diff --git a/src/vs/workbench/parts/output/browser/output.contribution.ts b/src/vs/workbench/parts/output/browser/output.contribution.ts
index a02939d72305aed7e6b164591c12a524e65aa0ff..1e1d26d92faa1414f09d64a1427d4cecab944524 100644
--- a/src/vs/workbench/parts/output/browser/output.contribution.ts
+++ b/src/vs/workbench/parts/output/browser/output.contribution.ts
@@ -14,7 +14,7 @@ import { KeybindingsRegistry } from 'vs/platform/keybinding/common/keybindingsRe
 import { registerSingleton } from 'vs/platform/instantiation/common/extensions';
 import { IWorkbenchActionRegistry, Extensions as ActionExtensions } from 'vs/workbench/common/actionRegistry';
 import { OutputService } from 'vs/workbench/parts/output/browser/outputServices';
-import { ToggleOutputAction, ClearOutputAction } from 'vs/workbench/parts/output/browser/outputActions';
+import { ToggleOutputAction, ClearOutputAction, ToggleOutputScrollLockAction } from 'vs/workbench/parts/output/browser/outputActions';
 import { OUTPUT_MODE_ID, OUTPUT_MIME, OUTPUT_PANEL_ID, IOutputService } from 'vs/workbench/parts/output/common/output';
 import { PanelRegistry, Extensions, PanelDescriptor } from 'vs/workbench/browser/panel';
 import { EditorContextKeys } from 'vs/editor/common/editorCommon';
@@ -55,6 +55,9 @@ actionRegistry.registerWorkbenchAction(new SyncActionDescriptor(ToggleOutputActi
 actionRegistry.registerWorkbenchAction(new SyncActionDescriptor(ClearOutputAction, ClearOutputAction.ID, ClearOutputAction.LABEL),
 	'View: Clear Output', nls.localize('viewCategory', "View"));
 
+actionRegistry.registerWorkbenchAction(new SyncActionDescriptor(ToggleOutputScrollLockAction, ToggleOutputScrollLockAction.ID, ToggleOutputScrollLockAction.LABEL),
+	'View: Toggle Output Scroll Lock', nls.localize('viewCategory', "View"));
+
 interface IActionDescriptor {
 	id: string;
 	handler: ICommandHandler;
diff --git a/src/vs/workbench/parts/output/browser/outputActions.ts b/src/vs/workbench/parts/output/browser/outputActions.ts
index d5eaab920a4e2fffe2c355eabc6bf2b0673f3f43..0561f91f7591a3713768e78275cb34b57e34bb76 100644
--- a/src/vs/workbench/parts/output/browser/outputActions.ts
+++ b/src/vs/workbench/parts/output/browser/outputActions.ts
@@ -48,6 +48,23 @@ export class ClearOutputAction extends Action {
 	}
 }
 
+export class ToggleOutputScrollLockAction extends Action {
+
+	public static ID = 'workbench.output.action.toggleOutputScrollLock';
+	public static LABEL = nls.localize('toggleOutputScrollLock', "Toggle Output Scroll Lock");
+
+	constructor(id: string, label: string,
+		@IOutputService private outputService: IOutputService) {
+		super(id, label, 'output-action toggle-output-scroll-lock');
+	}
+
+	public run(): TPromise<any> {
+		this.outputService.getActiveChannel().toggleScrollLock();
+
+		return TPromise.as(true);
+	}
+}
+
 export class SwitchOutputAction extends Action {
 
 	public static ID = 'workbench.output.action.switchBetweenOutputs';
diff --git a/src/vs/workbench/parts/output/browser/outputPanel.ts b/src/vs/workbench/parts/output/browser/outputPanel.ts
index ae266298cd086879ccf0b28b89284624e3e836eb..d628ecac03355d2f89f406b9cfcb76b34319e097 100644
--- a/src/vs/workbench/parts/output/browser/outputPanel.ts
+++ b/src/vs/workbench/parts/output/browser/outputPanel.ts
@@ -19,7 +19,7 @@ import { IContextKeyService } from 'vs/platform/contextkey/common/contextkey';
 import { EditorInput, EditorOptions } from 'vs/workbench/common/editor';
 import { TextResourceEditor } from 'vs/workbench/browser/parts/editor/textResourceEditor';
 import { OutputEditors, OUTPUT_PANEL_ID, IOutputService, CONTEXT_IN_OUTPUT } from 'vs/workbench/parts/output/common/output';
-import { SwitchOutputAction, SwitchOutputActionItem, ClearOutputAction } from 'vs/workbench/parts/output/browser/outputActions';
+import { SwitchOutputAction, SwitchOutputActionItem, ClearOutputAction, ToggleOutputScrollLockAction } from 'vs/workbench/parts/output/browser/outputActions';
 import { IThemeService } from 'vs/workbench/services/themes/common/themeService';
 import { IUntitledEditorService } from 'vs/workbench/services/untitled/common/untitledEditorService';
 import { IEditorGroupService } from 'vs/workbench/services/group/common/groupService';
@@ -56,7 +56,8 @@ export class OutputPanel extends TextResourceEditor {
 		if (!this.actions) {
 			this.actions = [
 				this.instantiationService.createInstance(SwitchOutputAction),
-				this.instantiationService.createInstance(ClearOutputAction, ClearOutputAction.ID, ClearOutputAction.LABEL)
+				this.instantiationService.createInstance(ClearOutputAction, ClearOutputAction.ID, ClearOutputAction.LABEL),
+				this.instantiationService.createInstance(ToggleOutputScrollLockAction, ToggleOutputScrollLockAction.ID, ToggleOutputScrollLockAction.LABEL)
 			];
 
 			this.actions.forEach(a => {
diff --git a/src/vs/workbench/parts/output/browser/outputServices.ts b/src/vs/workbench/parts/output/browser/outputServices.ts
index ce2c622a9324102c231bd5ded2afef15277ef8ed..12d7822c4f82083a4e4199884d8d7f8a9306a057 100644
--- a/src/vs/workbench/parts/output/browser/outputServices.ts
+++ b/src/vs/workbench/parts/output/browser/outputServices.ts
@@ -41,6 +41,7 @@ export class OutputService implements IOutputService {
 	private _onActiveOutputChannel: Emitter<string>;
 
 	private _outputLinkDetector: OutputLinkProvider;
+	private _outputContentProvider: OutputContentProvider;
 
 	constructor(
 		@IStorageService private storageService: IStorageService,
@@ -61,8 +62,10 @@ export class OutputService implements IOutputService {
 
 		this._outputLinkDetector = new OutputLinkProvider(contextService, modelService);
 
+		this._outputContentProvider = instantiationService.createInstance(OutputContentProvider, this);
+
 		// Register as text model content provider for output
-		textModelResolverService.registerTextModelContentProvider(OUTPUT_SCHEME, instantiationService.createInstance(OutputContentProvider, this));
+		textModelResolverService.registerTextModelContentProvider(OUTPUT_SCHEME, this._outputContentProvider);
 	}
 
 	public get onOutput(): Event<IOutputEvent> {
@@ -89,7 +92,8 @@ export class OutputService implements IOutputService {
 			},
 			append: (output: string) => this.append(id, output),
 			show: (preserveFocus: boolean) => this.showOutput(id, preserveFocus),
-			clear: () => this.clearOutput(id)
+			clear: () => this.clearOutput(id),
+			toggleScrollLock: () => this._outputContentProvider.toggleScrollLock(id)
 		};
 	}
 
@@ -154,6 +158,7 @@ class OutputContentProvider implements ITextModelContentProvider {
 
 	private bufferedOutput: { [channel: string]: string; };
 	private appendOutputScheduler: { [channel: string]: RunOnceScheduler; };
+	private channelIdsWithScrollLock: Set<string> = new Set();
 
 	private toDispose: IDisposable[];
 
@@ -265,9 +270,11 @@ class OutputContentProvider implements ITextModelContentProvider {
 			model.applyEdits([EditOperation.insert(new Position(lastLine, lastLineMaxColumn), bufferedOutput)]);
 		}
 
-		// reveal last line
-		const panel = this.panelService.getActivePanel();
-		(<OutputPanel>panel).revealLastLine(true);
+		if (!this.channelIdsWithScrollLock.has(channel)) {
+			// reveal last line
+			const panel = this.panelService.getActivePanel();
+			(<OutputPanel>panel).revealLastLine(true);
+		}
 	}
 
 	private isVisible(channel: string): boolean {
@@ -276,6 +283,16 @@ class OutputContentProvider implements ITextModelContentProvider {
 		return panel && panel.getId() === OUTPUT_PANEL_ID && this.outputService.getActiveChannel().id === channel;
 	}
 
+	public toggleScrollLock(channelId: string): boolean {
+		let channelHadScrollLock = this.channelIdsWithScrollLock.has(channelId);
+		if (channelHadScrollLock) {
+			this.channelIdsWithScrollLock.delete(channelId)
+		} else {
+			this.channelIdsWithScrollLock.add(channelId);
+		}
+		return !channelHadScrollLock;
+	}
+
 	public provideTextContent(resource: URI): TPromise<IModel> {
 		const content = this.outputService.getChannel(resource.fsPath).output;
 
diff --git a/src/vs/workbench/parts/output/common/output.ts b/src/vs/workbench/parts/output/common/output.ts
index e3ce5b1bfa93ce82d79fddea377309a1d82ee426..a354eb925b04e96195f7ca3babc0dc91ebff80a8 100644
--- a/src/vs/workbench/parts/output/common/output.ts
+++ b/src/vs/workbench/parts/output/common/output.ts
@@ -124,6 +124,12 @@ export interface IOutputChannel {
 	 * Clears all received output for this channel.
 	 */
 	clear(): void;
+
+	/**
+	 * Toggles scroll lock for this channel.
+	 * Returns a flag indicating whether the scroll lock is on/off.
+	 */
+	toggleScrollLock(): boolean;
 }
 
 export interface IOutputChannelIdentifier {