diff --git a/Extension/.scripts/common.ts b/Extension/.scripts/common.ts
index 91adc0e302..615de66cf2 100644
--- a/Extension/.scripts/common.ts
+++ b/Extension/.scripts/common.ts
@@ -324,7 +324,6 @@ export async function checkCompiled() {
 export async function checkDTS() {
     let failing = false;
     failing = !await assertAnyFile('vscode.d.ts') && (quiet || warn(`The VSCode import file '${$root}/dist/src/vscode.d.ts is missing.`)) || failing;
-    failing = !await assertAnyFile('vscode.proposed.terminalDataWriteEvent.d.ts') && (quiet || warn(`The VSCode import file '${$root}/dist/src/vscode.proposed.terminalDataWriteEvent.d.ts is missing.`)) || failing;
     failing = !await assertAnyFile('vscode.proposed.lmTools.d.ts') && (quiet || warn(`The VSCode import file '${$root}/dist/src/vscode.proposed.lmTools.d.ts is missing.`)) || failing;
 
     if (!failing) {
diff --git a/Extension/package.json b/Extension/package.json
index 91b36e5d08..4587700857 100644
--- a/Extension/package.json
+++ b/Extension/package.json
@@ -41,7 +41,6 @@
         "Snippets"
     ],
     "enabledApiProposals": [
-        "terminalDataWriteEvent",
         "chatParticipantAdditions"
     ],
     "capabilities": {
@@ -6651,4 +6650,4 @@
         "postcss": "^8.4.31",
         "gulp-typescript/**/glob-parent": "^5.1.2"
     }
-}
+}
\ No newline at end of file
diff --git a/Extension/src/SSH/commandInteractors.ts b/Extension/src/SSH/commandInteractors.ts
index 01f4808d16..147279e3e3 100644
--- a/Extension/src/SSH/commandInteractors.ts
+++ b/Extension/src/SSH/commandInteractors.ts
@@ -372,11 +372,11 @@ export class ComposedInteractor implements IInteractor {
 export interface ISystemInteractor {
     createTerminal(options: vscode.TerminalOptions): vscode.Terminal;
     onDidCloseTerminal: typeof vscode.window.onDidCloseTerminal;
-    onDidWriteTerminalData: typeof vscode.window.onDidWriteTerminalData;
+    onDidStartTerminalShellExecution: typeof vscode.window.onDidStartTerminalShellExecution;
 }
 
 export const defaultSystemInteractor: ISystemInteractor = {
     createTerminal: vscode.window.createTerminal,
     onDidCloseTerminal: vscode.window.onDidCloseTerminal,
-    onDidWriteTerminalData: vscode.window.onDidWriteTerminalData
+    onDidStartTerminalShellExecution: vscode.window.onDidStartTerminalShellExecution
 };
diff --git a/Extension/src/SSH/sshCommandRunner.ts b/Extension/src/SSH/sshCommandRunner.ts
index be60f83db3..dd968a3e91 100644
--- a/Extension/src/SSH/sshCommandRunner.ts
+++ b/Extension/src/SSH/sshCommandRunner.ts
@@ -343,9 +343,9 @@ export function runInteractiveSshTerminalCommand(args: ITerminalCommandArgs): Pr
         }
     };
 
-    const handleTerminalOutput = async (dataWrite: vscode.TerminalDataWriteEvent): Promise<void> => {
+    const handleTerminalOutput = async (data: string): Promise<void> => {
         if (loggingLevel > 0) {
-            handleOutputLogging(dataWrite.data);
+            handleOutputLogging(data);
         }
 
         if (continueWithoutExiting) {
@@ -353,7 +353,7 @@ export function runInteractiveSshTerminalCommand(args: ITerminalCommandArgs): Pr
             return;
         }
 
-        stdout += dataWrite.data;
+        stdout += data;
 
         if (interactors) {
             for (const interactor of interactors) {
@@ -436,13 +436,14 @@ export function runInteractiveSshTerminalCommand(args: ITerminalCommandArgs): Pr
             hideFromUser: true
         };
 
-        let terminalDataHandlingQueue: Promise<void> = Promise.resolve();
-        terminalListener = systemInteractor.onDidWriteTerminalData(async e => {
+        terminalListener = systemInteractor.onDidStartTerminalShellExecution(async (e) => {
             if (e.terminal !== terminal) {
                 return;
             }
 
-            terminalDataHandlingQueue = terminalDataHandlingQueue.finally(() => void handleTerminalOutput(e));
+            for await (const data of e.execution.read()) {
+                void handleTerminalOutput(data);
+            }
         });
         terminal = systemInteractor.createTerminal(options);