diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index 59675a4794b..81f1fef504b 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -1193,7 +1193,7 @@ export interface ExtHostTerminalServiceShape {
 	$acceptTerminalTitleChange(id: number, name: string): void;
 	$acceptTerminalDimensions(id: number, cols: number, rows: number): void;
 	$acceptTerminalMaximumDimensions(id: number, cols: number, rows: number): void;
-	$spawnExtHostProcess(id: number, shellLaunchConfig: IShellLaunchConfigDto, activeWorkspaceRootUri: UriComponents, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void;
+	$spawnExtHostProcess(id: number, shellLaunchConfig: IShellLaunchConfigDto, activeWorkspaceRootUri: UriComponents | undefined, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void;
 	$startExtensionTerminal(id: number, initialDimensions: ITerminalDimensionsDto | undefined): void;
 	$acceptProcessInput(id: number, data: string): void;
 	$acceptProcessResize(id: number, cols: number, rows: number): void;
diff --git a/src/vs/workbench/api/node/extHostTerminalService.ts b/src/vs/workbench/api/node/extHostTerminalService.ts
index 13831193a59..d89750cfdf1 100644
--- a/src/vs/workbench/api/node/extHostTerminalService.ts
+++ b/src/vs/workbench/api/node/extHostTerminalService.ts
@@ -123,7 +123,7 @@ export class ExtHostTerminalService extends BaseExtHostTerminalService {
 		this._variableResolver = new ExtHostVariableResolverService(workspaceFolders || [], this._extHostDocumentsAndEditors, configProvider);
 	}
 
-	public async $spawnExtHostProcess(id: number, shellLaunchConfigDto: IShellLaunchConfigDto, activeWorkspaceRootUriComponents: UriComponents, cols: number, rows: number, isWorkspaceShellAllowed: boolean): Promise<void> {
+	public async $spawnExtHostProcess(id: number, shellLaunchConfigDto: IShellLaunchConfigDto, activeWorkspaceRootUriComponents: UriComponents | undefined, cols: number, rows: number, isWorkspaceShellAllowed: boolean): Promise<void> {
 		const shellLaunchConfig: IShellLaunchConfig = {
 			name: shellLaunchConfigDto.name,
 			executable: shellLaunchConfigDto.executable,
@@ -156,16 +156,21 @@ export class ExtHostTerminalService extends BaseExtHostTerminalService {
 		}
 
 		const activeWorkspaceRootUri = URI.revive(activeWorkspaceRootUriComponents);
-		// Get the environment
-		const apiLastActiveWorkspace = await this._extHostWorkspace.getWorkspaceFolder(activeWorkspaceRootUri);
-		const lastActiveWorkspace = apiLastActiveWorkspace ? {
-			uri: apiLastActiveWorkspace.uri,
-			name: apiLastActiveWorkspace.name,
-			index: apiLastActiveWorkspace.index,
-			toResource: () => {
-				throw new Error('Not implemented');
+		let lastActiveWorkspace: IWorkspaceFolder | null = null;
+		if (activeWorkspaceRootUriComponents && activeWorkspaceRootUri) {
+			// Get the environment
+			const apiLastActiveWorkspace = await this._extHostWorkspace.getWorkspaceFolder(activeWorkspaceRootUri);
+			if (apiLastActiveWorkspace) {
+				lastActiveWorkspace = {
+					uri: apiLastActiveWorkspace.uri,
+					name: apiLastActiveWorkspace.name,
+					index: apiLastActiveWorkspace.index,
+					toResource: () => {
+						throw new Error('Not implemented');
+					}
+				};
 			}
-		} as IWorkspaceFolder : null;
+		}
 
 		// Get the initial cwd
 		const terminalConfig = configProvider.getConfiguration('terminal.integrated');
diff --git a/src/vs/workbench/contrib/terminal/browser/terminal.ts b/src/vs/workbench/contrib/terminal/browser/terminal.ts
index fa1c7e01354..c3ede8986ad 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminal.ts
@@ -144,7 +144,7 @@ export interface ITerminalService {
 	preparePathForTerminalAsync(path: string, executable: string | undefined, title: string): Promise<string>;
 
 	extHostReady(remoteAuthority: string): void;
-	requestSpawnExtHostProcess(proxy: ITerminalProcessExtHostProxy, shellLaunchConfig: IShellLaunchConfig, activeWorkspaceRootUri: URI, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void;
+	requestSpawnExtHostProcess(proxy: ITerminalProcessExtHostProxy, shellLaunchConfig: IShellLaunchConfig, activeWorkspaceRootUri: URI | undefined, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void;
 	requestStartExtensionTerminal(proxy: ITerminalProcessExtHostProxy, cols: number, rows: number): void;
 }
 
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts b/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
index 345840a6410..3db8f795da5 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
@@ -48,7 +48,7 @@ export class TerminalProcessExtHostProxy extends Disposable implements ITerminal
 	constructor(
 		public terminalId: number,
 		shellLaunchConfig: IShellLaunchConfig,
-		activeWorkspaceRootUri: URI,
+		activeWorkspaceRootUri: URI | undefined,
 		cols: number,
 		rows: number,
 		configHelper: ITerminalConfigHelper,
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index 052f5ad2392..173957233b9 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -134,7 +134,7 @@ export class TerminalService implements ITerminalService {
 		return activeInstance ? activeInstance : this.createTerminal(undefined);
 	}
 
-	public requestSpawnExtHostProcess(proxy: ITerminalProcessExtHostProxy, shellLaunchConfig: IShellLaunchConfig, activeWorkspaceRootUri: URI, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void {
+	public requestSpawnExtHostProcess(proxy: ITerminalProcessExtHostProxy, shellLaunchConfig: IShellLaunchConfig, activeWorkspaceRootUri: URI | undefined, cols: number, rows: number, isWorkspaceShellAllowed: boolean): void {
 		this._extensionService.whenInstalledExtensionsRegistered().then(async () => {
 			// Wait for the remoteAuthority to be ready (and listening for events) before firing
 			// the event to spawn the ext host process
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index 620b4f36ee7..540ee8cd1c3 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -343,7 +343,7 @@ export interface ITerminalProcessExtHostProxy extends IDisposable {
 export interface ISpawnExtHostProcessRequest {
 	proxy: ITerminalProcessExtHostProxy;
 	shellLaunchConfig: IShellLaunchConfig;
-	activeWorkspaceRootUri: URI;
+	activeWorkspaceRootUri: URI | undefined;
 	cols: number;
 	rows: number;
 	isWorkspaceShellAllowed: boolean;