diff --git a/src/vs/workbench/contrib/terminal/common/history.ts b/src/vs/workbench/contrib/terminal/common/history.ts
index cc9c8be1052..0cc6b7b1d7a 100644
--- a/src/vs/workbench/contrib/terminal/common/history.ts
+++ b/src/vs/workbench/contrib/terminal/common/history.ts
@@ -53,7 +53,7 @@ export function getCommandHistory(accessor: ServicesAccessor): ITerminalPersiste
 	return commandHistory;
 }
 
-class TerminalPersistedHistory<T> extends Disposable implements ITerminalPersistedHistory<T> {
+export class TerminalPersistedHistory<T> extends Disposable implements ITerminalPersistedHistory<T> {
 	private readonly _entries: LRUCache<string, T>;
 	private _timestamp: number = 0;
 	private _isReady = false;
diff --git a/src/vs/workbench/contrib/terminal/test/common/history.test.ts b/src/vs/workbench/contrib/terminal/test/common/history.test.ts
new file mode 100644
index 00000000000..6b850e10e78
--- /dev/null
+++ b/src/vs/workbench/contrib/terminal/test/common/history.test.ts
@@ -0,0 +1,101 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { deepStrictEqual, strictEqual } from 'assert';
+import { IConfigurationService } from 'vs/platform/configuration/common/configuration';
+import { TestConfigurationService } from 'vs/platform/configuration/test/common/testConfigurationService';
+import { TestInstantiationService } from 'vs/platform/instantiation/test/common/instantiationServiceMock';
+import { IStorageService } from 'vs/platform/storage/common/storage';
+import { ITerminalPersistedHistory, TerminalPersistedHistory } from 'vs/workbench/contrib/terminal/common/history';
+import { TestStorageService } from 'vs/workbench/test/common/workbenchTestServices';
+
+function getConfig(limit: number) {
+	return {
+		terminal: {
+			integrated: {
+				shellIntegration: {
+					history: limit
+				}
+			}
+		}
+	};
+}
+
+suite('TerminalPersistedHistory', () => {
+	let history: ITerminalPersistedHistory<number>;
+	let instantiationService: TestInstantiationService;
+	let storageService: TestStorageService;
+	let configurationService: TestConfigurationService;
+
+	setup(() => {
+		configurationService = new TestConfigurationService(getConfig(5));
+		storageService = new TestStorageService();
+		instantiationService = new TestInstantiationService();
+		instantiationService.set(IConfigurationService, configurationService);
+		instantiationService.set(IStorageService, storageService);
+
+		history = instantiationService.createInstance(TerminalPersistedHistory, 'test');
+	});
+
+	test('should support adding items to the cache and respect LRU', () => {
+		history.add('foo', 1);
+		deepStrictEqual(Array.from(history.entries), [
+			['foo', 1]
+		]);
+		history.add('bar', 2);
+		deepStrictEqual(Array.from(history.entries), [
+			['foo', 1],
+			['bar', 2]
+		]);
+		history.add('foo', 1);
+		deepStrictEqual(Array.from(history.entries), [
+			['bar', 2],
+			['foo', 1]
+		]);
+	});
+
+	test('should support removing specific items', () => {
+		history.add('1', 1);
+		history.add('2', 2);
+		history.add('3', 3);
+		history.add('4', 4);
+		history.add('5', 5);
+		strictEqual(Array.from(history.entries).length, 5);
+		history.add('6', 6);
+		strictEqual(Array.from(history.entries).length, 5);
+	});
+
+	test('should limit the number of entries based on config', () => {
+		history.add('1', 1);
+		history.add('2', 2);
+		history.add('3', 3);
+		history.add('4', 4);
+		history.add('5', 5);
+		strictEqual(Array.from(history.entries).length, 5);
+		history.add('6', 6);
+		strictEqual(Array.from(history.entries).length, 5);
+		configurationService.setUserConfiguration('terminal', getConfig(2).terminal);
+		configurationService.onDidChangeConfigurationEmitter.fire({ affectsConfiguration: () => true } as any);
+		strictEqual(Array.from(history.entries).length, 2);
+		history.add('7', 7);
+		strictEqual(Array.from(history.entries).length, 2);
+		configurationService.setUserConfiguration('terminal', getConfig(3).terminal);
+		configurationService.onDidChangeConfigurationEmitter.fire({ affectsConfiguration: () => true } as any);
+		strictEqual(Array.from(history.entries).length, 2);
+		history.add('8', 8);
+		strictEqual(Array.from(history.entries).length, 3);
+		history.add('9', 9);
+		strictEqual(Array.from(history.entries).length, 3);
+	});
+
+	test('should reload from storage service after recreation', () => {
+		history.add('1', 1);
+		history.add('2', 2);
+		history.add('3', 3);
+		strictEqual(Array.from(history.entries).length, 3);
+		const history2 = instantiationService.createInstance(TerminalPersistedHistory, 'test');
+		strictEqual(Array.from(history2.entries).length, 3);
+	});
+});