diff --git a/news/2 Fixes/11122.md b/news/2 Fixes/11122.md
new file mode 100644
index 000000000000..7304c9aac45a
--- /dev/null
+++ b/news/2 Fixes/11122.md	
@@ -0,0 +1 @@
+Check for hideFromUser before activating current terminal.
diff --git a/src/client/providers/terminalProvider.ts b/src/client/providers/terminalProvider.ts
index 628bad8fa022..15f1241d88ce 100644
--- a/src/client/providers/terminalProvider.ts
+++ b/src/client/providers/terminalProvider.ts
@@ -24,13 +24,15 @@ export class TerminalProvider implements Disposable {
         const configuration = this.serviceContainer.get<IConfigurationService>(IConfigurationService);
         const pythonSettings = configuration.getSettings(this.activeResourceService.getActiveResource());
 
-        if (pythonSettings.terminal.activateEnvInCurrentTerminal) {
-            if (currentTerminal) {
+        if (currentTerminal && pythonSettings.terminal.activateEnvInCurrentTerminal) {
+            const hideFromUser =
+                'hideFromUser' in currentTerminal.creationOptions && currentTerminal.creationOptions.hideFromUser;
+            if (!hideFromUser) {
                 const terminalActivator = this.serviceContainer.get<ITerminalActivator>(ITerminalActivator);
                 await terminalActivator.activateEnvironmentInTerminal(currentTerminal, { preserveFocus: true });
             }
             sendTelemetryEvent(EventName.ACTIVATE_ENV_IN_CURRENT_TERMINAL, undefined, {
-                isTerminalVisible: currentTerminal ? true : false
+                isTerminalVisible: !hideFromUser
             });
         }
     }
diff --git a/src/test/providers/terminal.unit.test.ts b/src/test/providers/terminal.unit.test.ts
index 3e852b63dc2d..aa1fc837cfd1 100644
--- a/src/test/providers/terminal.unit.test.ts
+++ b/src/test/providers/terminal.unit.test.ts
@@ -122,6 +122,11 @@ suite('Terminal Provider', () => {
                 .returns(() => activeResourceService.object);
 
             terminal = TypeMoq.Mock.ofType<Terminal>();
+            terminal
+                .setup((c) => c.creationOptions)
+                .returns(() => {
+                    return { hideFromUser: false };
+                });
         });
 
         test('If terminal.activateCurrentTerminal setting is set, provided terminal should be activated', async () => {
@@ -168,6 +173,34 @@ suite('Terminal Provider', () => {
             configService.verifyAll();
         });
 
+        test('If terminal.activateCurrentTerminal setting is set, but hideFromUser is true, provided terminal should not be activated', async () => {
+            terminalSettings.setup((t) => t.activateEnvInCurrentTerminal).returns(() => true);
+            configService
+                .setup((c) => c.getSettings(resource))
+                .returns(() => pythonSettings.object)
+                .verifiable(TypeMoq.Times.once());
+            activeResourceService
+                .setup((a) => a.getActiveResource())
+                .returns(() => resource)
+                .verifiable(TypeMoq.Times.once());
+
+            terminal
+                .setup((c) => c.creationOptions)
+                .returns(() => {
+                    return { hideFromUser: true };
+                });
+
+            terminalProvider = new TerminalProvider(serviceContainer.object);
+            await terminalProvider.initialize(terminal.object);
+
+            terminalActivator.verify(
+                (a) => a.activateEnvironmentInTerminal(TypeMoq.It.isAny(), TypeMoq.It.isAny()),
+                TypeMoq.Times.never()
+            );
+            activeResourceService.verifyAll();
+            configService.verifyAll();
+        });
+
         test('terminal.activateCurrentTerminal setting is set but provided terminal is undefined', async () => {
             terminalSettings.setup((t) => t.activateEnvInCurrentTerminal).returns(() => true);
             configService