diff --git a/src/crates/contracts/config-contracts/src/types.rs b/src/crates/contracts/config-contracts/src/types.rs
index b89b888794..be90d16878 100644
--- a/src/crates/contracts/config-contracts/src/types.rs
+++ b/src/crates/contracts/config-contracts/src/types.rs
@@ -659,7 +659,8 @@ pub struct MinimapConfig {
 pub struct TerminalConfig {
     /// Empty string means "auto-detect".
     pub default_shell: String,
-    /// Terminal panel placement in the session layout: "right" or "bottom".
+    /// Persisted for compatibility; the current terminal routing no longer honors this
+    /// setting after the workbench UI restructuring. Values remain "right" or "bottom".
     pub terminal_panel_position: String,
     pub font_size: u32,
     pub font_family: String,
diff --git a/src/web-ui/src/infrastructure/config/components/ApplicationSettingsPages.tsx b/src/web-ui/src/infrastructure/config/components/ApplicationSettingsPages.tsx
index 0ad844143c..15b7e12602 100644
--- a/src/web-ui/src/infrastructure/config/components/ApplicationSettingsPages.tsx
+++ b/src/web-ui/src/infrastructure/config/components/ApplicationSettingsPages.tsx
@@ -6,11 +6,7 @@ import { ConfigLoadingState, ConfigMessage, ConfigRetryState } from '@/infrastru
 import { configAPI, workspaceAPI } from '@/infrastructure/api';
 import { systemAPI } from '@/infrastructure/api/service-api/SystemAPI';
 import type { CloseBehavior } from '@/infrastructure/api/service-api/SystemAPI';
-import {
-  getTerminalService,
-  refreshTerminalPanelPosition,
-  setTerminalPanelPosition,
-} from '@/tools/terminal/services';
+import { getTerminalService } from '@/tools/terminal/services';
 import type { ShellInfo } from '@/tools/terminal/types/session';
 import {
   ConfigPageContent,
@@ -25,7 +21,6 @@ import type {
   BackendLogLevel,
   RuntimeLoggingInfo,
   TerminalConfig as TerminalSettings,
-  TerminalPanelPosition,
 } from '../types';
 import './ApplicationSettingsPages.scss';
 
@@ -598,7 +593,6 @@ function LoggingSection() {
 function TerminalSection() {
   const { t } = useTranslation('settings/application');
   const [defaultShell, setDefaultShell] = useState<string>('');
-  const [terminalPanelPosition, setTerminalPanelPositionState] = useState<TerminalPanelPosition>('right');
   const [availableShells, setAvailableShells] = useState<ShellInfo[]>([]);
   const [loading, setLoading] = useState(true);
   const [loadFailed, setLoadFailed] = useState(false);
@@ -621,8 +615,6 @@ function TerminalSection() {
       ]);
 
       setDefaultShell(terminalConfig?.default_shell || '');
-      setTerminalPanelPositionState(terminalConfig?.terminal_panel_position === 'bottom' ? 'bottom' : 'right');
-      void refreshTerminalPanelPosition();
 
       const availableOnly = shells.filter((s) => s.available);
       setAvailableShells(availableOnly);
@@ -661,28 +653,6 @@ function TerminalSection() {
     [defaultShell, showMessage, t]
   );
 
-  const handleTerminalPanelPositionChange = useCallback(
-    async (value: TerminalPanelPosition) => {
-      const previous = terminalPanelPosition;
-      try {
-        setSaving(true);
-        setTerminalPanelPositionState(value);
-
-        await setTerminalPanelPosition(value);
-        configManager.clearCache();
-
-        showMessage('success', t('terminal.messages.panelPositionUpdated'));
-      } catch (error) {
-        setTerminalPanelPositionState(previous);
-        log.error('Failed to save terminal panel position', { value, error });
-        showMessage('error', t('terminal.messages.saveFailed'));
-      } finally {
-        setSaving(false);
-      }
-    },
-    [showMessage, t, terminalPanelPosition],
-  );
-
   const shellOptions = useMemo<TerminalShellOption[]>(
     () => [
       { value: AUTO_DETECT_SHELL_VALUE, label: t('terminal.controls.autoDetect') },
@@ -704,13 +674,6 @@ function TerminalSection() {
   );
   const selectedShellValue = selectedShell?.path ?? (defaultShell || AUTO_DETECT_SHELL_VALUE);
 
-  const terminalPanelPositionOptions = useMemo(
-    () => [
-      { value: 'right', label: t('terminal.panelPosition.options.right') },
-      { value: 'bottom', label: t('terminal.panelPosition.options.bottom') },
-    ],
-    [t],
-  );
   const shouldShowCmdFallbackNotice = selectedShell?.shellType === 'Cmd' || defaultShell === 'Cmd';
 
   if (loading) {
@@ -762,20 +725,6 @@ function TerminalSection() {
             )}
           </ConfigPageRow>
 
-          <ConfigPageRow
-            label={t('terminal.panelPosition.label')}
-            description={t('terminal.panelPosition.description')}
-            align="center"
-          >
-            <Select
-              size="sm"
-              value={terminalPanelPosition}
-              onValueChange={(v) => handleTerminalPanelPositionChange(v as TerminalPanelPosition)}
-              options={terminalPanelPositionOptions}
-              placeholder={t('terminal.panelPosition.placeholder')}
-              disabled={saving}
-            />
-          </ConfigPageRow>
         </ConfigPageSection>
       </div>
     </div>
diff --git a/src/web-ui/src/locales/en-US/settings.json b/src/web-ui/src/locales/en-US/settings.json
index 77f3316a6b..16668932fc 100644
--- a/src/web-ui/src/locales/en-US/settings.json
+++ b/src/web-ui/src/locales/en-US/settings.json
@@ -34,7 +34,7 @@
       },
       "terminal": {
         "label": "Terminal",
-        "description": "Default shell and terminal panel placement."
+        "description": "Default shell."
       },
       "editor": {
         "label": "Editor",
diff --git a/src/web-ui/src/locales/en-US/settings/application.json b/src/web-ui/src/locales/en-US/settings/application.json
index 4bdb82b5e4..b024bef000 100644
--- a/src/web-ui/src/locales/en-US/settings/application.json
+++ b/src/web-ui/src/locales/en-US/settings/application.json
@@ -200,7 +200,7 @@
   "terminal": {
     "sections": {
       "terminal": "Terminal",
-      "terminalHint": "Default shell and new terminal behavior",
+      "terminalHint": "Default shell",
       "defaultTerminal": "Default Terminal"
     },
     "controls": {
diff --git a/src/web-ui/src/locales/zh-CN/settings.json b/src/web-ui/src/locales/zh-CN/settings.json
index 7716df58ef..b2ef0214b6 100644
--- a/src/web-ui/src/locales/zh-CN/settings.json
+++ b/src/web-ui/src/locales/zh-CN/settings.json
@@ -34,7 +34,7 @@
       },
       "terminal": {
         "label": "终端",
-        "description": "默认 Shell 与终端面板显示位置。"
+        "description": "默认 Shell。"
       },
       "editor": {
         "label": "编辑器",
diff --git a/src/web-ui/src/locales/zh-CN/settings/application.json b/src/web-ui/src/locales/zh-CN/settings/application.json
index cdc15f653e..fbea06946c 100644
--- a/src/web-ui/src/locales/zh-CN/settings/application.json
+++ b/src/web-ui/src/locales/zh-CN/settings/application.json
@@ -200,7 +200,7 @@
   "terminal": {
     "sections": {
       "terminal": "终端",
-      "terminalHint": "默认 Shell 与新建终端行为",
+      "terminalHint": "默认 Shell",
       "defaultTerminal": "默认终端"
     },
     "controls": {
diff --git a/src/web-ui/src/locales/zh-TW/settings.json b/src/web-ui/src/locales/zh-TW/settings.json
index 708b3ad7b9..0021cf3c0d 100644
--- a/src/web-ui/src/locales/zh-TW/settings.json
+++ b/src/web-ui/src/locales/zh-TW/settings.json
@@ -34,7 +34,7 @@
       },
       "terminal": {
         "label": "終端",
-        "description": "預設 Shell 與終端面板顯示位置。"
+        "description": "預設 Shell。"
       },
       "editor": {
         "label": "編輯器",
diff --git a/src/web-ui/src/locales/zh-TW/settings/application.json b/src/web-ui/src/locales/zh-TW/settings/application.json
index a8152821fb..1d9dd41d5d 100644
--- a/src/web-ui/src/locales/zh-TW/settings/application.json
+++ b/src/web-ui/src/locales/zh-TW/settings/application.json
@@ -186,7 +186,7 @@
   "terminal": {
     "sections": {
       "terminal": "終端",
-      "terminalHint": "默認 Shell 與新增終端行為",
+      "terminalHint": "預設 Shell",
       "defaultTerminal": "默認終端"
     },
     "controls": {