diff --git a/src/vs/workbench/parts/execution/electron-browser/iterm.scpt b/src/vs/workbench/parts/execution/electron-browser/iterm.scpt
index d0eb1b96631e9c56984962561273980745e44450..84e068fbddb6e8259b67c22cb111897607cba1d5 100644
--- a/src/vs/workbench/parts/execution/electron-browser/iterm.scpt
+++ b/src/vs/workbench/parts/execution/electron-browser/iterm.scpt
@@ -1,15 +1,20 @@
+-------------------------------------------------------------------
+-- Copyright (c) Microsoft Corporation. All rights reserved.
+-- Licensed under the MIT License.
+-- See License.txt in the project root for license information.
+-------------------------------------------------------------------
+
 on run argv
 	set command to "cd \"" & argv & "\"; clear" as string
-	
+
 	tell application "iTerm"
 		activate
+
 		set myterm to (current terminal)
 		tell myterm
 			tell (launch session "Default")
 				write text command
 			end tell
 		end tell
-		
-		set done to true
 	end tell
 end run
diff --git a/src/vs/workbench/parts/execution/electron-browser/itermNew.scpt b/src/vs/workbench/parts/execution/electron-browser/itermNew.scpt
new file mode 100644
index 0000000000000000000000000000000000000000..ca572682136152a511da1a52581449f49803686e
--- /dev/null
+++ b/src/vs/workbench/parts/execution/electron-browser/itermNew.scpt
@@ -0,0 +1,30 @@
+-------------------------------------------------------------------
+-- Copyright (c) Microsoft Corporation. All rights reserved.
+-- Licensed under the MIT License.
+-- See License.txt in the project root for license information.
+-------------------------------------------------------------------
+
+on run argv
+	set command to "cd \"" & argv & "\"; clear" as string
+
+	tell application "iTerm"
+		activate
+
+		set theWindow to current window
+
+		if theWindow = missing value then
+			set theWindow to (create window with default profile)
+			tell theWindow
+				write (current session) text command
+			end tell
+		else
+			tell theWindow
+				set theTab to (create tab with default profile)
+				tell theTab
+					write (current session) text command
+				end tell
+			end tell
+		end if
+		
+	end tell
+end run
diff --git a/src/vs/workbench/parts/execution/electron-browser/macHelper.scpt b/src/vs/workbench/parts/execution/electron-browser/macHelper.scpt
index 926c7a962a59781f6a12a6f6eb8c36c3386c6c22..a8fe3b8aa4acf6e6aecbdb95e324ab9e3d30101f 100644
--- a/src/vs/workbench/parts/execution/electron-browser/macHelper.scpt
+++ b/src/vs/workbench/parts/execution/electron-browser/macHelper.scpt
@@ -1,26 +1,32 @@
+-------------------------------------------------------------------
+-- Copyright (c) Microsoft Corporation. All rights reserved.
+-- Licensed under the MIT License.
+-- See License.txt in the project root for license information.
+-------------------------------------------------------------------
+
 on run argv
  	set prevDelimiter to AppleScript's text item delimiters
-	 
+
  	set AppleScript's text item delimiters to " "
  	set command to argv as string
  	set AppleScript's text item delimiters to prevDelimiter
-	 		
+
 	tell application "Terminal"
 		activate
-		
+
 		set targetWindow to null
-		
+
 		repeat with currentWindow in windows
 			if currentWindow is not busy then
 				set targetWindow to currentWindow
 			end if
 		end repeat
-		
+
 		if targetWindow ≠ null then
 			do script command in targetWindow
 		else
 			do script command
 		end if
-		
+
 	end tell
 end run
diff --git a/src/vs/workbench/parts/execution/electron-browser/terminal.scpt b/src/vs/workbench/parts/execution/electron-browser/terminal.scpt
index 7c309a02f4583b754889c9579edd884335aa467c..43fc40fdb4c8763e6602622c44428f5fcc1cdd54 100644
--- a/src/vs/workbench/parts/execution/electron-browser/terminal.scpt
+++ b/src/vs/workbench/parts/execution/electron-browser/terminal.scpt
@@ -1,20 +1,26 @@
-on run argv
-	set command to "cd \"" & argv & "\"; clear" as string
-	
-	tell application "Terminal"
-		activate
-		set targetWindow to null
-		
-		repeat with currentWindow in windows
-			if currentWindow is not busy then
-				set targetWindow to currentWindow
-			end if
-		end repeat
-		
-		if targetWindow ≠ null then
-			do script command in targetWindow
-		else
-			do script command
-		end if
-	end tell
-end run
+-------------------------------------------------------------------
+-- Copyright (c) Microsoft Corporation. All rights reserved.
+-- Licensed under the MIT License.
+-- See License.txt in the project root for license information.
+-------------------------------------------------------------------
+
+on run argv
+	set command to "cd \"" & argv & "\"; clear" as string
+
+	tell application "Terminal"
+		activate
+		set targetWindow to null
+
+		repeat with currentWindow in windows
+			if currentWindow is not busy then
+				set targetWindow to currentWindow
+			end if
+		end repeat
+
+		if targetWindow ≠ null then
+			do script command in targetWindow
+		else
+			do script command
+		end if
+	end tell
+end run
diff --git a/src/vs/workbench/parts/execution/electron-browser/terminalService.ts b/src/vs/workbench/parts/execution/electron-browser/terminalService.ts
index 1fc0893fcd1b2b966e77214d787e2a1d55bbd58b..2dfb29a687f2fe3bed9cd638a2a085b9baefbcad 100644
--- a/src/vs/workbench/parts/execution/electron-browser/terminalService.ts
+++ b/src/vs/workbench/parts/execution/electron-browser/terminalService.ts
@@ -44,10 +44,28 @@ export class MacTerminalService implements ITerminalService {
 		}
 
 		return this._terminalApplicationScriptPath = new TPromise<string>((c, e) => {
-			let child = cp.spawn('/usr/bin/osascript', ['-e', 'exists application "iTerm"']);
+			let version = '';
+			let child = cp.spawn('/usr/bin/osascript', ['-e', 'item (((exists application "iTerm") as integer) + 1) of {0, version of application "iTerm"}']);
 			child.on('error', e);
+			child.stdout.on('data', (data) => {
+				version += data.toString();
+			});
 			child.on('exit', (code: number) => {
-				c(code === 0 ? 'iterm.scpt' : 'terminal.scpt');
+				let script = 'terminal.scpt';
+				if (code === 0) {
+					const match = /(\d+).(\d+).(\d+)/.exec(version);
+					if (match.length >= 4) {
+						const major = +match[1];
+						const minor = +match[2];
+						const veryMinor = +match[3];
+						if ((major < 2) || (major === 2 && minor < 9) || (major === 2 && minor === 9 && veryMinor < 20150414)) {
+							script = 'iterm.scpt';
+						} else {
+							script = 'itermNew.scpt';	// versions >= 2.9.20150414 use new script syntax
+						}
+					}
+				}
+				c(script);
 			});
 		}).then(name => uri.parse(require.toUrl(`vs/workbench/parts/execution/electron-browser/${ name }`)).fsPath);
 	}