diff --git a/Cargo.lock b/Cargo.lock
index 1d0af3c00876104d2f8554ee43ed757689bce281..13d4be62337ae0557fbc59538db4a4bdceacd22e 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -9514,7 +9514,7 @@ dependencies = [
 
 [[package]]
 name = "zed"
-version = "0.119.0"
+version = "0.120.0"
 dependencies = [
  "activity_indicator",
  "ai",
diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index 6f438098b718a72602e69b81339129e00fa8a3ba..e0bee14df27479021634d3400b13850d44fa51a9 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -971,25 +971,16 @@ impl ProjectPanel {
         }
     }
 
-    fn open_in_terminal(&mut self, _: &OpenInTerminal, _cx: &mut ViewContext<Self>) {
-        todo!()
-        // if let Some((worktree, entry)) = self.selected_entry(cx) {
-        //     let window = cx.window();
-        //     let view_id = cx.view_id();
-        //     let path = worktree.abs_path().join(&entry.path);
-
-        //     cx.app_context()
-        //         .spawn(|mut cx| async move {
-        //             window.dispatch_action(
-        //                 view_id,
-        //                 &workspace::OpenTerminal {
-        //                     working_directory: path,
-        //                 },
-        //                 &mut cx,
-        //             );
-        //         })
-        //         .detach();
-        // }
+    fn open_in_terminal(&mut self, _: &OpenInTerminal, cx: &mut ViewContext<Self>) {
+        if let Some((worktree, entry)) = self.selected_entry(cx) {
+            let path = worktree.abs_path().join(&entry.path);
+            cx.dispatch_action(
+                workspace::OpenTerminal {
+                    working_directory: path,
+                }
+                .boxed_clone(),
+            )
+        }
     }
 
     pub fn new_search_in_directory(