diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminal.ts b/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
index d9aa965ba41427dd32dbd50b30dba035a7a6256b..c11a0b3e666d4b21353e01ab4d2f3374165ba8f8 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
@@ -12,7 +12,7 @@ import {Builder, Dimension} from 'vs/base/browser/builder';
 import {TPromise} from 'vs/base/common/winjs.base';
 import {createDecorator} from 'vs/platform/instantiation/common/instantiation';
 import {RawContextKey, ContextKeyExpr} from 'vs/platform/contextkey/common/contextkey';
-import {ITerminalFont} from 'vs/workbench/parts/terminal/electron-browser/terminalConfigHelper';
+import {TerminalConfigHelper, ITerminalFont} from 'vs/workbench/parts/terminal/electron-browser/terminalConfigHelper';
 
 export const TERMINAL_PANEL_ID = 'workbench.panel.terminal';
 
@@ -100,6 +100,7 @@ export interface ITerminalService {
 	onInstanceTitleChanged: Event<string>;
 
 	activeTerminalInstanceIndex: number;
+	configHelper: TerminalConfigHelper;
 	terminalInstances: ITerminalInstance[];
 
 	createInstance(name?: string): ITerminalInstance;
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
index 6e1bfc9e5d865e7f89dcd7a39160bd42a5f15c89..c1c43b7ab42b32c9e8ff3c29d10c04337217c941 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalPanel.ts
@@ -10,6 +10,7 @@ import nls = require('vs/nls');
 import {Action, IAction} from 'vs/base/common/actions';
 import {Builder, Dimension} from 'vs/base/browser/builder';
 import {IActionItem} from 'vs/base/browser/ui/actionbar/actionbar';
+import {IConfigurationService} from 'vs/platform/configuration/common/configuration';
 import {IContextMenuService} from 'vs/platform/contextview/browser/contextView';
 import {IInstantiationService} from 'vs/platform/instantiation/common/instantiation';
 import {IKeybindingService} from 'vs/platform/keybinding/common/keybinding';
@@ -20,7 +21,7 @@ import {KillTerminalAction, CreateNewTerminalAction, SwitchTerminalInstanceActio
 import {Panel} from 'vs/workbench/browser/panel';
 import {Separator} from 'vs/base/browser/ui/actionbar/actionbar';
 import {StandardMouseEvent} from 'vs/base/browser/mouseEvent';
-import {TerminalConfigHelper, ITerminalFont} from 'vs/workbench/parts/terminal/electron-browser/terminalConfigHelper';
+import {ITerminalFont} from 'vs/workbench/parts/terminal/electron-browser/terminalConfigHelper';
 import {TPromise} from 'vs/base/common/winjs.base';
 import {getBaseThemeId} from 'vs/platform/theme/common/themes';
 
@@ -38,7 +39,7 @@ export class TerminalPanel extends Panel implements ITerminalPanel {
 	private font: ITerminalFont;
 
 	constructor(
-		private configHelper: TerminalConfigHelper,
+		@IConfigurationService private configurationService: IConfigurationService,
 		@IContextMenuService private contextMenuService: IContextMenuService,
 		@IInstantiationService private instantiationService: IInstantiationService,
 		@IKeybindingService private keybindingService: IKeybindingService,
@@ -65,6 +66,12 @@ export class TerminalPanel extends Panel implements ITerminalPanel {
 		this.attachEventListeners();
 
 		this.terminalService.setContainers(this.getContainer(), this.terminalContainer);
+
+		this.toDispose.push(this.themeService.onDidColorThemeChange(this.updateTheme.bind(this)));
+		this.toDispose.push(this.configurationService.onDidUpdateConfiguration(this.updateConfig.bind(this)));
+		this.updateTheme();
+		this.updateConfig();
+
 		return TPromise.as(void 0);
 	}
 
@@ -188,7 +195,7 @@ export class TerminalPanel extends Panel implements ITerminalPanel {
 		}
 		this.currentBaseThemeId = baseThemeId;
 
-		let theme = this.configHelper.getTheme(baseThemeId);
+		let theme = this.terminalService.configHelper.getTheme(baseThemeId);
 
 		let css = '';
 		theme.forEach((color: string, index: number) => {
@@ -222,8 +229,8 @@ export class TerminalPanel extends Panel implements ITerminalPanel {
 		if (this.terminalService.terminalInstances.length === 0) {
 			return;
 		}
-		let newFont = this.configHelper.getFont();
-		DOM.toggleClass(this.parentDomElement, 'enable-ligatures', this.configHelper.getFontLigaturesEnabled());
+		let newFont = this.terminalService.configHelper.getFont();
+		DOM.toggleClass(this.parentDomElement, 'enable-ligatures', this.terminalService.configHelper.getFontLigaturesEnabled());
 		if (!this.font || this.fontsDiffer(this.font, newFont)) {
 			this.fontStyleElement.innerHTML = '.monaco-workbench .panel.integrated-terminal .xterm {' +
 				`font-family: ${newFont.fontFamily};` +
@@ -246,13 +253,13 @@ export class TerminalPanel extends Panel implements ITerminalPanel {
 
 	private updateCursorBlink(): void {
 		this.terminalService.terminalInstances.forEach((instance) => {
-			instance.setCursorBlink(this.configHelper.getCursorBlink());
+			instance.setCursorBlink(this.terminalService.configHelper.getCursorBlink());
 		});
 	}
 
 	private updateCommandsToSkipShell(): void {
 		this.terminalService.terminalInstances.forEach((instance) => {
-			instance.setCommandsToSkipShell(this.configHelper.getCommandsToSkipShell());
+			instance.setCommandsToSkipShell(this.terminalService.configHelper.getCommandsToSkipShell());
 		});
 	}
 }
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
index 2d90f713be244e2e5fc99298403f42ffc9b4cfa6..838368f12686c0d0cfeb3a276df8dae05af6556a 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalService.ts
@@ -20,8 +20,10 @@ export class TerminalService implements ITerminalService {
 	public _serviceBrand: any;
 
 	private _activeTerminalInstanceIndex: number = 0;
+	private _configHelper: TerminalConfigHelper;
 	private _terminalInstances: ITerminalInstance[] = [];
 	public get activeTerminalInstanceIndex(): number { return this._activeTerminalInstanceIndex; }
+	public get configHelper(): TerminalConfigHelper { return this._configHelper; }
 	public get terminalInstances(): ITerminalInstance[] { return this._terminalInstances; }
 
 	private _onActiveInstanceChanged: Emitter<string>;
@@ -32,7 +34,6 @@ export class TerminalService implements ITerminalService {
 	public get onInstanceTitleChanged(): Event<string> { return this._onInstanceTitleChanged.event; }
 
 	private terminalContainer: HTMLElement;
-	private configHelper: TerminalConfigHelper;
 	private terminalFocusContextKey: IContextKey<boolean>;
 
 	constructor(
@@ -46,15 +47,17 @@ export class TerminalService implements ITerminalService {
 		this._onInstancesChanged = new Emitter<string>();
 		this._onInstanceTitleChanged = new Emitter<string>();
 		this.terminalFocusContextKey = KEYBINDING_CONTEXT_TERMINAL_FOCUS.bindTo(this.contextKeyService);
-		this.configHelper = <TerminalConfigHelper>this.instantiationService.createInstance(TerminalConfigHelper, platform.platform);
+		this._configHelper = <TerminalConfigHelper>this.instantiationService.createInstance(TerminalConfigHelper, platform.platform);
 	}
 
 	public createInstance(): ITerminalInstance {
-		console.log('creating instance');
-		console.log('config helper', this.configHelper);
 		let terminalInstance = <TerminalInstance>this.instantiationService.createInstance(TerminalInstance,
-			this.terminalFocusContextKey, this.onTerminalInstanceDispose.bind(this), this.configHelper, this.terminalContainer);
+			this.terminalFocusContextKey, this.onTerminalInstanceDispose.bind(this), this._configHelper, this.terminalContainer);
 		this.terminalInstances.push(terminalInstance);
+		if (this.terminalInstances.length === 1) {
+			// It's the first instance so it should be focused
+			this.setActiveInstanceByIndex(0);
+		}
 		this._onInstancesChanged.fire();
 		return terminalInstance;
 	}
@@ -116,7 +119,7 @@ export class TerminalService implements ITerminalService {
 		this._terminalInstances.forEach(terminalInstance => {
 			terminalInstance.attachToElement(this.terminalContainer);
 		});
-		this.configHelper.panelContainer = panelContainer;
+		this._configHelper.panelContainer = panelContainer;
 	}
 
 	public showPanel(focus?: boolean): TPromise<void> {