Microsoft has rolled out a significant new update for Windows Terminal, quietly transforming the command-line experience for millions of users. The latest release overhauls the tool’s internal architecture and interface, turning it into a far more powerful environment for developers and system administrators.
Windows Terminal gets a major performance boost
With this release, Microsoft completely reworked how Windows Terminal operates. Previously, each Terminal window ran as a separate process, consuming more system resources and occasionally causing instability. Now, all windows run within a single unified process. This change dramatically reduces CPU and memory usage while improving responsiveness across sessions.
The Terminal can now run silently in the background, ensuring that global hotkeys remain active at all times. Startup times are significantly shorter. “Warm starts,” when opening a new window while another is already active, happen almost instantly since the app no longer needs to spawn new processes.
GPU-accelerated rendering, improved Unicode support, and advanced theme customization all contribute to a smoother and more visually consistent experience. The addition of Quake Mode, allowing a dropdown console to appear at the top of the screen with a single key, makes quick access easier than ever.
Tab dragging and merging finally arrive
Microsoft has finally added the long-awaited tab tearout feature. Users can now drag tabs out of an existing window to create a new one or merge separate Terminal windows into a single tabbed interface. This makes multitasking far simpler for developers and system admins managing multiple sessions simultaneously.
The company rebuilt a large portion of Terminal’s codebase to support this feature. After years of internal testing and re-engineering, tab management now feels fluid and intuitive—just like a modern web browser.
Automatic SSH profiles make remote access easier
One of the most practical additions in this update is automatic SSH profile generation. Windows Terminal now scans the user’s OpenSSH configuration files and automatically creates profiles for frequently accessed servers. These profiles appear directly in the “New Tab” menu, ready to connect instantly.
This eliminates the need to manually edit JSON files or type SSH connection commands repeatedly. For developers and administrators managing multiple remote servers, this feature saves valuable setup time and keeps connections neatly organized.
Intelligent path translation simplifies file handling
Another major quality-of-life upgrade is path translation. Dragging and dropping a file into the Terminal now automatically converts its path to match the active shell environment.
Drop a file into PowerShell, and you’ll get a Windows-style path; drop it into a WSL session, and it’s instantly converted to a Unix-style path. The same applies to MSYS2 and Cygwin environments. This feature eliminates the frustration of manual path correction when switching between platforms, saving users both time and effort.
A fully redesigned settings interface
Previously, customizing Windows Terminal required manually editing complex JSON configuration files. Now, all customization options are accessible through a modern graphical interface. Users can adjust bell sounds, font width, background and foreground colors, theme settings, and padding directly within the app.
The new interface supports drag-and-drop organization, allowing users to rearrange or group profiles easily. This makes Terminal far more approachable for less technical users while preserving the advanced customization options developers expect.
Context menus and practical enhancements
Microsoft also focused on usability improvements. Right-clicking tabs now opens a context menu with options to split, rename, move, recolor, or close tabs. Inside the Terminal window, right-clicking allows text search, paste, and export functions. These small but meaningful upgrades make Terminal more modern and efficient to use with either a mouse or keyboard.
