diff --git a/src/goEnvironmentStatus.ts b/src/goEnvironmentStatus.ts
index 51f8d40..4f24e85 100644
--- a/src/goEnvironmentStatus.ts
+++ b/src/goEnvironmentStatus.ts
@@ -15,6 +15,7 @@
 
 import { toolInstallationEnvironment } from './goEnv';
 import { getActiveGoRoot } from './goInstallTools';
+import { getCurrentGoRoot } from './goPath';
 import { outputChannel } from './goStatus';
 import { getBinPath, getGoConfig, getGoVersion } from './util';
 
@@ -35,6 +36,7 @@
 
 // statusbar item for switching the Go environment
 let goEnvStatusbarItem: vscode.StatusBarItem;
+let terminalCreationListener: vscode.Disposable;
 
 /**
  * Initialize the status bar item with current Go binary
@@ -47,6 +49,12 @@
 	const version = await getGoVersion();
 	const goOption = new GoEnvironmentOption(version.binaryPath, formatGoVersion(version.format()));
 
+	// ensure terminals use the correct Go version
+	if (!terminalCreationListener) {
+		updateIntegratedTerminal(vscode.window.activeTerminal);
+		terminalCreationListener = vscode.window.onDidOpenTerminal(updateIntegratedTerminal);
+	}
+
 	hideGoStatusBar();
 	goEnvStatusbarItem.text = goOption.label;
 	goEnvStatusbarItem.command = 'go.environment.choose';
@@ -60,6 +68,9 @@
 	if (!!goEnvStatusbarItem) {
 		goEnvStatusbarItem.dispose();
 	}
+	if (!!terminalCreationListener) {
+		terminalCreationListener.dispose();
+	}
 }
 
 /**
@@ -212,6 +223,21 @@
 }
 
 /**
+ * update the PATH variable in the given terminal to default to the currently selected Go
+ */
+export async function updateIntegratedTerminal(terminal: vscode.Terminal) {
+	const goroot = path.join(getCurrentGoRoot(), 'bin');
+
+	// TODO: add support for more terminal names
+	// this assumes all non-windows shells are bash-like.
+	if (terminal.name.toLowerCase() === 'powershell' || terminal.name.toLowerCase() === 'cmd') {
+		terminal.sendText(`set PATH=${goroot};%PATH%`, true);
+	} else {
+		terminal.sendText(`export PATH=${goroot}:$PATH`, true);
+	}
+}
+
+/**
  * retreive the current selected Go from the workspace state
  */
 export async function getSelectedGo(): Promise<GoEnvironmentOption> {