diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 7d148c92b17..4435b45e013 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -1160,7 +1160,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 	}
 
 	override dispose(reason?: TerminalExitReason): void {
-		if (this.shellLaunchConfig.type === 'Task' && reason === TerminalExitReason.Process && this._exitCode !== 0) {
+		if (this.shellLaunchConfig.type === 'Task' && reason === TerminalExitReason.Process && this._exitCode !== 0 && !this.shellLaunchConfig.waitOnExit) {
 			return;
 		}
 		if (this.isDisposed) {