diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index fd3840e93ae..b9a34618336 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -550,7 +550,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 	}
 
 	get persistentProcessId(): number | undefined { return this._processManager.persistentProcessId; }
-	get shouldPersist(): boolean { return this._processManager.shouldPersist && !this.shellLaunchConfig.disablePersistence; }
+	get shouldPersist(): boolean { return this._processManager.shouldPersist; }
 
 	/**
 	 * Create xterm.js instance and attach data listeners.
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
index 9063d049942..4cba80ddcd0 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
@@ -223,7 +223,7 @@ export class TerminalProcessManager extends Disposable implements ITerminalProce
 				// this is a copy of what the merged environment collection is on the remote side
 				await this._setupEnvVariableInfo(backend, variableResolver, shellLaunchConfig);
 
-				const shouldPersist = !shellLaunchConfig.isFeatureTerminal && this._configHelper.config.enablePersistentSessions;
+				const shouldPersist = !shellLaunchConfig.isFeatureTerminal && this._configHelper.config.enablePersistentSessions && !shellLaunchConfig.disablePersistence;
 				if (shellLaunchConfig.attachPersistentProcess) {
 					const result = await backend.attachToProcess(shellLaunchConfig.attachPersistentProcess.id);
 					if (result) {