diff --git a/builder/index.js b/builder/index.js
index 0bfa6af9c..b1e968cff 100644
--- a/builder/index.js
+++ b/builder/index.js
@@ -72,6 +72,8 @@ async function main() {
     require('@jupyterlab-classic/application-extension'),
     require('@jupyterlab-classic/docmanager-extension'),
     require('@jupyterlab-classic/notebook-extension'),
+    // to handle opening new tabs after creating a new terminal
+    require('@jupyterlab-classic/terminal-extension'),
 
     // @jupyterlab plugins
     require('@jupyterlab/apputils-extension').default.filter(({ id }) =>
@@ -99,6 +101,8 @@ async function main() {
     ),
     require('@jupyterlab/rendermime-extension'),
     require('@jupyterlab/shortcuts-extension'),
+    // so new terminals can be create from the menu
+    require('@jupyterlab/terminal-extension'),
     require('@jupyterlab/theme-light-extension'),
     require('@jupyterlab/theme-dark-extension')
   ];
diff --git a/builder/package.json b/builder/package.json
index a06fd39f4..1192f6792 100644
--- a/builder/package.json
+++ b/builder/package.json
@@ -14,6 +14,7 @@
     "@jupyterlab-classic/application-extension": "^0.1.0",
     "@jupyterlab-classic/docmanager-extension": "^0.1.0",
     "@jupyterlab-classic/notebook-extension": "^0.1.0",
+    "@jupyterlab-classic/terminal-extension": "^0.1.0",
     "@jupyterlab-classic/tree-extension": "^0.1.0",
     "@jupyterlab-classic/ui-components": "^0.1.0",
     "@jupyterlab/apputils-extension": "^3.0.0-rc.12",
@@ -27,6 +28,7 @@
     "@jupyterlab/rendermime-extension": "^3.0.0-rc.12",
     "@jupyterlab/running-extension": "^3.0.0-rc.12",
     "@jupyterlab/shortcuts-extension": "^3.0.0-rc.12",
+    "@jupyterlab/terminal-extension": "^3.0.0-rc.12",
     "@jupyterlab/tooltip-extension": "^3.0.0-rc.12",
     "@jupyterlab/theme-light-extension": "^3.0.0-rc.12",
     "@jupyterlab/theme-dark-extension": "^3.0.0-rc.12",
diff --git a/builder/style.css b/builder/style.css
index 4d98db16d..8e96fce99 100644
--- a/builder/style.css
+++ b/builder/style.css
@@ -8,6 +8,7 @@
 @import url('~@jupyterlab/fileeditor/style/index.css');
 @import url('~@jupyterlab/tooltip/style/index.css');
 @import url('~@jupyterlab/running/style/index.css');
+@import url('~@jupyterlab/terminal/style/index.css');
 
 @import url('~@jupyterlab/codemirror-extension/style/index.css');
 @import url('~@jupyterlab/docmanager-extension/style/index.css');
diff --git a/jupyterlab_classic/app.py b/jupyterlab_classic/app.py
index d8e06f0cd..06ba38530 100644
--- a/jupyterlab_classic/app.py
+++ b/jupyterlab_classic/app.py
@@ -77,6 +77,7 @@ class ClassicTreeHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, Ext
     @web.authenticated
     def get(self, path=None):
         page_config = self.get_page_config()
+        page_config['terminalsAvailable'] = self.settings['terminals_available']
         return self.write(
             self.render_template(
                 "tree.html",
@@ -87,6 +88,21 @@ class ClassicTreeHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, Ext
         )
 
 
+class ClassicTerminalHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, ExtensionHandlerMixin, JupyterHandler):
+    @web.authenticated
+    def get(self, path=None):
+        page_config = self.get_page_config()
+        page_config['terminalsAvailable'] = self.settings['terminals_available']
+        return self.write(
+            self.render_template(
+                "terminals.html",
+                base_url=self.base_url,
+                token=self.settings["token"],
+                page_config=page_config,
+            )
+        )
+
+
 class ClassicFileHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, ExtensionHandlerMixin, JupyterHandler):
     @web.authenticated
     def get(self, path=None):
@@ -100,6 +116,7 @@ class ClassicFileHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, Ext
             )
         )
 
+
 class ClassicNotebookHandler(ClassicPageConfigMixin, ExtensionHandlerJinjaMixin, ExtensionHandlerMixin, JupyterHandler):
     @web.authenticated
     def get(self, path=None):
@@ -132,6 +149,7 @@ class ClassicApp(NBClassicConfigShimMixin, LabServerApp):
         self.handlers.append(("/classic/tree(.*)", ClassicTreeHandler))
         self.handlers.append(("/classic/notebooks(.*)", ClassicNotebookHandler))
         self.handlers.append(("/classic/edit(.*)", ClassicFileHandler))
+        self.handlers.append(("/classic/terminals/(.*)", ClassicTerminalHandler))
 
     def initialize_templates(self):
         super().initialize_templates()
diff --git a/jupyterlab_classic/templates/terminals.html b/jupyterlab_classic/templates/terminals.html
new file mode 100644
index 000000000..c1d0ed66d
--- /dev/null
+++ b/jupyterlab_classic/templates/terminals.html
@@ -0,0 +1,36 @@
+<!DOCTYPE html>
+<html>
+<head>
+  <meta charset="utf-8">
+  <meta name="viewport" content="width=device-width, initial-scale=1">
+  <title>{{page_config['appName'] | e}} - Terminal</title>
+</head>
+<body>
+
+  {# Copy so we do not modify the page_config with updates. #}
+  {% set page_config_full = page_config.copy() %}
+
+  {# Set a dummy variable - we just want the side effect of the update. #}
+  {% set _ = page_config_full.update(baseUrl=base_url, wsUrl=ws_url) %}
+
+  {# Sentinel value to say that we are on the tree page #}
+  {% set _ = page_config_full.update(classicPage='terminals') %}
+
+  <script id="jupyter-config-data" type="application/json">
+    {{ page_config_full | tojson }}
+  </script>
+  <script src="{{page_config['fullStaticUrl'] | e}}/bundle.js" main="index"></script>
+
+  <script type="text/javascript">
+    /* Remove token from URL. */
+    (function () {
+      var parsedUrl = new URL(window.location.href);
+      if (parsedUrl.searchParams.get('token')) {
+        parsedUrl.searchParams.delete('token');
+        window.history.replaceState({ }, '', parsedUrl.href);
+      }
+    })();
+  </script>
+
+</body>
+</html>
diff --git a/packages/application-extension/style/base.css b/packages/application-extension/style/base.css
index 33b4bd84f..1c814d5cd 100644
--- a/packages/application-extension/style/base.css
+++ b/packages/application-extension/style/base.css
@@ -13,3 +13,7 @@
 .jp-Document {
   height: 100%;
 }
+
+.jp-MainAreaWidget {
+  height: 100%;
+}
diff --git a/packages/application/src/shell.ts b/packages/application/src/shell.ts
index 24ded8f43..86bb6216f 100644
--- a/packages/application/src/shell.ts
+++ b/packages/application/src/shell.ts
@@ -102,11 +102,9 @@ export class ClassicShell extends Widget implements JupyterFrontEnd.IShell {
     if (area === 'menu') {
       return this._menuHandler.addWidget(widget, rank);
     }
-    if (area === 'main') {
+    if (area === 'main' || area === undefined) {
       if (this._main.widgets.length > 0) {
         // do not add the widget if there is already one
-        // TODO: should the widget be closed?
-        widget.close();
         return;
       }
       this._main.addWidget(widget);
diff --git a/packages/terminal-extension/package.json b/packages/terminal-extension/package.json
new file mode 100644
index 000000000..344b33563
--- /dev/null
+++ b/packages/terminal-extension/package.json
@@ -0,0 +1,54 @@
+{
+  "name": "@jupyterlab-classic/terminal-extension",
+  "version": "0.1.0",
+  "description": "JupyterLab Classic - Terminal Extension",
+  "homepage": "https://github.com/jtpio/jupyterlab-classic",
+  "bugs": {
+    "url": "https://github.com/jtpio/jupyterlab-classic/issues"
+  },
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/jtpio/jupyterlab-classic.git"
+  },
+  "license": "BSD-3-Clause",
+  "author": "Project Jupyter",
+  "sideEffects": [
+    "style/**/*.css"
+  ],
+  "main": "lib/index.js",
+  "types": "lib/index.d.ts",
+  "style": "style/index.css",
+  "directories": {
+    "lib": "lib/"
+  },
+  "files": [
+    "lib/*.d.ts",
+    "lib/*.js.map",
+    "lib/*.js",
+    "schema/*.json",
+    "style/**/*.css"
+  ],
+  "scripts": {
+    "build": "tsc -b",
+    "clean": "rimraf lib && rimraf tsconfig.tsbuildinfo",
+    "docs": "typedoc src",
+    "prepublishOnly": "npm run build",
+    "watch": "tsc -b --watch"
+  },
+  "dependencies": {
+    "@jupyterlab/application": "^3.0.0-rc.12",
+    "@jupyterlab/coreutils": "^5.0.0-rc.12",
+    "@jupyterlab/terminal": "^3.0.0-rc.12",
+    "@lumino/algorithm": "^1.3.3"
+  },
+  "devDependencies": {
+    "rimraf": "~3.0.0",
+    "typescript": "~4.0.2"
+  },
+  "publishConfig": {
+    "access": "public"
+  },
+  "jupyterlab": {
+    "extension": true
+  }
+}
diff --git a/packages/terminal-extension/src/index.ts b/packages/terminal-extension/src/index.ts
new file mode 100644
index 000000000..06ef925e2
--- /dev/null
+++ b/packages/terminal-extension/src/index.ts
@@ -0,0 +1,77 @@
+// Copyright (c) Jupyter Development Team.
+// Distributed under the terms of the Modified BSD License.
+
+import {
+  IRouter,
+  JupyterFrontEnd,
+  JupyterFrontEndPlugin
+} from '@jupyterlab/application';
+
+import { PageConfig } from '@jupyterlab/coreutils';
+
+import { ITerminalTracker } from '@jupyterlab/terminal';
+
+import { find } from '@lumino/algorithm';
+
+/**
+ * A plugin to terminals in a new tab
+ */
+const opener: JupyterFrontEndPlugin<void> = {
+  id: '@jupyterlab-classic/terminal-extension:opener',
+  requires: [IRouter],
+  autoStart: true,
+  activate: (app: JupyterFrontEnd, router: IRouter) => {
+    const { commands } = app;
+    const terminalPattern = new RegExp('/terminals/(.*)');
+
+    const command = 'router:terminal';
+    commands.addCommand(command, {
+      execute: (args: any) => {
+        const parsed = args as IRouter.ILocation;
+        const matches = parsed.path.match(terminalPattern);
+        if (!matches) {
+          return;
+        }
+        const [, name] = matches;
+        if (!name) {
+          return;
+        }
+
+        commands.execute('terminal:open', { name });
+      }
+    });
+
+    router.register({ command, pattern: terminalPattern });
+  }
+};
+
+/**
+ * Open terminals in a new tab.
+ */
+const redirect: JupyterFrontEndPlugin<void> = {
+  id: '@jupyterlab-classic/terminal-extension:redirect',
+  requires: [ITerminalTracker],
+  autoStart: true,
+  activate: (app: JupyterFrontEnd, tracker: ITerminalTracker) => {
+    const baseUrl = PageConfig.getBaseUrl();
+    tracker.widgetAdded.connect((send, terminal) => {
+      const widget = find(app.shell.widgets('main'), w => w.id === terminal.id);
+      if (widget) {
+        // bail if the terminal is already added to the main area
+        return;
+      }
+      const name = terminal.content.session.name;
+      window.open(`${baseUrl}classic/terminals/${name}`, '_blank');
+
+      // dispose the widget since it is not used
+      terminal.dispose();
+    });
+  }
+};
+
+/**
+ * Export the plugins as default.
+ */
+const plugins: JupyterFrontEndPlugin<any>[] = [opener, redirect];
+
+export default plugins;
diff --git a/packages/terminal-extension/style/base.css b/packages/terminal-extension/style/base.css
new file mode 100644
index 000000000..e69de29bb
diff --git a/packages/terminal-extension/style/index.css b/packages/terminal-extension/style/index.css
new file mode 100644
index 000000000..f5246e666
--- /dev/null
+++ b/packages/terminal-extension/style/index.css
@@ -0,0 +1 @@
+@import url('./base.css');
diff --git a/packages/terminal-extension/tsconfig.json b/packages/terminal-extension/tsconfig.json
new file mode 100644
index 000000000..399b75b7a
--- /dev/null
+++ b/packages/terminal-extension/tsconfig.json
@@ -0,0 +1,8 @@
+{
+  "extends": "../../tsconfigbase",
+  "compilerOptions": {
+    "outDir": "lib",
+    "rootDir": "src"
+  },
+  "include": ["src/**/*"]
+}
diff --git a/yarn.lock b/yarn.lock
index 4244c057e..4fecc1a69 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2339,6 +2339,39 @@
     react "^17.0.1"
     typestyle "^2.0.4"
 
+"@jupyterlab/terminal-extension@^3.0.0-rc.12":
+  version "3.0.0-rc.13"
+  resolved "https://registry.yarnpkg.com/@jupyterlab/terminal-extension/-/terminal-extension-3.0.0-rc.13.tgz#e457ddafe23495488852cf0e26e6fbbebbefd677"
+  integrity sha512-nVmcZzRiD9te3lR8icnJ30HAjXtDXLJwqFS/GhpVV7CUCOxNjyQQirE5Nn4aNGMtp8/7g6syRbKYPpSyeNut7A==
+  dependencies:
+    "@jupyterlab/application" "^3.0.0-rc.13"
+    "@jupyterlab/apputils" "^3.0.0-rc.13"
+    "@jupyterlab/launcher" "^3.0.0-rc.13"
+    "@jupyterlab/mainmenu" "^3.0.0-rc.13"
+    "@jupyterlab/running" "^3.0.0-rc.13"
+    "@jupyterlab/services" "^6.0.0-rc.13"
+    "@jupyterlab/settingregistry" "^3.0.0-rc.13"
+    "@jupyterlab/terminal" "^3.0.0-rc.13"
+    "@jupyterlab/translation" "^3.0.0-rc.13"
+    "@jupyterlab/ui-components" "^3.0.0-rc.13"
+    "@lumino/algorithm" "^1.3.3"
+    "@lumino/widgets" "^1.16.1"
+
+"@jupyterlab/terminal@^3.0.0-rc.12", "@jupyterlab/terminal@^3.0.0-rc.13":
+  version "3.0.0-rc.13"
+  resolved "https://registry.yarnpkg.com/@jupyterlab/terminal/-/terminal-3.0.0-rc.13.tgz#3651a03b96691bae22a0562f6a6a22f2f718ff25"
+  integrity sha512-n1Wl9HAeGvkpuHJIJpd5JUsrTJtrbzDP7XAdWn+SuITdTPxz5cleT5lAxk5jRukN69r9S9nicLig+WHJgQL8AA==
+  dependencies:
+    "@jupyterlab/apputils" "^3.0.0-rc.13"
+    "@jupyterlab/services" "^6.0.0-rc.13"
+    "@jupyterlab/translation" "^3.0.0-rc.13"
+    "@lumino/coreutils" "^1.5.3"
+    "@lumino/domutils" "^1.2.3"
+    "@lumino/messaging" "^1.4.3"
+    "@lumino/widgets" "^1.16.1"
+    xterm "~4.8.1"
+    xterm-addon-fit "~0.4.0"
+
 "@jupyterlab/testutils@^3.0.0-rc.12":
   version "3.0.0-rc.12"
   resolved "https://registry.yarnpkg.com/@jupyterlab/testutils/-/testutils-3.0.0-rc.12.tgz#accdebf76e700552328913ab2a7261031844776d"
@@ -12406,6 +12439,16 @@ xtend@^4.0.1, xtend@~4.0.1:
   resolved "https://registry.yarnpkg.com/xtend/-/xtend-4.0.2.tgz#bb72779f5fa465186b1f438f674fa347fdb5db54"
   integrity sha512-LKYU1iAXJXUgAXn9URjiu+MWhyUXHsvfp7mcuYm9dSUKK0/CjtrUwFAxD82/mCWbtLsGjFIad0wIsod4zrTAEQ==
 
+xterm-addon-fit@~0.4.0:
+  version "0.4.0"
+  resolved "https://registry.yarnpkg.com/xterm-addon-fit/-/xterm-addon-fit-0.4.0.tgz#06e0c5d0a6aaacfb009ef565efa1c81e93d90193"
+  integrity sha512-p4BESuV/g2L6pZzFHpeNLLnep9mp/DkF3qrPglMiucSFtD8iJxtMufEoEJbN8LZwB4i+8PFpFvVuFrGOSpW05w==
+
+xterm@~4.8.1:
+  version "4.8.1"
+  resolved "https://registry.yarnpkg.com/xterm/-/xterm-4.8.1.tgz#155a1729a43e1a89b406524e22c5634339e39ca1"
+  integrity sha512-ax91ny4tI5eklqIfH79OUSGE2PUX2rGbwONmB6DfqpyhSZO8/cf++sqiaMWEVCMjACyMfnISW7C3gGMoNvNolQ==
+
 y18n@^4.0.0:
   version "4.0.1"
   resolved "https://registry.yarnpkg.com/y18n/-/y18n-4.0.1.tgz#8db2b83c31c5d75099bb890b23f3094891e247d4"