diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 4bcb9ca5da8..611101f0046 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -281,6 +281,12 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 			this._terminalProfileResolverService.resolveIcon(this._shellLaunchConfig, OS);
 		}
 
+		// When a custom pty is used set the name immediately so it gets passed over to the exthost
+		// and is available when Pseudoterminal.open fires.
+		if (this.shellLaunchConfig.customPtyImplementation) {
+			this.setTitle(this._shellLaunchConfig.name, TitleEventSource.Api);
+		}
+
 		this._initDimensions();
 		this._createProcessManager();