diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index a5dc797b5c370..0398d088359a7 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -485,8 +485,9 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 				const defaultProfile = (await this._terminalProfileResolverService.getDefaultProfile({ remoteAuthority: this.remoteAuthority, os }));
 				this.shellLaunchConfig.executable = defaultProfile.path;
 				this.shellLaunchConfig.args = defaultProfile.args;
-				this.shellLaunchConfig.icon = defaultProfile.icon;
-				this.shellLaunchConfig.color = defaultProfile.color;
+				// Only use default icon and color if they are undefined in the SLC
+				this.shellLaunchConfig.icon ??= defaultProfile.icon;
+				this.shellLaunchConfig.color ??= defaultProfile.color;
 			}
 
 			await this._createProcess();