diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 49afe6fc0eca5..2abf875ffb745 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -74,6 +74,8 @@ import { ITextModel } from 'vs/editor/common/model';
 import { IModelService } from 'vs/editor/common/services/model';
 import { ITextModelContentProvider, ITextModelService } from 'vs/editor/common/services/resolverService';
 import { IDialogService, IConfirmationResult } from 'vs/platform/dialogs/common/dialogs';
+import { IHistoryService } from 'vs/workbench/services/history/common/history';
+import { Schemas } from 'vs/base/common/network';
 
 const enum Constants {
 	/**
@@ -351,7 +353,8 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 		@IWorkbenchEnvironmentService workbenchEnvironmentService: IWorkbenchEnvironmentService,
 		@IWorkspaceContextService private readonly _workspaceContextService: IWorkspaceContextService,
 		@IEditorService private readonly _editorService: IEditorService,
-		@IWorkspaceTrustRequestService private readonly _workspaceTrustRequestService: IWorkspaceTrustRequestService
+		@IWorkspaceTrustRequestService private readonly _workspaceTrustRequestService: IWorkspaceTrustRequestService,
+		@IHistoryService private readonly _historyService: IHistoryService
 	) {
 		super();
 
@@ -1357,10 +1360,17 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 		if (this._isDisposed) {
 			return;
 		}
-
-		const trusted = await this._trust();
-		if (!trusted) {
-			this._onProcessExit({ message: nls.localize('workspaceNotTrustedCreateTerminal', "Cannot launch a terminal process in an untrusted workspace") });
+		const activeWorkspaceRootUri = this._historyService.getLastActiveWorkspaceRoot(Schemas.file);
+		if (activeWorkspaceRootUri) {
+			const trusted = await this._trust();
+			if (!trusted) {
+				this._onProcessExit({ message: nls.localize('workspaceNotTrustedCreateTerminal', "Cannot launch a terminal process in an untrusted workspace") });
+			}
+		} else if (this._cwd && this._userHome && this._cwd !== this._userHome) {
+			// something strange is going on if cwd is not userHome in an empty workspace
+			this._onProcessExit({
+				message: nls.localize('workspaceNotTrustedCreateTerminalCwd', "Cannot launch a terminal process in an untrusted workspace with cwd {0} and userHome {1}", this._cwd, this._userHome)
+			});
 		}
 
 		// Re-evaluate dimensions if the container has been set since the xterm instance was created