diff --git a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
index be513511aa8..b2271faeea6 100644
--- a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
+++ b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
@@ -233,7 +233,7 @@ import { assertNoRpc } from '../utils';
 			deepStrictEqual(terminal.state, { interactedWith: false });
 			const eventState = await new Promise<TerminalState>(r => {
 				disposables.push(window.onDidChangeTerminalState(e => {
-					if (e.terminal === terminal) {
+					if (e === terminal) {
 						r(e.state);
 					}
 				}));
diff --git a/src/vs/vscode.proposed.d.ts b/src/vs/vscode.proposed.d.ts
index 5b664caa6cd..779844f73f9 100644
--- a/src/vs/vscode.proposed.d.ts
+++ b/src/vs/vscode.proposed.d.ts
@@ -917,25 +917,11 @@ declare module 'vscode' {
 		readonly state: TerminalState;
 	}
 
-	/**
-	 * An event representing a change in a {@link Terminal.state terminal's state}.
-	 */
-	export interface TerminalStateChangeEvent {
-		/**
-		 * The {@link Terminal} this event occurred on.
-		 */
-		readonly terminal: Terminal;
-		/**
-		 * The {@link Terminal.state current state} of the {@link Terminal}.
-		 */
-		readonly state: TerminalState;
-	}
-
 	export namespace window {
 		/**
 		 * An {@link Event} which fires when a {@link Terminal.state terminal's state} has changed.
 		 */
-		export const onDidChangeTerminalState: Event<TerminalStateChangeEvent>;
+		export const onDidChangeTerminalState: Event<Terminal>;
 	}
 
 	//#endregion
diff --git a/src/vs/workbench/api/common/extHostTerminalService.ts b/src/vs/workbench/api/common/extHostTerminalService.ts
index 01134e8ff14..6693ea00884 100644
--- a/src/vs/workbench/api/common/extHostTerminalService.ts
+++ b/src/vs/workbench/api/common/extHostTerminalService.ts
@@ -34,7 +34,7 @@ export interface IExtHostTerminalService extends ExtHostTerminalServiceShape, ID
 	onDidOpenTerminal: Event<vscode.Terminal>;
 	onDidChangeActiveTerminal: Event<vscode.Terminal | undefined>;
 	onDidChangeTerminalDimensions: Event<vscode.TerminalDimensionsChangeEvent>;
-	onDidChangeTerminalState: Event<vscode.TerminalStateChangeEvent>;
+	onDidChangeTerminalState: Event<vscode.Terminal>;
 	onDidWriteTerminalData: Event<vscode.TerminalDataWriteEvent>;
 
 	createTerminal(name?: string, shellPath?: string, shellArgs?: string[] | string): vscode.Terminal;
@@ -351,7 +351,7 @@ export abstract class BaseExtHostTerminalService extends Disposable implements I
 	readonly onDidChangeActiveTerminal = this._onDidChangeActiveTerminal.event;
 	protected readonly _onDidChangeTerminalDimensions = new Emitter<vscode.TerminalDimensionsChangeEvent>();
 	readonly onDidChangeTerminalDimensions = this._onDidChangeTerminalDimensions.event;
-	protected readonly _onDidChangeTerminalState = new Emitter<vscode.TerminalStateChangeEvent>();
+	protected readonly _onDidChangeTerminalState = new Emitter<vscode.Terminal>();
 	readonly onDidChangeTerminalState = this._onDidChangeTerminalState.event;
 	protected readonly _onDidWriteTerminalData: Emitter<vscode.TerminalDataWriteEvent>;
 	get onDidWriteTerminalData(): Event<vscode.TerminalDataWriteEvent> { return this._onDidWriteTerminalData.event; }
@@ -571,10 +571,7 @@ export abstract class BaseExtHostTerminalService extends Disposable implements I
 	public $acceptTerminalInteraction(id: number): void {
 		const terminal = this._getTerminalById(id);
 		if (terminal?.setInteractedWith()) {
-			this._onDidChangeTerminalState.fire({
-				terminal: terminal.value,
-				state: terminal.value.state
-			});
+			this._onDidChangeTerminalState.fire(terminal.value);
 		}
 	}