diff --git a/src/vs/workbench/browser/parts/editor/textEditor.ts b/src/vs/workbench/browser/parts/editor/textEditor.ts
index 1c3e842e785ffede7e7e9abb68549122dc3b2136..08870420bc3d34848398fbbf9603f0fc3798a099 100644
--- a/src/vs/workbench/browser/parts/editor/textEditor.ts
+++ b/src/vs/workbench/browser/parts/editor/textEditor.ts
@@ -139,7 +139,8 @@ export abstract class BaseTextEditor extends BaseEditor {
 	 * provide their own editor control that should be used (e.g. a DiffEditor).
 	 */
 	public createEditorControl(parent: Builder): IEditor {
-		return this._instantiationService.createInstance(CodeEditor, parent.getHTMLElement(), this.getCodeEditorOptions());
+		// Use a getter for the instantiation service since some subclasses might use scoped instantiation services
+		return this.instantiationService.createInstance(CodeEditor, parent.getHTMLElement(), this.getCodeEditorOptions());
 	}
 
 	public setInput(input: EditorInput, options: EditorOptions): TPromise<void> {
diff --git a/src/vs/workbench/parts/output/browser/outputPanel.ts b/src/vs/workbench/parts/output/browser/outputPanel.ts
index 4447939aef20b72f00c79cb25c26e019ac85fa66..390428c617853222bc537a76916fcba0e3b64fa9 100644
--- a/src/vs/workbench/parts/output/browser/outputPanel.ts
+++ b/src/vs/workbench/parts/output/browser/outputPanel.ts
@@ -16,6 +16,7 @@ import { IConfigurationService } from 'vs/platform/configuration/common/configur
 import { IEventService } from 'vs/platform/event/common/event';
 import { IInstantiationService } from 'vs/platform/instantiation/common/instantiation';
 import { IMessageService } from 'vs/platform/message/common/message';
+import { ServiceCollection } from 'vs/platform/instantiation/common/serviceCollection';
 import { IContextKeyService } from 'vs/platform/contextkey/common/contextkey';
 import { EditorInput, EditorOptions } from 'vs/workbench/common/editor';
 import { StringEditor } from 'vs/workbench/browser/parts/editor/stringEditor';
@@ -31,6 +32,7 @@ export class OutputPanel extends StringEditor {
 
 	private toDispose: lifecycle.IDisposable[];
 	private actions: IAction[];
+	private scopedInstantiationService: IInstantiationService;
 
 	constructor(
 		@ITelemetryService telemetryService: ITelemetryService,
@@ -48,6 +50,7 @@ export class OutputPanel extends StringEditor {
 	) {
 		super(telemetryService, instantiationService, contextService, storageService,
 			messageService, configurationService, eventService, editorService, themeService, untitledEditorService);
+		this.scopedInstantiationService = instantiationService;
 		this.toDispose = [];
 	}
 
@@ -100,14 +103,20 @@ export class OutputPanel extends StringEditor {
 	}
 
 	public createEditor(parent: Builder): void {
-		super.createEditor(parent);
-		const scopedContextKeyService = this.contextKeyService.createScoped(this.getContainer().getHTMLElement());
+		// First create the scoped instantation service and only then construct the editor using the scoped service
+		const scopedContextKeyService = this.contextKeyService.createScoped(parent.getHTMLElement());
 		this.toDispose.push(scopedContextKeyService);
-		CONTEXT_IN_OUTPUT.bindTo(scopedContextKeyService).set(true);
+		this.scopedInstantiationService = this.instantiationService.createChild(new ServiceCollection([IContextKeyService, scopedContextKeyService]));
+		super.createEditor(parent);
 
+		CONTEXT_IN_OUTPUT.bindTo(scopedContextKeyService).set(true);
 		this.setInput(OutputEditorInput.getInstance(this.instantiationService, this.outputService.getActiveChannel()), null);
 	}
 
+	public get instantiationService(): IInstantiationService {
+		return this.scopedInstantiationService;
+	}
+
 	public dispose(): void {
 		this.toDispose = lifecycle.dispose(this.toDispose);
 		super.dispose();