diff --git a/src/vs/code/electron-main/windows.ts b/src/vs/code/electron-main/windows.ts
index 5e50acec4dc..c98f1958018 100644
--- a/src/vs/code/electron-main/windows.ts
+++ b/src/vs/code/electron-main/windows.ts
@@ -1149,9 +1149,10 @@ export class WindowsManager extends Disposable implements IWindowsMainService {
 				}
 			}
 
-			// Linux/Windows: by default we open files in the new window unless triggered via DIALOG or MENU context
+			// Linux/Windows: by default we open files in the new window unless triggered via DIALOG / MENU context
+			// or from the integrated terminal where we assume the user prefers to open in the current window
 			else {
-				if (openConfig.context !== OpenContext.DIALOG && openConfig.context !== OpenContext.MENU) {
+				if (openConfig.context !== OpenContext.DIALOG && openConfig.context !== OpenContext.MENU && !(openConfig.userEnv && openConfig.userEnv['TERM_PROGRAM'] === 'vscode')) {
 					openFilesInNewWindow = true;
 				}
 			}
@@ -2116,4 +2117,4 @@ function resourceFromURIToOpen(u: IURIToOpen): URI {
 	}
 
 	return u.fileUri;
-}
\ No newline at end of file
+}