diff --git a/packages/plugin-ext/src/main/browser/terminal-main.ts b/packages/plugin-ext/src/main/browser/terminal-main.ts
index 5a5cb05d1618c..0ce3146da66c1 100644
--- a/packages/plugin-ext/src/main/browser/terminal-main.ts
+++ b/packages/plugin-ext/src/main/browser/terminal-main.ts
@@ -27,6 +27,7 @@ import { SerializableEnvironmentVariableCollection } from '@theia/terminal/lib/c
 import { ShellTerminalServerProxy } from '@theia/terminal/lib/common/shell-terminal-protocol';
 import { TerminalLink, TerminalLinkProvider } from '@theia/terminal/lib/browser/terminal-link-provider';
 import { URI } from '@theia/core/lib/common/uri';
+import { getIconClass } from '../../plugin/terminal-ext';
 
 /**
  * Plugin api service allows working with terminal emulator.
@@ -127,6 +128,7 @@ export class TerminalServiceMainImpl implements TerminalServiceMain, TerminalLin
             const terminal = await this.terminals.newTerminal({
                 id,
                 title: options.name,
+                iconClass: getIconClass(options),
                 shellPath: options.shellPath,
                 shellArgs: options.shellArgs,
                 cwd: options.cwd ? new URI(options.cwd) : undefined,
diff --git a/packages/plugin-ext/src/plugin/terminal-ext.ts b/packages/plugin-ext/src/plugin/terminal-ext.ts
index 70e75922faa14..06c37a9a7888f 100644
--- a/packages/plugin-ext/src/plugin/terminal-ext.ts
+++ b/packages/plugin-ext/src/plugin/terminal-ext.ts
@@ -20,9 +20,25 @@ import { RPCProtocol } from '../common/rpc-protocol';
 import { Event, Emitter } from '@theia/core/lib/common/event';
 import { Deferred } from '@theia/core/lib/common/promise-util';
 import * as theia from '@theia/plugin';
-import { Disposable, EnvironmentVariableMutatorType } from './types-impl';
+import { Disposable, EnvironmentVariableMutatorType, ThemeIcon } from './types-impl';
 import { SerializableEnvironmentVariableCollection } from '@theia/terminal/lib/common/base-terminal-protocol';
 import { ProvidedTerminalLink } from '../common/plugin-api-rpc-model';
+import { ThemeIcon as MonacoThemeIcon } from '@theia/monaco-editor-core/esm/vs/platform/theme/common/themeService';
+
+export function getIconUris(iconPath: theia.TerminalOptions['iconPath']): { id: string } | undefined {
+    if (ThemeIcon.is(iconPath)) {
+        return { id: iconPath.id };
+    }
+    return undefined;
+}
+
+export function getIconClass(options: theia.TerminalOptions): string | undefined {
+    const iconClass = getIconUris(options.iconPath);
+    if (iconClass) {
+        return MonacoThemeIcon.asClassName(iconClass);
+    }
+    return undefined;
+}
 
 /**
  * Provides high level terminal plugin api to use in the Theia plugins.
@@ -258,7 +274,6 @@ export class TerminalServiceExtImpl implements TerminalServiceExt {
             this.setEnvironmentVariableCollection(extensionIdentifier, collection);
         });
     }
-
 }
 
 export class EnvironmentVariableCollection implements theia.EnvironmentVariableCollection {
diff --git a/packages/plugin/src/theia.d.ts b/packages/plugin/src/theia.d.ts
index 1c52a360727c2..c815dbe090446 100644
--- a/packages/plugin/src/theia.d.ts
+++ b/packages/plugin/src/theia.d.ts
@@ -3005,6 +3005,19 @@ export module '@theia/plugin' {
          * Terminal attributes. Can be useful to apply some implementation specific information.
          */
         attributes?: { [key: string]: string | null };
+
+        /**
+         * The icon path or {@link ThemeIcon} for the terminal.
+         */
+        iconPath?: Uri | { light: Uri; dark: Uri } | ThemeIcon;
+
+        /**
+         * The icon {@link ThemeColor} for the terminal.
+         * The `terminal.ansi*` theme keys are
+         * recommended for the best contrast and consistency across themes.
+         * @stubbed
+         */
+        color?: ThemeColor;
     }
 
     /**
@@ -3067,6 +3080,18 @@ export module '@theia/plugin' {
          * control it.
          */
         pty: Pseudoterminal;
+
+        /**
+         * The icon path or {@link ThemeIcon} for the terminal.
+         */
+        iconPath?: Uri | { light: Uri; dark: Uri } | ThemeIcon;
+
+        /**
+         * The icon {@link ThemeColor} for the terminal.
+         * The standard `terminal.ansi*` theme keys are
+         * recommended for the best contrast and consistency across themes.
+         */
+        color?: ThemeColor;
     }
 
     /**
diff --git a/packages/terminal/src/browser/base/terminal-widget.ts b/packages/terminal/src/browser/base/terminal-widget.ts
index f1bf943479874..0e3c4831a6b43 100644
--- a/packages/terminal/src/browser/base/terminal-widget.ts
+++ b/packages/terminal/src/browser/base/terminal-widget.ts
@@ -149,6 +149,11 @@ export interface TerminalWidgetOptions {
      */
     readonly title?: string;
 
+    /**
+     * icon class
+     */
+    readonly iconClass?: string;
+
     /**
      * Path to the executable shell. For example: `/bin/bash`, `bash`, `sh`.
      */
diff --git a/packages/terminal/src/browser/terminal-widget-impl.ts b/packages/terminal/src/browser/terminal-widget-impl.ts
index 7b0448aab6266..7574f585a619d 100644
--- a/packages/terminal/src/browser/terminal-widget-impl.ts
+++ b/packages/terminal/src/browser/terminal-widget-impl.ts
@@ -116,7 +116,12 @@ export class TerminalWidgetImpl extends TerminalWidget implements StatefulWidget
     @postConstruct()
     protected init(): void {
         this.setTitle(this.options.title || TerminalWidgetImpl.LABEL);
-        this.title.iconClass = codicon('terminal');
+
+        if (this.options.iconClass) {
+            this.title.iconClass = this.options.iconClass;
+        } else {
+            this.title.iconClass = codicon('terminal');
+        }
 
         if (this.options.kind) {
             this.terminalKind = this.options.kind;