diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index 960812da00060a..5d780decbf2710 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -2101,7 +2101,7 @@ impl Terminal {
         let task = match &mut self.task {
             Some(task) => task,
             None => {
-                if self.child_exited.is_none_or(|e| e.code() == Some(0)) {
+                if error_code.is_some() {
                     cx.emit(Event::CloseTerminal);
                 }
                 return;
@@ -2432,8 +2432,7 @@ mod tests {
         );
     }
 
-    // TODO should be tested on Linux too, but does not work there well
-    #[cfg(target_os = "macos")]
+    #[cfg(not(target_os = "windows"))]
     #[gpui::test(iterations = 10)]
     async fn test_terminal_eof(cx: &mut TestAppContext) {
         cx.executor().allow_parking();
@@ -2466,38 +2465,27 @@ mod tests {
             })
         })
         .detach();
-        cx.background_spawn(async move {
-            assert_eq!(
-                completion_rx.recv().await.unwrap(),
-                Some(ExitStatus::default()),
-                "EOF should result in the tty shell exiting successfully",
-            );
-        })
-        .detach();
 
-        let first_event = Event::Wakeup;
-        let wakeup = event_rx.recv().await.expect("No wakeup event received");
-        assert_eq!(wakeup, first_event, "Expected wakeup, got {wakeup:?}");
+        let _initial_event = event_rx.recv().await.expect("No initial event received");
 
+        // Send Ctrl-C
         terminal.update(cx, |terminal, _| {
             let success = terminal.try_keystroke(&Keystroke::parse("ctrl-c").unwrap(), false);
             assert!(success, "Should have registered ctrl-c sequence");
         });
+        smol::Timer::after(Duration::from_millis(100)).await;
+
+        // Send Ctrl-D
         terminal.update(cx, |terminal, _| {
             let success = terminal.try_keystroke(&Keystroke::parse("ctrl-d").unwrap(), false);
             assert!(success, "Should have registered ctrl-d sequence");
         });
 
-        let mut all_events = vec![first_event];
-        while let Ok(Ok(new_event)) = smol_timeout(Duration::from_secs(1), event_rx.recv()).await {
-            all_events.push(new_event.clone());
-            if new_event == Event::CloseTerminal {
-                break;
-            }
-        }
+        // Wait for terminal exit
+        let result = smol_timeout(Duration::from_millis(100), completion_rx.recv()).await;
         assert!(
-            all_events.contains(&Event::CloseTerminal),
-            "EOF command sequence should have triggered a TTY terminal exit, but got events: {all_events:?}",
+            result.is_ok() && result.unwrap().unwrap().is_some(),
+            "EOF should result in the tty shell exiting",
         );
     }