diff --git a/src/vs/gitpod/node/remoteTerminalChannelServer.ts b/src/vs/gitpod/node/remoteTerminalChannelServer.ts
index 02d337ee8f750..9e510b605ee8b 100644
--- a/src/vs/gitpod/node/remoteTerminalChannelServer.ts
+++ b/src/vs/gitpod/node/remoteTerminalChannelServer.ts
@@ -137,6 +137,7 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 		workspaceId: string,
 		workspaceName: string,
 		shouldPersistTerminal: boolean,
+		icon: string | undefined,
 		openOptions?: OpenSupervisorTerminalProcessOptions
 	): SupervisorTerminalProcess {
 		const terminalProcess = new SupervisorTerminalProcess(
@@ -145,6 +146,7 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 			workspaceId,
 			workspaceName,
 			shouldPersistTerminal,
+			icon,
 			this.logService,
 			openOptions
 		);
@@ -353,7 +355,8 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 			executable: shellLaunchConfigDto.executable,
 			args: shellLaunchConfigDto.args,
 			cwd: typeof shellLaunchConfigDto.cwd === 'string' ? shellLaunchConfigDto.cwd : URI.revive(shellLaunchConfigDto.cwd),
-			env: shellLaunchConfigDto.env
+			env: shellLaunchConfigDto.env,
+			icon: shellLaunchConfigDto.icon
 		};
 
 		let lastActiveWorkspace: IWorkspaceFolder | undefined;
@@ -440,6 +443,7 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 			args.workspaceId,
 			args.workspaceName,
 			args.shouldPersistTerminal,
+			shellLaunchConfig.icon,
 			{
 				shell: shellLaunchConfig.executable!,
 				shellArgs: typeof shellLaunchConfig.args === 'string' ? [shellLaunchConfig.args] : shellLaunchConfig.args || [],
@@ -560,7 +564,8 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 						terminal.getInitialWorkdir(),
 						workspaceId,
 						workspaceName,
-						shouldPersistTerminal
+						shouldPersistTerminal,
+						'gear'
 					);
 
 					terminalProcess.syncState = terminal.toObject();
@@ -583,7 +588,7 @@ export class RemoteTerminalChannelServer implements IServerChannel<RemoteAgentCo
 					workspaceId: terminal.workspaceId,
 					workspaceName: terminal.workspaceName,
 					isOrphan: true,
-					icon: 'terminal'
+					icon: terminal.icon
 				});
 			}
 		}
diff --git a/src/vs/gitpod/node/supervisorTerminalProcess.ts b/src/vs/gitpod/node/supervisorTerminalProcess.ts
index f3fc95ccb16a4..f9545ce6582ea 100644
--- a/src/vs/gitpod/node/supervisorTerminalProcess.ts
+++ b/src/vs/gitpod/node/supervisorTerminalProcess.ts
@@ -66,6 +66,7 @@ export class SupervisorTerminalProcess extends DisposableStore implements ITermi
 		readonly workspaceId: string,
 		readonly workspaceName: string,
 		readonly shouldPersist: boolean,
+		readonly icon: string | undefined,
 		private readonly logService: ILogService,
 		private readonly openOptions?: OpenSupervisorTerminalProcessOptions
 	) {
diff --git a/src/vs/platform/terminal/common/terminal.ts b/src/vs/platform/terminal/common/terminal.ts
index 28a4c9b649f27..3472bc94add8c 100644
--- a/src/vs/platform/terminal/common/terminal.ts
+++ b/src/vs/platform/terminal/common/terminal.ts
@@ -305,6 +305,7 @@ export interface IShellLaunchConfigDto {
 	cwd?: string | UriComponents;
 	env?: ITerminalEnvironment;
 	hideFromUser?: boolean;
+	icon?: string;
 }
 
 export interface ITerminalEnvironment {
diff --git a/src/vs/workbench/api/browser/mainThreadTerminalService.ts b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
index 428f24124f6e7..167dbe6c42856 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
@@ -220,7 +220,8 @@ export class MainThreadTerminalService implements MainThreadTerminalServiceShape
 			args: terminalInstance.shellLaunchConfig.args,
 			cwd: terminalInstance.shellLaunchConfig.cwd,
 			env: terminalInstance.shellLaunchConfig.env,
-			hideFromUser: terminalInstance.shellLaunchConfig.hideFromUser
+			hideFromUser: terminalInstance.shellLaunchConfig.hideFromUser,
+			icon: terminalInstance.shellLaunchConfig.icon
 		};
 		this._proxy.$acceptTerminalOpened(terminalInstance.instanceId, extHostTerminalId, terminalInstance.title, shellLaunchConfigDto);
 	}
diff --git a/src/vs/workbench/api/common/extHostTerminalService.ts b/src/vs/workbench/api/common/extHostTerminalService.ts
index a10d6b973b4d3..d2b388137106c 100644
--- a/src/vs/workbench/api/common/extHostTerminalService.ts
+++ b/src/vs/workbench/api/common/extHostTerminalService.ts
@@ -436,7 +436,8 @@ export abstract class BaseExtHostTerminalService extends Disposable implements I
 			shellArgs: shellLaunchConfigDto.args,
 			cwd: typeof shellLaunchConfigDto.cwd === 'string' ? shellLaunchConfigDto.cwd : URI.revive(shellLaunchConfigDto.cwd),
 			env: shellLaunchConfigDto.env,
-			hideFromUser: shellLaunchConfigDto.hideFromUser
+			hideFromUser: shellLaunchConfigDto.hideFromUser,
+			icon: shellLaunchConfigDto.icon
 		};
 		const terminal = new ExtHostTerminal(this._proxy, id, creationOptions, name);
 		this._terminals.push(terminal);
diff --git a/src/vs/workbench/contrib/terminal/browser/remoteTerminalService.ts b/src/vs/workbench/contrib/terminal/browser/remoteTerminalService.ts
index 2d90f8e7d1815..7c6496073b377 100644
--- a/src/vs/workbench/contrib/terminal/browser/remoteTerminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/remoteTerminalService.ts
@@ -143,7 +143,8 @@ export class RemoteTerminalService extends Disposable implements IRemoteTerminal
 			executable: shellLaunchConfig.executable,
 			args: shellLaunchConfig.args,
 			cwd: shellLaunchConfig.cwd,
-			env: shellLaunchConfig.env
+			env: shellLaunchConfig.env,
+			icon: shellLaunchConfig.icon
 		};
 		const result = await this._remoteTerminalChannel.createProcess(
 			shellLaunchConfigDto,