diff --git a/src/vs/workbench/electron-browser/main.contribution.ts b/src/vs/workbench/electron-browser/main.contribution.ts
index 030e7808f553e..0fa52770f60e3 100644
--- a/src/vs/workbench/electron-browser/main.contribution.ts
+++ b/src/vs/workbench/electron-browser/main.contribution.ts
@@ -232,6 +232,12 @@ configurationRegistry.registerConfiguration({
 			'default': 'left',
 			'description': nls.localize('sideBarLocation', "Controls the location of the sidebar. It can either show on the left or right of the workbench.")
 		},
+		'workbench.panel.defaultLocation': {
+			'type': 'string',
+			'enum': ['bottom', 'right'],
+			'default': 'bottom',
+			'description': nls.localize('panelDefaultLocation', "Controls the default location of the panel. It can either show at the bottom or on the right of the workbench.")
+		},
 		'workbench.statusBar.visible': {
 			'type': 'boolean',
 			'default': true,
diff --git a/src/vs/workbench/electron-browser/workbench.ts b/src/vs/workbench/electron-browser/workbench.ts
index b621527249309..2301bbcf84411 100644
--- a/src/vs/workbench/electron-browser/workbench.ts
+++ b/src/vs/workbench/electron-browser/workbench.ts
@@ -152,6 +152,7 @@ export class Workbench implements IPartService {
 	private static readonly panelHiddenStorageKey = 'workbench.panel.hidden';
 	private static readonly zenModeActiveStorageKey = 'workbench.zenmode.active';
 	private static readonly panelPositionStorageKey = 'workbench.panel.location';
+	private static readonly defaultPanelPositionStorageKey = 'workbench.panel.defaultLocation';
 
 	private static readonly sidebarPositionConfigurationKey = 'workbench.sideBar.location';
 	private static readonly statusbarVisibleConfigurationKey = 'workbench.statusBar.visible';
@@ -635,8 +636,7 @@ export class Workbench implements IPartService {
 		this.sideBarPosition = (sideBarPosition === 'right') ? Position.RIGHT : Position.LEFT;
 
 		// Panel position
-		const panelPosition = this.storageService.get(Workbench.panelPositionStorageKey, StorageScope.WORKSPACE, 'bottom');
-		this.panelPosition = (panelPosition === 'right') ? Position.RIGHT : Position.BOTTOM;
+		this.setPanelPositionFromStorageOrConfig();
 
 		// Statusbar visibility
 		const statusBarVisible = this.configurationService.getValue<string>(Workbench.statusbarVisibleConfigurationKey);
@@ -658,6 +658,12 @@ export class Workbench implements IPartService {
 		};
 	}
 
+	private setPanelPositionFromStorageOrConfig() {
+		const defaultPanelPosition = this.configurationService.getValue<string>(Workbench.defaultPanelPositionStorageKey);
+		const panelPosition = this.storageService.get(Workbench.panelPositionStorageKey, StorageScope.WORKSPACE, defaultPanelPosition);
+		this.panelPosition = (panelPosition === 'right') ? Position.RIGHT : Position.BOTTOM;
+	}
+
 	/**
 	 * Returns whether the workbench has been started.
 	 */
@@ -1084,6 +1090,8 @@ export class Workbench implements IPartService {
 			this.setSideBarPosition(newSidebarPosition);
 		}
 
+		this.setPanelPositionFromStorageOrConfig();
+
 		const fontAliasing = this.configurationService.getValue<string>(Workbench.fontAliasingConfigurationKey);
 		if (fontAliasing !== this.fontAliasing) {
 			this.setFontAliasing(fontAliasing);