Microsoft has released Intelligent Terminal 0.1, an open-source variant of Windows Terminal that includes native agent functionality. It can be installed via the Microsoft Store or WinGet and operates alongside the existing Windows Terminal. Intelligent Terminal allows users to troubleshoot issues directly within the terminal by interacting with an AI agent that understands the terminal context. The tool features a persistent agent pane for seamless interaction, with GitHub Copilot CLI as the default agent, though it supports any ACP-compatible agent. Automatic error detection is included, providing users with relevant error context and potential fixes. An agent management panel helps users oversee multiple agents and their statuses. The Command Palette has been updated to facilitate agent interactions without disrupting the workflow. Microsoft plans to evolve Intelligent Terminal based on community feedback, with its GitHub repository open for contributions. The release also marks the phasing out of Terminal Chat in Windows Terminal Canary, while the mainline Windows Terminal remains unchanged.