Overview
- Microsoft announced Intelligent Terminal version 0.1 on Tuesday, June 2, 2026, as an experimental open-source fork that installs alongside the unchanged Windows Terminal.
- The interface adds an agent status bar, a docked agent pane and an agent management panel that capture live shell output, detect failed commands and load error context so agents can explain problems or propose and run fixes.
- GitHub Copilot CLI is set as the default agent experience but the app supports any Agent Client Protocol (ACP)–compatible agent, including custom or local CLIs configurable in Terminal settings.
- Microsoft is deprecating Terminal Chat in Canary and is distributing Intelligent Terminal via the Microsoft Store, WinGet and a GitHub repository where developers can read docs and file issues.
- The release aligns with a growing shift toward agent-driven developer tools by reducing context switching between shell and chat agents, but real-world uptake will hinge on result quality, configuration options and privacy controls.