diff --git a/Cargo.lock b/Cargo.lock
index e99a440e6b28fe1f1fbcffb83991ebd7a56f13a9..2406785e670118b7febe7c151a7e2037420dbee9 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -10737,6 +10737,7 @@ dependencies = [
  "gpui",
  "libc",
  "rand 0.8.5",
+ "release_channel",
  "schemars",
  "serde",
  "serde_derive",
diff --git a/crates/project/src/terminals.rs b/crates/project/src/terminals.rs
index 91851b80b34bb2783990e21b92671f28a3c31cdb..40423c26f741d75bb40d5076b20d088a9f8b7b2f 100644
--- a/crates/project/src/terminals.rs
+++ b/crates/project/src/terminals.rs
@@ -180,6 +180,7 @@ impl Project {
             settings.max_scroll_history_lines,
             window,
             completion_tx,
+            cx,
         )
         .map(|builder| {
             let terminal_handle = cx.new_model(|cx| builder.subscribe(cx));
diff --git a/crates/terminal/Cargo.toml b/crates/terminal/Cargo.toml
index 994702a446b307555607177b2549d7fd808100b4..958207bce93c2ade602f57572995cfca535d0beb 100644
--- a/crates/terminal/Cargo.toml
+++ b/crates/terminal/Cargo.toml
@@ -21,7 +21,7 @@ dirs.workspace = true
 futures.workspace = true
 gpui.workspace = true
 libc.workspace = true
-task.workspace = true
+release_channel.workspace = true
 schemars.workspace = true
 serde.workspace = true
 serde_derive.workspace = true
@@ -29,6 +29,7 @@ serde_json.workspace = true
 settings.workspace = true
 sysinfo.workspace = true
 smol.workspace = true
+task.workspace = true
 theme.workspace = true
 thiserror.workspace = true
 util.workspace = true
diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index d66be6c47413b204e03d97f2a48952cbeaa35d21..3fedfcf4be779f5bde555bae9f13e37c608cef9f 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -319,12 +319,18 @@ impl TerminalBuilder {
         max_scroll_history_lines: Option<usize>,
         window: AnyWindowHandle,
         completion_tx: Sender<()>,
+        cx: &mut AppContext,
     ) -> Result<TerminalBuilder> {
         // TODO: Properly set the current locale,
         env.entry("LC_ALL".to_string())
             .or_insert_with(|| "en_US.UTF-8".to_string());
 
         env.insert("ZED_TERM".to_string(), "true".to_string());
+        env.insert("TERM_PROGRAM".to_string(), "zed".to_string());
+        env.insert(
+            "TERM_PROGRAM_VERSION".to_string(),
+            release_channel::AppVersion::global(cx).to_string(),
+        );
 
         let pty_options = {
             let alac_shell = match shell.clone() {