diff --git a/src/vs/workbench/contrib/terminal/browser/links/terminalProtocolLinkProvider.ts b/src/vs/workbench/contrib/terminal/browser/links/terminalProtocolLinkProvider.ts
index 720ebcd3b617e3d6946748d58c527e325ea31a85..f54cd67b153783ff848cfc2c8c0fc886d9181cfc 100644
--- a/src/vs/workbench/contrib/terminal/browser/links/terminalProtocolLinkProvider.ts
+++ b/src/vs/workbench/contrib/terminal/browser/links/terminalProtocolLinkProvider.ts
@@ -15,6 +15,7 @@ import { ICommandService } from 'vs/platform/commands/common/commands';
 import { IWorkspaceContextService } from 'vs/platform/workspace/common/workspace';
 import { IHostService } from 'vs/workbench/services/host/browser/host';
 import { IUriIdentityService } from 'vs/workbench/services/uriIdentity/common/uriIdentity';
+import { Schemas } from 'vs/base/common/network';
 
 export class TerminalProtocolLinkProvider extends TerminalBaseLinkProvider {
 	private _linkComputerTarget: ILinkComputerTarget | undefined;
@@ -68,8 +69,26 @@ export class TerminalProtocolLinkProvider extends TerminalBaseLinkProvider {
 				continue;
 			}
 
+			const linkText = link.url?.toString() || '';
+
+			// Handle http links
+			if (uri.scheme !== Schemas.file) {
+				result.push(this._instantiationService.createInstance(TerminalLink,
+					this._xterm,
+					bufferRange,
+					linkText,
+					this._xterm.buffer.active.viewportY,
+					this._activateCallback,
+					this._tooltipCallback,
+					true,
+					undefined
+				));
+				continue;
+			}
+
+			// Handle files and folders
 			const validatedLink = await new Promise<TerminalLink | undefined>(r => {
-				this._validationCallback(uri.fsPath, (result) => {
+				this._validationCallback(linkText, (result) => {
 					if (result) {
 						const label = result.isDirectory
 							? (this._isDirectoryInsideWorkspace(result.uri) ? FOLDER_IN_WORKSPACE_LABEL : FOLDER_NOT_IN_WORKSPACE_LABEL)
@@ -78,14 +97,14 @@ export class TerminalProtocolLinkProvider extends TerminalBaseLinkProvider {
 							if (result.isDirectory) {
 								this._handleLocalFolderLink(result.uri);
 							} else {
-								this._activateCallback(event, result.uri.path);
+								this._activateCallback(event, linkText);
 							}
 						});
 						r(this._instantiationService.createInstance(
 							TerminalLink,
 							this._xterm,
 							bufferRange,
-							uri.fsPath,
+							linkText,
 							this._xterm.buffer.active.viewportY,
 							activateCallback,
 							this._tooltipCallback,
diff --git a/src/vs/workbench/contrib/terminal/test/browser/links/terminalProtocolLinkProvider.test.ts b/src/vs/workbench/contrib/terminal/test/browser/links/terminalProtocolLinkProvider.test.ts
index a4baaee003c2eac7019dc82026eef98e17431056..2f80b63cd796270899aa7ae33492f02cb64dd54a 100644
--- a/src/vs/workbench/contrib/terminal/test/browser/links/terminalProtocolLinkProvider.test.ts
+++ b/src/vs/workbench/contrib/terminal/test/browser/links/terminalProtocolLinkProvider.test.ts
@@ -9,8 +9,9 @@ import { Terminal, ILink } from 'xterm';
 import { TestInstantiationService } from 'vs/platform/instantiation/test/common/instantiationServiceMock';
 import { TestConfigurationService } from 'vs/platform/configuration/test/common/testConfigurationService';
 import { IConfigurationService } from 'vs/platform/configuration/common/configuration';
+import { URI } from 'vs/base/common/uri';
 
-suite('Workbench - TerminalWebLinkProvider', () => {
+suite('Workbench - TerminalProtocolLinkProvider', () => {
 	let instantiationService: TestInstantiationService;
 
 	setup(() => {
@@ -20,7 +21,9 @@ suite('Workbench - TerminalWebLinkProvider', () => {
 
 	async function assertLink(text: string, expected: { text: string, range: [number, number][] }[]) {
 		const xterm = new Terminal();
-		const provider = instantiationService.createInstance(TerminalProtocolLinkProvider, xterm, () => { }, () => { });
+		const provider = instantiationService.createInstance(TerminalProtocolLinkProvider, xterm, () => { }, () => { }, () => { }, (text: string, cb: (result: { uri: URI, isDirectory: boolean } | undefined) => void) => {
+			cb({ uri: URI.parse(text), isDirectory: false });
+		});
 
 		// Write the text and wait for the parser to finish
 		await new Promise<void>(r => xterm.write(text, r));