diff --git a/src/vs/vscode.d.ts b/src/vs/vscode.d.ts
index 4b88dcf51e25b0fd1ef80c35fa00c4561dac3683..4c5d0eae1959b1eb92cbb4b2b1ba2b1db5391551 100644
--- a/src/vs/vscode.d.ts
+++ b/src/vs/vscode.d.ts
@@ -3465,7 +3465,7 @@ declare namespace vscode {
 		 */
 		export function createStatusBarItem(alignment?: StatusBarAlignment, priority?: number): StatusBarItem;
 
-		export function createTerminal(name?: string): Thenable<vscode.Terminal>;
+		export function createTerminal(label?: string): Thenable<vscode.Terminal>;
 	}
 
 	/**
diff --git a/src/vs/workbench/api/node/mainThreadTerminalService.ts b/src/vs/workbench/api/node/mainThreadTerminalService.ts
index a6a6c5852cc6ce30b4f55546b47d1dbda92dd0d3..539d5310dfd22fa1808d2011b74765d6859c59d4 100644
--- a/src/vs/workbench/api/node/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/node/mainThreadTerminalService.ts
@@ -20,8 +20,7 @@ export class MainThreadTerminalService extends MainThreadTerminalServiceShape {
 	}
 
 	public $createTerminal(name?: string): TPromise<number> {
-		// TODO: Use name here
-		return this._terminalService.createNew();
+		return this._terminalService.createNew(name);
 	}
 
 	public $show(terminalId: number, preserveFocus: boolean): void {
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
index 4d96cda1ca5edbfd31ad43caaaa6a0cb2f33d9bd..1e0dafb28efcd89c63eb5924cd5ffca66a9dd62b 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
@@ -174,8 +174,8 @@ export class TerminalPanel extends Panel {
 		}));
 	}
 
-	public createNewTerminalInstance(terminalProcess: ITerminalProcess, terminalFocusContextKey: IContextKey<boolean>): TPromise<number> {
-		return this.createTerminal(terminalProcess, terminalFocusContextKey).then((terminalInstance) => {
+	public createNewTerminalInstance(process: ITerminalProcess, focusContextKey: IContextKey<boolean>): TPromise<number> {
+		return this.createTerminal(process, focusContextKey).then((terminalInstance) => {
 			this.updateConfig();
 			this.focus();
 			return TPromise.as(terminalInstance.id);
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
index 952e7a25c46cac26475dda9e0aacba33d7d5f860..8f212bc2292c47c98b9da1e43f3e31d836125305 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
@@ -152,7 +152,7 @@ export class TerminalService implements ITerminalService {
 		return this.focus();
 	}
 
-	public createNew(): TPromise<number> {
+	public createNew(name?: string): TPromise<number> {
 		let self = this;
 		let processCount = this.terminalProcesses.length;
 
@@ -170,7 +170,7 @@ export class TerminalService implements ITerminalService {
 			}
 
 			self.initConfigHelper(terminalPanel.getContainer());
-			return terminalPanel.createNewTerminalInstance(self.createTerminalProcess(), this._terminalFocusContextKey).then((terminalId) => {
+			return terminalPanel.createNewTerminalInstance(self.createTerminalProcess(name), this._terminalFocusContextKey).then((terminalId) => {
 				self._onInstancesChanged.fire();
 				return TPromise.as(terminalId);
 			});
@@ -245,11 +245,11 @@ export class TerminalService implements ITerminalService {
 		}
 	}
 
-	private createTerminalProcess(): ITerminalProcess {
+	private createTerminalProcess(name?: string): ITerminalProcess {
 		let locale = this.configHelper.isSetLocaleVariables() ? platform.locale : undefined;
 		let env = TerminalService.createTerminalEnv(process.env, this.configHelper.getShell(), this.contextService.getWorkspace(), locale);
 		let terminalProcess = {
-			title: '',
+			title: name,
 			process: cp.fork('./terminalProcess', [], {
 				env: env,
 				cwd: URI.parse(path.dirname(require.toUrl('./terminalProcess'))).fsPath
@@ -259,12 +259,15 @@ export class TerminalService implements ITerminalService {
 		this._onInstancesChanged.fire();
 		this.activeTerminalIndex = this.terminalProcesses.length - 1;
 		this._onActiveInstanceChanged.fire();
-		terminalProcess.process.on('message', (message) => {
-			if (message.type === 'title') {
-				terminalProcess.title = message.content;
-				this._onInstanceTitleChanged.fire();
-			}
-		});
+		if (!name) {
+			// Only listen for process title changes when a name is not provided
+			terminalProcess.process.on('message', (message) => {
+				if (message.type === 'title') {
+					terminalProcess.title = message.content;
+					this._onInstanceTitleChanged.fire();
+				}
+			});
+		}
 		return terminalProcess;
 	}