diff --git a/src/vs/workbench/contrib/terminalContrib/links/browser/terminalLinkParsing.ts b/src/vs/workbench/contrib/terminalContrib/links/browser/terminalLinkParsing.ts
index 57dcd68c78a3..bb1ddd7eca39 100644
--- a/src/vs/workbench/contrib/terminalContrib/links/browser/terminalLinkParsing.ts
+++ b/src/vs/workbench/contrib/terminalContrib/links/browser/terminalLinkParsing.ts
@@ -205,7 +205,7 @@ export function toLinkSuffix(match: RegExpExecArray | null): ILinkSuffix | null
 }
 
 // Paths cannot start with opening brackets
-const linkWithSuffixPathCharacters = /(?<path>[^\s\[\({][^\s]*)$/;
+const linkWithSuffixPathCharacters = /(?<path>[^\s\|\[\({][^\s\|]*)$/;
 
 export function detectLinks(line: string, os: OperatingSystem) {
 	// 1: Detect all links on line via suffixes first
diff --git a/src/vs/workbench/contrib/terminalContrib/links/test/browser/terminalLinkParsing.test.ts b/src/vs/workbench/contrib/terminalContrib/links/test/browser/terminalLinkParsing.test.ts
index df5db85dd4a6..032e9207732c 100644
--- a/src/vs/workbench/contrib/terminalContrib/links/test/browser/terminalLinkParsing.test.ts
+++ b/src/vs/workbench/contrib/terminalContrib/links/test/browser/terminalLinkParsing.test.ts
@@ -329,6 +329,45 @@ suite('TerminalLinkParsing', () => {
 			);
 		});
 
+		test('should exclude pipe characters from link paths', () => {
+			deepStrictEqual(
+				detectLinks('|C:\\Github\\microsoft\\vscode|', OperatingSystem.Windows),
+				[
+					{
+						path: {
+							index: 1,
+							text: 'C:\\Github\\microsoft\\vscode'
+						},
+						prefix: undefined,
+						suffix: undefined
+					}
+				] as IParsedLink[]
+			);
+		});
+
+		test('should exclude pipe characters from link paths with suffixes', () => {
+			deepStrictEqual(
+				detectLinks('|C:\\Github\\microsoft\\vscode:400|', OperatingSystem.Windows),
+				[
+					{
+						path: {
+							index: 1,
+							text: 'C:\\Github\\microsoft\\vscode'
+						},
+						prefix: undefined,
+						suffix: {
+							col: undefined,
+							row: 400,
+							suffix: {
+								index: 27,
+								text: ':400'
+							}
+						}
+					}
+				] as IParsedLink[]
+			);
+		});
+
 		suite('should detect file names in git diffs', () => {
 			test('--- a/foo/bar', () => {
 				deepStrictEqual(