diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index aeaad82b61273..f884c2899526e 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -985,6 +985,7 @@ export class TerminalService implements ITerminalService {
 			return {
 				executable: profile.path,
 				args: profile.args,
+				env: profile.env,
 				icon: profile.icon,
 				name: profile.overrideName ? profile.profileName : undefined
 			};
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index 848c8815a580d..7a7644e24a0d1 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -9,7 +9,7 @@ import { IDisposable } from 'vs/base/common/lifecycle';
 import { RawContextKey } from 'vs/platform/contextkey/common/contextkey';
 import { OperatingSystem } from 'vs/base/common/platform';
 import { IExtensionPointDescriptor } from 'vs/workbench/services/extensions/common/extensionsRegistry';
-import { IProcessDataEvent, IShellLaunchConfig, ITerminalDimensions, ITerminalDimensionsOverride, ITerminalLaunchError, TerminalShellType } from 'vs/platform/terminal/common/terminal';
+import { IProcessDataEvent, IShellLaunchConfig, ITerminalDimensions, ITerminalDimensionsOverride, ITerminalEnvironment, ITerminalLaunchError, TerminalShellType } from 'vs/platform/terminal/common/terminal';
 import { IEnvironmentVariableInfo } from 'vs/workbench/contrib/terminal/common/environmentVariable';
 
 export const TERMINAL_VIEW_ID = 'terminal';
@@ -237,6 +237,7 @@ export interface ITerminalProfile {
 	isAutoDetected?: boolean;
 	isWorkspaceProfile?: boolean;
 	args?: string | string[] | undefined;
+	env?: ITerminalEnvironment;
 	overrideName?: boolean;
 	icon?: string;
 }
@@ -252,6 +253,7 @@ export interface ITerminalExecutable {
 	isAutoDetected?: boolean;
 	overrideName?: boolean;
 	icon?: string;
+	env?: ITerminalEnvironment;
 }
 
 export interface ITerminalProfileSource {
@@ -260,6 +262,7 @@ export interface ITerminalProfileSource {
 	overrideName?: boolean;
 	args?: string | string[] | undefined;
 	icon?: string;
+	env?: ITerminalEnvironment;
 }
 
 export type ITerminalProfileObject = ITerminalExecutable | ITerminalProfileSource | null;
diff --git a/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts b/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
index 94d866cba3cf1..bd4d9534de54b 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
@@ -35,6 +35,14 @@ const terminalProfileSchema: IJSONSchema = {
 		icon: {
 			description: localize('terminalProfile.icon', 'A codicon ID to associate with this terminal.'),
 			type: 'string'
+		},
+		env: {
+			markdownDescription: localize('terminalProfile.env', "An object with environment variables that will be added to the terminal profile process. Set to `null` to delete environment variables from the base environment."),
+			type: 'object',
+			additionalProperties: {
+				type: ['string', 'null']
+			},
+			default: {}
 		}
 	}
 };
@@ -153,6 +161,14 @@ export const terminalConfiguration: IConfigurationNode = {
 							icon: {
 								description: localize('terminalProfile.icon', 'A codicon ID to associate with this terminal.'),
 								type: 'string'
+							},
+							env: {
+								markdownDescription: localize('terminalProfile.env', "An object with environment variables that will be added to the terminal profile process. Set to `null` to delete environment variables from the base environment."),
+								type: 'object',
+								additionalProperties: {
+									type: ['string', 'null']
+								},
+								default: {}
 							}
 						}
 					},
diff --git a/src/vs/workbench/contrib/terminal/node/terminalProfiles.ts b/src/vs/workbench/contrib/terminal/node/terminalProfiles.ts
index 463adfc642ab2..1ed0da9a643ee 100644
--- a/src/vs/workbench/contrib/terminal/node/terminalProfiles.ts
+++ b/src/vs/workbench/contrib/terminal/node/terminalProfiles.ts
@@ -14,6 +14,7 @@ import { ExtHostVariableResolverService } from 'vs/workbench/api/common/extHostD
 import { IWorkspaceFolder } from 'vs/platform/workspace/common/workspace';
 import { ILogService } from 'vs/platform/log/common/log';
 import * as pfs from 'vs/base/node/pfs';
+import { ITerminalEnvironment } from 'vs/platform/terminal/common/terminal';
 
 let profileSources: Map<string, IPotentialTerminalProfile> | undefined;
 
@@ -113,7 +114,7 @@ async function transformToTerminalProfiles(entries: IterableIterator<[string, IT
 		for (let i = 0; i < paths.length; i++) {
 			paths[i] = await variableResolver?.resolveAsync(workspaceFolder, paths[i]) || paths[i];
 		}
-		const validatedProfile = await validateProfilePaths(profileName, paths, fsProvider, args, profile.overrideName, profile.isAutoDetected, logService);
+		const validatedProfile = await validateProfilePaths(profileName, paths, fsProvider, args, profile.env, profile.overrideName, profile.isAutoDetected, logService);
 		if (validatedProfile) {
 			validatedProfile.isAutoDetected = profile.isAutoDetected;
 			validatedProfile.icon = icon;
@@ -258,16 +259,16 @@ function applyConfigProfilesToMap(configProfiles: { [key: string]: ITerminalProf
 	}
 }
 
-async function validateProfilePaths(profileName: string, potentialPaths: string[], fsProvider: IFsProvider, args?: string[] | string, overrideName?: boolean, isAutoDetected?: boolean, logService?: ILogService): Promise<ITerminalProfile | undefined> {
+async function validateProfilePaths(profileName: string, potentialPaths: string[], fsProvider: IFsProvider, args?: string[] | string, env?: ITerminalEnvironment, overrideName?: boolean, isAutoDetected?: boolean, logService?: ILogService): Promise<ITerminalProfile | undefined> {
 	if (potentialPaths.length === 0) {
 		return Promise.resolve(undefined);
 	}
 	const path = potentialPaths.shift()!;
 	if (path === '') {
-		return validateProfilePaths(profileName, potentialPaths, fsProvider, args, overrideName, isAutoDetected);
+		return validateProfilePaths(profileName, potentialPaths, fsProvider, args, env, overrideName, isAutoDetected);
 	}
 
-	const profile = { profileName, path, args, overrideName, isAutoDetected };
+	const profile: ITerminalProfile = { profileName, path, args, env, overrideName, isAutoDetected };
 
 	// For non-absolute paths, check if it's available on $PATH
 	if (basename(path) === path) {
@@ -285,7 +286,7 @@ async function validateProfilePaths(profileName: string, potentialPaths: string[
 		return profile;
 	}
 
-	return validateProfilePaths(profileName, potentialPaths, fsProvider, args, overrideName, isAutoDetected);
+	return validateProfilePaths(profileName, potentialPaths, fsProvider, args, env, overrideName, isAutoDetected);
 }
 
 export interface IFsProvider {