diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 1f27f0d7418..755a1bf0df5 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -1188,12 +1188,16 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 			return;
 		}
 
-		const currentText: string = value;
+		let currentText = value;
 		const shouldPasteText = await this._scopedInstantiationService.invokeFunction(shouldPasteTerminalText, currentText, this.xterm?.raw.modes.bracketedPasteMode);
 		if (!shouldPasteText) {
 			return;
 		}
 
+		if (typeof shouldPasteText === 'object') {
+			currentText = shouldPasteText.modifiedText;
+		}
+
 		this.focus();
 		this.xterm.raw.paste(currentText);
 	}
diff --git a/src/vs/workbench/contrib/terminal/common/terminalClipboard.ts b/src/vs/workbench/contrib/terminal/common/terminalClipboard.ts
index 2e529b6e637..e97008acc8b 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalClipboard.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalClipboard.ts
@@ -9,7 +9,7 @@ import { IDialogService } from 'vs/platform/dialogs/common/dialogs';
 import { ServicesAccessor } from 'vs/platform/instantiation/common/instantiation';
 import { TerminalSettingId } from 'vs/platform/terminal/common/terminal';
 
-export async function shouldPasteTerminalText(accessor: ServicesAccessor, text: string, bracketedPasteMode: boolean | undefined): Promise<boolean> {
+export async function shouldPasteTerminalText(accessor: ServicesAccessor, text: string, bracketedPasteMode: boolean | undefined): Promise<boolean | { modifiedText: string }> {
 	const configurationService = accessor.get(IConfigurationService);
 	const dialogService = accessor.get(IDialogService);
 
@@ -70,18 +70,37 @@ export async function shouldPasteTerminalText(accessor: ServicesAccessor, text:
 		detail += `\n…`;
 	}
 
-	const { confirmed, checkboxChecked } = await dialogService.confirm({
+	const { result, checkboxChecked } = await dialogService.prompt<{ confirmed: boolean; singleLine: boolean }>({
 		message: localize('confirmMoveTrashMessageFilesAndDirectories', "Are you sure you want to paste {0} lines of text into the terminal?", textForLines.length),
 		detail,
-		primaryButton: localize({ key: 'multiLinePasteButton', comment: ['&& denotes a mnemonic'] }, "&&Paste"),
+		type: 'warning',
+		buttons: [
+			{
+				label: localize({ key: 'multiLinePasteButton', comment: ['&& denotes a mnemonic'] }, "&&Paste"),
+				run: () => ({ confirmed: true, singleLine: false })
+			},
+			{
+				label: localize({ key: 'multiLinePasteButton.oneLine', comment: ['&& denotes a mnemonic'] }, "Paste as &&one line"),
+				run: () => ({ confirmed: true, singleLine: true })
+			}
+		],
+		cancelButton: true,
 		checkbox: {
 			label: localize('doNotAskAgain', "Do not ask me again")
 		}
 	});
 
-	if (confirmed && checkboxChecked) {
+	if (!result) {
+		return false;
+	}
+
+	if (result.confirmed && checkboxChecked) {
 		await configurationService.updateValue(TerminalSettingId.EnableMultiLinePasteWarning, false);
 	}
 
-	return confirmed;
+	if (result.singleLine) {
+		return { modifiedText: text.replaceAll(/\r?\n/, '') };
+	}
+
+	return result.confirmed;
 }