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Windows Terminal + PowerShell 7: a clean, repeatable setup

Verified 2 min read

Install Windows Terminal and PowerShell 7 side by side, set a sane default profile, font and settings.json, and avoid profile scripts you do not understand.

Tested onPro (26H2) · Build 26300.9457 · x64
E1
Build
26300.9457
Edition
Pro (26H2)
Architecture
x64
Support
Documentation (E1)
Evidence
E1Official documentation
Verified
2026-10-28
Page type
Setup

The short answer

Section titled “The short answer”

Install Windows Terminal for the window and PowerShell 7 for the shell. They are separate products and can coexist with Windows PowerShell 5.1.

Use a small settings.json, set PowerShell 7 as the default profile, pick a monospace font with ligatures only if you like them, and keep profile scripts minimal. A terminal setup is not a security boundary; do not run a profile you copied from a random gist.

Install

Section titled “Install”
Terminal window
winget install --id Microsoft.WindowsTerminal -e
winget install --id Microsoft.PowerShell -e

Or use the Microsoft Store/MSI. After install:

Terminal window
pwsh -NoLogo
$PSVersionTable

pwsh.exe is PowerShell 7; powershell.exe is Windows PowerShell 5.1. Keep both: some old modules only work in 5.1.

Set the default profile

Section titled “Set the default profile”

Windows Terminal → Settings → Startup → Default profile → PowerShell 7. You can also set the default terminal application in Windows Settings → System → For developers → Terminal.

Profiles are generated; do not hand-edit the generated GUID blocks unless you need a custom profile. Use the Settings UI for fonts and colors if you are not comfortable with JSON.

A minimal settings.json

Section titled “A minimal settings.json”

The file lives at %LOCALAPPDATA%\Packages\Microsoft.WindowsTerminal_8wekyb3d8bbwe\LocalState\settings.json for the Store build. A minimal change:

{
  "defaultProfile": "{GUID-of-PowerShell-7}",
  "profiles": {
    "defaults": {
      "font": { "face": "Cascadia Mono", "size": 11 },
      "opacity": 95
    }
  }
}

Do not delete the generated profiles or the schemes array. Back up the file before editing; a malformed JSON file can make Terminal fail to start.

Profile scripts

Section titled “Profile scripts”

PowerShell profiles run on every shell start. Keep them small and auditable:

Terminal window
$PROFILE.CurrentUserAllHosts
Test-Path $PROFILE.CurrentUserAllHosts

If you use a prompt theme or module, install it from a known source and pin the version. A profile that downloads and executes code at startup is a supply-chain risk.

Execution policy

Section titled “Execution policy”

Do not set Unrestricted or Bypass machine-wide. Prefer:

Terminal window
Set-ExecutionPolicy -Scope CurrentUser RemoteSigned

Sign your own scripts if you run them regularly. Execution policy is not a security sandbox; it is a guardrail.

A sane baseline

Section titled “A sane baseline”
  • PowerShell 7 default; Windows PowerShell 5.1 available for legacy modules.
  • Cascadia Mono or another readable monospace; no tiny 8pt fonts.
  • Minimal profile; no network calls at startup.
  • winget and Git available in PATH.
  • Windows Terminal pinned to taskbar; use wt to launch.

Sources