diff --git a/src/vs/workbench/api/node/extHostTerminalService.ts b/src/vs/workbench/api/node/extHostTerminalService.ts
index dc52bfc0023..4d93e8aed49 100644
--- a/src/vs/workbench/api/node/extHostTerminalService.ts
+++ b/src/vs/workbench/api/node/extHostTerminalService.ts
@@ -396,7 +396,7 @@ export class ExtHostTerminalService implements ExtHostTerminalServiceShape {
 
 		// Fork the process and listen for messages
 		// this._logService.debug(`Terminal process launching on ext host`, options);
-		this._terminalProcesses[id] = new TerminalProcess(shellLaunchConfig.executable, shellLaunchConfig.args, initialCwd, cols, rows);
+		this._terminalProcesses[id] = new TerminalProcess(shellLaunchConfig, initialCwd, cols, rows);
 		this._terminalProcesses[id].onProcessIdReady(pid => this._proxy.$sendProcessPid(id, pid));
 		this._terminalProcesses[id].onProcessTitleChanged(title => this._proxy.$sendProcessTitle(id, title));
 		this._terminalProcesses[id].onProcessData(data => this._proxy.$sendProcessData(id, data));
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
index b276f5620c7..c0c66b94773 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
@@ -126,7 +126,7 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 
 			// TODO: Send right args (on ext host too)
 			console.log('create terminal process', env['PTYSHELL'], env['PTYCWD']);
-			this._process = new TerminalProcess(shellLaunchConfig.executable, shellLaunchConfig.args, this.initialCwd, cols, rows);
+			this._process = new TerminalProcess(shellLaunchConfig, this.initialCwd, cols, rows);
 		}
 		this.processState = ProcessState.LAUNCHING;
 
diff --git a/src/vs/workbench/parts/terminal/node/terminalProcess.ts b/src/vs/workbench/parts/terminal/node/terminalProcess.ts
index fff587bc9ee..794adfa4dd3 100644
--- a/src/vs/workbench/parts/terminal/node/terminalProcess.ts
+++ b/src/vs/workbench/parts/terminal/node/terminalProcess.ts
@@ -6,10 +6,12 @@
 import * as os from 'os';
 import * as path from 'path';
 import * as pty from 'node-pty';
+// import * as terminalEnvironment from 'vs/workbench/parts/terminal/node/terminalEnvironment';
 import { Event, Emitter } from 'vs/base/common/event';
 import { IProcessEnvironment } from 'vs/base/common/platform';
 import { ITerminalChildProcess } from 'vs/workbench/parts/terminal/node/terminal';
 import { IDisposable } from 'vs/base/common/lifecycle';
+import { IShellLaunchConfig } from 'vs/workbench/parts/terminal/common/terminal';
 
 export class TerminalProcess implements ITerminalChildProcess, IDisposable {
 	private _exitCode: number;
@@ -26,12 +28,12 @@ export class TerminalProcess implements ITerminalChildProcess, IDisposable {
 	private readonly _onProcessTitleChanged: Emitter<string> = new Emitter<string>();
 	public get onProcessTitleChanged(): Event<string> { return this._onProcessTitleChanged.event; }
 
-	constructor(shell: string, args: string | string[], cwd: string, cols: number, rows: number) {
+	constructor(shellLaunchConfig: IShellLaunchConfig, cwd: string, cols: number, rows: number) {
 		// The pty process needs to be run in its own child process to get around maxing out CPU on Mac,
 		// see https://github.com/electron/electron/issues/38
 		let shellName: string;
 		if (os.platform() === 'win32') {
-			shellName = path.basename(process.env.PTYSHELL);
+			shellName = path.basename(shellLaunchConfig.executable);
 		} else {
 			// Using 'xterm-256color' here helps ensure that the majority of Linux distributions will use a
 			// color prompt as defined in the default ~/.bashrc file.
@@ -46,7 +48,7 @@ export class TerminalProcess implements ITerminalChildProcess, IDisposable {
 			rows
 		};
 
-		this._ptyProcess = pty.spawn(shell, args, options);
+		this._ptyProcess = pty.spawn(shellLaunchConfig.executable, shellLaunchConfig.args, options);
 		this._ptyProcess.on('data', (data) => {
 			this._onProcessData.fire(data);
 			if (this._closeTimeout) {
@@ -100,6 +102,12 @@ export class TerminalProcess implements ITerminalChildProcess, IDisposable {
 				delete env[key];
 			}
 		});
+		// TODO: Determine which parts of env initialization should go where
+		// const envFromConfig = terminalEnvironment.resolveConfigurationVariables(this._configurationResolverService, { ...this._configHelper.config.env[platformKey] }, lastActiveWorkspaceRoot);
+		// const envFromShell = terminalEnvironment.resolveConfigurationVariables(this._configurationResolverService, { ...shellLaunchConfig.env }, lastActiveWorkspaceRoot);
+		// shellLaunchConfig.env = envFromShell;
+		// terminalEnvironment.mergeEnvironments(parentEnv, envFromConfig);
+		// const env = terminalEnvironment.createTerminalEnv(parentEnv, shellLaunchConfig, this.initialCwd, locale, cols, rows);
 		return env;
 	}