diff --git a/src/vs/workbench/api/common/extHost.api.impl.ts b/src/vs/workbench/api/common/extHost.api.impl.ts
index ed882131258b1..5e30cb10cb0ba 100644
--- a/src/vs/workbench/api/common/extHost.api.impl.ts
+++ b/src/vs/workbench/api/common/extHost.api.impl.ts
@@ -656,9 +656,6 @@ export function createApiFactoryAndRegisterActors(accessor: ServicesAccessor): I
 			},
 			createTerminal(nameOrOptions?: vscode.TerminalOptions | vscode.ExtensionTerminalOptions | string, shellPath?: string, shellArgs?: string[] | string): vscode.Terminal {
 				if (typeof nameOrOptions === 'object') {
-					if ('location' in nameOrOptions) {
-						checkProposedApiEnabled(extension, 'terminalLocation');
-					}
 					if ('pty' in nameOrOptions) {
 						return extHostTerminalService.createExtensionTerminal(nameOrOptions);
 					}
diff --git a/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts b/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
index d413ce4beaba1..2c734e5a0d20d 100644
--- a/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
+++ b/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
@@ -49,7 +49,6 @@ export const allApiProposals = Object.freeze({
 	taskPresentationGroup: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.taskPresentationGroup.d.ts',
 	terminalDataWriteEvent: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.terminalDataWriteEvent.d.ts',
 	terminalDimensions: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.terminalDimensions.d.ts',
-	terminalLocation: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.terminalLocation.d.ts',
 	terminalNameChangeEvent: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.terminalNameChangeEvent.d.ts',
 	testCoverage: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.testCoverage.d.ts',
 	testObserver: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.testObserver.d.ts',
diff --git a/src/vscode-dts/vscode.d.ts b/src/vscode-dts/vscode.d.ts
index 08d8ec29761ca..afdb41a05051c 100644
--- a/src/vscode-dts/vscode.d.ts
+++ b/src/vscode-dts/vscode.d.ts
@@ -5922,6 +5922,50 @@ declare module 'vscode' {
 		dispose(): void;
 	}
 
+	/**
+	 * The location of the terminal.
+	 */
+	export enum TerminalLocation {
+		/**
+		 * In the terminal view
+		 */
+		Panel = 1,
+		/**
+		 * In the editor area
+		 */
+		Editor = 2,
+	}
+
+	/**
+	 * Assumes a {@link TerminalLocation} of editor and allows specifying a {@link ViewColumn} and
+	 * {@link preserveFocus} property
+	 */
+	export interface TerminalEditorLocationOptions {
+		/**
+		 * A view column in which the {@link Terminal terminal} should be shown in the editor area.
+		 * Use {@link ViewColumn.Active active} to open in the active editor group, other values are
+		 * adjusted to be `Min(column, columnCount + 1)`, the
+		 * {@link ViewColumn.Active active}-column is not adjusted. Use
+		 * {@linkcode ViewColumn.Beside} to open the editor to the side of the currently active one.
+		 */
+		viewColumn: ViewColumn;
+		/**
+		 * An optional flag that when `true` will stop the {@link Terminal} from taking focus.
+		 */
+		preserveFocus?: boolean;
+	}
+
+	/**
+	 * Uses the parent {@link Terminal}'s location for the terminal
+	 */
+	export interface TerminalSplitLocationOptions {
+		/**
+		 * The parent terminal to split this terminal beside. This works whether the parent terminal
+		 * is in the panel or the editor area.
+		 */
+		parentTerminal: Terminal;
+	}
+
 	/**
 	 * Represents the state of a {@link Terminal}.
 	 */
@@ -9698,6 +9742,11 @@ declare module 'vscode' {
 		 * recommended for the best contrast and consistency across themes.
 		 */
 		color?: ThemeColor;
+
+		/**
+		* The {@link TerminalLocation} or {@link TerminalEditorLocationOptions} or {@link TerminalSplitLocationOptions} for the terminal.
+		*/
+		location?: TerminalLocation | TerminalEditorLocationOptions | TerminalSplitLocationOptions;
 	}
 
 	/**
@@ -9726,6 +9775,11 @@ declare module 'vscode' {
 		 * recommended for the best contrast and consistency across themes.
 		 */
 		color?: ThemeColor;
+
+		/**
+		 * The {@link TerminalLocation} or {@link TerminalEditorLocationOptions} or {@link TerminalSplitLocationOptions} for the terminal.
+		 */
+		location?: TerminalLocation | TerminalEditorLocationOptions | TerminalSplitLocationOptions;
 	}
 
 	/**
diff --git a/src/vscode-dts/vscode.proposed.terminalLocation.d.ts b/src/vscode-dts/vscode.proposed.terminalLocation.d.ts
deleted file mode 100644
index 9c2a10a3febe7..0000000000000
--- a/src/vscode-dts/vscode.proposed.terminalLocation.d.ts
+++ /dev/null
@@ -1,45 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-declare module 'vscode' {
-
-	// https://github.com/microsoft/vscode/issues/45407
-
-	export interface TerminalOptions {
-		location?: TerminalLocation | TerminalEditorLocationOptions | TerminalSplitLocationOptions;
-	}
-
-	export interface ExtensionTerminalOptions {
-		location?: TerminalLocation | TerminalEditorLocationOptions | TerminalSplitLocationOptions;
-	}
-
-	export enum TerminalLocation {
-		Panel = 1,
-		Editor = 2,
-	}
-
-	export interface TerminalEditorLocationOptions {
-		/**
-		 * A view column in which the {@link Terminal terminal} should be shown in the editor area.
-		 * Use {@link ViewColumn.Active active} to open in the active editor group, other values are
-		 * adjusted to be `Min(column, columnCount + 1)`, the
-		 * {@link ViewColumn.Active active}-column is not adjusted. Use
-		 * {@linkcode ViewColumn.Beside} to open the editor to the side of the currently active one.
-		 */
-		viewColumn: ViewColumn;
-		/**
-		 * An optional flag that when `true` will stop the {@link Terminal} from taking focus.
-		 */
-		preserveFocus?: boolean;
-	}
-
-	export interface TerminalSplitLocationOptions {
-		/**
-		 * The parent terminal to split this terminal beside. This works whether the parent terminal
-		 * is in the panel or the editor area.
-		 */
-		parentTerminal: Terminal;
-	}
-}