diff --git a/src/vs/workbench/parts/terminal/common/terminal.ts b/src/vs/workbench/parts/terminal/common/terminal.ts
index 630dc94ce89..cd6e72a3d9a 100644
--- a/src/vs/workbench/parts/terminal/common/terminal.ts
+++ b/src/vs/workbench/parts/terminal/common/terminal.ts
@@ -19,6 +19,8 @@ export const TERMINAL_DEFAULT_SHELL_LINUX = !platform.isWindows ? (process.env.S
 export const TERMINAL_DEFAULT_SHELL_OSX = !platform.isWindows ? (process.env.SHELL || 'sh') : 'sh';
 export const TERMINAL_DEFAULT_SHELL_WINDOWS = processes.getWindowsShell();
 
+export const TERMINAL_DEFAULT_RIGHT_CLICK_COPY_PASTE = platform.isWindows;
+
 /**  A context key that is set when the integrated terminal has focus. */
 export const KEYBINDING_CONTEXT_TERMINAL_FOCUS = new RawContextKey<boolean>('terminalFocus', undefined);
 /**  A context key that is set when the integrated terminal does not have focus. */
@@ -44,6 +46,7 @@ export interface ITerminalConfiguration {
 				osx: string[],
 				windows: string[]
 			},
+			rightClickCopyPaste: boolean,
 			cursorBlinking: boolean,
 			fontFamily: string,
 			fontLigatures: boolean,
@@ -62,6 +65,7 @@ export interface ITerminalConfigHelper {
 	getFont(): ITerminalFont;
 	getFontLigaturesEnabled(): boolean;
 	getCursorBlink(): boolean;
+	getRightClickCopyPaste(): boolean;
 	getCommandsToSkipShell(): string[];
 	getScrollback(): number;
 	getCwd(): string;
@@ -146,11 +150,21 @@ export interface ITerminalInstance {
 	 */
 	dispose(): void;
 
+	/**
+	 * Check if anything is selected in terminal.
+	 */
+	hasSelection(): boolean;
+
 	/**
 	 * Copies the terminal selection to the clipboard.
 	 */
 	copySelection(): void;
 
+	/**
+	 * Clear current selection.
+	 */
+	clearSelection(): void;
+
 	/**
 	 * Focuses the terminal instance.
 	 *
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts b/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
index 69e4620b875..f4fee11ede3 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
@@ -11,7 +11,7 @@ import * as platform from 'vs/base/common/platform';
 import nls = require('vs/nls');
 import { Extensions, IConfigurationRegistry } from 'vs/platform/configuration/common/configurationRegistry';
 import { GlobalQuickOpenAction } from 'vs/workbench/browser/parts/quickopen/quickopen.contribution';
-import { ITerminalService, KEYBINDING_CONTEXT_TERMINAL_FOCUS, KEYBINDING_CONTEXT_TERMINAL_TEXT_SELECTED, TERMINAL_PANEL_ID, TERMINAL_DEFAULT_SHELL_LINUX, TERMINAL_DEFAULT_SHELL_OSX, TERMINAL_DEFAULT_SHELL_WINDOWS } from 'vs/workbench/parts/terminal/common/terminal';
+import { ITerminalService, KEYBINDING_CONTEXT_TERMINAL_FOCUS, KEYBINDING_CONTEXT_TERMINAL_TEXT_SELECTED, TERMINAL_PANEL_ID, TERMINAL_DEFAULT_SHELL_LINUX, TERMINAL_DEFAULT_SHELL_OSX, TERMINAL_DEFAULT_SHELL_WINDOWS, TERMINAL_DEFAULT_RIGHT_CLICK_COPY_PASTE } from 'vs/workbench/parts/terminal/common/terminal';
 import { IWorkbenchActionRegistry, Extensions as ActionExtensions } from 'vs/workbench/common/actionRegistry';
 import { KeyCode, KeyMod } from 'vs/base/common/keyCodes';
 import { ContextKeyExpr } from 'vs/platform/contextkey/common/contextkey';
@@ -73,6 +73,11 @@ configurationRegistry.registerConfiguration({
 			},
 			'default': []
 		},
+		'terminal.integrated.rightClickCopyPaste': {
+			'description': nls.localize('terminal.integrated.rightClickCopyPaste', "When set, this will prevent the context menu from appearing when right clicking within the terminal, instead it will copy when there is a selection and paste when there is no selection."),
+			'type': 'boolean',
+			'default': TERMINAL_DEFAULT_RIGHT_CLICK_COPY_PASTE
+		},
 		'terminal.integrated.fontFamily': {
 			'description': nls.localize('terminal.integrated.fontFamily', "Controls the font family of the terminal, this defaults to editor.fontFamily's value."),
 			'type': 'string'
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
index cbaacda3391..c0949423672 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
@@ -57,7 +57,7 @@ export class KillTerminalAction extends Action {
 
 /**
  * Copies the terminal selection. Note that since the command palette takes focus from the terminal,
- * this can only be triggered via a keybinding.
+ * this cannot be triggered through the command palette.
  */
 export class CopyTerminalSelectionAction extends Action {
 
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalConfigHelper.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalConfigHelper.ts
index 7ab53353ef0..113024a23db 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalConfigHelper.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalConfigHelper.ts
@@ -138,6 +138,11 @@ export class TerminalConfigHelper implements ITerminalConfigHelper {
 		return terminalConfig.cursorBlinking;
 	}
 
+	public getRightClickCopyPaste(): boolean {
+		let config = this._configurationService.getConfiguration<ITerminalConfiguration>();
+		return config.terminal.integrated.rightClickCopyPaste;
+	}
+
 	public getShell(): IShell {
 		let config = this._configurationService.getConfiguration<ITerminalConfiguration>();
 		let shell: IShell = {
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
index 5f059610f11..6121cc1c58c 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
@@ -195,6 +195,10 @@ export class TerminalInstance implements ITerminalInstance {
 		this.updateConfig();
 	}
 
+	public hasSelection(): boolean {
+		return !document.getSelection().isCollapsed;
+	}
+
 	public copySelection(): void {
 		if (document.activeElement.classList.contains('xterm')) {
 			document.execCommand('copy');
@@ -203,6 +207,10 @@ export class TerminalInstance implements ITerminalInstance {
 		}
 	}
 
+	public clearSelection(): void {
+		document.getSelection().empty();
+	}
+
 	public dispose(): void {
 		this._isExiting = true;
 
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
index 3be638f8530..04a0539758b 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
@@ -149,25 +149,30 @@ export class TerminalPanel extends Panel {
 				// occurs on the selection itself.
 				this._terminalService.getActiveInstance().focus();
 			} else if (event.which === 3) {
-				// Trigger the context menu on right click
-				let anchor: HTMLElement | { x: number, y: number } = this._parentDomElement;
-				if (event instanceof MouseEvent) {
-					const standardEvent = new StandardMouseEvent(event);
-					anchor = { x: standardEvent.posx, y: standardEvent.posy };
-				}
-
-				this._contextMenuService.showContextMenu({
-					getAnchor: () => anchor,
-					getActions: () => TPromise.as(this._getContextMenuActions()),
-					getActionsContext: () => this._parentDomElement,
-					getKeyBinding: (action) => {
-						const opts = this._keybindingService.lookupKeybindings(action.id);
-						if (opts.length > 0) {
-							return opts[0]; // only take the first one
-						}
-						return null;
+				if (this._terminalService.configHelper.getRightClickCopyPaste()) {
+					let terminal = this._terminalService.getActiveInstance();
+					if (terminal.hasSelection()) {
+						terminal.copySelection();
+						terminal.clearSelection();
+					} else {
+						terminal.paste();
 					}
-				});
+				} else {
+					const standardEvent = new StandardMouseEvent(event);
+					let anchor: { x: number, y: number } = { x: standardEvent.posx, y: standardEvent.posy };
+					this._contextMenuService.showContextMenu({
+						getAnchor: () => anchor,
+						getActions: () => TPromise.as(this._getContextMenuActions()),
+						getActionsContext: () => this._parentDomElement,
+						getKeyBinding: (action) => {
+							const opts = this._keybindingService.lookupKeybindings(action.id);
+							if (opts.length > 0) {
+								return opts[0]; // only take the first one
+							}
+							return null;
+						}
+					});
+				}
 			}
 		}));
 		this._register(DOM.addDisposableListener(this._parentDomElement, 'click', (event) => {