diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index 9a9702cdadae36440f540cebd7ff2b780de8e92d..dbad8f8a333c746ec4707a067d5d1bd69c3bd13f 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -53,11 +53,13 @@ export abstract class TerminalService extends CommonTerminalService implements I
 		if (shell.runInBackground) {
 			// TODO: When show is triggered, create a TerminalTab for this instance
 			// TODO: How do backgrounded terminals interact with extensions listening for them, just ignore?
-			return this.createInstance(this._terminalFocusContextKey,
+			const instance = this.createInstance(this._terminalFocusContextKey,
 				this.configHelper,
 				undefined,
 				shell,
 				true);
+			this._backgroundedTerminalInstances.push(instance);
+			return instance;
 		}
 		const terminalTab = this._instantiationService.createInstance(TerminalTab,
 			this._terminalFocusContextKey,
@@ -77,6 +79,28 @@ export abstract class TerminalService extends CommonTerminalService implements I
 		return instance;
 	}
 
+	protected _showBackgroundTerminal(instance: ITerminalInstance): void {
+		// TODO: Remove from _backgroundedTerminalInstances
+		this._backgroundedTerminalInstances = this._backgroundedTerminalInstances.splice(this._backgroundedTerminalInstances.indexOf(instance), 1);
+		instance.shellLaunchConfig.runInBackground = false;
+		console.log('show backgrounded terminal', instance);
+
+		const terminalTab = this._instantiationService.createInstance(TerminalTab,
+			this._terminalFocusContextKey,
+			this.configHelper,
+			this._terminalContainer,
+			instance);
+		this._terminalTabs.push(terminalTab);
+		terminalTab.addDisposable(terminalTab.onDisposed(this._onTabDisposed.fire, this._onTabDisposed));
+		terminalTab.addDisposable(terminalTab.onInstancesChanged(this._onInstancesChanged.fire, this._onInstancesChanged));
+		this._initInstanceListeners(instance);
+		if (this.terminalInstances.length === 1) {
+			// It's the first instance so it should be made active automatically
+			this.setActiveInstanceByIndex(0);
+		}
+		this._onInstancesChanged.fire();
+	}
+
 	public focusFindWidget(): Promise<void> {
 		return this.showPanel(false).then(() => {
 			const panel = this._panelService.getActivePanel() as TerminalPanel;
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
index a1feac0545c7a264314c2a5facbc191a2bbb5ad9..87c5e41a396d3621caf14cef14612d5d007e46d8 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
@@ -225,7 +225,7 @@ export class TerminalTab extends Disposable implements ITerminalTab {
 		terminalFocusContextKey: IContextKey<boolean>,
 		configHelper: ITerminalConfigHelper,
 		private _container: HTMLElement,
-		shellLaunchConfig: IShellLaunchConfig,
+		shellLaunchConfigOrInstance: IShellLaunchConfig | ITerminalInstance,
 		@ITerminalService private readonly _terminalService: ITerminalService,
 		@IWorkbenchLayoutService private readonly _layoutService: IWorkbenchLayoutService
 	) {
@@ -233,12 +233,17 @@ export class TerminalTab extends Disposable implements ITerminalTab {
 		this._onDisposed = new Emitter<ITerminalTab>();
 		this._onInstancesChanged = new Emitter<void>();
 
-		const instance = this._terminalService.createInstance(
-			terminalFocusContextKey,
-			configHelper,
-			undefined,
-			shellLaunchConfig,
-			true);
+		let instance: ITerminalInstance;
+		if ('id' in shellLaunchConfigOrInstance) {
+			instance = shellLaunchConfigOrInstance;
+		} else {
+			instance = this._terminalService.createInstance(
+				terminalFocusContextKey,
+				configHelper,
+				undefined,
+				shellLaunchConfigOrInstance,
+				true);
+		}
 		this._terminalInstances.push(instance);
 		this._initInstanceListeners(instance);
 		this._activeInstanceIndex = 0;
diff --git a/src/vs/workbench/contrib/terminal/common/terminalService.ts b/src/vs/workbench/contrib/terminal/common/terminalService.ts
index 74d076206c95ae52f957095cabcfb1ae23d14f10..de60157babed43136b68fc417248a77c2bcae585 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalService.ts
@@ -30,6 +30,7 @@ export abstract class TerminalService implements ITerminalService {
 	protected _findWidgetVisible: IContextKey<boolean>;
 	protected _terminalContainer: HTMLElement;
 	protected _terminalTabs: ITerminalTab[] = [];
+	protected _backgroundedTerminalInstances: ITerminalInstance[] = [];
 	protected get _terminalInstances(): ITerminalInstance[] {
 		return this._terminalTabs.reduce((p, c) => p.concat(c.terminalInstances), <ITerminalInstance[]>[]);
 	}
@@ -103,6 +104,7 @@ export abstract class TerminalService implements ITerminalService {
 
 	protected abstract _getWslPath(path: string): Promise<string>;
 	protected abstract _getWindowsBuildNumber(): number;
+	protected abstract _showBackgroundTerminal(instance: ITerminalInstance): void;
 
 	public abstract refreshActiveTab(): void;
 	public abstract createTerminal(shell?: IShellLaunchConfig, wasNewTerminalAction?: boolean): ITerminalInstance;
@@ -222,6 +224,15 @@ export abstract class TerminalService implements ITerminalService {
 	}
 
 	public getInstanceFromId(terminalId: number): ITerminalInstance {
+		let bgIndex = -1;
+		this._backgroundedTerminalInstances.forEach((terminalInstance, i) => {
+			if (terminalInstance.id === terminalId) {
+				bgIndex = i;
+			}
+		});
+		if (bgIndex !== -1) {
+			return this._backgroundedTerminalInstances[bgIndex];
+		}
 		return this.terminalInstances[this._getIndexFromId(terminalId)];
 	}
 
@@ -230,6 +241,11 @@ export abstract class TerminalService implements ITerminalService {
 	}
 
 	public setActiveInstance(terminalInstance: ITerminalInstance): void {
+		// If this was a runInBackground terminal created by the API this was triggered by show,
+		// in which case we need to create the terminal tab
+		if (terminalInstance.shellLaunchConfig.runInBackground) {
+			this._showBackgroundTerminal(terminalInstance);
+		}
 		this.setActiveInstanceByIndex(this._getIndexFromId(terminalInstance.id));
 	}