diff --git a/scripts/code.bat b/scripts/code.bat
index 62cfd0b4c4908..cc906e1083297 100644
--- a/scripts/code.bat
+++ b/scripts/code.bat
@@ -26,6 +26,15 @@ set VSCODE_CLI=1
 set ELECTRON_ENABLE_LOGGING=1
 set ELECTRON_ENABLE_STACK_DUMPING=1
 
+if defined NODE_OPTIONS (
+	if not defined VSCODE_NODE_OPTIONS set "VSCODE_NODE_OPTIONS=%NODE_OPTIONS%"
+	set NODE_OPTIONS=
+)
+if defined NODE_REPL_EXTERNAL_MODULE (
+	if not defined VSCODE_NODE_REPL_EXTERNAL_MODULE set "VSCODE_NODE_REPL_EXTERNAL_MODULE=%NODE_REPL_EXTERNAL_MODULE%"
+	set NODE_REPL_EXTERNAL_MODULE=
+)
+
 set DISABLE_TEST_EXTENSION="--disable-extension=vscode.vscode-api-tests"
 for %%A in (%*) do (
 	if "%%~A"=="--extensionTestsPath" (
diff --git a/scripts/code.sh b/scripts/code.sh
index 16fdefde55208..989228461d0f8 100755
--- a/scripts/code.sh
+++ b/scripts/code.sh
@@ -43,6 +43,19 @@ function code() {
 	export ELECTRON_ENABLE_STACK_DUMPING=1
 	export ELECTRON_ENABLE_LOGGING=1
 
+	if [[ -n "${NODE_OPTIONS}" ]]; then
+		if [[ -z "${VSCODE_NODE_OPTIONS+x}" ]]; then
+			export VSCODE_NODE_OPTIONS="${NODE_OPTIONS}"
+		fi
+		unset NODE_OPTIONS
+	fi
+	if [[ -n "${NODE_REPL_EXTERNAL_MODULE}" ]]; then
+		if [[ -z "${VSCODE_NODE_REPL_EXTERNAL_MODULE+x}" ]]; then
+			export VSCODE_NODE_REPL_EXTERNAL_MODULE="${NODE_REPL_EXTERNAL_MODULE}"
+		fi
+		unset NODE_REPL_EXTERNAL_MODULE
+	fi
+
 	DISABLE_TEST_EXTENSION="--disable-extension=vscode.vscode-api-tests"
 	if [[ "$@" == *"--extensionTestsPath"* ]]; then
 		DISABLE_TEST_EXTENSION=""
diff --git a/src/vs/code/electron-main/main.ts b/src/vs/code/electron-main/main.ts
index ae28c78c219cb..96a71bfda5c8e 100644
--- a/src/vs/code/electron-main/main.ts
+++ b/src/vs/code/electron-main/main.ts
@@ -75,6 +75,11 @@ import { addUNCHostToAllowlist, getUNCHost } from '../../base/node/unc.js';
 import { ThemeMainService } from '../../platform/theme/electron-main/themeMainServiceImpl.js';
 import { LINUX_SYSTEM_POLICY_FILE_PATH } from '../../base/common/policy.js';
 
+// Capture NODE_OPTIONS early before Electron strips it (https://github.com/microsoft/vscode/issues/231076)
+// Store in a global so patchEnvironment can access it
+const CAPTURED_NODE_OPTIONS = process.env['NODE_OPTIONS'];
+const CAPTURED_NODE_REPL_EXTERNAL_MODULE = process.env['NODE_REPL_EXTERNAL_MODULE'];
+
 /**
  * The main VS Code entry point.
  *
@@ -262,6 +267,25 @@ class CodeMain {
 			}
 		});
 
+		// Preserve NODE_OPTIONS for terminals on Windows and macOS (https://github.com/microsoft/vscode/issues/231076)
+		// Electron restricts NODE_OPTIONS early, so we capture globally and restore
+		// in the terminal environment, but prefer existing VSCODE_* values if set.
+		if (isMacintosh || isWindows) {
+			const existingNodeOptions = process.env['VSCODE_NODE_OPTIONS'];
+			if (typeof existingNodeOptions === 'string') {
+				instanceEnvironment['VSCODE_NODE_OPTIONS'] = existingNodeOptions;
+			} else if (CAPTURED_NODE_OPTIONS) {
+				instanceEnvironment['VSCODE_NODE_OPTIONS'] = CAPTURED_NODE_OPTIONS;
+			}
+
+			const existingNodeReplExternalModule = process.env['VSCODE_NODE_REPL_EXTERNAL_MODULE'];
+			if (typeof existingNodeReplExternalModule === 'string') {
+				instanceEnvironment['VSCODE_NODE_REPL_EXTERNAL_MODULE'] = existingNodeReplExternalModule;
+			} else if (CAPTURED_NODE_REPL_EXTERNAL_MODULE) {
+				instanceEnvironment['VSCODE_NODE_REPL_EXTERNAL_MODULE'] = CAPTURED_NODE_REPL_EXTERNAL_MODULE;
+			}
+		}
+
 		Object.assign(process.env, instanceEnvironment);
 
 		return instanceEnvironment;
diff --git a/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts b/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
index 7ccbb07819d0c..6dcfeeaf25e7e 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
@@ -271,12 +271,13 @@ export async function createTerminalEnvironment(
 		}
 
 		// Workaround for https://github.com/microsoft/vscode/issues/204005
+		// and https://github.com/microsoft/vscode/issues/231076
 		// We should restore the following environment variables when a user
 		// launches the application using the CLI so that integrated terminal
 		// can still inherit these variables.
 		// We are not bypassing the restrictions implied in https://github.com/electron/electron/pull/40770
 		// since this only affects integrated terminal and not the application itself.
-		if (isMacintosh) {
+		if (isMacintosh || isWindows) {
 			// Restore NODE_OPTIONS if it was set
 			if (env['VSCODE_NODE_OPTIONS']) {
 				env['NODE_OPTIONS'] = env['VSCODE_NODE_OPTIONS'];
diff --git a/src/vs/workbench/contrib/terminal/test/common/terminalEnvironment.test.ts b/src/vs/workbench/contrib/terminal/test/common/terminalEnvironment.test.ts
index f06292f5e1d84..cfc9f510c218a 100644
--- a/src/vs/workbench/contrib/terminal/test/common/terminalEnvironment.test.ts
+++ b/src/vs/workbench/contrib/terminal/test/common/terminalEnvironment.test.ts
@@ -321,6 +321,44 @@ suite('Workbench - TerminalEnvironment', () => {
 				{ foo: 'bar', empty: '', ...commonVariables }
 			);
 		});
+		test('should restore NODE_OPTIONS from VSCODE_NODE_OPTIONS on macOS and Windows', async () => {
+			const env = await createTerminalEnvironment({}, undefined, undefined, undefined, 'off', {
+				VSCODE_NODE_OPTIONS: '--max-old-space-size=8192',
+				VSCODE_NODE_REPL_EXTERNAL_MODULE: 'test-module'
+			});
+			// On macOS and Windows, VSCODE_NODE_OPTIONS should be restored to NODE_OPTIONS
+			if (process.platform === 'darwin' || process.platform === 'win32') {
+				strictEqual(env['NODE_OPTIONS'], '--max-old-space-size=8192');
+				strictEqual(env['NODE_REPL_EXTERNAL_MODULE'], 'test-module');
+				strictEqual(env['VSCODE_NODE_OPTIONS'], undefined);
+				strictEqual(env['VSCODE_NODE_REPL_EXTERNAL_MODULE'], undefined);
+			} else {
+				// On other platforms, VSCODE_* and NODE_* vars should not be restored
+				strictEqual(env['NODE_OPTIONS'], undefined);
+				strictEqual(env['NODE_REPL_EXTERNAL_MODULE'], undefined);
+				strictEqual(env['VSCODE_NODE_OPTIONS'], undefined);
+				strictEqual(env['VSCODE_NODE_REPL_EXTERNAL_MODULE'], undefined);
+			}
+		});
+		test('should prefer existing VSCODE_* values when restoring NODE_OPTIONS', async () => {
+			const env = await createTerminalEnvironment({}, undefined, undefined, undefined, 'off', {
+				NODE_OPTIONS: '--from-node-options',
+				NODE_REPL_EXTERNAL_MODULE: 'from-node-repl',
+				VSCODE_NODE_OPTIONS: '--from-vscode-options',
+				VSCODE_NODE_REPL_EXTERNAL_MODULE: 'from-vscode-repl'
+			});
+			if (process.platform === 'darwin' || process.platform === 'win32') {
+				strictEqual(env['NODE_OPTIONS'], '--from-vscode-options');
+				strictEqual(env['NODE_REPL_EXTERNAL_MODULE'], 'from-vscode-repl');
+				strictEqual(env['VSCODE_NODE_OPTIONS'], undefined);
+				strictEqual(env['VSCODE_NODE_REPL_EXTERNAL_MODULE'], undefined);
+			} else {
+				strictEqual(env['NODE_OPTIONS'], undefined);
+				strictEqual(env['NODE_REPL_EXTERNAL_MODULE'], undefined);
+				strictEqual(env['VSCODE_NODE_OPTIONS'], undefined);
+				strictEqual(env['VSCODE_NODE_REPL_EXTERNAL_MODULE'], undefined);
+			}
+		});
 	});
 	suite('getWorkspaceForTerminal', () => {
 		test('should resolve workspace folder from cwd, not last active workspace', () => {