diff --git a/src/vs/platform/terminal/common/terminal.ts b/src/vs/platform/terminal/common/terminal.ts
index 402d32d054eb89..2c64f51f213ee4 100644
--- a/src/vs/platform/terminal/common/terminal.ts
+++ b/src/vs/platform/terminal/common/terminal.ts
@@ -281,6 +281,12 @@ export interface IShellLaunchConfig {
 	 * Whether this terminal was created by an extension.
 	 */
 	isExtensionOwnedTerminal?: boolean;
+
+	/**
+	 * The codicon ID to use for this terminal. If not specified it will use the default fallback
+	 * icon.
+	 */
+	iconId?: string;
 }
 
 export interface IShellLaunchConfigDto {
diff --git a/src/vs/workbench/contrib/terminal/browser/terminal.ts b/src/vs/workbench/contrib/terminal/browser/terminal.ts
index ee16f2378ff705..9cefdcd1d4200d 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminal.ts
@@ -3,6 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
+import { Codicon } from 'vs/base/common/codicons';
 import { Event } from 'vs/base/common/event';
 import { IDisposable } from 'vs/base/common/lifecycle';
 import { IProcessEnvironment, Platform } from 'vs/base/common/platform';
@@ -244,6 +245,7 @@ export interface ITerminalInstance {
 	readonly rows: number;
 	readonly maxCols: number;
 	readonly maxRows: number;
+	readonly icon: Codicon;
 
 	/**
 	 * The process ID of the shell process, this is undefined when there is no process associated
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalActions.ts b/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
index 9edcb33288f18f..48ef525d2fc7c2 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
@@ -1517,7 +1517,13 @@ export function registerTerminalActions() {
 				if (launchConfig) {
 					const workspaceShellAllowed = terminalService.configHelper.checkIsProcessLaunchSafe(undefined, launchConfig);
 					if (workspaceShellAllowed) {
-						const instance = terminalService.createTerminal({ executable: launchConfig.path, args: launchConfig.args, name: launchConfig.overrideName ? launchConfig.profileName : undefined });
+						// TODO: Share profile launch with that in terminalService
+						const instance = terminalService.createTerminal({
+							executable: launchConfig.path,
+							args: launchConfig.args,
+							iconId: launchConfig.icon,
+							name: launchConfig.overrideName ? launchConfig.profileName : undefined
+						});
 						terminalService.setActiveInstance(instance);
 					}
 				} else {
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index cd7c671dddb930..6caa23006b9f05 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -51,6 +51,7 @@ import { IProcessDataEvent, IShellLaunchConfig, ITerminalDimensionsOverride, ITe
 import { IProductService } from 'vs/platform/product/common/productService';
 import { formatMessageForTerminal } from 'vs/workbench/contrib/terminal/common/terminalStrings';
 import { AutoOpenBarrier } from 'vs/base/common/async';
+import { Codicon, iconRegistry } from 'vs/base/common/codicons';
 
 // How long in milliseconds should an average frame take to render for a notification to appear
 // which suggests the fallback DOM-based renderer
@@ -169,6 +170,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 	public get commandTracker(): CommandTrackerAddon | undefined { return this._commandTrackerAddon; }
 	public get navigationMode(): INavigationMode | undefined { return this._navigationModeAddon; }
 	public get isDisconnected(): boolean { return this._processManager.isDisconnected; }
+	public get icon(): Codicon { return this.shellLaunchConfig.iconId ? (iconRegistry.get(this.shellLaunchConfig.iconId) || Codicon.terminal) : Codicon.terminal; }
 
 	private readonly _onExit = new Emitter<number | undefined>();
 	public get onExit(): Event<number | undefined> { return this._onExit.event; }
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index d19b6cb9b055b5..c7e209d31afdbc 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -895,7 +895,13 @@ export class TerminalService implements ITerminalService {
 			return;
 		}
 		if (type === 'createInstance') {
-			const launchConfig = { executable: value.profile.path, args: value.profile.args, name: value.profile.overrideName ? value.profile.profileName : undefined };
+			const launchConfig: IShellLaunchConfig = {
+				executable: value.profile.path,
+				args: value.profile.args,
+				iconId: value.profile.icon,
+				name: value.profile.overrideName ? value.profile.profileName : undefined
+			};
+
 			let instance;
 			const activeInstance = this.getActiveInstance();
 			if (keyMods?.alt && activeInstance) {
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
index 95599ea105f5a5..fd075131154d16 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
@@ -414,7 +414,7 @@ export class TerminalTab extends Disposable implements ITerminalTab {
 	}
 
 	private _titleWithConnectionStatus(instance: ITerminalInstance): string {
-		return instance.isDisconnected ? localize('ptyDisconnected', "{0} (disconnected)", instance.title) : instance.title;
+		return instance.isDisconnected ? localize('ptyDisconnected', "{0} (disconnected)", instance.title) : `${instance.title} [${instance.icon.id}]`;
 	}
 
 	public setVisible(visible: boolean): void {
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index dd85328417a861..3bf48d66f71f8e 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -238,6 +238,7 @@ export interface ITerminalProfile {
 	isWorkspaceProfile?: boolean;
 	args?: string | string[] | undefined;
 	overrideName?: boolean;
+	icon?: string;
 }
 
 export const enum ProfileSource {