diff --git a/src/Widgets/Terminal.vala b/src/Widgets/Terminal.vala
index 1a2202eb2..ee28946f3 100644
--- a/src/Widgets/Terminal.vala
+++ b/src/Widgets/Terminal.vala
@@ -44,7 +44,13 @@ public class Code.Terminal : Gtk.Box {
         }
 
         terminal.child_exited.connect (() => {
-            GLib.Application.get_default ().activate_action (Scratch.MainWindow.ACTION_PREFIX + Scratch.MainWindow.ACTION_TOGGLE_TERMINAL, null);
+            //Hide the exited terminal
+            var win_group = get_action_group (Scratch.MainWindow.ACTION_GROUP);
+            win_group.activate_action (Scratch.MainWindow.ACTION_TOGGLE_TERMINAL, null);
+            //Get ready to resume at last saved location
+            spawn_shell (Scratch.saved_state.get_string ("last-opened-path"));
+            //Clear screen of new shell
+            terminal.feed_child ("clear -x\n".data);
         });
 
         var copy_action = new SimpleAction (ACTION_COPY, null);
@@ -89,8 +95,7 @@ public class Code.Terminal : Gtk.Box {
             copy_action.set_enabled (terminal.get_has_selection ());
         });
 
-        var settings = new Settings (Constants.PROJECT_NAME + ".saved-state");
-        spawn_shell (settings.get_string ("last-opened-path"));
+        spawn_shell (Scratch.saved_state.get_string ("last-opened-path"));
 
         var scrolled_window = new Gtk.ScrolledWindow (null, terminal.get_vadjustment ());
         scrolled_window.add (terminal);
@@ -98,7 +103,7 @@ public class Code.Terminal : Gtk.Box {
         add (scrolled_window);
 
         destroy.connect (() => {
-            settings.set_string ("last-opened-path", get_shell_location ());
+            Scratch.saved_state.set_string ("last-opened-path", get_shell_location ());
         });
 
         show_all ();
@@ -125,6 +130,7 @@ public class Code.Terminal : Gtk.Box {
         Posix.kill (child_pid, Posix.Signal.TERM);
         terminal.reset (true, true);
         spawn_shell (dir);
+        Scratch.saved_state.set_string ("last-opened-path", dir);
     }
 
     private string get_shell_location () {