diff --git a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.java b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.java
index 6eac222ca93..b130c418dfc 100644
--- a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.java
+++ b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.java
@@ -154,4 +154,9 @@ public static String getString(String key) {
 	public static String RenameTerminalAction_inputdialog_title;
 	public static String RenameTerminalAction_tooltip;
 	public static String RenameTerminalAction_menu;
+
+	public static String MaximizeViewHandler_maximize;
+	public static String MaximizeViewHandler_maximizeTooltip;
+	public static String MaximizeViewHandler_minimize;
+	public static String MaximizeViewHandler_minimizeTooltip;
 }
diff --git a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.properties b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.properties
index d33fef3009e..8bdd6cf43b5 100644
--- a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.properties
+++ b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/Messages.properties
@@ -120,3 +120,8 @@ PreferencePage_command_invalid=Selected shell command is not a file or is not re
 PreferencePage_command_note_label=Note:
 PreferencePage_command_note_text=Leave the shell command empty to fallback to the SHELL environment variable or if not set, to /bin/sh.
 PreferencePage_command_arguments_label=Arguments:
+
+MaximizeViewHandler_maximize=Maximize View
+MaximizeViewHandler_maximizeTooltip=Maximize the Terminal view
+MaximizeViewHandler_minimize=Minimize View
+MaximizeViewHandler_minimizeTooltip=Restore the Terminal view to its normal size
diff --git a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/handler/MaximizeViewHandler.java b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/handler/MaximizeViewHandler.java
index 3a80a14680e..a77165b87bb 100644
--- a/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/handler/MaximizeViewHandler.java
+++ b/terminal/bundles/org.eclipse.terminal.view.ui/src/org/eclipse/terminal/view/ui/internal/handler/MaximizeViewHandler.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2014, 2018 Wind River Systems, Inc. and others. All rights reserved.
+ * Copyright (c) 2014, 2026 Wind River Systems, Inc. and others. All rights reserved.
  * This program and the accompanying materials are made available under the terms
  * of the Eclipse Public License 2.0 which accompanies this distribution, and is
  * available at https://www.eclipse.org/legal/epl-2.0/
@@ -8,16 +8,26 @@
  *
  * Contributors:
  * Wind River Systems - initial API and implementation
+ * IBM Corporation - Update label for window state
  *******************************************************************************/
 package org.eclipse.terminal.view.ui.internal.handler;
 
+import java.util.Map;
+
 import org.eclipse.core.commands.ExecutionEvent;
 import org.eclipse.core.commands.ExecutionException;
+import org.eclipse.terminal.view.ui.internal.Messages;
+import org.eclipse.ui.IWorkbenchPage;
+import org.eclipse.ui.IWorkbenchPartReference;
+import org.eclipse.ui.IWorkbenchWindow;
+import org.eclipse.ui.PlatformUI;
+import org.eclipse.ui.commands.IElementUpdater;
+import org.eclipse.ui.menus.UIElement;
 
 /**
  * Maximize view handler implementation.
  */
-public class MaximizeViewHandler extends AbstractTriggerCommandHandler {
+public class MaximizeViewHandler extends AbstractTriggerCommandHandler implements IElementUpdater {
 
 	@Override
 	public Object execute(ExecutionEvent event) throws ExecutionException {
@@ -25,4 +35,35 @@ public Object execute(ExecutionEvent event) throws ExecutionException {
 		return null;
 	}
 
+	@SuppressWarnings("rawtypes")
+	@Override
+	public void updateElement(UIElement element, Map parameters) {
+		if (isActivePartMaximized()) {
+			element.setText(Messages.MaximizeViewHandler_minimize);
+			element.setTooltip(Messages.MaximizeViewHandler_minimizeTooltip);
+		} else {
+			element.setText(Messages.MaximizeViewHandler_maximize);
+			element.setTooltip(Messages.MaximizeViewHandler_maximizeTooltip);
+		}
+	}
+
+	/**
+	 * Returns {@code true} when the currently active part in the active workbench
+	 * page is in the {@link IWorkbenchPage#STATE_MAXIMIZED} state.
+	 */
+	private static boolean isActivePartMaximized() {
+		IWorkbenchWindow window = PlatformUI.getWorkbench().getActiveWorkbenchWindow();
+		if (window == null) {
+			return false;
+		}
+		IWorkbenchPage page = window.getActivePage();
+		if (page == null) {
+			return false;
+		}
+		IWorkbenchPartReference partRef = page.getActivePartReference();
+		if (partRef == null) {
+			return false;
+		}
+		return page.getPartState(partRef) == IWorkbenchPage.STATE_MAXIMIZED;
+	}
 }