diff --git a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
index c0e300439be..13b9666dbfe 100644
--- a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
+++ b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
@@ -271,7 +271,7 @@ suite('window namespace tests', () => {
 			});
 
 			test('should fire Terminal.onData on write', (done) => {
-				const reg1 = window.onDidOpenTerminal(term => {
+				const reg1 = window.onDidOpenTerminal(async term => {
 					equal(terminal, term);
 					reg1.dispose();
 					const reg2 = terminal.onDidWriteData(data => {
@@ -283,11 +283,15 @@ suite('window namespace tests', () => {
 						});
 						terminal.dispose();
 					});
+					await startPromise;
 					writeEmitter.fire('bar');
 				});
+				let startResolve: () => void;
+				const startPromise: Promise<void> = new Promise<void>(r => startResolve = r);
 				const writeEmitter = new EventEmitter<string>();
 				const virtualProcess: TerminalVirtualProcess = {
-					onDidWrite: writeEmitter.event
+					onDidWrite: writeEmitter.event,
+					start: () => startResolve()
 				};
 				const terminal = window.createTerminal({ name: 'foo', virtualProcess });
 			});
diff --git a/src/vs/workbench/api/browser/mainThreadTerminalService.ts b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
index e00be6872bd..b15a69d24b7 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
@@ -34,20 +34,13 @@ export class MainThreadTerminalService implements MainThreadTerminalServiceShape
 
 		// ITerminalService listeners
 		this._toDispose.add(_terminalService.onInstanceCreated((instance) => {
-			if (instance.shellLaunchConfig.isVirtualProcess) {
-				// Fire events for virtual processes immediately as the extension host already knows
-				// about them
+			// Delay this message so the TerminalInstance constructor has a chance to finish and
+			// return the ID normally to the extension host. The ID that is passed here will be
+			// used to register non-extension API terminals in the extension host.
+			setTimeout(() => {
 				this._onTerminalOpened(instance);
 				this._onInstanceDimensionsChanged(instance);
-			} else {
-				// Delay this message so the TerminalInstance constructor has a chance to finish and
-				// return the ID normally to the extension host. The ID that is passed here will be
-				// used to register non-extension API terminals in the extension host.
-				setTimeout(() => {
-					this._onTerminalOpened(instance);
-					this._onInstanceDimensionsChanged(instance);
-				}, EXT_HOST_CREATION_DELAY);
-			}
+			}, EXT_HOST_CREATION_DELAY);
 		}));
 
 		this._toDispose.add(_terminalService.onInstanceDisposed(instance => this._onTerminalDisposed(instance)));
diff --git a/src/vs/workbench/contrib/terminal/common/terminalService.ts b/src/vs/workbench/contrib/terminal/common/terminalService.ts
index 281b93093e9..558be1e44ea 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalService.ts
@@ -145,7 +145,6 @@ export abstract class TerminalService implements ITerminalService {
 	}
 
 	public requestVirtualProcess(proxy: ITerminalProcessExtHostProxy, cols: number, rows: number): void {
-		// Don't need to wait on extensions here as this can only be triggered by an extension
 		this._onInstanceRequestVirtualProcess.fire({ proxy, cols, rows });
 	}