diff --git a/CHANGELOG.md b/CHANGELOG.md
index 46e8ba34..9778d65d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,7 @@
 
 - [#685](https://github.com/estruyf/vscode-front-matter/issues/685): Fix when using non-string values in the tag picker
 - [#691](https://github.com/estruyf/vscode-front-matter/issues/691): Silent authentication retrieval for GitHub sponsors
+- [#696](https://github.com/estruyf/vscode-front-matter/issues/696): Close the local server terminal on restart
 
 ## [9.3.0] - 2023-10-06 - [Release notes](https://beta.frontmatter.codes/updates/v9.3.0)
 
diff --git a/src/extension.ts b/src/extension.ts
index f13e8966..8cd35737 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -36,6 +36,7 @@ import {
   Chatbot
 } from './commands';
 import { join } from 'path';
+import { Terminal } from './services';
 
 let pageUpdateDebouncer: { (fnc: any, time: number): void };
 let editDebounce: { (fnc: any, time: number): void };
@@ -58,6 +59,9 @@ export async function activate(context: vscode.ExtensionContext) {
     });
   }
 
+  // Make sure the terminal windows are closed
+  Terminal.closeLocalServerTerminal();
+
   if (!extension.checkIfExtensionCanRun()) {
     return undefined;
   }
diff --git a/src/listeners/panel/DataListener.ts b/src/listeners/panel/DataListener.ts
index a8acee27..71aa4422 100644
--- a/src/listeners/panel/DataListener.ts
+++ b/src/listeners/panel/DataListener.ts
@@ -5,7 +5,7 @@ import { Folders } from '../../commands/Folders';
 import { Command } from '../../panelWebView/Command';
 import { CommandToCode } from '../../panelWebView/CommandToCode';
 import { BaseListener } from './BaseListener';
-import { authentication, commands, ThemeIcon, window } from 'vscode';
+import { authentication, commands, window } from 'vscode';
 import { ArticleHelper, ContentType, Extension, Logger, Settings } from '../../helpers';
 import {
   COMMAND_NAME,
@@ -23,12 +23,12 @@ import { encodeEmoji } from '../../utils';
 import { PanelProvider } from '../../panelWebView/PanelProvider';
 import { MessageHandlerData } from '@estruyf/vscode';
 import { SponsorAi } from '../../services/SponsorAI';
+import { Terminal } from '../../services';
 
 const FILE_LIMIT = 10;
 
 export class DataListener extends BaseListener {
   private static lastMetadataUpdate: any = {};
-  private static readonly terminalName: string = 'Local server';
 
   /**
    * Process the messages for the dashboard views
@@ -509,27 +509,7 @@ export class DataListener extends BaseListener {
    */
   private static openTerminalWithCommand(command: string) {
     if (command) {
-      let localServerTerminal = DataListener.findServerTerminal();
-      if (localServerTerminal) {
-        localServerTerminal.dispose();
-      }
-
-      if (
-        !localServerTerminal ||
-        (localServerTerminal && localServerTerminal.state.isInteractedWith === true)
-      ) {
-        localServerTerminal = window.createTerminal({
-          name: this.terminalName,
-          iconPath: new ThemeIcon('server-environment'),
-          message: `Starting local server`
-        });
-      }
-
-      if (localServerTerminal) {
-        localServerTerminal.sendText(command);
-        localServerTerminal.show(false);
-      }
-
+      Terminal.openLocalServerTerminal(command);
       this.sendMsg(Command.serverStarted, true);
     }
   }
@@ -538,11 +518,7 @@ export class DataListener extends BaseListener {
    * Stop the local server
    */
   private static stopServer() {
-    const localServerTerminal = DataListener.findServerTerminal();
-    if (localServerTerminal) {
-      localServerTerminal.dispose();
-    }
-
+    Terminal.closeLocalServerTerminal();
     this.sendMsg(Command.serverStarted, false);
   }
 
@@ -554,22 +530,10 @@ export class DataListener extends BaseListener {
       return;
     }
 
-    const localServerTerminal = DataListener.findServerTerminal();
+    const localServerTerminal = Terminal.findLocalServerTerminal();
     this.sendRequest(command, requestId, !!localServerTerminal);
   }
 
-  /**
-   * Find the server terminal
-   * @returns
-   */
-  private static findServerTerminal() {
-    let terminals = window.terminals;
-    if (terminals) {
-      const localServerTerminal = terminals.find((t) => t.name === DataListener.terminalName);
-      return localServerTerminal;
-    }
-  }
-
   /**
    * Update the placeholder
    * @param field
diff --git a/src/services/Terminal.ts b/src/services/Terminal.ts
index a84d55fd..6bc56687 100644
--- a/src/services/Terminal.ts
+++ b/src/services/Terminal.ts
@@ -1,4 +1,4 @@
-import { workspace } from 'vscode';
+import { workspace, window, ThemeIcon } from 'vscode';
 import * as os from 'os';
 
 interface ShellSetting {
@@ -6,6 +6,8 @@ interface ShellSetting {
 }
 
 export class Terminal {
+  public static readonly terminalName: string = 'Local server';
+
   /**
    * Return the shell path for the current platform
    */
@@ -22,6 +24,58 @@ export class Terminal {
     return shellPath;
   }
 
+  /**
+   * Open a new local server terminal
+   */
+  public static openLocalServerTerminal(command: string) {
+    let localServerTerminal = Terminal.findLocalServerTerminal();
+    if (localServerTerminal) {
+      localServerTerminal.dispose();
+    }
+
+    if (!command) {
+      return;
+    }
+
+    if (
+      !localServerTerminal ||
+      (localServerTerminal && localServerTerminal.state.isInteractedWith === true)
+    ) {
+      localServerTerminal = window.createTerminal({
+        name: Terminal.terminalName,
+        iconPath: new ThemeIcon('server-environment'),
+        message: `Starting local server`
+      });
+    }
+
+    if (localServerTerminal) {
+      localServerTerminal.sendText(command);
+      localServerTerminal.show(false);
+    }
+  }
+
+  /**
+   * Close local server terminal
+   */
+  public static closeLocalServerTerminal() {
+    const localServerTerminal = Terminal.findLocalServerTerminal();
+    if (localServerTerminal) {
+      localServerTerminal.dispose();
+    }
+  }
+
+  /**
+   * Find the server terminal
+   * @returns
+   */
+  public static findLocalServerTerminal() {
+    let terminals = window.terminals;
+    if (terminals) {
+      const localServerTerminal = terminals.find((t) => t.name === Terminal.terminalName);
+      return localServerTerminal;
+    }
+  }
+
   /**
    * Retrieve the automation profile for the current platform
    * @returns