Microsoft to bring big redesign changes to the Windows Terminal

• Microsoft is testing a redesigned settings interface for Windows Terminal.
• The update introduces a dedicated settings window instead of the current embedded panel.
• The redesign uses a modular architecture for better performance and maintainability.
• The company is actively iterating based on community feedback on GitHub.

Microsoft is testing a redesigned settings experience for Windows Terminal, revealed this week through early mockups shared on GitHub. The preview, published by engineer Carlos Zamora, outlines changes to the app’s configuration interface, with development and feedback taking place publicly on the project’s repository.

Although Windows Terminal is powerful, its settings have remained dense and, at times, intimidating. The redesign aims to reduce cognitive load, surface key options faster, and align the experience with the modern Windows 11 interface style.

What’s changing in the Windows Terminal

The proposed overhaul goes far beyond a visual refresh. It rethinks how users move through the experience, how options are labeled, and how interactions behave at a fundamental level.

At the center of the redesign is a new, dedicated settings window that replaces the current embedded panel, providing users with a clearer, more focused space to configure the app. Navigation is also being streamlined, with fewer top-level categories reorganized into more intuitive groupings such as Startup, Interaction, and Rendering.

The interface itself is becoming more consistent with the rest of Windows 11’s design language. Toggle switches are being phased out in favor of checkboxes, a subtle change that aligns with long-standing conventions and improves clarity. At the same time, auto-save is being treated as the default behavior, although the company is exploring visual indicators and undo options to reassure users who want more control over changes.

For those less familiar with the Terminal, contextual descriptions will remain directly beneath each setting, offering immediate guidance without the need to consult documentation. Language is also getting an overhaul. Labels like “Actions” are being reconsidered in favor of clearer terms, such as “Shortcuts,” while “New tab menu” is being simplified to “Dropdown menu” to better align with user expectations.

Even deeper in the experience, the Profiles section is being restructured to introduce a clearer hierarchy, making it easier to distinguish between defaults, color schemes, and individual profiles. The result is a settings experience that feels more deliberate, more approachable, and ultimately more in line with how modern Windows apps are expected to behave.

The design also emphasizes live previews, especially for visual and layout changes, allowing users to see results instantly.

Technically, this redesign reflects a shift toward modular interface architecture. Settings are being broken into discrete, reusable containers with consistent layout logic. Navigation is simplified by consolidating redundant pages and introducing scoped groupings. The move to a separate window also decouples configuration from the runtime interface, which can improve responsiveness and maintainability.

The software giant is iterating based on feedback from both novice and experienced users. Early testing highlights a preference for real-time feedback, predictable behaviors like auto-save, and clearer naming conventions. Open questions, such as how to present multiple key bindings or rename ambiguous sections like “Defaults,” are still under evaluation.

This redesign reflects a broader trend inside Microsoft. Core tools once reserved for developers are being reshaped for a wider audience. Windows Terminal is no longer just a power-user utility. It is becoming a first-class interface for managing modern system environments, from local development to cloud workflows.

If the company gets this right, Windows Terminal could finally pair its features with an interface that feels just as fast and intuitive as the commands it runs.