diff --git a/src/vs/workbench/api/node/extHost.api.impl.ts b/src/vs/workbench/api/node/extHost.api.impl.ts
index eea4190baed..31e31018b5e 100644
--- a/src/vs/workbench/api/node/extHost.api.impl.ts
+++ b/src/vs/workbench/api/node/extHost.api.impl.ts
@@ -118,7 +118,7 @@ export function createApiFactory(
 	const extHostFileSystem = rpcProtocol.set(ExtHostContext.ExtHostFileSystem, new ExtHostFileSystem(rpcProtocol, extHostLanguageFeatures));
 	const extHostFileSystemEvent = rpcProtocol.set(ExtHostContext.ExtHostFileSystemEventService, new ExtHostFileSystemEventService(rpcProtocol, extHostDocumentsAndEditors));
 	const extHostQuickOpen = rpcProtocol.set(ExtHostContext.ExtHostQuickOpen, new ExtHostQuickOpen(rpcProtocol, extHostWorkspace, extHostCommands));
-	const extHostTerminalService = rpcProtocol.set(ExtHostContext.ExtHostTerminalService, new ExtHostTerminalService(rpcProtocol, extHostConfiguration, extHostLogService));
+	const extHostTerminalService = rpcProtocol.set(ExtHostContext.ExtHostTerminalService, new ExtHostTerminalService(rpcProtocol, extHostConfiguration));
 	const extHostDebugService = rpcProtocol.set(ExtHostContext.ExtHostDebugService, new ExtHostDebugService(rpcProtocol, extHostWorkspace, extensionService, extHostDocumentsAndEditors, extHostConfiguration, extHostTerminalService));
 	const extHostSCM = rpcProtocol.set(ExtHostContext.ExtHostSCM, new ExtHostSCM(rpcProtocol, extHostCommands, extHostLogService));
 	const extHostSearch = rpcProtocol.set(ExtHostContext.ExtHostSearch, new ExtHostSearch(rpcProtocol, schemeTransformer));
diff --git a/src/vs/workbench/api/node/extHostTerminalService.ts b/src/vs/workbench/api/node/extHostTerminalService.ts
index 0d65e360428..dc52bfc0023 100644
--- a/src/vs/workbench/api/node/extHostTerminalService.ts
+++ b/src/vs/workbench/api/node/extHostTerminalService.ts
@@ -7,12 +7,12 @@
 import * as vscode from 'vscode';
 import * as os from 'os';
 import * as platform from 'vs/base/common/platform';
-import * as terminalEnvironment from 'vs/workbench/parts/terminal/node/terminalEnvironment';
-import Uri from 'vs/base/common/uri';
+// import * as terminalEnvironment from 'vs/workbench/parts/terminal/node/terminalEnvironment';
+// import Uri from 'vs/base/common/uri';
 import { Event, Emitter } from 'vs/base/common/event';
 import { ExtHostTerminalServiceShape, MainContext, MainThreadTerminalServiceShape, IMainContext, ShellLaunchConfigDto } from 'vs/workbench/api/node/extHost.protocol';
 import { ExtHostConfiguration } from 'vs/workbench/api/node/extHostConfiguration';
-import { ILogService } from 'vs/platform/log/common/log';
+// import { ILogService } from 'vs/platform/log/common/log';
 import { EXT_HOST_CREATION_DELAY } from 'vs/workbench/parts/terminal/common/terminal';
 import { TerminalProcess } from 'vs/workbench/parts/terminal/node/terminalProcess';
 
@@ -241,7 +241,7 @@ export class ExtHostTerminalService implements ExtHostTerminalServiceShape {
 	constructor(
 		mainContext: IMainContext,
 		private _extHostConfiguration: ExtHostConfiguration,
-		private _logService: ILogService
+		// private _logService: ILogService
 	) {
 		this._proxy = mainContext.getProxy(MainContext.MainThreadTerminalService);
 	}
@@ -358,7 +358,8 @@ export class ExtHostTerminalService implements ExtHostTerminalServiceShape {
 
 		const terminalConfig = this._extHostConfiguration.getConfiguration('terminal.integrated');
 
-		const locale = terminalConfig.get('setLocaleVariables') ? platform.locale : undefined;
+		// TODO: Move locale into TerminalProcess
+		// const locale = terminalConfig.get('setLocaleVariables') ? platform.locale : undefined;
 		if (!shellLaunchConfig.executable) {
 			// TODO: This duplicates some of TerminalConfigHelper.mergeDefaultShellPathAndArgs and should be merged
 			// this._configHelper.mergeDefaultShellPathAndArgs(shellLaunchConfig);
@@ -385,18 +386,17 @@ export class ExtHostTerminalService implements ExtHostTerminalServiceShape {
 		// shellLaunchConfig.env = envFromShell;
 
 		// Merge process env with the env from config
-		const parentEnv = { ...process.env };
+		// const parentEnv = { ...process.env };
 		// terminalEnvironment.mergeEnvironments(parentEnv, envFromConfig);
 
 		// Continue env initialization, merging in the env from the launch
 		// config and adding keys that are needed to create the process
-		const env = terminalEnvironment.createTerminalEnv(parentEnv, shellLaunchConfig, initialCwd, locale, cols, rows);
-		const cwd = Uri.parse(require.toUrl('../../parts/terminal/node')).fsPath;
-		const options = { env, cwd, execArgv: [] };
+		// const env = terminalEnvironment.createTerminalEnv(parentEnv, shellLaunchConfig, initialCwd, locale, cols, rows);
+		// const options = { env, cwd, execArgv: [] };
 
 		// Fork the process and listen for messages
-		this._logService.debug(`Terminal process launching on ext host`, options);
-		this._terminalProcesses[id] = new TerminalProcess(shellLaunchConfig.executable, shellLaunchConfig.args, cwd, cols, rows);
+		// this._logService.debug(`Terminal process launching on ext host`, options);
+		this._terminalProcesses[id] = new TerminalProcess(shellLaunchConfig.executable, shellLaunchConfig.args, initialCwd, cols, rows);
 		this._terminalProcesses[id].onProcessIdReady(pid => this._proxy.$sendProcessPid(id, pid));
 		this._terminalProcesses[id].onProcessTitleChanged(title => this._proxy.$sendProcessTitle(id, title));
 		this._terminalProcesses[id].onProcessData(data => this._proxy.$sendProcessData(id, data));
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
index 6519252e734..b276f5620c7 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalProcessManager.ts
@@ -96,6 +96,7 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 		if (extensionHostOwned) {
 			this._process = this._instantiationService.createInstance(TerminalProcessExtHostProxy, this._terminalId, shellLaunchConfig, cols, rows);
 		} else {
+			// TODO: Move locale into TerminalProcess
 			const locale = this._configHelper.config.setLocaleVariables ? platform.locale : undefined;
 			if (!shellLaunchConfig.executable) {
 				this._configHelper.mergeDefaultShellPathAndArgs(shellLaunchConfig);
@@ -113,6 +114,7 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 
 			// Merge process env with the env from config
 			const parentEnv = { ...process.env };
+			// TODO: Move environment merge stuff into TerminalProcess
 			terminalEnvironment.mergeEnvironments(parentEnv, envFromConfig);
 
 			// Continue env initialization, merging in the env from the launch
@@ -123,7 +125,8 @@ export class TerminalProcessManager implements ITerminalProcessManager {
 			this._logService.debug(`Terminal process launching`, options);
 
 			// TODO: Send right args (on ext host too)
-			this._process = new TerminalProcess(env['PTYSHELL'], [], env['PTYCWD'], cols, rows);
+			console.log('create terminal process', env['PTYSHELL'], env['PTYCWD']);
+			this._process = new TerminalProcess(shellLaunchConfig.executable, shellLaunchConfig.args, this.initialCwd, cols, rows);
 		}
 		this.processState = ProcessState.LAUNCHING;