diff -Naur a/src/main.js b/src/main.js
--- a/src/main.js	2022-09-01 00:05:32.000000000 +0200
+++ b/src/main.js	2022-09-04 04:30:24.685459144 +0200
@@ -224,6 +224,10 @@
 	 */
 	app.commandLine.appendSwitch('disable-features', 'CalculateNativeWinOcclusion');
 
+	// Enable visuals for transparent window
+	app.commandLine.appendSwitch('enable-transparent-visuals');
+	app.commandLine.appendSwitch('use-gl', 'desktop');
+
 	// Support JS Flags
 	const jsFlags = getJSFlags(cliArgs);
 	if (jsFlags) {
diff -Naur a/src/vs/editor/browser/widget/diffEditor/style.css b/src/vs/editor/browser/widget/diffEditor/style.css
--- a/src/vs/editor/browser/widget/diffEditor/style.css	2023-10-03 06:06:10.000000000 +0200
+++ b/src/vs/editor/browser/widget/diffEditor/style.css	2023-10-04 21:27:43.122393566 +0200
@@ -161,8 +161,8 @@
 }
 
 /* colors not externalized: using transparancy on background */
-.monaco-diff-editor.vs			.diffOverview { background: rgba(0, 0, 0, 0.03); }
-.monaco-diff-editor.vs-dark		.diffOverview { background: rgba(255, 255, 255, 0.01); }
+.monaco-diff-editor.vs			.diffOverview { background: transparent; }
+.monaco-diff-editor.vs-dark		.diffOverview { background: transparent; }
 
 .monaco-scrollable-element.modified-in-monaco-diff-editor.vs		.scrollbar { background: rgba(0,0,0,0); }
 .monaco-scrollable-element.modified-in-monaco-diff-editor.vs-dark	.scrollbar { background: rgba(0,0,0,0); }
diff -Naur a/src/vs/platform/windows/electron-main/windows.ts b/src/vs/platform/windows/electron-main/windows.ts
--- a/src/vs/platform/windows/electron-main/windows.ts	2023-11-01 02:39:20.000000000 +0100
+++ b/src/vs/platform/windows/electron-main/windows.ts	2023-11-01 22:22:42.749482542 +0100
@@ -120,6 +120,7 @@
 	const windowSettings = configurationService.getValue<IWindowSettings | undefined>('window');
 
 	const options: BrowserWindowConstructorOptions & { experimentalDarkMode: boolean } = {
+		transparent: true,
 		backgroundColor: themeMainService.getBackgroundColor(),
 		minWidth: WindowMinimumSize.WIDTH,
 		minHeight: WindowMinimumSize.HEIGHT,
diff -Naur a/src/vs/workbench/common/theme.ts b/src/vs/workbench/common/theme.ts
--- a/src/vs/workbench/common/theme.ts	2022-09-01 00:05:32.000000000 +0200
+++ b/src/vs/workbench/common/theme.ts	2022-09-03 22:50:19.628326135 +0200
@@ -7,21 +7,11 @@
 import { registerColor, editorBackground, contrastBorder, transparent, editorWidgetBackground, textLinkForeground, lighten, darken, focusBorder, activeContrastBorder, editorWidgetForeground, editorErrorForeground, editorWarningForeground, editorInfoForeground, treeIndentGuidesStroke, errorForeground, listActiveSelectionBackground, listActiveSelectionForeground, editorForeground, toolbarHoverBackground } from 'vs/platform/theme/common/colorRegistry';
 import { IColorTheme } from 'vs/platform/theme/common/themeService';
 import { Color } from 'vs/base/common/color';
-import { ColorScheme } from 'vs/platform/theme/common/theme';
 
 // < --- Workbench (not customizable) --- >
 
 export function WORKBENCH_BACKGROUND(theme: IColorTheme): Color {
-	switch (theme.type) {
-		case ColorScheme.LIGHT:
-			return Color.fromHex('#F3F3F3');
-		case ColorScheme.HIGH_CONTRAST_LIGHT:
-			return Color.fromHex('#FFFFFF');
-		case ColorScheme.HIGH_CONTRAST_DARK:
-			return Color.fromHex('#000000');
-		default:
-			return Color.fromHex('#252526');
-	}
+	return Color.transparent;
 }
 
 // < --- Tabs --- >
@@ -855,6 +845,13 @@
 	hcLight: editorInfoForeground
 }, localize('notificationsInfoIconForeground', "The color used for the icon of info notifications. Notifications slide in from the bottom right of the window."));
 
+export const WINDOW_BACKGROUND = registerColor('window.background', {
+	dark: '#252526',
+	light: '#F3F3F3',
+	hcDark: '#000000',
+	hcLight: '#FFFFFF'
+}, localize('windowBackground', "The color used for the background of the window."));
+
 export const WINDOW_ACTIVE_BORDER = registerColor('window.activeBorder', {
 	dark: null,
 	light: null,
diff -Naur a/src/vs/workbench/contrib/splash/browser/partsSplash.ts b/src/vs/workbench/contrib/splash/browser/partsSplash.ts
--- a/src/vs/workbench/contrib/splash/browser/partsSplash.ts	2023-02-01 05:32:54.000000000 +0100
+++ b/src/vs/workbench/contrib/splash/browser/partsSplash.ts	2023-02-03 08:41:45.193374826 +0100
@@ -65,12 +65,17 @@
 	private _savePartsSplash() {
 		const theme = this._themeService.getColorTheme();
 
+		const windowBackground = theme.getColor(themes.WINDOW_BACKGROUND) || Color.transparent;
+		const background = windowBackground.isOpaque() ? windowBackground.transparent(0.99)
+				 : windowBackground.isTransparent() ? Color.fromHex('#FFF0')
+				 : windowBackground;
+
 		this._partSplashService.saveWindowSplash({
 			zoomLevel: this._configService.getValue<undefined>('window.zoomLevel'),
 			baseTheme: getThemeTypeSelector(theme.type),
 			colorInfo: {
 				foreground: theme.getColor(foreground)?.toString(),
-				background: Color.Format.CSS.formatHex(theme.getColor(editorBackground) || themes.WORKBENCH_BACKGROUND(theme)),
+				background: Color.Format.CSS.formatRGBA(background),
 				editorBackground: theme.getColor(editorBackground)?.toString(),
 				titleBarBackground: theme.getColor(themes.TITLE_BAR_ACTIVE_BACKGROUND)?.toString(),
 				activityBarBackground: theme.getColor(themes.ACTIVITY_BAR_BACKGROUND)?.toString(),
diff -Naur a/src/vs/workbench/contrib/terminal/browser/xterm/xtermTerminal.ts b/src/vs/workbench/contrib/terminal/browser/xterm/xtermTerminal.ts
--- a/src/vs/workbench/contrib/terminal/browser/xterm/xtermTerminal.ts	2023-12-06 02:36:56.000000000 +0100
+++ b/src/vs/workbench/contrib/terminal/browser/xterm/xtermTerminal.ts	2023-12-08 03:27:56.018613920 +0100
@@ -219,6 +219,7 @@
 
 		this.raw = this._register(new xtermCtor({
 			allowProposedApi: true,
+			allowTransparency: true,
 			cols,
 			rows,
 			documentOverride: layoutService.mainContainer.ownerDocument,