diff --git a/src/vs/platform/terminal/common/terminal.ts b/src/vs/platform/terminal/common/terminal.ts
index 82b064a99af2b..2c4fe17d207b4 100644
--- a/src/vs/platform/terminal/common/terminal.ts
+++ b/src/vs/platform/terminal/common/terminal.ts
@@ -560,6 +560,7 @@ export interface ITerminalProfile {
 	args?: string | string[] | undefined;
 	env?: ITerminalEnvironment;
 	overrideName?: boolean;
+	color?: string;
 	icon?: ThemeIcon | URI | { light: URI, dark: URI };
 }
 
@@ -582,6 +583,7 @@ export interface IBaseUnresolvedTerminalProfile {
 	isAutoDetected?: boolean;
 	overrideName?: boolean;
 	icon?: ThemeIcon | URI | { light: URI, dark: URI };
+	color?: string;
 	env?: ITerminalEnvironment;
 }
 
diff --git a/src/vs/platform/terminal/common/terminalPlatformConfiguration.ts b/src/vs/platform/terminal/common/terminalPlatformConfiguration.ts
index d250bb88d6a3a..a168666190501 100644
--- a/src/vs/platform/terminal/common/terminalPlatformConfiguration.ts
+++ b/src/vs/platform/terminal/common/terminalPlatformConfiguration.ts
@@ -39,6 +39,10 @@ const terminalProfileSchema: IJSONSchema = {
 			enum: Array.from(iconRegistry.all, icon => icon.id),
 			markdownEnumDescriptions: Array.from(iconRegistry.all, icon => `$(${icon.id})`),
 		},
+		color: {
+			description: localize('terminalProfile.color', 'A theme color ID to associate with this terminal.'),
+			type: 'string'
+		},
 		env: {
 			markdownDescription: localize('terminalProfile.env', "An object with environment variables that will be added to the terminal profile process. Set to `null` to delete environment variables from the base environment."),
 			type: 'object',
@@ -204,6 +208,10 @@ const terminalPlatformConfiguration: IConfigurationNode = {
 								enum: Array.from(iconRegistry.all, icon => icon.id),
 								markdownEnumDescriptions: Array.from(iconRegistry.all, icon => `$(${icon.id})`),
 							},
+							color: {
+								description: localize('terminalProfile.color', 'A theme color ID to associate with this terminal.'),
+								type: 'string'
+							},
 							env: {
 								markdownDescription: localize('terminalProfile.env', "An object with environment variables that will be added to the terminal profile process. Set to `null` to delete environment variables from the base environment."),
 								type: 'object',
@@ -385,6 +393,9 @@ function createProfileDescription(profile: ITerminalProfile): string {
 	if (profile.overrideName !== undefined) {
 		description += `\n- overrideName: ${profile.overrideName}`;
 	}
+	if (profile.color) {
+		description += `\n- color: ${profile.color}`;
+	}
 	if (profile.env) {
 		description += `\n- env: ${JSON.stringify(profile.env)}`;
 	}
diff --git a/src/vs/platform/terminal/node/terminalProfiles.ts b/src/vs/platform/terminal/node/terminalProfiles.ts
index e546d244defb7..8082d39f17fdf 100644
--- a/src/vs/platform/terminal/node/terminalProfiles.ts
+++ b/src/vs/platform/terminal/node/terminalProfiles.ts
@@ -166,6 +166,7 @@ async function transformToTerminalProfiles(
 		if (validatedProfile) {
 			validatedProfile.isAutoDetected = profile.isAutoDetected;
 			validatedProfile.icon = icon;
+			validatedProfile.color = profile.color;
 			resultProfiles.push(validatedProfile);
 		} else {
 			logService?.trace('profile not validated', profileName, originalPaths);
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalIcon.ts b/src/vs/workbench/contrib/terminal/browser/terminalIcon.ts
index b4b18a7b9bd6b..96747da86e499 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalIcon.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalIcon.ts
@@ -14,9 +14,9 @@ import { ITerminalInstance } from 'vs/workbench/contrib/terminal/browser/termina
 export function getColorClass(terminal: ITerminalInstance): string | undefined {
 	let color = undefined;
 	if (terminal.color) {
-		color = terminal.color;
+		color = terminal.color.replace(/\./g, '_');
 	} else if (ThemeIcon.isThemeIcon(terminal.icon) && terminal.icon.color) {
-		color = terminal.icon.color.id.replace('.', '_');
+		color = terminal.icon.color.id.replace(/\./g, '_');
 	}
 	if (color) {
 		return `terminal-icon-${color}`;
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index f715d7b202924..5cbde2e9fb15a 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -336,6 +336,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 	}
 
 	private _getColor(): string | undefined {
+		console.log('_getColor', this.shellLaunchConfig.color);
 		if (this.shellLaunchConfig.color) {
 			return this.shellLaunchConfig.color;
 		}
@@ -1821,7 +1822,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 		const items: IQuickPickItem[] = [];
 		for (const color of colors) {
 			items.push({
-				label: `$(${Codicon.circleFilled.id}) ${color.replace('terminal.ansi', '')}`, id: `${color.replace(/\./g, '_')}`, description: `${color}`, iconClasses: [`terminal-icon-${color.replace(/\./g, '_')}`]
+				label: `$(${Codicon.circleFilled.id}) ${color.replace('terminal.ansi', '')}`, id: color, description: color, iconClasses: [`terminal-icon-${color.replace(/\./g, '_')}`]
 			});
 		}
 
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProfileResolverService.ts b/src/vs/workbench/contrib/terminal/browser/terminalProfileResolverService.ts
index 71a5445705e3d..9ce81ae6e03ed 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProfileResolverService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProfileResolverService.ts
@@ -113,11 +113,15 @@ export abstract class BaseTerminalProfileResolverService implements ITerminalPro
 		// Verify the icon is valid, and fallback correctly to the generic terminal id if there is
 		// an issue
 		shellLaunchConfig.icon = this._getCustomIcon(shellLaunchConfig.icon) || this._getCustomIcon(resolvedProfile.icon) || Codicon.terminal;
+
 		// Override the name if specified
 		if (resolvedProfile.overrideName) {
 			shellLaunchConfig.name = resolvedProfile.profileName;
 		}
 
+		// TODO: Verify
+		shellLaunchConfig.color = resolvedProfile.color;
+
 		// Resolve useShellEnvironment based on the setting if it's not set
 		if (shellLaunchConfig.useShellEnvironment === undefined) {
 			shellLaunchConfig.useShellEnvironment = this._configurationService.getValue(TerminalSettingId.InheritEnv);
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index 0ddf5c179d8fb..fe3f67b945f71 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -1007,6 +1007,7 @@ export class TerminalService implements ITerminalService {
 				args: profile.args,
 				env: profile.env,
 				icon: profile.icon,
+				color: profile.color,
 				name: profile.overrideName ? profile.profileName : undefined,
 				cwd
 			};