diff --git a/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts b/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
index 6126abc940a..d6a359973f1 100644
--- a/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
+++ b/src/vs/sessions/contrib/sessions/browser/views/sessionsList.ts
@@ -1173,7 +1173,7 @@ export function groupByWorkspace(sessions: ISessionData[]): ISessionSection[] {
 	const groups = new Map<string, ISessionData[]>();
 	for (const session of sessions) {
 		const workspace = session.workspace.get();
-		const label = workspace?.label || localize('noWorkspace', "No Workspace");
+		const label = workspace?.label ?? localize('unknown', "Unknown");
 		let group = groups.get(label);
 		if (!group) {
 			group = [];
@@ -1182,9 +1182,9 @@ export function groupByWorkspace(sessions: ISessionData[]): ISessionSection[] {
 		group.push(session);
 	}
 
-	const noWorkspaceLabel = localize('noWorkspace', "No Workspace");
+	const unknownWorkspaceLabel = localize('unknown', "Unknown");
 	const order = [...groups.keys()]
-		.filter(k => k !== noWorkspaceLabel)
+		.filter(k => k !== unknownWorkspaceLabel)
 		.sort((a, b) => a.localeCompare(b));
 
 	const result: ISessionSection[] = order.map(label => ({
@@ -1193,10 +1193,10 @@ export function groupByWorkspace(sessions: ISessionData[]): ISessionSection[] {
 		sessions: groups.get(label)!,
 	}));
 
-	// "No Workspace" always at the bottom
-	const noWorkspace = groups.get(noWorkspaceLabel);
-	if (noWorkspace) {
-		result.push({ id: `workspace:${noWorkspaceLabel}`, label: noWorkspaceLabel, sessions: noWorkspace });
+	// "Unknown Workspace" always at the bottom
+	const unknownWorkspace = groups.get(unknownWorkspaceLabel);
+	if (unknownWorkspace) {
+		result.push({ id: `workspace:${unknownWorkspaceLabel}`, label: unknownWorkspaceLabel, sessions: unknownWorkspace });
 	}
 
 	return result;
diff --git a/src/vs/sessions/contrib/sessions/test/browser/sessionsList.test.ts b/src/vs/sessions/contrib/sessions/test/browser/sessionsList.test.ts
index 14a5f185ef1..2e578fc064e 100644
--- a/src/vs/sessions/contrib/sessions/test/browser/sessionsList.test.ts
+++ b/src/vs/sessions/contrib/sessions/test/browser/sessionsList.test.ts
@@ -67,7 +67,7 @@ suite('Sessions - SessionsList Helpers', () => {
 			assert.deepStrictEqual(groups.map(g => g.label), ['Apple', 'Mango', 'Zebra']);
 		});
 
-		test('sessions without workspace are grouped under "No Workspace"', () => {
+		test('sessions without workspace are grouped under "Unknown"', () => {
 			const sessions = [
 				createSession('1', { workspaceLabel: 'Beta' }),
 				createSession('2', {}),
@@ -76,7 +76,7 @@ suite('Sessions - SessionsList Helpers', () => {
 
 			const groups = groupByWorkspace(sessions);
 
-			assert.deepStrictEqual(groups.map(g => g.label), ['Alpha', 'Beta', 'No Workspace']);
+			assert.deepStrictEqual(groups.map(g => g.label), ['Alpha', 'Beta', 'Unknown']);
 		});
 
 		test('multiple sessions in same workspace are grouped together', () => {
@@ -102,10 +102,10 @@ suite('Sessions - SessionsList Helpers', () => {
 
 			const groups = groupByWorkspace(sessions);
 
-			assert.deepStrictEqual(groups.map(g => g.label), ['Alpha', 'Zulu', 'No Workspace']);
+			assert.deepStrictEqual(groups.map(g => g.label), ['Alpha', 'Zulu', 'Unknown']);
 		});
 
-		test('empty workspace label is treated as "No Workspace"', () => {
+		test('empty workspace label is treated as "Unknown"', () => {
 			const sessions = [
 				createSession('1', { workspaceLabel: 'Zulu' }),
 				createSession('2', { workspaceLabel: '' }),
@@ -113,7 +113,7 @@ suite('Sessions - SessionsList Helpers', () => {
 
 			const groups = groupByWorkspace(sessions);
 
-			assert.deepStrictEqual(groups.map(g => g.label), ['Zulu', 'No Workspace']);
+			assert.deepStrictEqual(groups.map(g => g.label), ['Zulu', 'Unknown']);
 			assert.strictEqual(groups[1].sessions.length, 1);
 		});