diff --git a/src/features/terminal/terminalActivationState.ts b/src/features/terminal/terminalActivationState.ts
index c0220883..5181c12f 100644
--- a/src/features/terminal/terminalActivationState.ts
+++ b/src/features/terminal/terminalActivationState.ts
@@ -11,7 +11,7 @@ import { PythonEnvironment } from '../../api';
 import { traceError, traceInfo, traceVerbose } from '../../common/logging';
 import { onDidEndTerminalShellExecution, onDidStartTerminalShellExecution } from '../../common/window.apis';
 import { getActivationCommand, getDeactivationCommand } from '../common/activation';
-import { isTaskTerminal } from './utils';
+import { getShellIntegrationTimeout, isTaskTerminal } from './utils';
 
 export interface DidChangeTerminalActivationStateEvent {
     terminal: Terminal;
@@ -252,12 +252,13 @@ export class TerminalActivationImpl implements TerminalActivationInternal {
     ): Promise<boolean> {
         const execution = shellIntegration.executeCommand(command);
         const disposables: Disposable[] = [];
+        const timeoutMs = getShellIntegrationTimeout();
 
         const promise = new Promise<void>((resolve) => {
             const timer = setTimeout(() => {
                 traceError(`Shell execution timed out: ${command}`);
                 resolve();
-            }, 2000);
+            }, timeoutMs);
 
             disposables.push(
                 new Disposable(() => clearTimeout(timer)),
diff --git a/src/features/terminal/utils.ts b/src/features/terminal/utils.ts
index bca60e08..a7c75af0 100644
--- a/src/features/terminal/utils.ts
+++ b/src/features/terminal/utils.ts
@@ -9,6 +9,21 @@ import { getConfiguration, getWorkspaceFolders } from '../../common/workspace.ap
 export const SHELL_INTEGRATION_TIMEOUT = 500; // 0.5 seconds
 export const SHELL_INTEGRATION_POLL_INTERVAL = 20; // 0.02 seconds
 
+/**
+ * Use `terminal.integrated.shellIntegration.timeout` setting if available.
+ * Falls back to defaults based on shell integration enabled state and remote environment.
+ */
+export function getShellIntegrationTimeout(): number {
+    const config = getConfiguration('terminal.integrated');
+    const timeoutValue = config.get<number | undefined>('shellIntegration.timeout');
+    if (typeof timeoutValue !== 'number' || timeoutValue < 0) {
+        const shellIntegrationEnabled = config.get<boolean>('shellIntegration.enabled', true);
+        const isRemote = env.remoteName !== undefined;
+        return shellIntegrationEnabled ? 5000 : isRemote ? 3000 : 2000;
+    }
+    return Math.max(timeoutValue, 500);
+}
+
 /**
  * Three conditions in a Promise.race:
  * 1. Timeout based on VS Code's terminal.integrated.shellIntegration.timeout setting
@@ -20,16 +35,7 @@ export async function waitForShellIntegration(terminal: Terminal): Promise<boole
         return true;
     }
 
-    const config = getConfiguration('terminal.integrated');
-    const shellIntegrationEnabled = config.get<boolean>('shellIntegration.enabled', true);
-    const timeoutValue = config.get<number | undefined>('shellIntegration.timeout');
-    const isRemote = env.remoteName !== undefined;
-    let timeoutMs: number;
-    if (typeof timeoutValue !== 'number' || timeoutValue < 0) {
-        timeoutMs = shellIntegrationEnabled ? 5000 : isRemote ? 3000 : 2000;
-    } else {
-        timeoutMs = Math.max(timeoutValue, 500);
-    }
+    const timeoutMs = getShellIntegrationTimeout();
 
     const disposables: Disposable[] = [];