diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts b/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
index d4e76588b75..458db87ce0c 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminal.contribution.ts
@@ -14,7 +14,7 @@ import { GlobalQuickOpenAction } from 'vs/workbench/browser/parts/quickopen/quic
 import { ITerminalService, KEYBINDING_CONTEXT_TERMINAL_FOCUS, TERMINAL_PANEL_ID, TERMINAL_DEFAULT_SHELL_LINUX, TERMINAL_DEFAULT_SHELL_OSX, TERMINAL_DEFAULT_SHELL_WINDOWS } from 'vs/workbench/parts/terminal/electron-browser/terminal';
 import { IWorkbenchActionRegistry, Extensions as ActionExtensions } from 'vs/workbench/common/actionRegistry';
 import { KeyCode, KeyMod } from 'vs/base/common/keyCodes';
-import { KillTerminalAction, CopyTerminalSelectionAction, CreateNewTerminalAction, FocusTerminalAction, FocusNextTerminalAction, FocusPreviousTerminalAction, RunSelectedTextInTerminalAction, ScrollDownTerminalAction, ScrollUpTerminalAction, TerminalPasteAction, ToggleTerminalAction } from 'vs/workbench/parts/terminal/electron-browser/terminalActions';
+import { KillTerminalAction, CopyTerminalSelectionAction, CreateNewTerminalAction, FocusTerminalAction, FocusNextTerminalAction, FocusPreviousTerminalAction, RunSelectedTextInTerminalAction, ScrollDownTerminalAction, ScrollUpTerminalAction, TerminalPasteAction, ToggleTerminalAction, ClearTerminalAction } from 'vs/workbench/parts/terminal/electron-browser/terminalActions';
 import { Registry } from 'vs/platform/platform';
 import { ShowAllCommandsAction } from 'vs/workbench/parts/quickopen/browser/commandsHandler';
 import { SyncActionDescriptor } from 'vs/platform/actions/common/actions';
@@ -109,7 +109,8 @@ configurationRegistry.registerConfiguration({
 				RunSelectedTextInTerminalAction.ID,
 				ToggleTerminalAction.ID,
 				ScrollDownTerminalAction.ID,
-				ScrollUpTerminalAction.ID
+				ScrollUpTerminalAction.ID,
+				ClearTerminalAction.ID
 			].sort()
 		}
 	}
@@ -159,3 +160,4 @@ actionRegistry.registerWorkbenchAction(new SyncActionDescriptor(ScrollUpTerminal
 	primary: KeyMod.CtrlCmd | KeyCode.UpArrow,
 	linux: { primary: KeyMod.CtrlCmd | KeyMod.Shift | KeyCode.UpArrow },
 }, KEYBINDING_CONTEXT_TERMINAL_FOCUS), 'Terminal: Scroll Up', category);
+actionRegistry.registerWorkbenchAction(new SyncActionDescriptor(ClearTerminalAction, ClearTerminalAction.ID, ClearTerminalAction.LABEL), 'Terminal: Clear', category);
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminal.ts b/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
index fb96711da24..f716d663801 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminal.ts
@@ -141,6 +141,11 @@ export interface ITerminalInstance {
 	 */
 	scrollUp(): void;
 
+	/**
+	 * Clears the terminal buffer, leaving only the prompt line.
+	 */
+	clear(): void;
+
 	/**
 	 * Attaches the terminal instance to an element on the DOM, before this is called the terminal
 	 * instance process may run in the background but cannot be displayed on the UI.
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
index 67079c37c84..05068fbb4d7 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalActions.ts
@@ -288,4 +288,25 @@ export class ScrollUpTerminalAction extends Action {
 		}
 		return TPromise.as(void 0);
 	}
+}
+
+export class ClearTerminalAction extends Action {
+
+	public static ID = 'workbench.action.terminal.clear';
+	public static LABEL = nls.localize('workbench.action.terminal.clear', "Clear");
+
+	constructor(
+		id: string, label: string,
+		@ITerminalService private terminalService: ITerminalService
+	) {
+		super(id, label);
+	}
+
+	public run(event?: any): TPromise<any> {
+		let terminalInstance = this.terminalService.getActiveInstance();
+		if (terminalInstance) {
+			terminalInstance.clear();
+		}
+		return TPromise.as(void 0);
+	}
 }
\ No newline at end of file
diff --git a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
index eff0189e1e8..5b7e5093df6 100644
--- a/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
+++ b/src/vs/workbench/parts/terminal/electron-browser/terminalInstance.ts
@@ -220,6 +220,10 @@ export class TerminalInstance implements ITerminalInstance {
 		this._xterm.scrollDisp(-1);
 	}
 
+	public clear(): void {
+		this._xterm.clear();
+	}
+
 	private sanitizeInput(data: any) {
 		return typeof data === 'string' ? data.replace(TerminalInstance.EOL_REGEX, os.EOL) : data;
 	}