diff --git a/src/communicationmanager.ts b/src/communicationmanager.ts
index 783c4d5..1c30c39 100644
--- a/src/communicationmanager.ts
+++ b/src/communicationmanager.ts
@@ -174,6 +174,7 @@ export class CommunicationManager {
     //this is the main create
     //create a KIC terminal
     public createTerminal(
+        term_name: string,
         instrumentIp?: string,
         usb_unique_string?: string,
         filePath?: string
@@ -184,7 +185,6 @@ export class CommunicationManager {
         if (instrumentIp != undefined) {
             const parts = instrumentIp.match(CONNECTION_RE)
             if (parts == null) return ""
-            const name = typeof parts[1] == "undefined" ? "KIC" : parts[1]
             const ip_addr = parts[2]
             const ip = ip_addr.split(":")[0] //take only IPv4 address, don't include socket.
 
@@ -210,7 +210,7 @@ export class CommunicationManager {
             // })
 
             info = this._kicProcessMgr.createKicCell(
-                name,
+                term_name,
                 ip,
                 "lan",
                 maxerr,
@@ -218,14 +218,12 @@ export class CommunicationManager {
             )
         } else if (usb_unique_string != undefined) {
             let unique_string = usb_unique_string
-            let name = "KIC"
             const string_split = usb_unique_string.split("@")
             if (string_split.length > 1) {
-                name = string_split[0]
                 unique_string = string_split[1]
             }
             info = this._kicProcessMgr.createKicCell(
-                name,
+                term_name,
                 unique_string,
                 "usb",
                 undefined,
diff --git a/src/extension.ts b/src/extension.ts
index 30958ac..834e8c4 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -54,28 +54,14 @@ export async function createTerminal(
     if (connection_string.split("@").length > 1) {
         name = connection_string.split("@")[0]
         ip = connection_string.split("@")[1]
-    } else {
-        const name_entered = await vscode.window.showInputBox({
-            placeHolder: "Enter friendly name to proceed",
-        })
-        if (
-            //ToDo: need to add a common regex for all friendly name inputs
-            name_entered === undefined ||
-            name_entered === null ||
-            name_entered.length === 0
-        ) {
-            void vscode.window.showErrorMessage(
-                "Cannot proceed with empty friendly name"
-            )
-            return
-        } else {
-            name = name_entered
-        }
     }
 
     if (_connHelper.IPTest(ip) == false) {
         //USB
         //This only works if selected from Instrument discovery
+        if (name == "") {
+            name = FriendlyNameMgr.generateUniqueName(IoType.Usb, model_serial)
+        }
         if (
             !FriendlyNameMgr.checkForDuplicateFriendlyName(
                 IoType.Usb,
@@ -86,6 +72,7 @@ export async function createTerminal(
             return
         }
         info = _activeConnectionManager?.createTerminal(
+            name,
             undefined,
             connection_string,
             command_text
@@ -95,6 +82,12 @@ export async function createTerminal(
         msn = await _connHelper.getModelAndSerialNumber(ip) //const to let
         if (msn != undefined) {
             model_serial_no = msn.model + "#" + msn.sn //const to let
+            if (name == "") {
+                name = FriendlyNameMgr.generateUniqueName(
+                    IoType.Lan,
+                    model_serial_no
+                )
+            }
             if (
                 !FriendlyNameMgr.checkForDuplicateFriendlyName(
                     IoType.Lan,
@@ -113,6 +106,7 @@ export async function createTerminal(
                     msn.sn
             )
             info = _activeConnectionManager?.createTerminal(
+                name,
                 `${connection_string}:${msn.port}`,
                 undefined,
                 command_text
@@ -121,6 +115,7 @@ export async function createTerminal(
         //TODO: Remove this else statement once lxi page is ready for versatest
         else {
             info = _activeConnectionManager?.createTerminal(
+                name,
                 connection_string,
                 undefined,
                 command_text
diff --git a/src/resourceManager.ts b/src/resourceManager.ts
index bbaa4ad..27f3cef 100644
--- a/src/resourceManager.ts
+++ b/src/resourceManager.ts
@@ -118,6 +118,43 @@ export class FriendlyNameMgr {
         return handled
     }
 
+    public static generateUniqueName(
+        io_type: IoType,
+        model_serial: string | undefined
+    ): string {
+        let unique_name = ""
+        let found = false
+        const connections: Array<InstrInfo> =
+            vscode.workspace.getConfiguration("tsp").get("savedInstruments") ??
+            []
+
+        if (connections.length > 0) {
+            connections.forEach((instr) => {
+                if (
+                    io_type === instr.io_type &&
+                    model_serial == instr.model + "#" + instr.serial_number
+                ) {
+                    unique_name = instr.friendly_name
+                    found = true
+                    return
+                }
+            })
+        }
+
+        if (!found) {
+            const baseString = model_serial ?? "instrument"
+            let counter = 1
+            let uniqueString = baseString
+
+            while (connections.some((i) => i.friendly_name == uniqueString)) {
+                uniqueString = baseString + "_" + String(counter)
+                counter++
+            }
+            unique_name = uniqueString
+        }
+        return unique_name
+    }
+
     /**
      * method checks and adds/updates new friendly name
      *