Microsoft has created an open source fork of Windows Terminal called “Intelligent Terminal,” and it allows you to use AI directly within Terminal without interrupting the normal session.
Microsoft describes Intelligent Terminal as a built-in assistant that can help you explain errors, outline instructions, and fix problems without leaving the terminal.
First, the agent can always know what is happening in your terminal and help when a command fails. Second, it can remember active and past agent sessions, so you can return to a previous job without losing your location.
Source: BleepingComputer
When you open Intelligent Terminal for the first time, it allows you to select an AI agent for the terminal pane.
In my screenshot, it lists GitHub Copilot, Claude, Codex, and Gemini. GitHub Copilot is showing as “to be installed,” while others are already installed.
Source: BleepingComputer
There are also different changes for automatic error detection and automatic error suggestion.
If you turn on error detection, Terminal can see failed commands. Similarly, error suggestion goes ahead and sends the error to the selected AI agent for possible correction.
There is another option, Session Management, which allows Smart Terminal to track past agent sessions. This is what allows you to reactivate the agent’s previous activity.
Once you’ve set up Terminal AI, it’s very easy to use. The terminal opens with an AI window under the shell, where it says “Welcome to the Intelligent Terminal.”
Source: BleepingComputer
In my case, I chose Claude as my Terminal AI model, which is why Claude Code runs inside the window. It might schedule a coding job and ask if I wanted to accept the automatic edit, approve the edit, or continue editing.
Source: BleepingComputer
On the left side, you can choose to show or hide the agent panel and enable or disable error detection with its icon. On the right, you will see the agent management icon which opens your session management panel and the agent status bar.
Source: BleepingComputer
The Intelligent Terminal’s Resume session is one of its best features
As a developer, I use Claude Code in Windows Terminal a lot for help, and while it does the job well, the only problem is that you can’t restart sessions in a standard Terminal unless you’re willing to use Claude’s built-in replay ability, which often makes the model perform very poorly.
The current Windows Terminal has a toggle that allows it to open previously closed tabs, but that doesn’t bring back your previous sessions.
Smart Terminal addresses this concern with the ability to restart sessions, so you can go back and forth between your previous agent activity.
AI Terminal is a great idea, but it’s not meant for everyone, and Microsoft understands that, that’s why it’s a separate app, and it’s not even included in the Windows installation.
If you prefer, you can download Intelligent Terminal from the Microsoft Store or Github.
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