diff --git a/agent/agent_init.py b/agent/agent_init.py
index 30bb6d83705..96bfe3d873f 100644
--- a/agent/agent_init.py
+++ b/agent/agent_init.py
@@ -187,6 +187,7 @@ def init_agent(
     thinking_callback: callable = None,
     reasoning_callback: callable = None,
     clarify_callback: callable = None,
+    read_terminal_callback: callable = None,
     step_callback: callable = None,
     stream_delta_callback: callable = None,
     interim_assistant_callback: callable = None,
@@ -417,6 +418,7 @@ def init_agent(
     agent.thinking_callback = thinking_callback
     agent.reasoning_callback = reasoning_callback
     agent.clarify_callback = clarify_callback
+    agent.read_terminal_callback = read_terminal_callback
     agent.step_callback = step_callback
     agent.stream_delta_callback = stream_delta_callback
     agent.interim_assistant_callback = interim_assistant_callback
diff --git a/agent/agent_runtime_helpers.py b/agent/agent_runtime_helpers.py
index f9bfb7a4319..daffc025d9b 100644
--- a/agent/agent_runtime_helpers.py
+++ b/agent/agent_runtime_helpers.py
@@ -49,7 +49,7 @@ def _ra():
 
 
 AGENT_RUNTIME_POST_HOOK_TOOL_NAMES = frozenset(
-    {"todo", "session_search", "memory", "clarify", "delegate_task"}
+    {"todo", "session_search", "memory", "clarify", "read_terminal", "delegate_task"}
 )
 
 
@@ -1784,6 +1784,17 @@ def invoke_tool(agent, function_name: str, function_args: dict, effective_task_i
                 ),
                 next_args,
             )
+    elif function_name == "read_terminal":
+        def _execute(next_args: dict) -> Any:
+            from tools.read_terminal_tool import read_terminal_tool as _read_terminal_tool
+            return _finish_agent_tool(
+                _read_terminal_tool(
+                    start_line=next_args.get("start_line"),
+                    count=next_args.get("count"),
+                    callback=getattr(agent, "read_terminal_callback", None),
+                ),
+                next_args,
+            )
     elif function_name == "delegate_task":
         def _execute(next_args: dict) -> Any:
             return _finish_agent_tool(agent._dispatch_delegate_task(next_args), next_args)
diff --git a/agent/prompt_builder.py b/agent/prompt_builder.py
index 26fcfaae32f..cc62c13f9dd 100644
--- a/agent/prompt_builder.py
+++ b/agent/prompt_builder.py
@@ -885,6 +885,22 @@ def build_environment_hints() -> str:
                 f"`uname -a && whoami && pwd`."
             )
 
+    # Hermes desktop GUI — any agent running under the desktop app should know
+    # it. HERMES_DESKTOP marks the backend powering the chat; HERMES_DESKTOP_TERMINAL
+    # marks a hermes launched in the embedded terminal pane. Both set by main.cjs.
+    _truthy = ("1", "true", "yes")
+    _in_desktop = (os.getenv("HERMES_DESKTOP") or "").strip().lower() in _truthy
+    _in_desktop_term = (os.getenv("HERMES_DESKTOP_TERMINAL") or "").strip().lower() in _truthy
+    if _in_desktop or _in_desktop_term:
+        _desktop_hint = "Runtime surface: you're running inside the Hermes desktop GUI app."
+        if _in_desktop_term:
+            _desktop_hint += (
+                " You're in its embedded terminal pane, beside the GUI chat — the user can "
+                "select your output (⌥-drag on macOS, Shift-drag elsewhere) and press "
+                "⌘/Ctrl+L to send it to the chat composer."
+            )
+        hints.append(_desktop_hint)
+
     if is_wsl():
         hints.append(WSL_ENVIRONMENT_HINT)
 
diff --git a/agent/tool_executor.py b/agent/tool_executor.py
index 36cbad4b886..cd24b63f393 100644
--- a/agent/tool_executor.py
+++ b/agent/tool_executor.py
@@ -1065,6 +1065,25 @@ def execute_tool_calls_sequential(agent, assistant_message, messages: list, effe
             tool_duration = time.time() - tool_start_time
             if agent._should_emit_quiet_tool_messages():
                 agent._vprint(f"  {_get_cute_tool_message_impl('clarify', function_args, tool_duration, result=function_result)}")
+        elif function_name == "read_terminal":
+            def _execute(next_args: dict) -> Any:
+                from tools.read_terminal_tool import read_terminal_tool as _read_terminal_tool
+                return _read_terminal_tool(
+                    start_line=next_args.get("start_line"),
+                    count=next_args.get("count"),
+                    callback=getattr(agent, "read_terminal_callback", None),
+                )
+            function_result, function_args = _run_agent_tool_execution_middleware(
+                agent,
+                function_name=function_name,
+                function_args=function_args,
+                effective_task_id=effective_task_id,
+                tool_call_id=getattr(tool_call, "id", "") or "",
+                execute=_execute,
+            )
+            tool_duration = time.time() - tool_start_time
+            if agent._should_emit_quiet_tool_messages():
+                agent._vprint(f"  {_get_cute_tool_message_impl('read_terminal', function_args, tool_duration, result=function_result)}")
         elif function_name == "delegate_task":
             tasks_arg = function_args.get("tasks")
             if tasks_arg and isinstance(tasks_arg, list):
diff --git a/apps/desktop/electron/main.cjs b/apps/desktop/electron/main.cjs
index 3ba6fbab2c8..52389beeed9 100644
--- a/apps/desktop/electron/main.cjs
+++ b/apps/desktop/electron/main.cjs
@@ -64,9 +64,11 @@ const {
 } = require('./hardening.cjs')
 
 let nodePty = null
+let nodePtyDir = null
 
 try {
   nodePty = require('node-pty')
+  nodePtyDir = path.dirname(require.resolve('node-pty/package.json'))
 } catch {
   // Packaged builds set `files:` in package.json, which excludes node_modules
   // from the asar.  Workspace dedup also hoists this native dep to the repo
@@ -79,10 +81,12 @@ try {
     const path = require('node:path')
     const resourcesPath = process.resourcesPath
     if (resourcesPath) {
-      nodePty = require(path.join(resourcesPath, 'native-deps', 'node-pty'))
+      nodePtyDir = path.join(resourcesPath, 'native-deps', 'node-pty')
+      nodePty = require(nodePtyDir)
     }
   } catch {
     nodePty = null
+    nodePtyDir = null
   }
 }
 
@@ -3272,14 +3276,18 @@ function setAndPersistZoomLevel(window, zoomLevel) {
   const next = clampZoomLevel(zoomLevel)
   window.webContents.setZoomLevel(next)
   window.webContents
-    .executeJavaScript(`try { localStorage.setItem(${JSON.stringify(ZOOM_STORAGE_KEY)}, ${JSON.stringify(String(next))}) } catch {}`)
+    .executeJavaScript(
+      `try { localStorage.setItem(${JSON.stringify(ZOOM_STORAGE_KEY)}, ${JSON.stringify(String(next))}) } catch {}`
+    )
     .catch(error => rememberLog(`[zoom] persist failed: ${error?.message || error}`))
 }
 
 function restorePersistedZoomLevel(window) {
   if (!window || window.isDestroyed()) return
   window.webContents
-    .executeJavaScript(`(() => { try { return localStorage.getItem(${JSON.stringify(ZOOM_STORAGE_KEY)}) } catch { return null } })()`)
+    .executeJavaScript(
+      `(() => { try { return localStorage.getItem(${JSON.stringify(ZOOM_STORAGE_KEY)}) } catch { return null } })()`
+    )
     .then(stored => {
       if (stored == null || !window || window.isDestroyed()) return
       const level = clampZoomLevel(Number(stored))
@@ -4138,9 +4146,7 @@ async function requestJsonForProfile(profile, path, method, body) {
   const conn = await ensureBackend(profile)
   const url = `${conn.baseUrl}${path}`
   const opts = { method, body, timeoutMs: DEFAULT_FETCH_TIMEOUT_MS }
-  return conn.authMode === 'oauth'
-    ? fetchJsonViaOauthSession(url, opts)
-    : fetchJson(url, conn.token, opts)
+  return conn.authMode === 'oauth' ? fetchJsonViaOauthSession(url, opts) : fetchJson(url, conn.token, opts)
 }
 
 async function probeRemoteAuthMode(rawUrl) {
@@ -4214,7 +4220,8 @@ async function testDesktopConnectionConfig(input = {}) {
   // The block under test: a per-profile entry or the global remote. Coerce has
   // already normalized the URL and resolved token inheritance for the scope.
   const block = key ? config.profiles?.[key] || null : config.remote
-  const wantRemote = block?.mode === 'remote' || (!key && config.mode === 'remote') || (input.mode === 'remote' && block)
+  const wantRemote =
+    block?.mode === 'remote' || (!key && config.mode === 'remote') || (input.mode === 'remote' && block)
   // ``/api/status`` is public on every gateway (no creds needed), so a
   // reachability test works for local, token, and oauth modes alike — we only
   // need a base URL. For a remote config we normalize the URL from the input;
@@ -4479,7 +4486,9 @@ async function spawnPoolBackend(profile, entry) {
     rememberLog(`Hermes backend for profile "${profile}" exited (${signal || code})`)
     backendPool.delete(profile)
     if (!ready) {
-      rejectStart?.(new Error(`Hermes backend for profile "${profile}" exited before it became ready (${signal || code}).`))
+      rejectStart?.(
+        new Error(`Hermes backend for profile "${profile}" exited before it became ready (${signal || code}).`)
+      )
     }
   })
 
@@ -5249,17 +5258,19 @@ async function mergeRemoteProfileSessions(searchParams, remoteProfiles) {
   let total = (Number(base.total) || 0) - remoteProfiles.reduce((n, p) => n + (profileTotals[p] || 0), 0)
 
   // Swap each remote profile's stale local rows/total for the remote's real ones.
-  await Promise.all(remoteProfiles.map(async name => {
-    const list = await remoteSessionList(name, remoteParams).catch(() => null)
-    if (!list) {
-      delete profileTotals[name] // dead remote → drop its stale local total too
-      return
-    }
-    const rows = rowsOf(list)
-    merged.push(...rows)
-    profileTotals[name] = Number(list.total) || rows.length
-    total += profileTotals[name]
-  }))
+  await Promise.all(
+    remoteProfiles.map(async name => {
+      const list = await remoteSessionList(name, remoteParams).catch(() => null)
+      if (!list) {
+        delete profileTotals[name] // dead remote → drop its stale local total too
+        return
+      }
+      const rows = rowsOf(list)
+      merged.push(...rows)
+      profileTotals[name] = Number(list.total) || rows.length
+      total += profileTotals[name]
+    })
+  )
 
   const recency = s => s?.[order] ?? s?.started_at ?? 0
   merged.sort((a, b) => recency(b) - recency(a))
@@ -5517,22 +5528,121 @@ function findGitRoot(start) {
   return null
 }
 
-function terminalShellCommand() {
-  if (IS_WINDOWS) {
-    return { args: [], command: process.env.COMSPEC || 'cmd.exe' }
+function isExecutableFile(filePath) {
+  if (!filePath || !path.isAbsolute(filePath)) {
+    return false
   }
 
-  const configuredShell = process.env.SHELL || ''
-  const shellPath =
-    (path.isAbsolute(configuredShell) && fs.existsSync(configuredShell) && configuredShell) ||
-    ['/bin/zsh', '/bin/bash', '/bin/sh'].find(candidate => fs.existsSync(candidate)) ||
-    '/bin/sh'
+  try {
+    fs.accessSync(filePath, fs.constants.X_OK)
+    return true
+  } catch {
+    return false
+  }
+}
+
+function posixShellSpec(shellPath) {
   const shellName = path.basename(shellPath)
   const interactiveArgs = shellName.includes('zsh') || shellName.includes('bash') ? ['-il'] : ['-i']
 
   return { args: interactiveArgs, command: shellPath, name: shellName }
 }
 
+let spawnHelperChecked = false
+
+// node-pty execs a `spawn-helper` binary on macOS/Linux to launch the shell in a
+// fresh session. The prebuilt that ships in node-pty's `prebuilds/` (and the
+// staged copy under resources/native-deps) loses its execute bit through npm
+// pack / electron-builder file collection, so every nodePty.spawn() dies with
+// "posix_spawnp failed". Restore +x once, lazily, before the first spawn.
+function ensureSpawnHelperExecutable() {
+  if (spawnHelperChecked || IS_WINDOWS || !nodePtyDir) {
+    return
+  }
+
+  spawnHelperChecked = true
+
+  const arch = process.arch
+  const candidates = [
+    path.join(nodePtyDir, 'build', 'Release', 'spawn-helper'),
+    path.join(nodePtyDir, 'prebuilds', `${process.platform}-${arch}`, 'spawn-helper')
+  ]
+
+  for (const helper of candidates) {
+    try {
+      const mode = fs.statSync(helper).mode
+
+      if ((mode & 0o111) !== 0o111) {
+        fs.chmodSync(helper, mode | 0o755)
+      }
+    } catch {
+      // Not present in this layout (e.g. compiled build vs prebuild); skip.
+    }
+  }
+}
+
+// Windows PowerShell 5.1 ships at a fixed System32 path on every Windows box;
+// prefer it only after PowerShell 7+ (`pwsh`).
+function windowsPowerShellPath() {
+  const systemRoot = process.env.SystemRoot || process.env.windir || 'C:\\Windows'
+  const builtin = path.join(systemRoot, 'System32', 'WindowsPowerShell', 'v1.0', 'powershell.exe')
+
+  return isExecutableFile(builtin) ? builtin : findOnPath('powershell.exe')
+}
+
+// Map a resolved shell path to its spawn spec, picking interactive flags by
+// family: PowerShell drops its logo banner (so the prompt sits flush like the
+// POSIX shells), cmd needs nothing, and everything else (zsh/bash/fish/sh…)
+// gets POSIX interactive-login flags.
+function shellSpecFor(shellPath) {
+  const name = path.basename(shellPath).toLowerCase()
+
+  if (name.startsWith('pwsh') || name.startsWith('powershell')) {
+    return { args: ['-NoLogo'], command: shellPath, name }
+  }
+
+  if (name.startsWith('cmd')) {
+    return { args: [], command: shellPath, name }
+  }
+
+  return posixShellSpec(shellPath)
+}
+
+// Best installed Windows shell: PowerShell 7+ (`pwsh`), then Windows PowerShell
+// 5.1, then comspec/cmd.exe as the universal fallback.
+function windowsShellSpec() {
+  const command =
+    findOnPath('pwsh.exe') || findOnPath('pwsh') || windowsPowerShellPath() || process.env.COMSPEC || 'cmd.exe'
+
+  return shellSpecFor(command)
+}
+
+// Resolve the interactive shell for the embedded terminal: an explicit user
+// override wins, otherwise auto-detect the best one installed for the platform.
+function terminalShellCommand() {
+  // HERMES_DESKTOP_SHELL is the cross-platform escape hatch (a path or a bare
+  // name on PATH); $SHELL is honored on POSIX, where it's the user's canonical
+  // choice, but ignored on Windows, where it's usually a stray MSYS/Git path
+  // node-pty can't spawn natively.
+  const override = (process.env.HERMES_DESKTOP_SHELL || (IS_WINDOWS ? '' : process.env.SHELL) || '').trim()
+
+  if (override) {
+    const resolved = isExecutableFile(override) ? override : findOnPath(override)
+
+    if (resolved) {
+      return shellSpecFor(resolved)
+    }
+  }
+
+  if (IS_WINDOWS) {
+    return windowsShellSpec()
+  }
+
+  const shellPath = ['/bin/zsh', '/bin/bash', '/bin/sh'].find(candidate => isExecutableFile(candidate))
+
+  return posixShellSpec(shellPath || '/bin/sh')
+}
+
 function safeTerminalCwd(cwd) {
   const candidate = path.resolve(String(cwd || app.getPath('home')))
 
@@ -5570,6 +5680,11 @@ function terminalShellEnv() {
   env.TERM_PROGRAM = 'Hermes'
   env.TERM_PROGRAM_VERSION = app.getVersion()
 
+  // Let a hermes/--tui launched in this pane know it's embedded in the desktop
+  // GUI (build_environment_hints surfaces this). Distinct from HERMES_DESKTOP,
+  // which marks the agent *backend* and gates cron/gateway behavior.
+  env.HERMES_DESKTOP_TERMINAL = '1'
+
   return env
 }
 
@@ -5641,6 +5756,8 @@ ipcMain.handle('hermes:terminal:start', async (event, payload = {}) => {
     throw new Error('PTY support is unavailable. Reinstall desktop dependencies and restart Hermes.')
   }
 
+  ensureSpawnHelperExecutable()
+
   const id = crypto.randomUUID()
   const { args, command, name } = terminalShellCommand()
   const cwd = safeTerminalCwd(payload?.cwd)
@@ -5970,7 +6087,6 @@ ipcMain.handle('hermes:vscode-theme:fetch', async (_event, id) => fetchMarketpla
 // Search the Marketplace for color-theme extensions (empty query = top installs).
 ipcMain.handle('hermes:vscode-theme:search', async (_event, query) => searchMarketplaceThemes(String(query || ''), 20))
 
-
 app.whenReady().then(() => {
   if (IS_MAC) {
     Menu.setApplicationMenu(buildApplicationMenu())
diff --git a/apps/desktop/src/app/chat/composer/controls.tsx b/apps/desktop/src/app/chat/composer/controls.tsx
index 7fbe9efa4a2..ed65795d1c4 100644
--- a/apps/desktop/src/app/chat/composer/controls.tsx
+++ b/apps/desktop/src/app/chat/composer/controls.tsx
@@ -4,6 +4,7 @@ import { Tip } from '@/components/ui/tooltip'
 import { useI18n } from '@/i18n'
 import { triggerHaptic } from '@/lib/haptics'
 import { AudioLines, Layers3, Loader2, Square, SteeringWheel } from '@/lib/icons'
+import { formatCombo } from '@/lib/keybinds/combo'
 import { cn } from '@/lib/utils'
 
 import type { ConversationStatus } from './hooks/use-voice-conversation'
@@ -62,6 +63,7 @@ export function ComposerControls({
 }) {
   const { t } = useI18n()
   const c = t.composer
+  const steerLabel = `${c.steer} (${formatCombo('mod+enter')})`
 
   if (conversation.active) {
     return <ConversationPill {...conversation} disabled={disabled} />
@@ -73,9 +75,9 @@ export function ComposerControls({
     <div className="ml-auto flex shrink-0 items-center gap-(--composer-control-gap)">
       <DictationButton disabled={disabled} onToggle={onDictate} state={state.voice} status={voiceStatus} />
       {canSteer && (
-        <Tip label={c.steer}>
+        <Tip label={steerLabel}>
           <Button
-            aria-label={c.steer}
+            aria-label={steerLabel}
             className={GHOST_ICON_BTN}
             disabled={disabled}
             onClick={onSteer}
diff --git a/apps/desktop/src/app/chat/index.tsx b/apps/desktop/src/app/chat/index.tsx
index 2bb371fae43..77d92248e3a 100644
--- a/apps/desktop/src/app/chat/index.tsx
+++ b/apps/desktop/src/app/chat/index.tsx
@@ -126,7 +126,10 @@ function ChatHeader({
     <header className={cn(titlebarHeaderBaseClass, isRoutedSessionView && titlebarHeaderShadowClass)}>
       <div
         className="min-w-0 flex-1"
-        style={{ maxWidth: 'calc(100vw - var(--titlebar-content-inset,0px) - var(--titlebar-tools-right) - var(--titlebar-tools-width) - 1.5rem)' }}
+        style={{
+          maxWidth:
+            'calc(100vw - var(--titlebar-content-inset,0px) - var(--titlebar-tools-right) - var(--titlebar-tools-width) - 1.5rem)'
+        }}
       >
         <SessionActionsMenu
           align="start"
diff --git a/apps/desktop/src/app/command-palette/index.tsx b/apps/desktop/src/app/command-palette/index.tsx
index 232024cb068..bf693206d25 100644
--- a/apps/desktop/src/app/command-palette/index.tsx
+++ b/apps/desktop/src/app/command-palette/index.tsx
@@ -4,7 +4,9 @@ import { Dialog as DialogPrimitive } from 'radix-ui'
 import { useCallback, useEffect, useMemo, useState } from 'react'
 import { useNavigate } from 'react-router-dom'
 
+import { setTerminalTakeover } from '@/app/right-sidebar/store'
 import { Command, CommandEmpty, CommandGroup, CommandInput, CommandItem, CommandList } from '@/components/ui/command'
+import { KbdGroup } from '@/components/ui/kbd'
 import { getHermesConfigRecord, listSessions } from '@/hermes'
 import { useI18n } from '@/i18n'
 import { sessionTitle } from '@/lib/chat-runtime'
@@ -12,7 +14,6 @@ import {
   Activity,
   Archive,
   BarChart3,
-  Check,
   ChevronLeft,
   ChevronRight,
   Clock,
@@ -31,12 +32,15 @@ import {
   Settings,
   Settings2,
   Sun,
+  Terminal,
   Users,
   Wrench,
   Zap
 } from '@/lib/icons'
+import { comboTokens } from '@/lib/keybinds/combo'
 import { cn } from '@/lib/utils'
 import { $commandPaletteOpen, closeCommandPalette, setCommandPaletteOpen } from '@/store/command-palette'
+import { $bindings } from '@/store/keybinds'
 import { luminance } from '@/themes/color'
 import { type ThemeMode, useTheme } from '@/themes/context'
 import { isUserTheme, resolveTheme } from '@/themes/user-themes'
@@ -60,7 +64,8 @@ import { prettyName } from '../settings/helpers'
 import { MarketplaceThemePage } from './marketplace-theme-page'
 
 interface PaletteItem {
-  active?: boolean
+  /** Keybind action id — its live combo renders as a hotkey hint. */
+  action?: string
   icon: IconComponent
   id: string
   /** Keep the palette open after running (live-preview pickers like theme/mode). */
@@ -97,6 +102,22 @@ interface SessionEntry {
   title: string
 }
 
+// cmdk defaults to fuzzy subsequence scoring, so "color" matches anything with
+// c…o…l…o…r scattered across it. Use case-insensitive multi-term substring
+// matching instead: every typed word must literally appear in the item's
+// value/keywords, which keeps results tight and predictable.
+const paletteFilter = (value: string, search: string, keywords?: string[]): number => {
+  const needle = search.trim().toLowerCase()
+
+  if (!needle) {
+    return 1
+  }
+
+  const haystack = `${value} ${keywords?.join(' ') ?? ''}`.toLowerCase()
+
+  return needle.split(/\s+/).every(term => haystack.includes(term)) ? 1 : 0
+}
+
 type SessionRow = Awaited<ReturnType<typeof listSessions>>['sessions'][number]
 
 const toSessionEntry = (session: SessionRow): SessionEntry => ({
@@ -180,8 +201,9 @@ function themeSupportsMode(name: string, target: 'light' | 'dark'): boolean {
 export function CommandPalette() {
   const { t } = useI18n()
   const open = useStore($commandPaletteOpen)
+  const bindings = useStore($bindings)
   const navigate = useNavigate()
-  const { availableThemes, mode, resolvedMode, setMode, setTheme, themeName } = useTheme()
+  const { availableThemes, setMode, setTheme } = useTheme()
   const [search, setSearch] = useState('')
   const [page, setPage] = useState<string | null>(null)
 
@@ -254,20 +276,61 @@ export function CommandPalette() {
       {
         heading: cc.goTo,
         items: [
-          { icon: Plus, id: 'nav-new', keywords: ['chat', 'create'], label: cc.nav.newChat.title, run: go(NEW_CHAT_ROUTE) },
-          { icon: Settings, id: 'nav-settings', label: cc.nav.settings.title, run: go(SETTINGS_ROUTE) },
           {
+            action: 'session.new',
+            icon: Plus,
+            id: 'nav-new',
+            keywords: ['chat', 'create'],
+            label: cc.nav.newChat.title,
+            run: go(NEW_CHAT_ROUTE)
+          },
+          {
+            action: 'view.showTerminal',
+            icon: Terminal,
+            id: 'nav-terminal',
+            keywords: ['terminal', 'shell', 'console'],
+            label: t.keybinds.actions['view.showTerminal'],
+            run: () => setTerminalTakeover(true)
+          },
+          {
+            action: 'nav.settings',
+            icon: Settings,
+            id: 'nav-settings',
+            label: cc.nav.settings.title,
+            run: go(SETTINGS_ROUTE)
+          },
+          {
+            action: 'nav.skills',
             icon: Wrench,
             id: 'nav-skills',
             keywords: ['tools', 'toolsets'],
             label: cc.nav.skills.title,
             run: go(SKILLS_ROUTE)
           },
-          { icon: MessageCircle, id: 'nav-messaging', label: cc.nav.messaging.title, run: go(MESSAGING_ROUTE) },
-          { icon: Package, id: 'nav-artifacts', label: cc.nav.artifacts.title, run: go(ARTIFACTS_ROUTE) },
-          { icon: Clock, id: 'nav-cron', keywords: ['schedule', 'jobs'], label: t.shell.statusbar.cron, run: go(CRON_ROUTE) },
-          { icon: Users, id: 'nav-profiles', label: t.profiles.title, run: go(PROFILES_ROUTE) },
-          { icon: Cpu, id: 'nav-agents', label: t.agents.title, run: go(AGENTS_ROUTE) }
+          {
+            action: 'nav.messaging',
+            icon: MessageCircle,
+            id: 'nav-messaging',
+            label: cc.nav.messaging.title,
+            run: go(MESSAGING_ROUTE)
+          },
+          {
+            action: 'nav.artifacts',
+            icon: Package,
+            id: 'nav-artifacts',
+            label: cc.nav.artifacts.title,
+            run: go(ARTIFACTS_ROUTE)
+          },
+          {
+            action: 'nav.cron',
+            icon: Clock,
+            id: 'nav-cron',
+            keywords: ['schedule', 'jobs'],
+            label: t.shell.statusbar.cron,
+            run: go(CRON_ROUTE)
+          },
+          { action: 'nav.profiles', icon: Users, id: 'nav-profiles', label: t.profiles.title, run: go(PROFILES_ROUTE) },
+          { action: 'nav.agents', icon: Cpu, id: 'nav-agents', label: t.agents.title, run: go(AGENTS_ROUTE) }
         ]
       },
       {
@@ -414,9 +477,7 @@ export function CommandPalette() {
         title: t.settings.appearance.themeTitle,
         placeholder: t.settings.appearance.themeDesc,
         groups: [
-          // Pinned at the top: drills into the Marketplace browser. Activating an
-          // import only sets the skin (never the mode), so the current light/dark
-          // preference is preserved.
+          // Pinned at the top: drills into the Marketplace browser.
           {
             items: [
               {
@@ -428,10 +489,9 @@ export function CommandPalette() {
               }
             ]
           },
-          // Built-ins and imported families both list under the mode(s) they
-          // support; picking one sets skin + mode at once. Keep the palette open
-          // to preview. A multi-variant import (GitHub, Solarized) appears in
-          // both groups and switches variants with the mode.
+          // Built-ins and imported families list under the mode(s) they support;
+          // picking sets skin + mode at once. A multi-variant import (GitHub,
+          // Solarized) appears in both groups and switches variants with the mode.
           ...(['light', 'dark'] as const).map(groupMode => ({
             heading: groupMode === 'light' ? t.settings.modeOptions.light.label : t.settings.modeOptions.dark.label,
             items: availableThemes
@@ -458,7 +518,6 @@ export function CommandPalette() {
           {
             heading: t.settings.appearance.colorMode,
             items: THEME_MODES.map(entry => ({
-              active: mode === entry.mode,
               icon: entry.icon,
               id: `mode-${entry.mode}`,
               keepOpen: true,
@@ -477,7 +536,7 @@ export function CommandPalette() {
         groups: []
       }
     }),
-    [availableThemes, mode, resolvedMode, setMode, setTheme, t, themeName]
+    [availableThemes, setMode, setTheme, t]
   )
 
   const activePage = page ? subPages[page] : null
@@ -508,7 +567,7 @@ export function CommandPalette() {
           className="fixed left-1/2 top-[14vh] z-[210] w-[min(40rem,calc(100vw-2rem))] -translate-x-1/2 overflow-hidden rounded-xl border border-(--ui-stroke-secondary) bg-(--ui-chat-bubble-background) shadow-lg duration-150 data-[state=closed]:animate-out data-[state=closed]:fade-out-0 data-[state=closed]:zoom-out-95 data-[state=open]:animate-in data-[state=open]:fade-in-0 data-[state=open]:slide-in-from-top-2 data-[state=open]:zoom-in-95"
         >
           <DialogPrimitive.Title className="sr-only">{t.commandCenter.paletteTitle}</DialogPrimitive.Title>
-          <Command className="bg-transparent" loop>
+          <Command className="bg-transparent" filter={paletteFilter} loop>
             {activePage && (
               <button
                 className="flex w-full items-center gap-1.5 border-b border-border px-3 py-1.5 text-left text-xs text-muted-foreground transition-colors hover:text-foreground"
@@ -553,6 +612,8 @@ export function CommandPalette() {
                 >
                   {group.items.map(item => {
                     const Icon = item.icon
+                    const combo = item.action ? bindings[item.action]?.[0] : undefined
+                    const keys = combo ? comboTokens(combo) : null
 
                     return (
                       <CommandItem
@@ -564,10 +625,11 @@ export function CommandPalette() {
                       >
                         <Icon className="size-4 shrink-0 text-muted-foreground" />
                         <span className="truncate">{item.label}</span>
-                        {item.to ? (
-                          <ChevronRight className="ml-auto size-4 shrink-0 text-muted-foreground/70" />
-                        ) : (
-                          <Check className={cn('ml-auto size-4 text-foreground', !item.active && 'invisible')} />
+                        {keys && <KbdGroup className="ml-auto" keys={keys} />}
+                        {item.to && (
+                          <ChevronRight
+                            className={cn('size-4 shrink-0 text-muted-foreground/70', !keys && 'ml-auto')}
+                          />
                         )}
                       </CommandItem>
                     )
diff --git a/apps/desktop/src/app/desktop-controller.tsx b/apps/desktop/src/app/desktop-controller.tsx
index b655042e49d..8652a6b833b 100644
--- a/apps/desktop/src/app/desktop-controller.tsx
+++ b/apps/desktop/src/app/desktop-controller.tsx
@@ -147,7 +147,9 @@ const MESSAGING_EXCLUDED_SOURCES = ['cron', ...LOCAL_SESSION_SOURCE_IDS]
 // Cheap signature compare so the poll only swaps the atom (and re-renders the
 // sidebar) when the visible cron rows actually changed.
 function sameCronSignature(a: SessionInfo[], b: SessionInfo[]): boolean {
-  if (a.length !== b.length) {return false}
+  if (a.length !== b.length) {
+    return false
+  }
 
   return a.every((session, i) => session.id === b[i]?.id && session.title === b[i]?.title)
 }
@@ -223,7 +225,7 @@ export function DesktopController() {
     toggleCommandCenter
   } = useOverlayRouting()
 
-  const terminalTakeoverActive = chatOpen && terminalTakeover
+  const terminalSidebarOpen = chatOpen && terminalTakeover
 
   const titlebarToolGroups = useGroupRegistry<TitlebarTool>()
   const statusbarItemGroups = useGroupRegistry<StatusbarItem>()
@@ -420,7 +422,10 @@ export function DesktopController() {
 
     const keep = sessionsToKeep(key)
 
-    setSessions(prev => [...prev.filter(s => !inKey(s)), ...mergeSessionPage(prev.filter(inKey), result.sessions, keep)])
+    setSessions(prev => [
+      ...prev.filter(s => !inKey(s)),
+      ...mergeSessionPage(prev.filter(inKey), result.sessions, keep)
+    ])
 
     const total = result.profile_totals?.[key] ?? result.total ?? result.sessions.length
     setSessionProfileTotals(prev => ({ ...prev, [key]: Math.max(total, result.sessions.length) }))
@@ -681,19 +686,19 @@ export function DesktopController() {
     submitText,
     transcribeVoiceAudio
   } = usePromptActions({
-      activeSessionId,
-      activeSessionIdRef,
-      branchCurrentSession: branchInNewChat,
-      busyRef,
-      createBackendSessionForSend,
-      handleSkinCommand,
-      refreshSessions,
-      requestGateway,
-      selectedStoredSessionIdRef,
-      startFreshSessionDraft,
-      sttEnabled,
-      updateSessionState
-    })
+    activeSessionId,
+    activeSessionIdRef,
+    branchCurrentSession: branchInNewChat,
+    busyRef,
+    createBackendSessionForSend,
+    handleSkinCommand,
+    refreshSessions,
+    requestGateway,
+    selectedStoredSessionIdRef,
+    startFreshSessionDraft,
+    sttEnabled,
+    updateSessionState
+  })
 
   useGatewayBoot({
     handleGatewayEvent: handleDesktopGatewayEvent,
@@ -719,10 +724,14 @@ export function DesktopController() {
   // in the background (advancing next-run/state and creating runs), so poll the
   // job list on an interval (and on tab re-focus) while connected.
   useEffect(() => {
-    if (gatewayState !== 'open') {return}
+    if (gatewayState !== 'open') {
+      return
+    }
 
     const tick = () => {
-      if (document.visibilityState === 'visible') {void refreshCronJobs()}
+      if (document.visibilityState === 'visible') {
+        void refreshCronJobs()
+      }
     }
 
     const intervalId = window.setInterval(tick, CRON_POLL_INTERVAL_MS)
@@ -752,6 +761,7 @@ export function DesktopController() {
 
   const { leftStatusbarItems, statusbarItems } = useStatusbarItems({
     agentsOpen,
+    chatOpen,
     commandCenterOpen,
     extraLeftItems: statusbarItemGroups.flat.left,
     extraRightItems: statusbarItemGroups.flat.right,
@@ -790,12 +800,16 @@ export function DesktopController() {
     />
   )
 
+  // One PTY-backed terminal mounted forever; <TerminalSlot /> placeholders decide
+  // where it shows. Lives in main's stacking context (not the root overlay layer)
+  // so pane resize handles still paint above it. Toggling never rebuilds the shell.
+  const mainOverlays = (
+    <PersistentTerminal cwd={currentCwd} onAddSelectionToChat={composer.addTerminalSelectionAttachment} />
+  )
+
   const overlays = (
     <>
       {!isSecondaryWindow() && <DesktopInstallOverlay />}
-      {/* One PTY-backed terminal mounted forever; <TerminalSlot /> placeholders
-          decide where it shows. Toggling fullscreen never rebuilds the shell. */}
-      <PersistentTerminal cwd={currentCwd} onAddSelectionToChat={composer.addTerminalSelectionAttachment} />
       {!isSecondaryWindow() && (
         <DesktopOnboardingOverlay
           enabled={gatewayState === 'open'}
@@ -901,12 +915,6 @@ export function DesktopController() {
     />
   )
 
-  const takeoverTerminalView = (
-    <div className="relative flex h-full min-h-0 min-w-0 flex-col overflow-hidden bg-(--ui-chat-surface-background) pt-(--titlebar-height)">
-      <TerminalSlot />
-    </div>
-  )
-
   // Flipped layout mirrors the default: sessions sidebar → right, file
   // browser + preview rail → left. Same panes, swapped sides.
   const sidebarSide = panesFlipped ? 'right' : 'left'
@@ -951,18 +959,39 @@ export function DesktopController() {
     </Pane>
   )
 
+  const terminalPane = (
+    <Pane
+      defaultOpen
+      disabled={!terminalSidebarOpen}
+      divider
+      id="terminal-sidebar"
+      key="terminal-sidebar"
+      maxWidth="80vw"
+      minWidth="22vw"
+      resizable
+      side={railSide}
+      width="42vw"
+    >
+      <div className="relative flex h-full min-h-0 min-w-0 flex-col overflow-hidden bg-(--ui-editor-surface-background) pt-(--titlebar-height)">
+        <TerminalSlot />
+      </div>
+    </Pane>
+  )
+
   return (
     <AppShell
       leftStatusbarItems={leftStatusbarItems}
       leftTitlebarTools={titlebarToolGroups.flat.left}
+      mainOverlays={mainOverlays}
       onOpenSettings={openSettings}
       overlays={overlays}
+      previewPaneOpen={chatOpen && Boolean(previewTarget || filePreviewTarget)}
       statusbarItems={statusbarItems}
+      terminalPaneOpen={terminalSidebarOpen}
       titlebarTools={titlebarToolGroups.flat.right}
     >
       {!isSecondaryWindow() && (
         <Pane
-          disabled={terminalTakeoverActive}
           forceCollapsed={narrowViewport}
           hoverReveal
           id="chat-sidebar"
@@ -978,8 +1007,8 @@ export function DesktopController() {
       )}
       <PaneMain>
         <Routes>
-          <Route element={terminalTakeoverActive ? takeoverTerminalView : chatView} index />
-          <Route element={terminalTakeoverActive ? takeoverTerminalView : chatView} path=":sessionId" />
+          <Route element={chatView} index />
+          <Route element={chatView} path=":sessionId" />
           <Route
             element={
               <Suspense fallback={null}>
@@ -1016,11 +1045,13 @@ export function DesktopController() {
       </PaneMain>
       {/*
         Order within a side maps to column order. Default (rail on the right):
-        main | preview | file-browser. Flipped (rail on the left): mirror it to
-        file-browser | preview | main so preview stays adjacent to the chat.
+        main | terminal | preview | file-browser. Flipped (rail on the left):
+        mirror to file-browser | preview | terminal | main so terminal stays
+        adjacent to the chat.
       */}
-      {panesFlipped ? fileBrowserPane : previewPane}
-      {panesFlipped ? previewPane : fileBrowserPane}
+      {panesFlipped ? fileBrowserPane : terminalPane}
+      {previewPane}
+      {panesFlipped ? terminalPane : fileBrowserPane}
     </AppShell>
   )
 }
diff --git a/apps/desktop/src/app/hooks/use-keybinds.ts b/apps/desktop/src/app/hooks/use-keybinds.ts
index 0c9e8782aa5..1f02dccfec3 100644
--- a/apps/desktop/src/app/hooks/use-keybinds.ts
+++ b/apps/desktop/src/app/hooks/use-keybinds.ts
@@ -1,7 +1,7 @@
 import { useEffect, useRef } from 'react'
 import { useNavigate } from 'react-router-dom'
 
-import { setRightSidebarTab } from '@/app/right-sidebar/store'
+import { $terminalTakeover, setTerminalTakeover } from '@/app/right-sidebar/store'
 import { PANE_TOGGLE_REVEAL_EVENT } from '@/components/pane-shell'
 import { matchesQuery } from '@/hooks/use-media-query'
 import { PROFILE_SLOT_COUNT, SESSION_SLOT_COUNT } from '@/lib/keybinds/actions'
@@ -103,9 +103,9 @@ export function useKeybinds(deps: KeybindRuntimeDeps): void {
     goToSession(openOrAdvanceSwitcher(direction))
   }
 
-  const showRightSidebarTab = (tab: 'files' | 'terminal') => {
+  const showFiles = () => {
     setFileBrowserOpen(true)
-    setRightSidebarTab(tab)
+    setTerminalTakeover(false)
   }
 
   handlersRef.current = {
@@ -152,8 +152,8 @@ export function useKeybinds(deps: KeybindRuntimeDeps): void {
         toggleFileBrowserOpen()
       }
     },
-    'view.showFiles': () => showRightSidebarTab('files'),
-    'view.showTerminal': () => showRightSidebarTab('terminal'),
+    'view.showFiles': showFiles,
+    'view.showTerminal': () => setTerminalTakeover(!$terminalTakeover.get()),
     'view.flipPanes': togglePanesFlipped,
 
     'appearance.toggleMode': () => setMode(resolvedMode === 'dark' ? 'light' : 'dark'),
diff --git a/apps/desktop/src/app/right-sidebar/index.tsx b/apps/desktop/src/app/right-sidebar/index.tsx
index d5707873c3c..0b8cc211793 100644
--- a/apps/desktop/src/app/right-sidebar/index.tsx
+++ b/apps/desktop/src/app/right-sidebar/index.tsx
@@ -4,22 +4,20 @@ import type { ReactNode } from 'react'
 import { ErrorBoundary } from '@/components/error-boundary'
 import { Button } from '@/components/ui/button'
 import { Codicon } from '@/components/ui/codicon'
-import { useI18n } from '@/i18n'
 import { Loader } from '@/components/ui/loader'
 import { Tip } from '@/components/ui/tooltip'
+import { useI18n } from '@/i18n'
 import { normalizeOrLocalPreviewTarget } from '@/lib/local-preview'
 import { cn } from '@/lib/utils'
 import { $panesFlipped } from '@/store/layout'
 import { notifyError } from '@/store/notifications'
 import { setCurrentSessionPreviewTarget } from '@/store/preview'
-import { $currentBranch, $currentCwd } from '@/store/session'
+import { $currentCwd } from '@/store/session'
 
 import { SidebarPanelLabel } from '../shell/sidebar-label'
 
 import { ProjectTree } from './files/tree'
 import { useProjectTree } from './files/use-project-tree'
-import { $rightSidebarTab, $terminalTakeover, type RightSidebarTabId, setRightSidebarTab } from './store'
-import { TerminalSlot } from './terminal/persistent'
 
 interface RightSidebarPaneProps {
   onActivateFile: (path: string) => void
@@ -27,24 +25,10 @@ interface RightSidebarPaneProps {
   onChangeCwd: (path: string) => Promise<void> | void
 }
 
-interface RightSidebarTab {
-  icon: string
-  id: RightSidebarTabId
-  labelKey: 'files' | 'terminal'
-}
-
-const RIGHT_SIDEBAR_TABS: readonly RightSidebarTab[] = [
-  { id: 'files', labelKey: 'files', icon: 'list-tree' },
-  { id: 'terminal', labelKey: 'terminal', icon: 'terminal' }
-]
-
 export function RightSidebarPane({ onActivateFile, onActivateFolder, onChangeCwd }: RightSidebarPaneProps) {
   const { t } = useI18n()
   const r = t.rightSidebar
-  const activeTab = useStore($rightSidebarTab)
-  const terminalTakeover = useStore($terminalTakeover)
   const panesFlipped = useStore($panesFlipped)
-  const currentBranch = useStore($currentBranch).trim()
   const currentCwd = useStore($currentCwd).trim()
   const hasCwd = currentCwd.length > 0
 
@@ -68,7 +52,6 @@ export function RightSidebarPane({ onActivateFile, onActivateFolder, onChangeCwd
   } = useProjectTree(currentCwd)
 
   const canCollapse = Object.values(openState).some(Boolean)
-  const effectiveTab: RightSidebarTabId = terminalTakeover ? 'files' : activeTab
 
   const chooseFolder = async () => {
     const selected = await window.hermesDesktop?.selectPaths({
@@ -97,8 +80,6 @@ export function RightSidebarPane({ onActivateFile, onActivateFolder, onChangeCwd
     }
   }
 
-  const tabs = terminalTakeover ? RIGHT_SIDEBAR_TABS.filter(tab => tab.id !== 'terminal') : RIGHT_SIDEBAR_TABS
-
   return (
     <aside
       aria-label={r.aria}
@@ -109,85 +90,29 @@ export function RightSidebarPane({ onActivateFile, onActivateFolder, onChangeCwd
           : 'border-l shadow-[inset_0.0625rem_0_0_color-mix(in_srgb,white_18%,transparent)]'
       )}
     >
-      <RightSidebarChrome activeTab={effectiveTab} branch={currentBranch} tabs={tabs} />
-
-      {effectiveTab === 'terminal' ? (
-        <TerminalSlot />
-      ) : (
-        <FilesystemTab
-          canCollapse={canCollapse}
-          collapseNonce={collapseNonce}
-          cwd={currentCwd}
-          cwdName={cwdName}
-          data={data}
-          error={rootError}
-          hasCwd={hasCwd}
-          loading={rootLoading}
-          onActivateFile={onActivateFile}
-          onActivateFolder={onActivateFolder}
-          onChangeFolder={chooseFolder}
-          onCollapseAll={collapseAll}
-          onLoadChildren={loadChildren}
-          onNodeOpenChange={setNodeOpen}
-          onPreviewFile={previewFile}
-          onRefresh={() => void refreshRoot()}
-          openState={openState}
-        />
-      )}
+      <FilesystemTab
+        canCollapse={canCollapse}
+        collapseNonce={collapseNonce}
+        cwd={currentCwd}
+        cwdName={cwdName}
+        data={data}
+        error={rootError}
+        hasCwd={hasCwd}
+        loading={rootLoading}
+        onActivateFile={onActivateFile}
+        onActivateFolder={onActivateFolder}
+        onChangeFolder={chooseFolder}
+        onCollapseAll={collapseAll}
+        onLoadChildren={loadChildren}
+        onNodeOpenChange={setNodeOpen}
+        onPreviewFile={previewFile}
+        onRefresh={() => void refreshRoot()}
+        openState={openState}
+      />
     </aside>
   )
 }
 
-function RightSidebarChrome({
-  activeTab,
-  branch,
-  tabs
-}: {
-  activeTab: RightSidebarTabId
-  branch: string
-  tabs: readonly RightSidebarTab[]
-}) {
-  const { t } = useI18n()
-  const r = t.rightSidebar
-
-  return (
-    <header className="shrink-0 bg-transparent text-[0.75rem]">
-      <div className="flex items-center gap-2 px-2.5 py-1">
-        <nav aria-label={r.panelsAria} className="flex min-w-0 items-center gap-1">
-          {tabs.map(tab => {
-            const label = r[tab.labelKey]
-
-            return (
-              <Tip key={tab.id} label={label}>
-                <Button
-                  aria-label={label}
-                  aria-pressed={tab.id === activeTab}
-                  className={cn(
-                    'text-(--ui-text-tertiary) hover:bg-(--ui-control-hover-background) hover:text-foreground',
-                    tab.id === activeTab && 'bg-(--ui-control-active-background) text-foreground'
-                  )}
-                  onClick={() => setRightSidebarTab(tab.id)}
-                  size="icon-xs"
-                  variant="ghost"
-                >
-                  <Codicon name={tab.icon} size="0.875rem" />
-                </Button>
-              </Tip>
-            )
-          })}
-        </nav>
-
-        {branch && (
-          <span className="ml-auto flex min-w-0 items-center gap-1 text-[0.6875rem] text-(--ui-text-tertiary)">
-            <Codicon className="shrink-0" name="git-branch" size="0.75rem" />
-            <span className="truncate">{branch}</span>
-          </span>
-        )}
-      </div>
-    </header>
-  )
-}
-
 interface FilesystemTabProps extends FileTreeBodyProps {
   canCollapse: boolean
   cwdName: string
diff --git a/apps/desktop/src/app/right-sidebar/store.ts b/apps/desktop/src/app/right-sidebar/store.ts
index a560bfddafe..8c07f082450 100644
--- a/apps/desktop/src/app/right-sidebar/store.ts
+++ b/apps/desktop/src/app/right-sidebar/store.ts
@@ -2,14 +2,10 @@ import { atom } from 'nanostores'
 
 import { persistBoolean, storedBoolean } from '@/lib/storage'
 
-export type RightSidebarTabId = 'files' | 'git' | 'terminal' | 'web'
-
 const TAKEOVER_KEY = 'hermes.desktop.terminalTakeover'
 
-export const $rightSidebarTab = atom<RightSidebarTabId>('files')
 export const $terminalTakeover = atom(storedBoolean(TAKEOVER_KEY, false))
 
 $terminalTakeover.subscribe(active => persistBoolean(TAKEOVER_KEY, active))
 
-export const setRightSidebarTab = (tab: RightSidebarTabId) => $rightSidebarTab.set(tab)
 export const setTerminalTakeover = (active: boolean) => $terminalTakeover.set(active)
diff --git a/apps/desktop/src/app/right-sidebar/terminal/buffer.ts b/apps/desktop/src/app/right-sidebar/terminal/buffer.ts
new file mode 100644
index 00000000000..df90d90875e
--- /dev/null
+++ b/apps/desktop/src/app/right-sidebar/terminal/buffer.ts
@@ -0,0 +1,65 @@
+import type { Terminal } from '@xterm/xterm'
+
+// Serialized view of the in-app terminal, handed to the agent's `read_terminal`
+// tool. Line indices are absolute into xterm's buffer (0 = oldest scrollback
+// line), so the agent can page with start_line/count against `total_lines`.
+export interface TerminalReadResult {
+  total_lines: number
+  start: number
+  end: number
+  viewport_rows: number
+  cursor_row: number
+  text: string
+}
+
+export interface TerminalReadOptions {
+  start?: number
+  count?: number
+}
+
+type Reader = (opts: TerminalReadOptions) => TerminalReadResult
+
+// The persistent terminal is a singleton (one xterm mounted forever), so a
+// module-level slot is enough — set while the session is live, cleared on
+// dispose. The gateway `terminal.read.request` handler reads through this.
+let activeReader: Reader | null = null
+
+export function setActiveTerminalReader(reader: Reader | null): void {
+  activeReader = reader
+}
+
+export function readActiveTerminal(opts: TerminalReadOptions = {}): TerminalReadResult | null {
+  return activeReader ? activeReader(opts) : null
+}
+
+export function makeTerminalReader(term: Terminal): Reader {
+  return ({ start, count }) => {
+    const buf = term.buffer.active
+    const total = buf.length
+    const rows = term.rows
+    // Default window = the visible screen; baseY is the viewport's top row.
+    const from = Math.max(0, Math.min(start ?? buf.baseY, total))
+    const to = Math.max(from, Math.min(from + Math.max(1, count ?? rows), total))
+
+    const lines: string[] = []
+
+    // translateToString(true) right-trims and resolves wide chars, dropping SGR
+    // colors — exactly what the agent wants.
+    for (let i = from; i < to; i += 1) {
+      lines.push(buf.getLine(i)?.translateToString(true) ?? '')
+    }
+
+    while (lines.length && !lines[lines.length - 1].trim()) {
+      lines.pop()
+    }
+
+    return {
+      total_lines: total,
+      start: from,
+      end: to,
+      viewport_rows: rows,
+      cursor_row: buf.baseY + buf.cursorY,
+      text: lines.join('\n')
+    }
+  }
+}
diff --git a/apps/desktop/src/app/right-sidebar/terminal/index.tsx b/apps/desktop/src/app/right-sidebar/terminal/index.tsx
index f11a705300a..c3842366254 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/index.tsx
+++ b/apps/desktop/src/app/right-sidebar/terminal/index.tsx
@@ -1,7 +1,5 @@
 import '@xterm/xterm/css/xterm.css'
 
-import { useStore } from '@nanostores/react'
-
 import { Button } from '@/components/ui/button'
 import { Codicon } from '@/components/ui/codicon'
 import { Loader } from '@/components/ui/loader'
@@ -9,7 +7,7 @@ import { Tip } from '@/components/ui/tooltip'
 import { useI18n } from '@/i18n'
 
 import { SidebarPanelLabel } from '../../shell/sidebar-label'
-import { $terminalTakeover, setRightSidebarTab, setTerminalTakeover } from '../store'
+import { setTerminalTakeover } from '../store'
 
 import { addSelectionShortcutLabel } from './selection'
 import { useTerminalSession } from './use-terminal-session'
@@ -21,41 +19,32 @@ interface TerminalTabProps {
 
 export function TerminalTab({ cwd, onAddSelectionToChat }: TerminalTabProps) {
   const { t } = useI18n()
+
   const { addSelectionToChat, hostRef, selection, selectionStyle, shellName, status } = useTerminalSession({
     cwd,
     onAddSelectionToChat
   })
 
-  const takeover = useStore($terminalTakeover)
-  const label = takeover ? t.rightSidebar.terminalSplit : t.rightSidebar.terminalFocus
-
-  const toggleTakeover = () => {
-    // Pre-select the Terminal tab so the slot is ready to host us on return.
-    if (takeover) {
-      setRightSidebarTab('terminal')
-    }
-
-    setTerminalTakeover(!takeover)
-  }
+  const label = t.rightSidebar.terminalHide
 
   return (
     <div className="relative flex min-h-0 min-w-0 flex-1 flex-col">
       <div className="flex h-8 shrink-0 items-center gap-2 px-2.5">
-        <SidebarPanelLabel className="text-white!">{shellName}</SidebarPanelLabel>
+        <SidebarPanelLabel className="text-(--ui-text-secondary)!">{shellName}</SidebarPanelLabel>
         <Tip label={label}>
           <Button
             aria-label={label}
-            className="ml-auto size-6 rounded-md text-white!"
-            onClick={toggleTakeover}
+            className="ml-auto size-6 rounded-md text-(--ui-text-secondary)!"
+            onClick={() => setTerminalTakeover(false)}
             size="icon"
             type="button"
             variant="ghost"
           >
-            <Codicon name={takeover ? 'screen-normal' : 'screen-full'} size="0.875rem" />
+            <Codicon name="close" size="0.875rem" />
           </Button>
         </Tip>
       </div>
-      <div className="relative min-h-0 flex-1 bg-[#002b36] p-2">
+      <div className="relative min-h-0 flex-1 bg-(--ui-editor-surface-background) p-2">
         {status === 'starting' && (
           <div className="pointer-events-none absolute inset-0 z-10 grid place-items-center">
             <Loader
@@ -84,12 +73,13 @@ export function TerminalTab({ cwd, onAddSelectionToChat }: TerminalTabProps) {
             </Button>
           </div>
         )}
-        {/* Outer div paints the dark inset; inner div is the xterm host so the
-            canvas sizes to the *content* area and p-2 shows as terminal padding.
-            Forcing screen/viewport bg avoids xterm's default black peeking
-            through the unused pixels below the last full row. */}
+        {/* Outer div paints terminal inset; inner div is the xterm host so the
+            canvas sizes to the content area and p-2 stays as terminal padding.
+            Screen/viewport inherit the live skin surface so the terminal blends
+            with the app and follows light/dark; the xterm canvas itself is
+            painted the resolved surface color in use-terminal-session. */}
         <div
-          className="h-full min-h-0 overflow-hidden text-(--ui-text-secondary) [&_.xterm]:h-full [&_.xterm-screen]:bg-[#002b36]! [&_.xterm-viewport]:bg-[#002b36]!"
+          className="h-full min-h-0 overflow-hidden text-(--ui-text-secondary) [&_.xterm]:h-full [&_.xterm-screen]:bg-(--ui-editor-surface-background)! [&_.xterm-viewport]:bg-(--ui-editor-surface-background)!"
           ref={hostRef}
         />
       </div>
diff --git a/apps/desktop/src/app/right-sidebar/terminal/persistent.tsx b/apps/desktop/src/app/right-sidebar/terminal/persistent.tsx
index 5b9b151f5ba..0a8df746b3f 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/persistent.tsx
+++ b/apps/desktop/src/app/right-sidebar/terminal/persistent.tsx
@@ -2,8 +2,6 @@ import { useStore } from '@nanostores/react'
 import { atom } from 'nanostores'
 import { type CSSProperties, useEffect, useLayoutEffect, useRef, useState } from 'react'
 
-import { TERMINAL_BG } from './selection'
-
 import { TerminalTab } from './index'
 
 /**
@@ -107,7 +105,9 @@ export function PersistentTerminal({ cwd, onAddSelectionToChat }: PersistentTerm
     visibility: visible ? 'visible' : 'hidden',
     pointerEvents: visible ? 'auto' : 'none',
     zIndex: 4,
-    backgroundColor: TERMINAL_BG,
+    // Match the live skin surface so the header strip (transparent) and body
+    // read as one cohesive pane instead of revealing a near-black slab behind.
+    backgroundColor: 'var(--ui-editor-surface-background)',
     contain: 'layout size paint'
   }
 
diff --git a/apps/desktop/src/app/right-sidebar/terminal/selection.ts b/apps/desktop/src/app/right-sidebar/terminal/selection.ts
index 4f0049be8e3..955a9ea1f18 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/selection.ts
+++ b/apps/desktop/src/app/right-sidebar/terminal/selection.ts
@@ -1,38 +1,101 @@
 import type { ITheme, Terminal } from '@xterm/xterm'
 import type { CSSProperties } from 'react'
 
-// Solarized-derived palette, but with bright ANSI 8–15 promoted to real
-// accent variants instead of Schoonover's UI grays. Hermes' TUI skins (gold,
-// crimson, ...) emit bright SGR codes that would otherwise wash out to gray.
-// We always render the dark canvas — the app's light surfaces can't host the
-// default skin without dropping below readable contrast.
-export const TERMINAL_BG = '#002b36'
+import type { DesktopTerminalPalette } from '@/themes/types'
 
-const THEME: ITheme = {
-  background: TERMINAL_BG,
-  foreground: '#839496',
-  cursor: '#93a1a1',
-  cursorAccent: TERMINAL_BG,
-  selectionBackground: '#586e7555',
-  black: '#073642',
-  red: '#dc322f',
-  green: '#859900',
-  yellow: '#b58900',
-  blue: '#268bd2',
-  magenta: '#d33682',
-  cyan: '#2aa198',
-  white: '#eee8d5',
-  brightBlack: '#586e75',
-  brightRed: '#f25c54',
-  brightGreen: '#b3d437',
-  brightYellow: '#f7c948',
-  brightBlue: '#5fb3ff',
-  brightMagenta: '#ff6ab4',
-  brightCyan: '#5cd9c8',
-  brightWhite: '#fdf6e3'
+// VS Code's default integrated-terminal palette (terminalColorRegistry.ts) — a
+// fixed table per theme type, not luminance-derived. Light/dark diverge on
+// purpose so each stays legible (e.g. mustard yellow on white).
+const DARK_THEME: ITheme = {
+  background: '#1e1e1e',
+  foreground: '#cccccc',
+  cursor: '#cccccc',
+  cursorAccent: '#1e1e1e',
+  selectionBackground: '#264f7866',
+  black: '#000000',
+  red: '#cd3131',
+  green: '#0dbc79',
+  yellow: '#e5e510',
+  blue: '#2472c8',
+  magenta: '#bc3fbc',
+  cyan: '#11a8cd',
+  white: '#e5e5e5',
+  brightBlack: '#666666',
+  brightRed: '#f14c4c',
+  brightGreen: '#23d18b',
+  brightYellow: '#f5f543',
+  brightBlue: '#3b8eea',
+  brightMagenta: '#d670d6',
+  brightCyan: '#29b8db',
+  brightWhite: '#e5e5e5'
 }
 
-export const terminalTheme = (): ITheme => THEME
+const LIGHT_THEME: ITheme = {
+  background: '#ffffff',
+  foreground: '#333333',
+  cursor: '#333333',
+  cursorAccent: '#ffffff',
+  selectionBackground: '#add6ff80',
+  black: '#000000',
+  red: '#cd3131',
+  green: '#00bc00',
+  yellow: '#949800',
+  blue: '#0451a5',
+  magenta: '#bc05bc',
+  cyan: '#0598bc',
+  white: '#555555',
+  brightBlack: '#666666',
+  brightRed: '#cd3131',
+  brightGreen: '#14ce14',
+  brightYellow: '#b5ba00',
+  brightBlue: '#0451a5',
+  brightMagenta: '#bc05bc',
+  brightCyan: '#0598bc',
+  brightWhite: '#a5a5a5'
+}
+
+// Palette by painted mode, optionally overlaid with an imported theme's ANSI
+// palette (Solarized terminal for the Solarized skin, etc.). `palette` only
+// fills the slots it defines, so a partial import keeps the mode defaults for
+// the rest. `background` is a fallback only — withSurface swaps in the live skin
+// surface at runtime (keeping transparency); minimumContrastRatio keeps colors
+// crisp against it.
+export function terminalTheme(mode: 'light' | 'dark', palette?: DesktopTerminalPalette): ITheme {
+  const base = mode === 'dark' ? DARK_THEME : LIGHT_THEME
+
+  if (!palette) {
+    return base
+  }
+
+  const overlay = { ...base } as Record<string, string>
+
+  for (const [slot, value] of Object.entries(palette)) {
+    if (value) {
+      overlay[slot] = value
+    }
+  }
+
+  return overlay as ITheme
+}
+
+// Resolve --ui-editor-surface-background (a color-mix on the skin seed) to a
+// concrete rgb for the WebGL renderer + contrast clamp. Custom props don't
+// resolve via getComputedStyle, so probe a real background-color. Read AFTER
+// applyTheme repaints (mount / rAF post-change) or it lags a frame behind.
+export function resolveSurfaceColor(fallback: string): string {
+  if (typeof document === 'undefined' || !document.body) {
+    return fallback
+  }
+
+  const probe = document.createElement('span')
+  probe.style.cssText =
+    'position:absolute;visibility:hidden;pointer-events:none;background-color:var(--ui-editor-surface-background)'
+  document.body.appendChild(probe)
+  const resolved = getComputedStyle(probe).backgroundColor
+  probe.remove()
+
+  return resolved && resolved !== 'rgba(0, 0, 0, 0)' ? resolved : fallback
+}
 
 export const isMacPlatform = () => navigator.platform.toLowerCase().includes('mac')
 
diff --git a/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts b/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
index 7442c64ee86..1e0b5f93134 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
+++ b/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
@@ -3,12 +3,20 @@ import { Unicode11Addon } from '@xterm/addon-unicode11'
 import { WebLinksAddon } from '@xterm/addon-web-links'
 import { WebglAddon } from '@xterm/addon-webgl'
 import { Terminal } from '@xterm/xterm'
-import { useCallback, useEffect, useRef, useState } from 'react'
+import { useCallback, useEffect, useMemo, useRef, useState } from 'react'
 import type { CSSProperties } from 'react'
 
 import { triggerHaptic } from '@/lib/haptics'
+import { useTheme } from '@/themes/context'
 
-import { isAddSelectionShortcut, terminalSelectionAnchor, terminalSelectionLabel, terminalTheme } from './selection'
+import { makeTerminalReader, setActiveTerminalReader } from './buffer'
+import {
+  isAddSelectionShortcut,
+  resolveSurfaceColor,
+  terminalSelectionAnchor,
+  terminalSelectionLabel,
+  terminalTheme
+} from './selection'
 
 type TerminalStatus = 'closed' | 'open' | 'starting'
 
@@ -64,10 +72,29 @@ function stripEscapeSequences(data: string) {
   return text
 }
 
-function isStartupSpacer(data: string) {
-  const text = stripEscapeSequences(data).replace(/[\s\r\n]/g, '')
+// Keep only the ANSI escape sequences from a chunk, dropping printable text. Lets
+// us apply control codes (e.g. a clear-screen) while discarding boot spacers and
+// zsh's reverse-video "%" partial-line marker.
+function keepEscapeSequences(data: string) {
+  let index = 0
+  let out = ''
 
-  return text === '' || text === '%'
+  while (index < data.length) {
+    if (data.charCodeAt(index) === 0x1b) {
+      const sequence = readEscapeSequence(data, index)
+
+      if (sequence) {
+        out += sequence
+        index += sequence.length
+
+        continue
+      }
+    }
+
+    index += 1
+  }
+
+  return out
 }
 
 function stripInitialPromptGap(data: string) {
@@ -95,6 +122,14 @@ interface UseTerminalSessionOptions {
   onAddSelectionToChat: (text: string, label?: string) => void
 }
 
+// Bind the palette to the live skin surface so the terminal blends with the app
+// (and the contrast clamp has a real background to work against).
+function withSurface(theme: ReturnType<typeof terminalTheme>) {
+  const surface = resolveSurfaceColor(theme.background ?? '#ffffff')
+
+  return { ...theme, background: surface, cursorAccent: surface }
+}
+
 function transferHasDropCandidates(t: DataTransfer): boolean {
   if (t.types?.includes(HERMES_PATHS_MIME)) {
     return true
@@ -184,8 +219,21 @@ function quotePathForShell(path: string, shellName: string): string {
 }
 
 export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSessionOptions) {
+  // Key off renderedMode (the painted surface type), not resolvedMode (the
+  // clicked switch) — a skin can keep a light surface in "dark" mode, and we
+  // must match the surface or the ANSI palette inverts against it. themeName
+  // re-resolves the canvas surface on skin switches (same mode, new tint).
+  const { renderedMode, theme, themeName } = useTheme()
+  // Adopt the skin's ANSI palette when it ships one (imported VS Code themes do),
+  // matched to the painted variant; built-in skins carry none, so the terminal
+  // keeps its VS Code defaults. withSurface still owns the background, so this
+  // never touches transparency.
+  const ansiPalette = renderedMode === 'dark' ? (theme.darkTerminal ?? theme.terminal) : theme.terminal
+  const activeTheme = useMemo(() => terminalTheme(renderedMode, ansiPalette), [renderedMode, ansiPalette])
+  const initialThemeRef = useRef(activeTheme)
   const hostRef = useRef<HTMLDivElement | null>(null)
   const termRef = useRef<Terminal | null>(null)
+  const webglRef = useRef<WebglAddon | null>(null)
   const sessionIdRef = useRef<string | null>(null)
   const shellNameRef = useRef('shell')
   const selectionLabelRef = useRef('')
@@ -200,19 +248,26 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
     onAddSelectionToChatRef.current = onAddSelectionToChat
   }, [onAddSelectionToChat])
 
+  // Live selection at call time. A redraw-heavy TUI (spinners, clocks) outruns
+  // onSelectionChange, so trust xterm directly — fall back to the native
+  // selection — rather than the cached ref / React state.
+  const readSelection = useCallback(
+    () => termRef.current?.getSelection() || window.getSelection()?.toString() || '',
+    []
+  )
+
   const addSelectionToChat = useCallback(() => {
-    const selectedText = selectionRef.current || termRef.current?.getSelection() || ''
-
-    const label =
-      selectionLabelRef.current ||
-      (termRef.current ? terminalSelectionLabel(termRef.current, shellNameRef.current, selectedText) : 'selection')
-
+    const selectedText = readSelection() || selectionRef.current
     const trimmed = selectedText.trim()
 
     if (!trimmed) {
       return
     }
 
+    const label =
+      selectionLabelRef.current ||
+      (termRef.current ? terminalSelectionLabel(termRef.current, shellNameRef.current, selectedText) : 'selection')
+
     onAddSelectionToChatRef.current(trimmed, label)
     termRef.current?.clearSelection()
     selectionRef.current = ''
@@ -220,15 +275,14 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
     setSelection('')
     setSelectionStyle(null)
     triggerHaptic('selection')
-  }, [])
+  }, [readSelection])
 
+  // Always listen — gating on the React selection state misses selections the
+  // TUI redraw races. Only swallow ⌘/Ctrl+L when there's text to send, else it
+  // must reach the shell as clear-screen.
   useEffect(() => {
-    if (!selection.trim()) {
-      return
-    }
-
     const onKeyDown = (event: KeyboardEvent) => {
-      if (!isAddSelectionShortcut(event)) {
+      if (!isAddSelectionShortcut(event) || !readSelection().trim()) {
         return
       }
 
@@ -240,7 +294,7 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
     window.addEventListener('keydown', onKeyDown, { capture: true })
 
     return () => window.removeEventListener('keydown', onKeyDown, { capture: true })
-  }, [addSelectionToChat, selection])
+  }, [addSelectionToChat, readSelection])
 
   useEffect(() => {
     const host = hostRef.current
@@ -264,9 +318,19 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
       fontFamily: "'SF Mono', 'Menlo', 'Cascadia Code', 'JetBrains Mono', monospace",
       fontSize: 11,
       lineHeight: 1.12,
+      // Full-screen TUIs (hermes --tui, vim) grab the mouse, so a plain drag
+      // can't select — ⌥-drag (macOS) / Shift-drag (else) forces a native
+      // selection over mouse-mode apps, which ⌘/Ctrl+L then sends to chat.
+      macOptionClickForcesSelection: true,
       macOptionIsMeta: true,
+      // VS Code/Cursor's secret sauce: terminal.integrated.minimumContrastRatio
+      // defaults to 4.5 there. xterm defaults to 1 (off), which paints the raw
+      // saturated ANSI palette — vivid green/cyan on white reads as candy.
+      // Clamping to 4.5:1 darkens/lightens foregrounds against the background
+      // at render time, matching the muted ink-like look of their terminal.
+      minimumContrastRatio: 4.5,
       scrollback: 1000,
-      theme: terminalTheme()
+      theme: withSurface(initialThemeRef.current)
     })
 
     const fit = new FitAddon()
@@ -276,18 +340,10 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
     term.loadAddon(new Unicode11Addon())
     term.loadAddon(new WebLinksAddon())
     term.unicode.activeVersion = '11'
-    term.open(host)
-    term.focus()
 
-    // WebGL renderer matches the dashboard ChatPage path; xterm's default DOM
-    // renderer paints SGR via CSS classes that visibly mute against our skins.
-    try {
-      const webgl = new WebglAddon()
-      webgl.onContextLoss(() => webgl.dispose())
-      term.loadAddon(webgl)
-    } catch (err) {
-      console.warn('[hermes-terminal] WebGL unavailable; falling back to DOM', err)
-    }
+    // Let the GUI chat agent read this pane via the `read_terminal` tool: the
+    // gateway's terminal.read.request handler serializes the buffer through this.
+    setActiveTerminalReader(makeTerminalReader(term))
 
     const onDragOver = (e: DragEvent) => {
       if (!e.dataTransfer || !transferHasDropCandidates(e.dataTransfer)) {
@@ -328,6 +384,75 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
       host.removeEventListener('drop', onDrop)
     })
 
+    // A fresh prompt should sit at the top. Every resize SIGWINCHes the shell,
+    // which reprints its prompt and can leave stale blank rows above it. While
+    // the session is pristine (nothing run yet) we ask the shell to clear +
+    // redraw via Ctrl-L (\f) after the resize settles. Ctrl-L preserves
+    // multi-line prompts (term.clear() would drop all but the cursor row) and we
+    // stop the moment real output exists, so command scrollback is never wiped.
+    let promptPristine = true
+    let gapCleanupTimer = 0
+
+    // While armed, strip leading blank rows so the prompt lands at the very top
+    // (no starship `add_newline` gap). Re-armed before each Ctrl-L redraw so the
+    // resize cleanup doesn't reintroduce the blank line.
+    let stripLeading = true
+
+    const armedWrite = (data: string) => {
+      if (!stripLeading) {
+        term.write(data)
+
+        return
+      }
+
+      const next = stripInitialPromptGap(data)
+      const visible = stripEscapeSequences(next).replace(/[\s%]/g, '')
+
+      if (!visible) {
+        // Spacer / lone clear-screen / zsh `%` marker: apply control codes but
+        // drop the blank text and stay armed so the prompt still lands at top.
+        const controls = keepEscapeSequences(next)
+
+        if (controls) {
+          term.write(controls)
+        }
+
+        return
+      }
+
+      stripLeading = false
+      term.write(next)
+    }
+
+    const scheduleGapCleanup = () => {
+      if (!promptPristine) {
+        return
+      }
+
+      if (gapCleanupTimer) {
+        window.clearTimeout(gapCleanupTimer)
+      }
+
+      gapCleanupTimer = window.setTimeout(() => {
+        gapCleanupTimer = 0
+        const id = sessionIdRef.current
+
+        if (disposed || !id || !promptPristine) {
+          return
+        }
+
+        stripLeading = true
+        void terminalApi.write(id, '\f')
+        term.clearSelection()
+      }, 120)
+    }
+
+    cleanup.push(() => {
+      if (gapCleanupTimer) {
+        window.clearTimeout(gapCleanupTimer)
+      }
+    })
+
     const fitAndResize = () => {
       if (disposed || !host.isConnected || host.clientWidth <= 0 || host.clientHeight <= 0) {
         return
@@ -344,6 +469,7 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
       if (id && (lastSentSize?.cols !== term.cols || lastSentSize?.rows !== term.rows)) {
         lastSentSize = { cols: term.cols, rows: term.rows }
         void terminalApi.resize(id, { cols: term.cols, rows: term.rows })
+        scheduleGapCleanup()
       }
     }
 
@@ -380,6 +506,12 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
       const id = sessionIdRef.current
 
       if (id) {
+        // Once the user submits a line, real output may follow — stop the
+        // pristine-prompt gap cleanup so we never clear command scrollback.
+        if (promptPristine && data.includes('\r')) {
+          promptPristine = false
+        }
+
         void terminalApi.write(id, data)
       }
     })
@@ -396,87 +528,88 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
 
     cleanup.push(() => selectionDisposable.dispose())
 
-    term.attachCustomKeyEventHandler(event => {
-      if (event.type !== 'keydown') {
-        return true
-      }
+    const startSession = () =>
+      void terminalApi
+        .start({ cols: term.cols, cwd, rows: term.rows })
+        .then(session => {
+          if (disposed) {
+            void terminalApi.dispose(session.id)
 
-      if (isAddSelectionShortcut(event) && term.hasSelection()) {
-        event.preventDefault()
-        addSelectionToChat()
+            return
+          }
 
-        return false
-      }
+          sessionIdRef.current = session.id
+          lastSentSize = { cols: term.cols, rows: term.rows }
+          shellNameRef.current = session.shell || 'shell'
+          setShellName(session.shell || 'shell')
 
-      return true
-    })
+          const initial = term.hasSelection() ? term.getSelection() : ''
+          selectionRef.current = initial
+          selectionLabelRef.current = initial ? terminalSelectionLabel(term, shellNameRef.current, initial) : ''
 
-    fitAndResize()
+          setStatus('open')
 
-    void terminalApi
-      .start({ cols: term.cols, cwd, rows: term.rows })
-      .then(session => {
-        if (disposed) {
-          void terminalApi.dispose(session.id)
+          cleanup.push(
+            terminalApi.onData(session.id, armedWrite),
+            terminalApi.onExit(session.id, ({ code, signal }) => {
+              setStatus('closed')
+              term.write(`\r\n[terminal exited${signal ? `: ${signal}` : code !== null ? `: ${code}` : ''}]\r\n`)
+            })
+          )
 
-          return
-        }
-
-        sessionIdRef.current = session.id
-        lastSentSize = { cols: term.cols, rows: term.rows }
-        shellNameRef.current = session.shell || 'shell'
-        setShellName(session.shell || 'shell')
-
-        if (term.hasSelection()) {
-          const currentSelection = term.getSelection()
-          selectionRef.current = currentSelection
-          selectionLabelRef.current = terminalSelectionLabel(term, shellNameRef.current, currentSelection)
-        } else {
-          selectionRef.current = ''
-          selectionLabelRef.current = ''
-        }
-
-        setStatus('open')
-        let wrotePromptContent = false
-
-        cleanup.push(
-          terminalApi.onData(session.id, data => {
-            if (wrotePromptContent) {
-              term.write(data)
-
-              return
-            }
-
-            if (isStartupSpacer(data)) {
-              return
-            }
-
-            const next = stripInitialPromptGap(data)
-
-            if (next) {
-              wrotePromptContent = true
-              term.write(next)
-            }
-          }),
-          terminalApi.onExit(session.id, sessionExit => {
-            const { code, signal } = sessionExit
-            setStatus('closed')
-            term.write(`\r\n[terminal exited${signal ? `: ${signal}` : code !== null ? `: ${code}` : ''}]\r\n`)
+          window.requestAnimationFrame(() => {
+            fitAndResize()
+            term.clearSelection() // drop any selection painted over transient boot rows
+            term.focus()
           })
-        )
-        window.requestAnimationFrame(() => {
-          fitAndResize()
-          term.focus()
         })
-      })
-      .catch(error => {
-        setStatus('closed')
-        term.write(`Terminal failed to start: ${error instanceof Error ? error.message : String(error)}\r\n`)
-      })
+        .catch(error => {
+          setStatus('closed')
+          term.write(`Terminal failed to start: ${error instanceof Error ? error.message : String(error)}\r\n`)
+        })
+
+    // Open + fit + start only once webfonts settle. Fitting with fallback metrics
+    // picks the wrong row count, the shell boots at that size, then the real font
+    // loads -> refit -> SIGWINCH -> the shell reprints its prompt lower, leaving
+    // stale blank rows (and a stray selection) above it.
+    const mount = () => {
+      if (disposed || !host.isConnected) {
+        return
+      }
+
+      term.open(host)
+      term.focus()
+
+      // WebGL renderer matches the dashboard ChatPage path; xterm's default DOM
+      // renderer paints SGR via CSS classes that visibly mute against our skins.
+      try {
+        const webgl = new WebglAddon()
+        webgl.onContextLoss(() => {
+          webgl.dispose()
+          webglRef.current = null
+        })
+        term.loadAddon(webgl)
+        webglRef.current = webgl
+      } catch (err) {
+        console.warn('[hermes-terminal] WebGL unavailable; falling back to DOM', err)
+      }
+
+      fitAndResize()
+      startSession()
+    }
+
+    const fonts = typeof document !== 'undefined' ? document.fonts : undefined
+
+    if (fonts?.ready) {
+      void fonts.ready.then(mount, mount)
+    } else {
+      mount()
+    }
 
     return () => {
       disposed = true
       cleanup.forEach(run => run())
+      setActiveTerminalReader(null)
 
       const id = sessionIdRef.current
       sessionIdRef.current = null
@@ -487,12 +620,34 @@ export function useTerminalSession({ cwd, onAddSelectionToChat }: UseTerminalSes
 
       term.dispose()
       termRef.current = null
+      webglRef.current = null
       shellNameRef.current = 'shell'
       selectionRef.current = ''
       selectionLabelRef.current = ''
     }
   }, [addSelectionToChat, cwd])
 
+  useEffect(() => {
+    const term = termRef.current
+
+    if (!term) {
+      return
+    }
+
+    // Re-resolve the surface in a rAF: ThemeProvider's applyTheme repaints the
+    // CSS vars in a sibling effect that runs after this one, so reading now
+    // would lag a mode behind. By the next frame the vars are current.
+    const raf = requestAnimationFrame(() => {
+      term.options.theme = withSurface(activeTheme)
+      // The WebGL renderer caches glyph colors in a texture atlas, so a
+      // light/dark switch leaves already-drawn cells stale until the atlas is
+      // cleared. No-op for the DOM fallback.
+      webglRef.current?.clearTextureAtlas()
+    })
+
+    return () => cancelAnimationFrame(raf)
+  }, [activeTheme, themeName])
+
   return {
     addSelectionToChat,
     hostRef,
diff --git a/apps/desktop/src/app/session/hooks/use-message-stream.ts b/apps/desktop/src/app/session/hooks/use-message-stream.ts
index 382a2cd7f37..703941c9367 100644
--- a/apps/desktop/src/app/session/hooks/use-message-stream.ts
+++ b/apps/desktop/src/app/session/hooks/use-message-stream.ts
@@ -1,6 +1,7 @@
 import type { QueryClient } from '@tanstack/react-query'
 import { type MutableRefObject, useCallback, useEffect, useRef } from 'react'
 
+import { readActiveTerminal } from '@/app/right-sidebar/terminal/buffer'
 import {
   appendAssistantTextPart,
   appendReasoningPart,
@@ -18,6 +19,7 @@ import { gatewayEventRequiresSessionId } from '@/lib/gateway-events'
 import { triggerHaptic } from '@/lib/haptics'
 import { isProviderSetupErrorMessage } from '@/lib/provider-setup-errors'
 import { setClarifyRequest } from '@/store/clarify'
+import { $gateway } from '@/store/gateway'
 import { notify } from '@/store/notifications'
 import { requestDesktopOnboarding } from '@/store/onboarding'
 import { clearAllPrompts, setApprovalRequest, setSecretRequest, setSudoRequest } from '@/store/prompts'
@@ -906,6 +908,21 @@ export function useMessageStream({
             updateSessionState(sessionId, state => ({ ...state, needsInput: true }))
           }
         }
+      } else if (event.type === 'terminal.read.request') {
+        // read_terminal tool: serialize the renderer's xterm buffer and answer
+        // immediately (Python blocks on the respond). Empty text = no live pane.
+        const requestId = typeof payload?.request_id === 'string' ? payload.request_id : ''
+
+        if (requestId) {
+          const start = typeof payload?.start === 'number' ? payload.start : undefined
+          const count = typeof payload?.count === 'number' ? payload.count : undefined
+          const result = readActiveTerminal({ start, count })
+
+          void $gateway.get()?.request('terminal.read.respond', {
+            request_id: requestId,
+            text: result ? JSON.stringify(result) : ''
+          })
+        }
       } else if (event.type === 'error') {
         const errorMessage = payload?.message || 'Hermes reported an error'
         const looksLikeProviderSetup = isProviderSetupErrorMessage(errorMessage)
diff --git a/apps/desktop/src/app/shell/app-shell.tsx b/apps/desktop/src/app/shell/app-shell.tsx
index c4d2e368eaf..8e548734496 100644
--- a/apps/desktop/src/app/shell/app-shell.tsx
+++ b/apps/desktop/src/app/shell/app-shell.tsx
@@ -29,9 +29,19 @@ interface AppShellProps {
   children: ReactNode
   leftStatusbarItems?: readonly StatusbarItem[]
   leftTitlebarTools?: readonly TitlebarTool[]
+  // Fixed-position overlays that must share <main>'s stacking context so pane
+  // resize handles (z-20) paint above them. The persistent terminal lives here:
+  // hoisting it to the root `overlays` layer (sibling of <main>, z above z-3)
+  // would cover every pane's drag handle.
+  mainOverlays?: ReactNode
   onOpenSettings: () => void
   overlays?: ReactNode
+  // Rails that sit at the window's left edge in the flipped layout but never
+  // force-collapse to hover-reveal overlays — so they cover the top-left traffic
+  // lights (and zero the titlebar inset) even below the collapse breakpoint.
+  previewPaneOpen?: boolean
   statusbarItems?: readonly StatusbarItem[]
+  terminalPaneOpen?: boolean
   titlebarTools?: readonly TitlebarTool[]
 }
 
@@ -54,9 +64,12 @@ export function AppShell({
   children,
   leftStatusbarItems,
   leftTitlebarTools,
+  mainOverlays,
   onOpenSettings,
   overlays,
+  previewPaneOpen = false,
   statusbarItems,
+  terminalPaneOpen = false,
   titlebarTools
 }: AppShellProps) {
   const sidebarOpen = useStore($sidebarOpen)
@@ -76,12 +89,17 @@ export function AppShell({
 
   // The inset clears the top-left titlebar buttons when nothing covers the
   // window's left edge. Default layout: the sessions sidebar sits there.
-  // Flipped layout: the file browser does instead. Below the collapse
-  // breakpoint both rails are force-collapsed (hover-reveal overlay), so the
-  // edge is uncovered regardless of their stored open state. A standalone
+  // Flipped layout: the file browser does instead. Both force-collapse to a
+  // hover-reveal overlay (0px track) below the collapse breakpoint, so the edge
+  // is uncovered there regardless of their stored open state. A standalone
   // session window renders no sidebar at all, so its edge is always uncovered.
+  const collapsibleLeftPaneOpen = panesFlipped ? fileBrowserOpen : sidebarOpen
+  // The terminal + preview rails never force-collapse, so when they're the
+  // leftmost open pane (flipped layout) they cover the edge even when narrow.
+  const persistentLeftPaneOpen = panesFlipped && (terminalPaneOpen || previewPaneOpen)
+
   const leftEdgePaneOpen =
-    !narrowViewport && !isSecondaryWindow() && (panesFlipped ? fileBrowserOpen : sidebarOpen)
+    !isSecondaryWindow() && ((!narrowViewport && collapsibleLeftPaneOpen) || persistentLeftPaneOpen)
 
   const titlebarContentInset = leftEdgePaneOpen
     ? 0
@@ -160,6 +178,11 @@ export function AppShell({
           {children}
         </PaneShell>
 
+        {/* Fixed overlays scoped to main's stacking context (terminal). Rendered
+            after PaneShell so it paints over pane content, but its z stays under
+            the panes' z-20 resize handles, keeping every pane resizable. */}
+        {mainOverlays}
+
         <StatusbarControls items={statusbarItems} leftItems={leftStatusbarItems} />
       </main>
 
diff --git a/apps/desktop/src/app/shell/hooks/use-statusbar-items.tsx b/apps/desktop/src/app/shell/hooks/use-statusbar-items.tsx
index c471d0f517a..53ce2dcc150 100644
--- a/apps/desktop/src/app/shell/hooks/use-statusbar-items.tsx
+++ b/apps/desktop/src/app/shell/hooks/use-statusbar-items.tsx
@@ -3,6 +3,7 @@ import type { ReactNode } from 'react'
 import { useCallback, useMemo } from 'react'
 
 import type { CommandCenterSection } from '@/app/command-center'
+import { $terminalTakeover, setTerminalTakeover } from '@/app/right-sidebar/store'
 import { GatewayMenuPanel } from '@/app/shell/gateway-menu-panel'
 import { useI18n } from '@/i18n'
 import {
@@ -14,6 +15,7 @@ import {
   Hash,
   Loader2,
   Sparkles,
+  Terminal,
   Zap,
   ZapFilled
 } from '@/lib/icons'
@@ -56,6 +58,7 @@ import type { StatusbarItem, StatusbarSelectModifiers } from '../statusbar-contr
 
 interface StatusbarItemsOptions {
   agentsOpen: boolean
+  chatOpen: boolean
   commandCenterOpen: boolean
   extraLeftItems: readonly StatusbarItem[]
   extraRightItems: readonly StatusbarItem[]
@@ -73,6 +76,7 @@ interface StatusbarItemsOptions {
 
 export function useStatusbarItems({
   agentsOpen,
+  chatOpen,
   commandCenterOpen,
   extraLeftItems,
   extraRightItems,
@@ -90,6 +94,7 @@ export function useStatusbarItems({
   const { t } = useI18n()
   const copy = t.shell.statusbar
   const activeSessionId = useStore($activeSessionId)
+  const terminalTakeover = useStore($terminalTakeover)
   const yoloActive = useStore($yoloActive)
   const busy = useStore($busy)
   const currentFastMode = useStore($currentFastMode)
@@ -442,11 +447,21 @@ export function useStatusbarItems({
               variant: 'action' as const
             })
       },
+      {
+        className: `w-7 justify-center px-0${terminalTakeover ? ' bg-accent/55 text-foreground' : ''}`,
+        hidden: !chatOpen,
+        icon: <Terminal className="size-3.5" />,
+        id: 'terminal',
+        onSelect: () => setTerminalTakeover(!$terminalTakeover.get()),
+        title: terminalTakeover ? copy.hideTerminal : copy.showTerminal,
+        variant: 'action'
+      },
       clientVersionItem,
       ...(backendVersionItem ? [backendVersionItem] : [])
     ],
     [
       busy,
+      chatOpen,
       contextBar,
       contextUsage,
       copy,
@@ -457,6 +472,7 @@ export function useStatusbarItems({
       modelMenuContent,
       sessionStartedAt,
       showYoloToggle,
+      terminalTakeover,
       toggleYolo,
       turnStartedAt,
       clientVersionItem,
diff --git a/apps/desktop/src/components/pane-shell/pane-shell.tsx b/apps/desktop/src/components/pane-shell/pane-shell.tsx
index 8651ecd3ee9..61e7e6969ad 100644
--- a/apps/desktop/src/components/pane-shell/pane-shell.tsx
+++ b/apps/desktop/src/components/pane-shell/pane-shell.tsx
@@ -30,6 +30,8 @@ export interface PaneProps {
   children?: ReactNode
   className?: string
   defaultOpen?: boolean
+  /** Paints a persistent hairline on the resize edge (not just the hover sash) so the pane boundary is always visible. */
+  divider?: boolean
   /** Forces the pane closed (track→0, aria-hidden) without writing to the store — for transient route gates. */
   disabled?: boolean
   /** Like disabled, but keeps hoverReveal alive — collapses the track without writing to the store (e.g. narrow window). */
@@ -94,19 +96,35 @@ const remPx = () =>
     ? 16
     : Number.parseFloat(window.getComputedStyle(document.documentElement).fontSize) || 16
 
-// Resolves PaneProps.minWidth/maxWidth (number | "Npx" | "Nrem") to pixels for drag clamping.
+const viewportPx = () => (typeof window === 'undefined' ? 1280 : window.innerWidth)
+
+// Resolves PaneProps.minWidth/maxWidth (number | "Npx" | "Nrem" | "Nvw" | "N%") to
+// pixels for drag clamping. Viewport units resolve against the current window width.
 function widthToPx(value: WidthValue | undefined) {
   if (typeof value === 'number') {
     return Number.isFinite(value) ? value : undefined
   }
 
-  const match = value?.trim().match(/^(-?\d*\.?\d+)(px|rem)?$/)
+  const match = value?.trim().match(/^(-?\d*\.?\d+)(px|rem|vw|%)?$/)
 
   if (!match) {
     return undefined
   }
 
-  return Number.parseFloat(match[1]) * (match[2] === 'rem' ? remPx() : 1)
+  const n = Number.parseFloat(match[1])
+
+  switch (match[2]) {
+    case 'rem':
+      return n * remPx()
+
+    case 'vw':
+
+    case '%':
+      return (n * viewportPx()) / 100
+
+    default:
+      return n
+  }
 }
 
 function isRole(child: unknown, role: 'pane' | 'main'): child is ReactElement {
@@ -217,6 +235,7 @@ export function Pane({
   children,
   className,
   defaultOpen = true,
+  divider = false,
   disabled = false,
   hoverReveal = false,
   id,
@@ -409,6 +428,7 @@ export function Pane({
           role="separator"
           tabIndex={0}
         >
+          {divider && <span className="absolute inset-y-0 left-1/2 w-px -translate-x-1/2 bg-(--ui-stroke-secondary)" />}
           <span className="absolute inset-y-0 left-1/2 w-(--vscode-sash-hover-size,0.25rem) -translate-x-1/2 bg-(--ui-sash-hover-border) opacity-0 transition-opacity duration-100 group-hover:opacity-100 group-focus-visible:opacity-100" />
         </div>
       )}
diff --git a/apps/desktop/src/i18n/en.ts b/apps/desktop/src/i18n/en.ts
index 9c6bf1984d4..3dba6b846c4 100644
--- a/apps/desktop/src/i18n/en.ts
+++ b/apps/desktop/src/i18n/en.ts
@@ -1151,7 +1151,7 @@ export const en: Translations = {
     ],
     startVoice: 'Start voice conversation',
     queueMessage: 'Queue message',
-    steer: 'Steer the current run (⌘⏎)',
+    steer: 'Steer the current run',
     stop: 'Stop',
     send: 'Send',
     speaking: 'Speaking',
@@ -1492,6 +1492,8 @@ export const en: Translations = {
       branch: branch => `branch ${branch}`,
       closeCommandCenter: 'Close Command Center',
       openCommandCenter: 'Open Command Center',
+      showTerminal: 'Show terminal',
+      hideTerminal: 'Hide terminal',
       gateway: 'Gateway',
       gatewayReady: 'ready',
       gatewayNeedsSetup: 'needs setup',
@@ -1547,8 +1549,7 @@ export const en: Translations = {
     tryAgain: 'Try again',
     loadingTree: 'Loading file tree',
     loadingFiles: 'Loading files',
-    terminalFocus: 'Focus terminal view',
-    terminalSplit: 'Return to split view',
+    terminalHide: 'Hide terminal',
     addToChat: 'Add to chat'
   },
 
diff --git a/apps/desktop/src/i18n/ja.ts b/apps/desktop/src/i18n/ja.ts
index bcac1c8950b..956788067ed 100644
--- a/apps/desktop/src/i18n/ja.ts
+++ b/apps/desktop/src/i18n/ja.ts
@@ -1625,6 +1625,8 @@ export const ja = defineLocale({
       branch: branch => `ブランチ ${branch}`,
       closeCommandCenter: 'コマンドセンターを閉じる',
       openCommandCenter: 'コマンドセンターを開く',
+      showTerminal: 'ターミナルを表示',
+      hideTerminal: 'ターミナルを非表示',
       gateway: 'ゲートウェイ',
       gatewayReady: '準備完了',
       gatewayNeedsSetup: '設定が必要',
@@ -1680,8 +1682,7 @@ export const ja = defineLocale({
     tryAgain: '再試行',
     loadingTree: 'ファイルツリーを読み込み中',
     loadingFiles: 'ファイルを読み込み中',
-    terminalFocus: 'ターミナルビューにフォーカス',
-    terminalSplit: '分割ビューに戻る',
+    terminalHide: 'ターミナルを非表示',
     addToChat: 'チャットに追加'
   },
 
diff --git a/apps/desktop/src/i18n/types.ts b/apps/desktop/src/i18n/types.ts
index da5d5a28607..77424e426ac 100644
--- a/apps/desktop/src/i18n/types.ts
+++ b/apps/desktop/src/i18n/types.ts
@@ -1154,6 +1154,8 @@ export interface Translations {
       branch: (branch: string) => string
       closeCommandCenter: string
       openCommandCenter: string
+      showTerminal: string
+      hideTerminal: string
       gateway: string
       gatewayReady: string
       gatewayNeedsSetup: string
@@ -1209,8 +1211,7 @@ export interface Translations {
     tryAgain: string
     loadingTree: string
     loadingFiles: string
-    terminalFocus: string
-    terminalSplit: string
+    terminalHide: string
     addToChat: string
   }
 
diff --git a/apps/desktop/src/i18n/zh-hant.ts b/apps/desktop/src/i18n/zh-hant.ts
index 15e39235db7..9f045c4d022 100644
--- a/apps/desktop/src/i18n/zh-hant.ts
+++ b/apps/desktop/src/i18n/zh-hant.ts
@@ -1586,6 +1586,8 @@ export const zhHant = defineLocale({
       branch: branch => `分支 ${branch}`,
       closeCommandCenter: '關閉命令中心',
       openCommandCenter: '開啟命令中心',
+      showTerminal: '顯示終端機',
+      hideTerminal: '隱藏終端機',
       gateway: '閘道',
       gatewayReady: '就緒',
       gatewayNeedsSetup: '需要設定',
@@ -1641,8 +1643,7 @@ export const zhHant = defineLocale({
     tryAgain: '重試',
     loadingTree: '正在載入檔案樹',
     loadingFiles: '正在載入檔案',
-    terminalFocus: '聚焦終端機檢視',
-    terminalSplit: '返回分割檢視',
+    terminalHide: '隱藏終端機',
     addToChat: '新增至聊天'
   },
 
diff --git a/apps/desktop/src/i18n/zh.ts b/apps/desktop/src/i18n/zh.ts
index 6990c4ab6a9..f6b119a2777 100644
--- a/apps/desktop/src/i18n/zh.ts
+++ b/apps/desktop/src/i18n/zh.ts
@@ -1337,7 +1337,7 @@ export const zh: Translations = {
     ],
     startVoice: '开始语音对话',
     queueMessage: '排队消息',
-    steer: '引导当前运行 (⌘⏎)',
+    steer: '引导当前运行',
     stop: '停止',
     send: '发送',
     speaking: '讲话中',
@@ -1672,6 +1672,8 @@ export const zh: Translations = {
       branch: branch => `分支 ${branch}`,
       closeCommandCenter: '关闭命令中心',
       openCommandCenter: '打开命令中心',
+      showTerminal: '显示终端',
+      hideTerminal: '隐藏终端',
       gateway: '网关',
       gatewayReady: '就绪',
       gatewayNeedsSetup: '需要设置',
@@ -1727,8 +1729,7 @@ export const zh: Translations = {
     tryAgain: '重试',
     loadingTree: '正在加载文件树',
     loadingFiles: '正在加载文件',
-    terminalFocus: '聚焦终端视图',
-    terminalSplit: '返回分栏视图',
+    terminalHide: '隐藏终端',
     addToChat: '添加到对话'
   },
 
diff --git a/apps/desktop/src/lib/chat-messages.ts b/apps/desktop/src/lib/chat-messages.ts
index c6c9cee48d8..5e3a725f303 100644
--- a/apps/desktop/src/lib/chat-messages.ts
+++ b/apps/desktop/src/lib/chat-messages.ts
@@ -61,6 +61,9 @@ export type GatewayEventPayload = {
   // secret.request (skill credential capture)
   env_var?: string
   prompt?: string
+  // terminal.read.request (GUI agent reading the in-app terminal pane)
+  start?: number
+  count?: number
 }
 
 export function textPart(text: string): ChatMessagePart {
diff --git a/apps/desktop/src/lib/keybinds/actions.ts b/apps/desktop/src/lib/keybinds/actions.ts
index 0efb77965f3..7c4a83f61aa 100644
--- a/apps/desktop/src/lib/keybinds/actions.ts
+++ b/apps/desktop/src/lib/keybinds/actions.ts
@@ -13,13 +13,7 @@ export const KEYBIND_PANEL_ACTION = 'keybinds.openPanel'
 
 // `composer` is read-only; the rest are rebindable. `view` is the catch-all for
 // layout, appearance, and the panel-opener.
-export const KEYBIND_CATEGORIES: readonly KeybindCategory[] = [
-  'composer',
-  'profiles',
-  'session',
-  'navigation',
-  'view'
-]
+export const KEYBIND_CATEGORIES: readonly KeybindCategory[] = ['composer', 'profiles', 'session', 'navigation', 'view']
 
 export interface KeybindActionMeta {
   id: string
@@ -43,6 +37,11 @@ const PROFILE_SWITCH_ACTIONS: KeybindActionMeta[] = Array.from({ length: PROFILE
   defaults: [comboForSlot(i + 1)]
 }))
 
+// ⌘` on macOS / Ctrl+` elsewhere (the `~` key), plus the Shift/tilde variant.
+// `mod` keeps one binding cross-platform; on macOS this shadows the system
+// window-cycler, which is fine for a single-window app.
+const TERMINAL_TOGGLE_DEFAULTS = ['mod+`', 'mod+shift+`']
+
 // Positional jumps — ^1…^9, mirroring profiles' ⌘1…⌘9.
 export const SESSION_SLOT_COUNT = 9
 
@@ -90,7 +89,7 @@ export const KEYBIND_ACTIONS: readonly KeybindActionMeta[] = [
   { id: 'view.toggleSidebar', category: 'view', defaults: ['mod+b'] },
   { id: 'view.toggleRightSidebar', category: 'view', defaults: ['mod+j'] },
   { id: 'view.showFiles', category: 'view', defaults: [] },
-  { id: 'view.showTerminal', category: 'view', defaults: [] },
+  { id: 'view.showTerminal', category: 'view', defaults: TERMINAL_TOGGLE_DEFAULTS },
   // ⌘\ — the backslash reads like a mirror line flipping the layout.
   { id: 'view.flipPanes', category: 'view', defaults: ['mod+\\'] },
   { id: 'appearance.toggleMode', category: 'view', defaults: ['shift+x'] },
diff --git a/apps/desktop/src/lib/keybinds/combo.ts b/apps/desktop/src/lib/keybinds/combo.ts
index 3e676ec3e31..b203ded952d 100644
--- a/apps/desktop/src/lib/keybinds/combo.ts
+++ b/apps/desktop/src/lib/keybinds/combo.ts
@@ -10,8 +10,7 @@
 // Control+Tab. Off macOS, Control already *is* `mod`, so `canonicalizeCombo`
 // folds `ctrl` → `mod`.
 
-export const IS_MAC =
-  typeof navigator !== 'undefined' && /mac/i.test(navigator.platform || navigator.userAgent || '')
+export const IS_MAC = typeof navigator !== 'undefined' && /mac/i.test(navigator.platform || navigator.userAgent || '')
 
 // event.code → canonical base token. Letters/digits map to their lowercase
 // character; everything else uses an explicit name so combos read cleanly.
@@ -140,33 +139,38 @@ function labelForBase(base: string): string {
   return base.length === 1 ? base.toUpperCase() : base
 }
 
-// Human-readable label, e.g. "⌘⇧K" on macOS, "Ctrl+Shift+K" elsewhere.
-export function formatCombo(combo: string): string {
+function labelForMod(mod: string): string {
+  if (mod === 'mod') {
+    return IS_MAC ? '⌘' : 'Ctrl'
+  }
+
+  if (mod === 'ctrl') {
+    return IS_MAC ? '⌃' : 'Ctrl'
+  }
+
+  if (mod === 'alt') {
+    return IS_MAC ? '⌥' : 'Alt'
+  }
+
+  if (mod === 'shift') {
+    return IS_MAC ? '⇧' : 'Shift'
+  }
+
+  return mod
+}
+
+// Per-key display tokens, e.g. ["⌘", "K"] on macOS, ["Ctrl", "K"] elsewhere —
+// one cap per token for <KbdGroup>.
+export function comboTokens(combo: string): string[] {
   const parts = combo.split('+')
   const base = parts.pop() ?? ''
-  const mods = parts
 
-  const modLabels = mods.map(mod => {
-    if (mod === 'mod') {
-      return IS_MAC ? '⌘' : 'Ctrl'
-    }
+  return [...parts.map(labelForMod), labelForBase(base)]
+}
 
-    if (mod === 'ctrl') {
-      return IS_MAC ? '⌃' : 'Ctrl'
-    }
-
-    if (mod === 'alt') {
-      return IS_MAC ? '⌥' : 'Alt'
-    }
-
-    if (mod === 'shift') {
-      return IS_MAC ? '⇧' : 'Shift'
-    }
-
-    return mod
-  })
-
-  const tokens = [...modLabels, labelForBase(base)]
+// Human-readable label, e.g. "⌘⇧K" on macOS, "Ctrl+Shift+K" elsewhere.
+export function formatCombo(combo: string): string {
+  const tokens = comboTokens(combo)
 
   return IS_MAC ? tokens.join('') : tokens.join('+')
 }
@@ -178,9 +182,9 @@ export function isEditableTarget(target: EventTarget | null): boolean {
 
   return Boolean(
     el?.isContentEditable ||
-      el instanceof HTMLInputElement ||
-      el instanceof HTMLTextAreaElement ||
-      el instanceof HTMLSelectElement
+    el instanceof HTMLInputElement ||
+    el instanceof HTMLTextAreaElement ||
+    el instanceof HTMLSelectElement
   )
 }
 
diff --git a/apps/desktop/src/themes/context.tsx b/apps/desktop/src/themes/context.tsx
index 4a3275b7dc1..f7bc07c3b7e 100644
--- a/apps/desktop/src/themes/context.tsx
+++ b/apps/desktop/src/themes/context.tsx
@@ -252,7 +252,15 @@ interface ThemeContextValue {
   theme: DesktopTheme
   themeName: string
   mode: ThemeMode
+  /** The light/dark switch the user picked. */
   resolvedMode: 'light' | 'dark'
+  /**
+   * The mode actually painted, derived from the active background's luminance.
+   * Differs from `resolvedMode` for skins that keep a bright surface in "dark"
+   * (or vice-versa). Surface-bound UI (e.g. the terminal palette) should key off
+   * this so it matches what's on screen instead of inverting.
+   */
+  renderedMode: 'light' | 'dark'
   availableThemes: Array<{ name: string; label: string; description: string }>
   setTheme: (name: string) => void
   setMode: (mode: ThemeMode) => void
@@ -265,6 +273,7 @@ const ThemeContext = createContext<ThemeContextValue>({
   themeName: DEFAULT_SKIN_NAME,
   mode: 'light',
   resolvedMode: 'light',
+  renderedMode: 'light',
   availableThemes: SKIN_LIST,
   setTheme: () => {},
   setMode: () => {}
@@ -310,6 +319,12 @@ export function ThemeProvider({ children }: { children: ReactNode }) {
   const resolvedMode = resolveMode(mode, systemDark)
   const activeTheme = useMemo(() => deriveTheme(themeName, resolvedMode), [themeName, resolvedMode])
 
+  // What actually gets painted (matches the `.dark` class applyTheme toggles).
+  const renderedMode = useMemo(
+    () => renderedModeFor(activeTheme.colors, resolvedMode),
+    [activeTheme, resolvedMode]
+  )
+
   useEffect(() => applyTheme(activeTheme, resolvedMode), [activeTheme, resolvedMode])
 
   // Assign to whichever profile is live right now (read fresh so the callbacks
@@ -331,8 +346,8 @@ export function ThemeProvider({ children }: { children: ReactNode }) {
   // (`appearance.toggleMode`) so it shows up in the hotkey map and is rebindable.
 
   const value = useMemo<ThemeContextValue>(
-    () => ({ theme: activeTheme, themeName, mode, resolvedMode, availableThemes, setTheme, setMode }),
-    [activeTheme, themeName, mode, resolvedMode, availableThemes, setTheme, setMode]
+    () => ({ theme: activeTheme, themeName, mode, resolvedMode, renderedMode, availableThemes, setTheme, setMode }),
+    [activeTheme, themeName, mode, resolvedMode, renderedMode, availableThemes, setTheme, setMode]
   )
 
   return <ThemeContext.Provider value={value}>{children}</ThemeContext.Provider>
diff --git a/apps/desktop/src/themes/install.ts b/apps/desktop/src/themes/install.ts
index 497243a65f7..792552f9af7 100644
--- a/apps/desktop/src/themes/install.ts
+++ b/apps/desktop/src/themes/install.ts
@@ -48,19 +48,27 @@ export function buildThemeFromMarketplace(result: DesktopMarketplaceThemeResult)
     const label = file.label || raw.name || result.displayName
     const { mode, theme } = convertVscodeColorTheme(raw, { label, source: result.extensionId })
 
-    return { mode, palette: theme.colors }
+    return { mode, palette: theme.colors, terminal: theme.terminal }
   })
 
-  const fallback = variants[0].palette
-  const light = variants.find(variant => variant.mode === 'light')?.palette
-  const dark = variants.find(variant => variant.mode === 'dark')?.palette
+  const fallback = variants[0]
+  const light = variants.find(variant => variant.mode === 'light') ?? fallback
+  const dark = variants.find(variant => variant.mode === 'dark') ?? fallback
+
+  // The terminal ANSI palette tracks the painted variant the same way colors do
+  // (light → terminal, dark → darkTerminal); each falls back to the other so a
+  // single-variant import still themes the terminal in both modes.
+  const terminal = light.terminal ?? dark.terminal
+  const darkTerminal = dark.terminal ?? light.terminal
 
   return {
     name: vscodeThemeSlug(result.displayName),
     label: result.displayName,
     description: `VS Code · ${result.extensionId}`,
-    colors: light ?? dark ?? fallback,
-    darkColors: dark ?? light ?? fallback
+    colors: light.palette,
+    darkColors: dark.palette,
+    ...(terminal ? { terminal } : {}),
+    ...(darkTerminal ? { darkTerminal } : {})
   }
 }
 
diff --git a/apps/desktop/src/themes/types.ts b/apps/desktop/src/themes/types.ts
index 09bff38ca59..3aefda3eaa3 100644
--- a/apps/desktop/src/themes/types.ts
+++ b/apps/desktop/src/themes/types.ts
@@ -54,6 +54,37 @@ export interface DesktopThemeTypography {
   fontUrl?: string
 }
 
+/**
+ * Integrated-terminal ANSI palette (xterm `ITheme`, minus `background`).
+ *
+ * Populated only when a converted VS Code theme ships a full `terminal.ansi*`
+ * set; otherwise the terminal keeps its built-in VS Code default palette.
+ * `background` is intentionally absent — the pane always paints the live skin
+ * surface so it stays translucent.
+ */
+export interface DesktopTerminalPalette {
+  foreground?: string
+  cursor?: string
+  /** Keeps its source alpha — xterm blends it over the surface. */
+  selectionBackground?: string
+  black?: string
+  red?: string
+  green?: string
+  yellow?: string
+  blue?: string
+  magenta?: string
+  cyan?: string
+  white?: string
+  brightBlack?: string
+  brightRed?: string
+  brightGreen?: string
+  brightYellow?: string
+  brightBlue?: string
+  brightMagenta?: string
+  brightCyan?: string
+  brightWhite?: string
+}
+
 export interface DesktopTheme {
   name: string
   label: string
@@ -63,4 +94,8 @@ export interface DesktopTheme {
   /** Hand-tuned dark palette. Skins like `nous` ship one. */
   darkColors?: DesktopThemeColors
   typography?: Partial<DesktopThemeTypography>
+  /** Light-variant terminal ANSI palette (also the fallback for dark). */
+  terminal?: DesktopTerminalPalette
+  /** Dark-variant terminal ANSI palette. Falls back to `terminal`. */
+  darkTerminal?: DesktopTerminalPalette
 }
diff --git a/apps/desktop/src/themes/vscode.ts b/apps/desktop/src/themes/vscode.ts
index 491f58d053b..67c36983a0e 100644
--- a/apps/desktop/src/themes/vscode.ts
+++ b/apps/desktop/src/themes/vscode.ts
@@ -16,7 +16,7 @@
  */
 
 import { ensureContrast, luminance, mix, normalizeHex, readableOn } from './color'
-import type { DesktopTheme, DesktopThemeColors } from './types'
+import type { DesktopTerminalPalette, DesktopTheme, DesktopThemeColors } from './types'
 
 // Section headers / sidebar labels render in --theme-primary directly on the
 // sidebar surface as small (~10px) uppercase text, so the accent has to clear
@@ -101,6 +101,85 @@ const isDarkType = (raw: VscodeColorTheme, background: string): boolean => {
   return luminance(background) < 0.4
 }
 
+// xterm ITheme ANSI slots ← VS Code `terminal.ansi*` tokens. Background is
+// deliberately excluded — the pane keeps the live skin surface (transparency).
+const ANSI_TOKENS: ReadonlyArray<readonly [keyof DesktopTerminalPalette, string]> = [
+  ['black', 'terminal.ansiBlack'],
+  ['red', 'terminal.ansiRed'],
+  ['green', 'terminal.ansiGreen'],
+  ['yellow', 'terminal.ansiYellow'],
+  ['blue', 'terminal.ansiBlue'],
+  ['magenta', 'terminal.ansiMagenta'],
+  ['cyan', 'terminal.ansiCyan'],
+  ['white', 'terminal.ansiWhite'],
+  ['brightBlack', 'terminal.ansiBrightBlack'],
+  ['brightRed', 'terminal.ansiBrightRed'],
+  ['brightGreen', 'terminal.ansiBrightGreen'],
+  ['brightYellow', 'terminal.ansiBrightYellow'],
+  ['brightBlue', 'terminal.ansiBrightBlue'],
+  ['brightMagenta', 'terminal.ansiBrightMagenta'],
+  ['brightCyan', 'terminal.ansiBrightCyan'],
+  ['brightWhite', 'terminal.ansiBrightWhite']
+]
+
+const BASE_ANSI: ReadonlyArray<keyof DesktopTerminalPalette> = [
+  'black',
+  'red',
+  'green',
+  'yellow',
+  'blue',
+  'magenta',
+  'cyan',
+  'white'
+]
+
+const HEX_RE = /^#[0-9a-f]{3,8}$/i
+
+/**
+ * Lift a theme's integrated-terminal ANSI palette, if it ships one.
+ *
+ * All-or-nothing on the base-8 colors: a half-filled palette mixed with our
+ * defaults reads worse than just keeping the defaults, so we adopt the theme's
+ * palette only when the full base set is present. ANSI slots flatten alpha over
+ * the editor background; selection keeps its alpha so xterm can blend it.
+ */
+function extractTerminalPalette(colors: Record<string, unknown>, background: string): DesktopTerminalPalette | undefined {
+  const hex = (key: string): string | undefined =>
+    normalizeHex(typeof colors[key] === 'string' ? (colors[key] as string) : null, background) ?? undefined
+
+  const palette: DesktopTerminalPalette = {}
+
+  for (const [slot, token] of ANSI_TOKENS) {
+    const value = hex(token)
+
+    if (value) {
+      palette[slot] = value
+    }
+  }
+
+  if (!BASE_ANSI.every(slot => palette[slot])) {
+    return undefined
+  }
+
+  const foreground = hex('terminal.foreground')
+  const cursor = hex('terminalCursor.foreground') ?? hex('terminalCursor.background')
+  const selection = typeof colors['terminal.selectionBackground'] === 'string' ? colors['terminal.selectionBackground'].trim() : ''
+
+  if (foreground) {
+    palette.foreground = foreground
+  }
+
+  if (cursor) {
+    palette.cursor = cursor
+  }
+
+  if (HEX_RE.test(selection)) {
+    palette.selectionBackground = selection
+  }
+
+  return palette
+}
+
 /** First normalizable hex among `keys`, composited over `backdrop`. */
 const pick = (
   colors: Record<string, unknown>,
@@ -242,6 +321,7 @@ export function convertVscodeColorTheme(raw: VscodeColorTheme, opts: ConvertOpti
 
   const label = (opts.label ?? raw.name ?? 'VS Code Theme').trim()
   const slug = opts.slug ?? vscodeThemeSlug(label)
+  const terminal = extractTerminalPalette(colors, background)
 
   return {
     derived,
@@ -254,7 +334,10 @@ export function convertVscodeColorTheme(raw: VscodeColorTheme, opts: ConvertOpti
       // that have both a light and dark variant (a Marketplace extension family)
       // recombine them into proper colors/darkColors via buildThemeFromMarketplace.
       colors: palette,
-      darkColors: palette
+      darkColors: palette,
+      // Only set when the theme ships a full ANSI palette — the terminal keeps
+      // its built-in VS Code defaults otherwise.
+      ...(terminal ? { terminal } : {})
     }
   }
 }
diff --git a/run_agent.py b/run_agent.py
index 9c720bcbfe0..c717c66c178 100644
--- a/run_agent.py
+++ b/run_agent.py
@@ -376,6 +376,7 @@ class AIAgent:
         thinking_callback: callable = None,
         reasoning_callback: callable = None,
         clarify_callback: callable = None,
+        read_terminal_callback: callable = None,
         step_callback: callable = None,
         stream_delta_callback: callable = None,
         interim_assistant_callback: callable = None,
@@ -449,6 +450,7 @@ class AIAgent:
             thinking_callback=thinking_callback,
             reasoning_callback=reasoning_callback,
             clarify_callback=clarify_callback,
+            read_terminal_callback=read_terminal_callback,
             step_callback=step_callback,
             stream_delta_callback=stream_delta_callback,
             interim_assistant_callback=interim_assistant_callback,
diff --git a/tools/read_terminal_tool.py b/tools/read_terminal_tool.py
new file mode 100644
index 00000000000..c48e12a4188
--- /dev/null
+++ b/tools/read_terminal_tool.py
@@ -0,0 +1,93 @@
+#!/usr/bin/env python3
+"""Read the in-app terminal pane in the Hermes desktop GUI.
+
+The embedded terminal's buffer lives in the desktop renderer (xterm.js), so this
+tool round-trips through the gateway's blocking-prompt bridge — the same one
+`clarify` uses: tui_gateway emits ``terminal.read.request``, the renderer answers
+with ``terminal.read.respond``. This module is just schema + a thin dispatcher
+over the platform-injected callback.
+"""
+
+import json
+import os
+from typing import Callable, Optional
+
+from tools.registry import registry, tool_error
+
+
+def read_terminal_tool(
+    start_line: Optional[int] = None,
+    count: Optional[int] = None,
+    callback: Optional[Callable] = None,
+) -> str:
+    """Return the in-app terminal's contents (+ line metadata) as a JSON string."""
+    if callback is None:
+        return tool_error("read_terminal is only available in the Hermes desktop app.")
+
+    try:
+        window = {
+            key: max(floor, int(val))
+            for key, val, floor in (("start", start_line, 0), ("count", count, 1))
+            if val is not None
+        }
+    except (TypeError, ValueError):
+        return tool_error("start_line and count must be integers.")
+
+    try:
+        raw = callback(**window)
+    except Exception as exc:
+        return tool_error(f"Failed to read terminal: {exc}")
+
+    if not raw:
+        return tool_error("No in-app terminal is open, or the read timed out.")
+
+    # Desktop answers with a JSON object; pass it through, else wrap the raw text.
+    try:
+        return json.dumps(json.loads(raw), ensure_ascii=False)
+    except (TypeError, ValueError):
+        return json.dumps({"text": str(raw)}, ensure_ascii=False)
+
+
+def check_read_terminal_requirements() -> bool:
+    """Desktop GUI only — HERMES_DESKTOP is set on the gateway the app spawns."""
+    return (os.getenv("HERMES_DESKTOP") or "").strip().lower() in ("1", "true", "yes")
+
+
+READ_TERMINAL_SCHEMA = {
+    "name": "read_terminal",
+    "description": (
+        "Read what's currently shown in the in-app terminal pane of the Hermes "
+        "desktop GUI (the embedded shell beside this chat). Call with no arguments "
+        "to get the visible screen plus the total line count (`total_lines`). To "
+        "page through scrollback, pass `start_line` (0 = oldest line) and `count`; "
+        "valid lines are [0, total_lines). Returns JSON: "
+        "{total_lines, start, end, viewport_rows, cursor_row, text}."
+    ),
+    "parameters": {
+        "type": "object",
+        "properties": {
+            "start_line": {
+                "type": "integer",
+                "description": "0-indexed first line (0 = oldest). Omit for the visible screen.",
+            },
+            "count": {
+                "type": "integer",
+                "description": "Lines to read from start_line. Defaults to the visible row count.",
+            },
+        },
+    },
+}
+
+
+registry.register(
+    name="read_terminal",
+    toolset="terminal",
+    schema=READ_TERMINAL_SCHEMA,
+    handler=lambda args, **kw: read_terminal_tool(
+        start_line=args.get("start_line"),
+        count=args.get("count"),
+        callback=kw.get("callback"),
+    ),
+    check_fn=check_read_terminal_requirements,
+    emoji="🖥️",
+)
diff --git a/toolsets.py b/toolsets.py
index 10c5dbb0ca0..901b072f46c 100644
--- a/toolsets.py
+++ b/toolsets.py
@@ -33,6 +33,9 @@ _HERMES_CORE_TOOLS = [
     "web_search", "web_extract",
     # Terminal + process management
     "terminal", "process",
+    # Read the desktop GUI's embedded terminal pane (gated on HERMES_DESKTOP
+    # via check_fn in tools/read_terminal_tool.py — hidden outside the GUI).
+    "read_terminal",
     # File manipulation
     "read_file", "write_file", "patch", "search_files",
     # Vision + image generation
diff --git a/tui_gateway/server.py b/tui_gateway/server.py
index 69c662d6409..12bfd502fdb 100644
--- a/tui_gateway/server.py
+++ b/tui_gateway/server.py
@@ -2468,6 +2468,14 @@ def _agent_cbs(sid: str) -> dict:
         "clarify_callback": lambda q, c: _block(
             "clarify.request", sid, {"question": q, "choices": c}
         ),
+        # read_terminal tool (desktop GUI): same blocking bridge as clarify — the
+        # renderer answers terminal.read.respond with the serialized buffer.
+        "read_terminal_callback": lambda start=None, count=None: _block(
+            "terminal.read.request",
+            sid,
+            {k: v for k, v in (("start", start), ("count", count)) if v is not None},
+            timeout=30,
+        ),
     }
 
 
@@ -6114,6 +6122,12 @@ def _(rid, params: dict) -> dict:
     return _respond(rid, params, "answer")
 
 
+@method("terminal.read.respond")
+def _(rid, params: dict) -> dict:
+    # `text` is a JSON string of the serialized terminal buffer + line metadata.
+    return _respond(rid, params, "text")
+
+
 @method("sudo.respond")
 def _(rid, params: dict) -> dict:
     return _respond(rid, params, "password")