diff --git a/assets/settings/default.json b/assets/settings/default.json
index f4d77f02cf..27be6ae5d2 100644
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -348,7 +348,7 @@
     //     - Only works with Posix-complaint shells
     //     - Only activates the first virtual environment it finds, regardless
     //       of the nunber of projects in the workspace.
-    "automatically_activate_python_virtual_environment": false
+    "activate_python_virtual_environment": false
   },
   // Difference settings for semantic_index
   "semantic_index": {
diff --git a/crates/project/src/terminals.rs b/crates/project/src/terminals.rs
index 0fa525a82c..539d120e97 100644
--- a/crates/project/src/terminals.rs
+++ b/crates/project/src/terminals.rs
@@ -23,9 +23,8 @@ impl Project {
             ));
         } else {
             let settings = settings::get::<TerminalSettings>(cx);
-            let automatically_activate_python_virtual_environment = settings
-                .automatically_activate_python_virtual_environment
-                .clone();
+            let activate_python_virtual_environment =
+                settings.activate_python_virtual_environment.clone();
             let shell = settings.shell.clone();
 
             let terminal = TerminalBuilder::new(
@@ -54,7 +53,7 @@ impl Project {
                 })
                 .detach();
 
-                if automatically_activate_python_virtual_environment {
+                if activate_python_virtual_environment {
                     let activate_script_path = self.find_activate_script_path(&shell, cx);
                     self.activate_python_virtual_environment(
                         activate_script_path,
diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index 9b0f0bbc86..73ff09225f 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -158,7 +158,7 @@ pub struct TerminalSettings {
     pub dock: TerminalDockPosition,
     pub default_width: f32,
     pub default_height: f32,
-    pub automatically_activate_python_virtual_environment: bool,
+    pub activate_python_virtual_environment: bool,
 }
 
 #[derive(Clone, Debug, Default, Serialize, Deserialize, JsonSchema)]
@@ -177,7 +177,7 @@ pub struct TerminalSettingsContent {
     pub dock: Option<TerminalDockPosition>,
     pub default_width: Option<f32>,
     pub default_height: Option<f32>,
-    pub automatically_activate_python_virtual_environment: Option<bool>,
+    pub activate_python_virtual_environment: Option<bool>,
 }
 
 impl TerminalSettings {