diff --git a/src/vs/workbench/contrib/terminal/browser/terminal.contribution.ts b/src/vs/workbench/contrib/terminal/browser/terminal.contribution.ts
index d2fd7eac30f..eae307ef62c 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminal.contribution.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminal.contribution.ts
@@ -310,6 +310,11 @@ configurationRegistry.registerConfiguration({
 			description: nls.localize('terminal.integrated.experimentalUseTitleEvent', "An experimental setting that will use the terminal title event for the dropdown title. This setting will only apply to new terminals."),
 			type: 'boolean',
 			default: false
+		},
+		'terminal.integrated.enableFileLinks': {
+			description: nls.localize('terminal.integrated.enableFileLinks', "Whether to enable file links in the terminal. Links can be slow when working on a network drive in particular because each file link is verified against the file system."),
+			type: 'boolean',
+			default: true
 		}
 	}
 });
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalLinkHandler.ts b/src/vs/workbench/contrib/terminal/browser/terminalLinkHandler.ts
index 244285b9694..2a74136488a 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalLinkHandler.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalLinkHandler.ts
@@ -108,7 +108,9 @@ export class TerminalLinkHandler {
 
 		this.registerWebLinkHandler();
 		if (this._processManager) {
-			this.registerLocalLinkHandler();
+			if (this._configHelper.config.enableFileLinks) {
+				this.registerLocalLinkHandler();
+			}
 			this.registerGitDiffLinkHandlers();
 		}
 	}
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index f6f1c9b619d..fbc3cc37ea7 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -116,6 +116,7 @@ export interface ITerminalConfiguration {
 	windowsEnableConpty: boolean;
 	experimentalRefreshOnResume: boolean;
 	experimentalUseTitleEvent: boolean;
+	enableFileLinks: boolean;
 }
 
 export interface ITerminalConfigHelper {