diff --git a/extensions/InjectShellIntegration/src/ScriptBuilders.ts b/extensions/InjectShellIntegration/src/ScriptBuilders.ts
index 5377c0bd0..f7ce59425 100644
--- a/extensions/InjectShellIntegration/src/ScriptBuilders.ts
+++ b/extensions/InjectShellIntegration/src/ScriptBuilders.ts
@@ -175,14 +175,22 @@ export class ZshScriptBuilder extends ScriptBuilder {
 
   protected _buildShellReporting(): string {
     return `
-if [[ ! "$PS1" =~ "${this._extratermCookieValue}" ]] ; then
-    export PS1=\`echo -n -e "%{\\033&${this._extratermCookieValue};3\\007%}%?%{\\000%}\${PS1}"\`
-fi
+autoload -Uz add-zsh-hook
+extraterm_install_prompt_integration () {
+    local prefix
+    if [[ ! "$PS1" =~ "${this._extratermCookieValue}" ]] ; then
+        prefix=\`echo -n -e "%{\\0033&${this._extratermCookieValue};3\\0007%}%?%{\\0000%}"\`
+        export PS1="\${prefix}\${PS1}"
+    fi
+}
+extraterm_install_prompt_integration
+add-zsh-hook precmd extraterm_install_prompt_integration
+
 
 preexec () {
-    echo -n -e "\\033&\${${this._extratermCookieName}};2;zsh\\007"
+    echo -n -e "\\0033&\${${this._extratermCookieName}};2;zsh\\0007"
     echo -n $1
-    echo -n -e "\\000"
+    echo -n -e "\\0000"
 }
 `;
   }
diff --git a/src/commands/setup_extraterm_zsh.zsh b/src/commands/setup_extraterm_zsh.zsh
index 6f2f66692..e3bc51022 100644
--- a/src/commands/setup_extraterm_zsh.zsh
+++ b/src/commands/setup_extraterm_zsh.zsh
@@ -6,6 +6,8 @@
 # 
 
 if [ -n "$LC_EXTRATERM_COOKIE" ]; then
+    autoload -Uz add-zsh-hook
+
     echo "Setting up Extraterm support."
 
     # Put our enhanced commands at the start of the PATH.
@@ -13,12 +15,21 @@ if [ -n "$LC_EXTRATERM_COOKIE" ]; then
     export PATH="$PWD/$filedir:$PATH"
 
     # Insert our special code to communicate to Extraterm the status of the last command.
-    export PS1=`echo -n -e "%{\033&${LC_EXTRATERM_COOKIE};3\007%}%?%{\000%}${PS1}"`
-    
+    extraterm_install_prompt_integration () {
+        local prefix
+        
+        if [[ ! "$PS1" =~ "$LC_EXTRATERM_COOKIE" ]] ; then
+            prefix=`echo -n -e "%{\0033&${LC_EXTRATERM_COOKIE};3\0007%}%?%{\0000%}"`
+            export PS1="${prefix}${PS1}"
+        fi
+    }
+    extraterm_install_prompt_integration
+    add-zsh-hook precmd extraterm_install_prompt_integration
+
     preexec () {
-        echo -n -e "\033&${LC_EXTRATERM_COOKIE};2;zsh\007"
+        echo -n -e "\0033&${LC_EXTRATERM_COOKIE};2;zsh\0007"
         echo -n $1
-        echo -n -e "\000"
+        echo -n -e "\0000"
     }
 
     # Look for Python 3 support.