diff --git a/src/vs/vscode.proposed.d.ts b/src/vs/vscode.proposed.d.ts
index d09cbd0ba1e..db0a30804fc 100644
--- a/src/vs/vscode.proposed.d.ts
+++ b/src/vs/vscode.proposed.d.ts
@@ -809,4 +809,53 @@ declare module 'vscode' {
 		 */
 		export function registerDiffInformationCommand(command: string, callback: (diff: LineChange[], ...args: any[]) => any, thisArg?: any): Disposable;
 	}
+
+	export interface Terminal {
+
+		/**
+		 * The name of the terminal.
+		 */
+		readonly name: string;
+
+		/**
+		 * The process ID of the shell process.
+		 */
+		readonly processId: Thenable<number>;
+
+		/**
+		 * Send text to the terminal. The text is written to the stdin of the underlying pty process
+		 * (shell) of the terminal.
+		 *
+		 * @param text The text to send.
+		 * @param addNewLine Whether to add a new line to the text being sent, this is normally
+		 * required to run a command in the terminal. The character(s) added are \n or \r\n
+		 * depending on the platform. This defaults to `true`.
+		 */
+		sendText(text: string, addNewLine?: boolean): void;
+
+		/**
+		 * Show the terminal panel and reveal this terminal in the UI.
+		 *
+		 * @param preserveFocus When `true` the terminal will not take focus.
+		 */
+		show(preserveFocus?: boolean): void;
+
+		/**
+		 * Hide the terminal panel if this terminal is currently showing.
+		 */
+		hide(): void;
+
+		/**
+		 * Dispose and free associated resources.
+		 */
+		dispose(): void;
+
+		/**
+		 * Experimental API that allows listening to the raw data stream coming from the terminal's
+		 * pty process (including ANSI escape sequences).
+		 *
+		 * @param callback The callback that is triggered when data is sent to the terminal.
+		 */
+		onData(callback: (data: string) => any): void;
+	}
 }
\ No newline at end of file
diff --git a/src/vs/workbench/api/node/extHost.protocol.ts b/src/vs/workbench/api/node/extHost.protocol.ts
index 0e44c44a332..c8c0dadd479 100644
--- a/src/vs/workbench/api/node/extHost.protocol.ts
+++ b/src/vs/workbench/api/node/extHost.protocol.ts
@@ -204,6 +204,7 @@ export abstract class MainThreadTerminalServiceShape {
 	$hide(terminalId: number): void { throw ni(); }
 	$sendText(terminalId: number, text: string, addNewLine: boolean): void { throw ni(); }
 	$show(terminalId: number, preserveFocus: boolean): void { throw ni(); }
+	$registerOnData(terminalId: number): void { throw ni(); }
 }
 
 export interface MyQuickPickItems extends IPickOpenEntry {
@@ -413,6 +414,7 @@ export abstract class ExtHostQuickOpenShape {
 export abstract class ExtHostTerminalServiceShape {
 	$acceptTerminalClosed(id: number): void { throw ni(); }
 	$acceptTerminalProcessId(id: number, processId: number): void { throw ni(); }
+	$acceptTerminalData(id: number, data: string): void { throw ni(); }
 }
 
 export abstract class ExtHostSCMShape {
diff --git a/src/vs/workbench/api/node/extHostTerminalService.ts b/src/vs/workbench/api/node/extHostTerminalService.ts
index 2729f12071b..d3a5a42dc6f 100644
--- a/src/vs/workbench/api/node/extHostTerminalService.ts
+++ b/src/vs/workbench/api/node/extHostTerminalService.ts
@@ -20,6 +20,8 @@ export class ExtHostTerminal implements vscode.Terminal {
 	private _pidPromise: TPromise<number>;
 	private _pidPromiseComplete: TValueCallback<number>;
 
+	private _onDataCallback: (data: string) => any;
+
 	constructor(
 		proxy: MainThreadTerminalServiceShape,
 		name?: string,
@@ -67,6 +69,11 @@ export class ExtHostTerminal implements vscode.Terminal {
 		this._queueApiRequest(this._proxy.$hide, []);
 	}
 
+	public onData(callback: (data: string) => any): void {
+		this._onDataCallback = callback;
+		this._queueApiRequest(this._proxy.$registerOnData, []);
+	}
+
 	public dispose(): void {
 		if (!this._disposed) {
 			this._disposed = true;
@@ -79,6 +86,10 @@ export class ExtHostTerminal implements vscode.Terminal {
 		this._pidPromiseComplete = null;
 	}
 
+	public _onData(data: string): void {
+		this._onDataCallback(data);
+	}
+
 	private _queueApiRequest(callback: (...args: any[]) => void, args: any[]) {
 		let request: ApiRequest = new ApiRequest(callback, args);
 		if (!this._id) {
@@ -138,6 +149,11 @@ export class ExtHostTerminalService implements ExtHostTerminalServiceShape {
 		terminal._setProcessId(processId);
 	}
 
+	public $acceptTerminalData(id: number, data: string): void {
+		let terminal = this._getTerminalById(id);
+		terminal._onData(data);
+	}
+
 	private _getTerminalById(id: number): ExtHostTerminal {
 		let index = this._getTerminalIndexById(id);
 		return index !== null ? this._terminals[index] : null;
diff --git a/src/vs/workbench/api/node/mainThreadTerminalService.ts b/src/vs/workbench/api/node/mainThreadTerminalService.ts
index 83b1f50c893..7df3be34e0b 100644
--- a/src/vs/workbench/api/node/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/node/mainThreadTerminalService.ts
@@ -24,6 +24,7 @@ export class MainThreadTerminalService extends MainThreadTerminalServiceShape {
 		this._toDispose = [];
 		this._toDispose.push(terminalService.onInstanceDisposed((terminalInstance) => this._onTerminalDisposed(terminalInstance)));
 		this._toDispose.push(terminalService.onInstanceProcessIdReady((terminalInstance) => this._onTerminalProcessIdReady(terminalInstance)));
+		this._toDispose.push(terminalService.onInstanceData(event => this._onTerminalData(event.instance, event.data)));
 	}
 
 	public dispose(): void {
@@ -55,6 +56,13 @@ export class MainThreadTerminalService extends MainThreadTerminalServiceShape {
 		}
 	}
 
+	public $registerOnData(terminalId: number): void {
+		let terminalInstance = this.terminalService.getInstanceFromId(terminalId);
+		if (terminalInstance) {
+			terminalInstance.enableApiOnData();
+		}
+	}
+
 	public $dispose(terminalId: number): void {
 		let terminalInstance = this.terminalService.getInstanceFromId(terminalId);
 		if (terminalInstance) {
@@ -76,4 +84,8 @@ export class MainThreadTerminalService extends MainThreadTerminalServiceShape {
 	private _onTerminalProcessIdReady(terminalInstance: ITerminalInstance): void {
 		this._proxy.$acceptTerminalProcessId(terminalInstance.id, terminalInstance.processId);
 	}
+
+	private _onTerminalData(terminalInstance: ITerminalInstance, data: string): void {
+		this._proxy.$acceptTerminalData(terminalInstance.id, data);
+	}
 }
diff --git a/src/vs/workbench/parts/terminal/common/terminal.ts b/src/vs/workbench/parts/terminal/common/terminal.ts
index 8cfdc0658b9..09851c1e6f6 100644
--- a/src/vs/workbench/parts/terminal/common/terminal.ts
+++ b/src/vs/workbench/parts/terminal/common/terminal.ts
@@ -126,6 +126,7 @@ export interface ITerminalService {
 	onActiveInstanceChanged: Event<string>;
 	onInstanceDisposed: Event<ITerminalInstance>;
 	onInstanceProcessIdReady: Event<ITerminalInstance>;
+	onInstanceData: Event<{ instance: ITerminalInstance, data: string }>;
 	onInstancesChanged: Event<string>;
 	onInstanceTitleChanged: Event<string>;
 	terminalInstances: ITerminalInstance[];
@@ -314,4 +315,6 @@ export interface ITerminalInstance {
 	 * @param shell The new launch configuration.
 	 */
 	reuseTerminal(shell?: IShellLaunchConfig): void;
+
+	enableApiOnData(): void;
 }
diff --git a/src/vs/workbench/parts/terminal/common/terminalService.ts b/src/vs/workbench/parts/terminal/common/terminalService.ts
index 187cd227926..7b37c034ec9 100644
--- a/src/vs/workbench/parts/terminal/common/terminalService.ts
+++ b/src/vs/workbench/parts/terminal/common/terminalService.ts
@@ -21,6 +21,7 @@ export abstract class TerminalService implements ITerminalService {
 	protected _onInstancesChanged: Emitter<string>;
 	protected _onInstanceDisposed: Emitter<ITerminalInstance>;
 	protected _onInstanceProcessIdReady: Emitter<ITerminalInstance>;
+	protected _onInstanceData: Emitter<{ instance: ITerminalInstance, data: string }>;
 	protected _onInstanceTitleChanged: Emitter<string>;
 	protected _terminalInstances: ITerminalInstance[];
 
@@ -31,6 +32,7 @@ export abstract class TerminalService implements ITerminalService {
 	public get onActiveInstanceChanged(): Event<string> { return this._onActiveInstanceChanged.event; }
 	public get onInstanceDisposed(): Event<ITerminalInstance> { return this._onInstanceDisposed.event; }
 	public get onInstanceProcessIdReady(): Event<ITerminalInstance> { return this._onInstanceProcessIdReady.event; }
+	public get onInstanceData(): Event<{ instance: ITerminalInstance, data: string }> { return this._onInstanceData.event; }
 	public get onInstanceTitleChanged(): Event<string> { return this._onInstanceTitleChanged.event; }
 	public get onInstancesChanged(): Event<string> { return this._onInstancesChanged.event; }
 	public get terminalInstances(): ITerminalInstance[] { return this._terminalInstances; }
@@ -50,6 +52,7 @@ export abstract class TerminalService implements ITerminalService {
 		this._onActiveInstanceChanged = new Emitter<string>();
 		this._onInstanceDisposed = new Emitter<ITerminalInstance>();
 		this._onInstanceProcessIdReady = new Emitter<ITerminalInstance>();
+		this._onInstanceData = new Emitter<{ instance: ITerminalInstance, data: string }>();
 		this._onInstanceTitleChanged = new Emitter<string>();
 		this._onInstancesChanged = new Emitter<string>();
 
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
index e6a1134d917..5deecbcbba3 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
@@ -56,6 +56,7 @@ export class TerminalInstance implements ITerminalInstance {
 	private _isVisible: boolean;
 	private _isDisposed: boolean;
 	private _onDisposed: Emitter<ITerminalInstance>;
+	private _onDataForApi: Emitter<{ instance: ITerminalInstance, data: string }>;
 	private _onProcessIdReady: Emitter<TerminalInstance>;
 	private _onTitleChanged: Emitter<string>;
 	private _process: cp.ChildProcess;
@@ -77,6 +78,7 @@ export class TerminalInstance implements ITerminalInstance {
 	public get id(): number { return this._id; }
 	public get processId(): number { return this._processId; }
 	public get onDisposed(): Event<ITerminalInstance> { return this._onDisposed.event; }
+	public get onDataForApi(): Event<{ instance: ITerminalInstance, data: string }> { return this._onDataForApi.event; }
 	public get onProcessIdReady(): Event<TerminalInstance> { return this._onProcessIdReady.event; }
 	public get onTitleChanged(): Event<string> { return this._onTitleChanged.event; }
 	public get title(): string { return this._title; }
@@ -107,6 +109,7 @@ export class TerminalInstance implements ITerminalInstance {
 		this._terminalHasTextContextKey = KEYBINDING_CONTEXT_TERMINAL_TEXT_SELECTED.bindTo(this._contextKeyService);
 
 		this._onDisposed = new Emitter<TerminalInstance>();
+		this._onDataForApi = new Emitter<{ instance: ITerminalInstance, data: string }>();
 		this._onProcessIdReady = new Emitter<TerminalInstance>();
 		this._onTitleChanged = new Emitter<string>();
 
@@ -737,6 +740,11 @@ export class TerminalInstance implements ITerminalInstance {
 		}
 	}
 
+	public enableApiOnData(): void {
+		// Only send data through IPC if the API explicitly requests it.
+		this.onData(data => this._onDataForApi.fire({ instance: this, data }));
+	}
+
 	public static setTerminalProcessFactory(factory: ITerminalProcessFactory): void {
 		this._terminalProcessFactory = factory;
 	}
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
index 7615b57a36e..eed6376060a 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
@@ -57,6 +57,7 @@ export class TerminalService extends AbstractTerminalService implements ITermina
 			shell);
 		terminalInstance.addDisposable(terminalInstance.onTitleChanged(this._onInstanceTitleChanged.fire, this._onInstanceTitleChanged));
 		terminalInstance.addDisposable(terminalInstance.onDisposed(this._onInstanceDisposed.fire, this._onInstanceDisposed));
+		terminalInstance.addDisposable(terminalInstance.onDataForApi(this._onInstanceData.fire, this._onInstanceData));
 		terminalInstance.addDisposable(terminalInstance.onProcessIdReady(this._onInstanceProcessIdReady.fire, this._onInstanceProcessIdReady));
 		this.terminalInstances.push(terminalInstance);
 		if (this.terminalInstances.length === 1) {