Microsoft introduced Intelligent Terminal, an open-source fork of Windows Terminal featuring a built-in AI agent pane, on June 2, 2026 [2].
The tool allows developers to access artificial intelligence assistance directly within their command-line environment. By separating the AI interface from the primary session, users can seek guidance or generate code without disrupting their active terminal workflows.
Windows product manager Hamza Usmani said the tool was presented during the Microsoft Build 2026 conference [1, 2]. The software is released as version 0.1 [2]. This version functions as a fork, meaning it is a separate branch of the original Windows Terminal code rather than a direct update to the existing software [2].
The primary objective of the fork is to provide a seamless integration of AI agents for developers [3]. This design ensures that the mainline terminal remains unaffected, preserving the stability of the standard environment while offering the benefits of an AI-powered assistant in a side-by-side pane [1, 2].
Developers can use the AI pane to troubleshoot errors or refine commands in real time. Because it is open-source, the community can contribute to the development of the tool as it evolves beyond its initial release [1, 3].
“Intelligent Terminal is an open-source fork of Windows Terminal.”
By releasing Intelligent Terminal as a fork rather than a mainline update, Microsoft is testing AI integration in a controlled environment. This approach allows power users and developers to adopt AI-assisted coding tools while ensuring that the core Windows Terminal remains lean and predictable for those who prefer a traditional command-line experience.
