diff --git a/src/package.json b/src/package.json
index 6f9d170c4d8c..cbbfe636e005 100644
--- a/src/package.json
+++ b/src/package.json
@@ -334,6 +334,9 @@
 				"label": "%views.terminalMenu.label%"
 			}
 		],
+		"configurationDefaults": {
+			"terminal.integrated.shellIntegration.enabled": false
+		},
 		"configuration": {
 			"title": "%configuration.title%",
 			"properties": {