diff --git a/src/vs/workbench/contrib/terminal/browser/terminal.ts b/src/vs/workbench/contrib/terminal/browser/terminal.ts
index f44ee191cba57..ed52d9e80fdcc 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminal.ts
@@ -102,6 +102,7 @@ export interface ITerminalService {
 	onDidRegisterProcessSupport: Event<void>;
 	onDidChangeConnectionState: Event<void>;
 	onProfilesConfigChanged: Event<void>;
+	onPanelMovedToSide: Event<void>;
 
 	/**
 	 * Creates a terminal.
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalService.ts b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
index ae23d621855fb..5e4e0b6689ee4 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalService.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalService.ts
@@ -114,6 +114,8 @@ export class TerminalService implements ITerminalService {
 	public get connectionState(): TerminalConnectionState { return this._connectionState; }
 	private readonly _onProfilesConfigChanged = new Emitter<void>();
 	public get onProfilesConfigChanged(): Event<void> { return this._onProfilesConfigChanged.event; }
+	private readonly _onPanelMovedToSide = new Emitter<void>();
+	public get onPanelMovedToSide(): Event<void> { return this._onPanelMovedToSide.event; }
 	private readonly _localTerminalService?: ILocalTerminalService;
 
 	constructor(
@@ -974,6 +976,7 @@ export class TerminalService implements ITerminalService {
 
 		const terminalTab = this._instantiationService.createInstance(TerminalTab, this._terminalContainer, shellLaunchConfig);
 		this._terminalTabs.push(terminalTab);
+		terminalTab.onPanelMovedToSide(() => this._onPanelMovedToSide.fire());
 
 		const instance = terminalTab.terminalInstances[0];
 
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
index 0f089c7c3daac..08a0b5b8638f5 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalTab.ts
@@ -246,6 +246,8 @@ export class TerminalTab extends Disposable implements ITerminalTab {
 	public readonly onDisposed: Event<ITerminalTab> = this._onDisposed.event;
 	private readonly _onInstancesChanged: Emitter<void> = this._register(new Emitter<void>());
 	public readonly onInstancesChanged: Event<void> = this._onInstancesChanged.event;
+	private readonly _onPanelMovedToSide = new Emitter<void>();
+	public get onPanelMovedToSide(): Event<void> { return this._onPanelMovedToSide.event; }
 	constructor(
 		private _container: HTMLElement | undefined,
 		shellLaunchConfigOrInstance: IShellLaunchConfig | ITerminalInstance | undefined,
@@ -465,6 +467,9 @@ export class TerminalTab extends Disposable implements ITerminalTab {
 				this.resizePanes(this._initialRelativeSizes);
 				this._initialRelativeSizes = undefined;
 			}
+			if (terminalPositionChanged && this._splitPaneContainer.orientation === Orientation.VERTICAL) {
+				this._onPanelMovedToSide.fire();
+			}
 		}
 	}
 
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalTabbedView.ts b/src/vs/workbench/contrib/terminal/browser/terminalTabbedView.ts
index b6665d3f0f4e1..212dd65a6e181 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalTabbedView.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalTabbedView.ts
@@ -139,6 +139,13 @@ export class TerminalTabbedView extends Disposable {
 		this._splitView = new SplitView(parentElement, { orientation: Orientation.HORIZONTAL, proportionalLayout: false });
 
 		this._setupSplitView();
+
+		this._terminalService.onPanelMovedToSide(() => {
+			try {
+				this._updateWidgetWidth(MIN_TABS_WIDGET_WIDTH);
+			} catch (e) {
+			}
+		});
 	}
 
 	private _getLastWidgetWidth(): number {
@@ -203,7 +210,7 @@ export class TerminalTabbedView extends Disposable {
 	}
 
 	private _updateWidgetWidth(width: number): void {
-		if (width < MIDPOINT_WIDGET_WIDTH && width > MIN_TABS_WIDGET_WIDTH) {
+		if (width < MIDPOINT_WIDGET_WIDTH && width >= MIN_TABS_WIDGET_WIDTH) {
 			width = MIN_TABS_WIDGET_WIDTH;
 			this._splitView.resizeView(this._tabTreeIndex, width);
 		} else if (width >= MIDPOINT_WIDGET_WIDTH && width < DEFAULT_TABS_WIDGET_WIDTH) {
@@ -293,7 +300,8 @@ export class TerminalTabbedView extends Disposable {
 	}
 
 	private _refreshHasTextClass() {
-		this._tabTreeContainer.classList.toggle('has-text', this._tabTreeContainer.clientWidth >= MIDPOINT_WIDGET_WIDTH);
+		this._tabTreeContainer.classList.toggle('has-text', this._tabTreeContainer.clientWidth > MIDPOINT_WIDGET_WIDTH);
+		console.log('has text', this._tabTreeContainer.classList.contains('has-text'));
 	}
 
 	private _updateTheme(theme?: IColorTheme): void {