGroup[] = [];
 	private _backgroundedTerminalInstances: ITerminalInstance[] = [];
 	private _findState: FindReplaceState;
-	private _extHostsReady: { [authority: string]: IExtHostReadyEntry | undefined } = {};
 	private _activeGroupIndex: number;
 	private _activeInstanceIndex: number;
 	private _linkProviders: Set<ITerminalExternalLinkProvider> = new Set();
@@ -324,11 +323,6 @@ export class TerminalService implements ITerminalService {
 		});
 	}
 
-	async extHostReady(remoteAuthority: string): Promise<void> {
-		this._createExtHostReadyEntry(remoteAuthority);
-		this._extHostsReady[remoteAuthority]!.resolve();
-	}
-
 	@throttle(10000)
 	private async _refreshAvailableProfiles(): Promise<void> {
 		const result = await this._detectProfiles(true);
@@ -348,16 +342,6 @@ export class TerminalService implements ITerminalService {
 		return offProcService?.getProfiles(!configuredProfilesOnly);
 	}
 
-	private _createExtHostReadyEntry(remoteAuthority: string): void {
-		if (this._extHostsReady[remoteAuthority]) {
-			return;
-		}
-
-		let resolve!: () => void;
-		const promise = new Promise<void>(r => resolve = r);
-		this._extHostsReady[remoteAuthority] = { promise, resolve };
-	}
-
 	private _onBeforeShutdown(reason: ShutdownReason): boolean | Promise<boolean> {
 		if (this.terminalInstances.length === 0) {
 			// No terminal instances, don't veto
@@ -1042,11 +1026,6 @@ interface IProfileQuickPickItem extends IQuickPickItem {
 	profile: ITerminalProfile | ITerminalTypeContribution;
 }
 
-interface IExtHostReadyEntry {
-	promise: Promise<void>;
-	resolve: () => void;
-}
-
 interface IInstanceLocation {
 	group: ITerminalGroup,
 	groupIndex: number,