Establishing and utilizing terminal server dynamic virtual channels

The present invention extends to methods, systems, and computer program products for establishing and utilizing terminal server dynamic virtual channels. In some embodiments, a terminal server sends a new channel request to a terminal server. The client receives the new channel request and forwards the new channel request to a listener for a plug-in. The listener creates an instance of the client side plug-in and sends a channel accept to the terminal server. The terminal server receives the channel accept and creates an instance of a server side plug-in. The server and the client agree to use a unique identifier for identifying the established dynamic virtual channel. In other embodiments, data for a dynamic virtual channel is tunneled between computers over a static virtual channel.