diff --git a/crates/project/src/project.rs b/crates/project/src/project.rs
index 545570da89..9b4a163af4 100644
--- a/crates/project/src/project.rs
+++ b/crates/project/src/project.rs
@@ -1194,7 +1194,7 @@ impl Project {
         !self.is_local()
     }
 
-    pub fn create_terminal_connection(
+    pub fn create_terminal(
         &mut self,
         working_directory: Option<PathBuf>,
         window_id: usize,
diff --git a/crates/terminal_view/src/terminal_container_view.rs b/crates/terminal_view/src/terminal_container_view.rs
index 322bf5ab52..4a0d47794a 100644
--- a/crates/terminal_view/src/terminal_container_view.rs
+++ b/crates/terminal_view/src/terminal_container_view.rs
@@ -82,21 +82,22 @@ impl TerminalContainer {
         let working_directory = get_working_directory(workspace, cx, strategy);
 
         let window_id = cx.window_id();
+        let project = workspace.project().clone();
         let terminal = workspace.project().update(cx, |project, cx| {
-            project.create_terminal_connection(working_directory, window_id, cx)
+            project.create_terminal(working_directory, window_id, cx)
         });
 
         let view = cx.add_view(|cx| TerminalContainer::new(terminal, workspace.database_id(), cx));
         workspace.add_item(Box::new(view), cx);
     }
 
-    ///Create a new Terminal view. This spawns a task, a thread, and opens the TTY devices    
+    ///Create a new Terminal view.
     pub fn new(
-        model: anyhow::Result<ModelHandle<Terminal>>,
+        maybe_terminal: anyhow::Result<ModelHandle<Terminal>>,
         workspace_id: WorkspaceId,
         cx: &mut ViewContext<Self>,
     ) -> Self {
-        let content = match model {
+        let content = match maybe_terminal {
             Ok(terminal) => {
                 let item_id = cx.view_id();
                 let view = cx.add_view(|cx| {
@@ -251,8 +252,7 @@ impl Item for TerminalContainer {
         //Directory of the terminal from outside the shell. There might be
         //solutions to this, but they are non-trivial and require more IPC
         Some(TerminalContainer::new(
-            self.associated_directory.clone(),
-            false,
+            Err(anyhow::anyhow!("failed to instantiate terminal")),
             workspace_id,
             cx,
         ))
@@ -354,12 +354,13 @@ impl Item for TerminalContainer {
     }
 
     fn deserialize(
-        _project: ModelHandle<Project>,
+        project: ModelHandle<Project>,
         _workspace: WeakViewHandle<Workspace>,
         workspace_id: workspace::WorkspaceId,
         item_id: workspace::ItemId,
         cx: &mut ViewContext<Pane>,
     ) -> Task<anyhow::Result<ViewHandle<Self>>> {
+        let window_id = cx.window_id();
         cx.spawn(|pane, mut cx| async move {
             let cwd = TERMINAL_DB
                 .take_working_directory(item_id, workspace_id)
@@ -368,8 +369,12 @@ impl Item for TerminalContainer {
                 .flatten();
 
             cx.update(|cx| {
+                let terminal = project.update(cx, |project, cx| {
+                    project.create_terminal(cwd, window_id, cx)
+                });
+
                 Ok(cx.add_view(pane, |cx| {
-                    TerminalContainer::new(cwd, false, workspace_id, cx)
+                    TerminalContainer::new(terminal, workspace_id, cx)
                 }))
             })
         })
diff --git a/crates/terminal_view/src/terminal_element.rs b/crates/terminal_view/src/terminal_element.rs
index 506dd1423d..08ed3ecc2d 100644
--- a/crates/terminal_view/src/terminal_element.rs
+++ b/crates/terminal_view/src/terminal_element.rs
@@ -32,7 +32,7 @@ use util::ResultExt;
 use std::{fmt::Debug, ops::RangeInclusive};
 use std::{mem, ops::Range};
 
-use crate::terminal_view::{DeployContextMenu, TerminalView};
+use crate::{DeployContextMenu, TerminalView};
 
 ///The information generated during layout that is nescessary for painting
 pub struct LayoutState {
diff --git a/crates/terminal_view/src/terminal_view.rs b/crates/terminal_view/src/terminal_view.rs
index dbe861b781..c2747e3ef2 100644
--- a/crates/terminal_view/src/terminal_view.rs
+++ b/crates/terminal_view/src/terminal_view.rs
@@ -22,12 +22,12 @@ use terminal::{
         index::Point,
         term::{search::RegexSearch, TermMode},
     },
-    Terminal,
+    Event, Terminal,
 };
 use util::ResultExt;
 use workspace::{pane, ItemId, WorkspaceId};
 
-use crate::{persistence::TERMINAL_DB, terminal_element::TerminalElement, Event};
+use crate::{persistence::TERMINAL_DB, terminal_element::TerminalElement};
 
 const CURSOR_BLINK_INTERVAL: Duration = Duration::from_millis(500);
 
diff --git a/crates/zed/src/main.rs b/crates/zed/src/main.rs
index 1b41613937..2396af6465 100644
--- a/crates/zed/src/main.rs
+++ b/crates/zed/src/main.rs
@@ -32,7 +32,7 @@ use settings::{
 use smol::process::Command;
 use std::fs::OpenOptions;
 use std::{env, ffi::OsStr, panic, path::PathBuf, sync::Arc, thread, time::Duration};
-use terminal_view::{get_working_directory, TerminalContainer};
+use terminal_view::terminal_container_view::{get_working_directory, TerminalContainer};
 
 use fs::RealFs;
 use settings::watched_json::{watch_keymap_file, watch_settings_file, WatchedJsonFile};
@@ -595,7 +595,11 @@ pub fn default_item_factory(
     let working_directory = get_working_directory(workspace, cx, strategy);
 
     let terminal_handle = cx.add_view(|cx| {
-        TerminalContainer::new(working_directory, false, workspace.database_id(), cx)
+        TerminalContainer::new(
+            Err(anyhow!("Don't have a project to open a terminal")),
+            workspace.database_id(),
+            cx,
+        )
     });
     Box::new(terminal_handle)
 }