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Visual Studio Code just got a huge terminal upgrade

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Visual Studio Code just released its November 2025 update, version 1.107. There are more improvements for AI coding agents and TypeScript support, but I’m mostly excited about another change: a much more powerful terminal.

Like many full-featured integrated development environments (IDEs), Visual Studio Code has a built-in terminal emulator as a window pane, mostly so you can run commands without constantly switching between windows. Starting with this release, Terminal Suggest is enabled for everyone in the stable channel, giving you auto-complete suggestions and contextual hints as you type shell commands.

This is a fantastic upgrade, especially if you weren’t already using a shell extension like Oh My Zsh. A list of suggestions appears above the prompt as you type commands, command line arguments, and file paths, and you can use the arrow keys and Tab to accept a suggestion. For example, typing ‘ls’ on Mac or Linux followed by a dash shows all of the available arguments.

Terminal command autocomplete in Visual Studio Code

The terminal suggestions aren’t as powerful as code completions in the main editor, though. They can show all possible arguments for the ls command, but they won’t tell you what any of the arguments do if you run them. You still need to consult other documentation for learning how to use command line tools, but this is much better than nothing.

There’s also a pile of updates to AI agents, which might help sway people away from Google Antigravity, Cursor, and other editors that have popped up over the last few months. Agent sessions are now integrated in the chat view, so you can quickly check a session’s status, progress, and file change statistics. You can also now isolate background agents to specific Git worktrees, allow all commands for a given terminal session in one click, and set different keyboard shortcuts for different agents.

If you’re using a local AI agent, it will now continue running any current tasks when you close the chat window, instead of immediately cancelling the current task. There’s also a new ‘Continue’ button in chat windows, allowing you to pick if the current task (like writing a long file) should be passed to a background agent or an AI tool.

Visual Studio Code’s November update also has an updated preview for TypeScript 7, so you can try out auto import completions, rename support, and reference code lenses. You still need the TypeScript preview extension installed, then run the “TypeScript (Native Preview): Enable (Experimental)” command in a JavaScript or TypeScript file. When TypeScript 7 is finally ready for everyone, VS Code will switch to it for JavaScript and TypeScript IntelliSense.

You can download Visual Studio Code from the official website. If you already have it installed, go to Help > Check for Updates (Linux and Windows) or Code > Check for Updates (macOS) to get the new version.

Source: Visual Studio Code

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