diff --git a/src/vs/workbench/contrib/terminal/browser/terminalActions.ts b/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
index 617621ae600..4623b8aad7f 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalActions.ts
@@ -59,6 +59,7 @@ import { FileKind } from 'vs/platform/files/common/files';
 import { IClipboardService } from 'vs/platform/clipboard/common/clipboardService';
 import { TerminalCapability } from 'vs/platform/terminal/common/capabilities/capabilities';
 import { killTerminalIcon, newTerminalIcon } from 'vs/workbench/contrib/terminal/browser/terminalIcons';
+import { IEditorGroupsService } from 'vs/workbench/services/editor/common/editorGroupsService';
 
 export const switchTerminalActionViewItemSeparator = '\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500\u2500';
 export const switchTerminalShowTabsTitle = localize('showTerminalTabs', "Show Tabs");
@@ -227,6 +228,21 @@ export function registerTerminalActions() {
 		}
 	});
 
+	registerTerminalAction({
+		id: TerminalCommandId.CreateTerminalEditorSameGroup,
+		title: { value: localize('workbench.action.terminal.createTerminalEditor', "Create New Terminal in Editor Area"), original: 'Create New Terminal in Editor Area' },
+		f1: false,
+		run: async (c, accessor, args) => {
+			// Force the editor into the same editor group if it's locked. This command is only ever
+			// called when a terminal is the active editor
+			const editorGroupsService = accessor.get(IEditorGroupsService);
+			const instance = await c.service.createTerminal({
+				location: { viewColumn: editorGroupsService.activeGroup.index }
+			});
+			instance.focusWhenReady();
+		}
+	});
+
 	registerTerminalAction({
 		id: TerminalCommandId.CreateTerminalEditorSide,
 		title: { value: localize('workbench.action.terminal.createTerminalEditorSide', "Create New Terminal in Editor Area to the Side"), original: 'Create New Terminal in Editor Area to the Side' },
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalMenus.ts b/src/vs/workbench/contrib/terminal/browser/terminalMenus.ts
index 8a810f92fc8..eddc9648b64 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalMenus.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalMenus.ts
@@ -785,7 +785,7 @@ export function setupTerminalMenus(): void {
 
 	MenuRegistry.appendMenuItem(MenuId.EditorTitle, {
 		command: {
-			id: TerminalCommandId.CreateTerminalEditor,
+			id: TerminalCommandId.CreateTerminalEditorSameGroup,
 			title: terminalStrings.new,
 			icon: Codicon.plus
 		},
diff --git a/src/vs/workbench/contrib/terminal/common/terminal.ts b/src/vs/workbench/contrib/terminal/common/terminal.ts
index 9b5149079b4..45ac0319a00 100644
--- a/src/vs/workbench/contrib/terminal/common/terminal.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminal.ts
@@ -527,6 +527,7 @@ export const enum TerminalCommandId {
 	FocusPreviousPane = 'workbench.action.terminal.focusPreviousPane',
 	ShowTabs = 'workbench.action.terminal.showTabs',
 	CreateTerminalEditor = 'workbench.action.createTerminalEditor',
+	CreateTerminalEditorSameGroup = 'workbench.action.createTerminalEditorSameGroup',
 	CreateTerminalEditorSide = 'workbench.action.createTerminalEditorSide',
 	FocusTabs = 'workbench.action.terminal.focusTabs',
 	FocusNextPane = 'workbench.action.terminal.focusNextPane',