diff --git a/desktop/src/app/components/apps/terminal/terminal.component.html b/desktop/src/app/components/apps/terminal/terminal.component.html
new file mode 100644
index 0000000..89009ce
--- /dev/null
+++ b/desktop/src/app/components/apps/terminal/terminal.component.html
@@ -0,0 +1,19 @@
+<div class="terminal" (click)="onClick()">
+  <div class="terminal-body" #terminalBody>
+    @for (line of lines(); track $index) {
+      <div class="terminal-line">{{ line }}</div>
+    }
+    <div class="terminal-input-line">
+      <span class="prompt">&gt;</span>
+      <input
+        #termInput
+        class="terminal-input"
+        type="text"
+        spellcheck="false"
+        autocomplete="off"
+        (keydown)="onKeyDown($event)"
+        (input)="onInput($event)"
+      />
+    </div>
+  </div>
+</div>
diff --git a/desktop/src/app/components/apps/terminal/terminal.component.scss b/desktop/src/app/components/apps/terminal/terminal.component.scss
new file mode 100644
index 0000000..4fbf9e2
--- /dev/null
+++ b/desktop/src/app/components/apps/terminal/terminal.component.scss
@@ -0,0 +1,51 @@
+:host {
+  display: block;
+  width: 100%;
+  height: 100%;
+}
+
+.terminal {
+  width: 100%;
+  height: 100%;
+  background: #0c0c0c;
+  color: #cccccc;
+  font-family: 'Cascadia Code', 'Fira Code', 'Consolas', monospace;
+  font-size: 14px;
+  line-height: 1.4;
+  display: flex;
+  flex-direction: column;
+}
+
+.terminal-body {
+  flex: 1;
+  overflow-y: auto;
+  padding: 8px 12px;
+  white-space: pre-wrap;
+  word-break: break-all;
+}
+
+.terminal-line {
+  min-height: 1.4em;
+}
+
+.terminal-input-line {
+  display: flex;
+  align-items: center;
+}
+
+.prompt {
+  color: #6ec6ff;
+  margin-right: 8px;
+  user-select: none;
+}
+
+.terminal-input {
+  flex: 1;
+  background: transparent;
+  border: none;
+  outline: none;
+  color: #cccccc;
+  font-family: inherit;
+  font-size: inherit;
+  caret-color: #ccc;
+}
diff --git a/desktop/src/app/components/apps/terminal/terminal.component.ts b/desktop/src/app/components/apps/terminal/terminal.component.ts
new file mode 100644
index 0000000..db52354
--- /dev/null
+++ b/desktop/src/app/components/apps/terminal/terminal.component.ts
@@ -0,0 +1,110 @@
+import { Component, ElementRef, ViewChild, AfterViewInit, signal } from '@angular/core';
+import { CommonModule } from '@angular/common';
+
+@Component({
+  selector: 'app-terminal',
+  standalone: true,
+  imports: [CommonModule],
+  templateUrl: './terminal.component.html',
+  styleUrl: './terminal.component.scss',
+})
+export class TerminalComponent implements AfterViewInit {
+  @ViewChild('terminalBody') terminalBody!: ElementRef<HTMLDivElement>;
+  @ViewChild('termInput') termInput!: ElementRef<HTMLInputElement>;
+
+  /** Command history for up/down arrow navigation. */
+  private history: string[] = [];
+  private historyIndex = -1;
+
+  /** Lines of terminal output. */
+  readonly lines = signal<string[]>([
+    'Butterfly Terminal v0.1',
+    'Type "help" for available commands.',
+    '',
+  ]);
+
+  ngAfterViewInit(): void {
+    this.termInput?.nativeElement.focus();
+  }
+
+  onInput(event: Event): void {
+    // Just keep focus.
+  }
+
+  onKeyDown(event: KeyboardEvent): void {
+    if (event.key === 'Enter') {
+      const input = this.termInput.nativeElement;
+      const cmd = input.value.trim();
+      input.value = '';
+      if (cmd) {
+        this.history.push(cmd);
+        this.historyIndex = this.history.length;
+        this.executeCommand(cmd);
+      }
+      this.lines.update((l) => [...l, `> ${cmd}`]);
+    } else if (event.key === 'ArrowUp') {
+      event.preventDefault();
+      if (this.historyIndex > 0) {
+        this.historyIndex--;
+        this.termInput.nativeElement.value = this.history[this.historyIndex];
+      }
+    } else if (event.key === 'ArrowDown') {
+      event.preventDefault();
+      if (this.historyIndex < this.history.length - 1) {
+        this.historyIndex++;
+        this.termInput.nativeElement.value = this.history[this.historyIndex];
+      } else {
+        this.historyIndex = this.history.length;
+        this.termInput.nativeElement.value = '';
+      }
+    }
+  }
+
+  private executeCommand(cmd: string): void {
+    const parts = cmd.split(/\s+/);
+    const command = parts[0].toLowerCase();
+
+    switch (command) {
+      case 'help':
+        this.addOutput('Available commands: help, clear, echo, date, uptime, whoami, about');
+        break;
+      case 'clear':
+        this.lines.set([]);
+        return;
+      case 'echo':
+        this.addOutput(parts.slice(1).join(' '));
+        break;
+      case 'date':
+        this.addOutput(new Date().toString());
+        break;
+      case 'uptime':
+        this.addOutput(`System uptime: ${Math.floor(performance.now() / 1000)}s`);
+        break;
+      case 'whoami':
+        this.addOutput('butterfly-user');
+        break;
+      case 'about':
+        this.addOutput('Butterfly Desktop Environment v0.1');
+        this.addOutput('A browser-based remote desktop environment.');
+        break;
+      default:
+        this.addOutput(`Unknown command: ${command}. Type "help" for available commands.`);
+    }
+  }
+
+  private addOutput(text: string): void {
+    this.lines.update((l) => [...l, text]);
+  }
+
+  /** Focus the input when the terminal is clicked. */
+  onClick(): void {
+    this.termInput?.nativeElement.focus();
+  }
+
+  /** Called after view updates to scroll to bottom. */
+  scrollToBottom(): void {
+    if (this.terminalBody) {
+      this.terminalBody.nativeElement.scrollTop = this.terminalBody.nativeElement.scrollHeight;
+    }
+  }
+}