diff --git a/bun.lock b/bun.lock
index b512245..6a3ded5 100644
--- a/bun.lock
+++ b/bun.lock
@@ -10,6 +10,7 @@
         "highlight.js": "^11.11.1",
         "ink-link": "^5.0.0",
         "lowlight": "^3.3.0",
+        "node-pty": "^1.1.0",
         "open": "^10.2.0",
         "sharp": "^0.34.5",
         "ws": "^8.19.0",
@@ -245,6 +246,10 @@
 
     "nano-spawn": ["nano-spawn@2.0.0", "", {}, "sha512-tacvGzUY5o2D8CBh2rrwxyNojUsZNU2zjNTzKQrkgGJQTbGAfArVWXSKMBokBeeg6C7OLRGUEyoFlYbfeWQIqw=="],
 
+    "node-addon-api": ["node-addon-api@7.1.1", "", {}, "sha512-5m3bsyrjFWE1xf7nz7YXdN4udnVtXK6/Yfgn5qnahL6bCkf2yKt4k3nuTKAtT4r3IG8JNR2ncsIMdZuAzJjHQQ=="],
+
+    "node-pty": ["node-pty@1.1.0", "", { "dependencies": { "node-addon-api": "^7.1.0" } }, "sha512-20JqtutY6JPXTUnL0ij1uad7Qe1baT46lyolh2sSENDd4sTzKZ4nmAFkeAARDKwmlLjPx6XKRlwRUxwjOy+lUg=="],
+
     "onetime": ["onetime@5.1.2", "", { "dependencies": { "mimic-fn": "^2.1.0" } }, "sha512-kbpaSSGJTWdAY5KPVeMOKXSrPtr8C8C7wodJbcsd51jRnmD+GZu8Y0VoU6Dm5Z4vWr0Ig/1NKuWRKf7j5aaYSg=="],
 
     "open": ["open@10.2.0", "", { "dependencies": { "default-browser": "^5.2.1", "define-lazy-prop": "^3.0.0", "is-inside-container": "^1.0.0", "wsl-utils": "^0.1.0" } }, "sha512-YgBpdJHPyQ2UE5x+hlSXcnejzAvD0b22U2OuAP+8OnlJT+PjWPxtgmGqKKc+RgTM63U9gN0YzrYc71R2WT/hTA=="],
diff --git a/package.json b/package.json
index 7fabc22..4126213 100644
--- a/package.json
+++ b/package.json
@@ -38,6 +38,7 @@
     "highlight.js": "^11.11.1",
     "ink-link": "^5.0.0",
     "lowlight": "^3.3.0",
+    "node-pty": "^1.1.0",
     "open": "^10.2.0",
     "sharp": "^0.34.5",
     "ws": "^8.19.0"
diff --git a/src/websocket/listen-client.ts b/src/websocket/listen-client.ts
index 47c97e7..064bc8b 100644
--- a/src/websocket/listen-client.ts
+++ b/src/websocket/listen-client.ts
@@ -80,6 +80,13 @@ import type {
   TranscriptSupplementMessage,
 } from "../types/protocol";
 import { getListenerBlockedReason } from "./helpers/listenerQueueAdapter";
+import {
+  handleTerminalInput,
+  handleTerminalKill,
+  handleTerminalResize,
+  handleTerminalSpawn,
+  killAllTerminals,
+} from "./terminalHandler";
 
 interface StartListenerOptions {
   connectionId: string;
@@ -216,6 +223,33 @@ interface CancelRunMessage {
   run_id?: string | null;
 }
 
+interface TerminalSpawnMessage {
+  type: "terminal_spawn";
+  terminal_id: string;
+  cols: number;
+  rows: number;
+  agentId?: string | null;
+  conversationId?: string | null;
+}
+
+interface TerminalInputMessage {
+  type: "terminal_input";
+  terminal_id: string;
+  data: string;
+}
+
+interface TerminalResizeMessage {
+  type: "terminal_resize";
+  terminal_id: string;
+  cols: number;
+  rows: number;
+}
+
+interface TerminalKillMessage {
+  type: "terminal_kill";
+  terminal_id: string;
+}
+
 interface RecoverPendingApprovalsMessage {
   type: "recover_pending_approvals";
   agentId?: string;
@@ -300,7 +334,11 @@ type ServerMessage =
   | ListFoldersInDirectoryMessage
   | CancelRunMessage
   | RecoverPendingApprovalsMessage
-  | WsControlResponse;
+  | WsControlResponse
+  | TerminalSpawnMessage
+  | TerminalInputMessage
+  | TerminalResizeMessage
+  | TerminalKillMessage;
 type ClientMessage =
   | PingMessage
   | RunStartedMessage
@@ -955,6 +993,10 @@ export function parseServerMessage(
       parsed.type === "get_state" ||
       parsed.type === "change_cwd" ||
       parsed.type === "list_folders_in_directory" ||
+      parsed.type === "terminal_spawn" ||
+      parsed.type === "terminal_input" ||
+      parsed.type === "terminal_resize" ||
+      parsed.type === "terminal_kill" ||
       parsed.type === "cancel_run" ||
       parsed.type === "recover_pending_approvals"
     ) {
@@ -2696,6 +2738,35 @@ async function connectWithRetry(
       return;
     }
 
+    // Handle terminal (PTY) messages
+    if (parsed.type === "terminal_spawn") {
+      if (runtime !== activeRuntime || runtime.intentionallyClosed) {
+        return;
+      }
+      const cwd = getConversationWorkingDirectory(
+        runtime,
+        parsed.agentId,
+        parsed.conversationId,
+      );
+      handleTerminalSpawn(parsed, socket, cwd);
+      return;
+    }
+
+    if (parsed.type === "terminal_input") {
+      handleTerminalInput(parsed);
+      return;
+    }
+
+    if (parsed.type === "terminal_resize") {
+      handleTerminalResize(parsed);
+      return;
+    }
+
+    if (parsed.type === "terminal_kill") {
+      handleTerminalKill(parsed);
+      return;
+    }
+
     // Handle status request from cloud (immediate response)
     if (parsed.type === "get_status") {
       if (runtime !== activeRuntime || runtime.intentionallyClosed) {
@@ -2979,6 +3050,7 @@ async function connectWithRetry(
     }
 
     clearRuntimeTimers(runtime);
+    killAllTerminals();
     runtime.socket = null;
     rejectPendingApprovalResolvers(runtime, "WebSocket disconnected");
 
diff --git a/src/websocket/terminalHandler.ts b/src/websocket/terminalHandler.ts
new file mode 100644
index 0000000..c77c74d
--- /dev/null
+++ b/src/websocket/terminalHandler.ts
@@ -0,0 +1,241 @@
+/**
+ * PTY terminal handler for listen mode.
+ * Manages interactive terminal sessions spawned by the web UI.
+ *
+ * Uses Bun's native Bun.Terminal API (available since Bun v1.3.5)
+ * for real PTY support without node-pty.
+ */
+
+import * as os from "node:os";
+import WebSocket from "ws";
+
+interface TerminalSession {
+  process: ReturnType<typeof Bun.spawn>;
+  terminal: {
+    write: (data: string) => void;
+    resize: (cols: number, rows: number) => void;
+    close: () => void;
+  };
+  terminalId: string;
+  spawnedAt: number;
+}
+
+const terminals = new Map<string, TerminalSession>();
+
+/**
+ * Get the default shell for the current platform.
+ */
+function getDefaultShell(): string {
+  if (os.platform() === "win32") {
+    return process.env.COMSPEC || "cmd.exe";
+  }
+  return process.env.SHELL || "/bin/zsh";
+}
+
+/**
+ * Send a terminal message back to the web client via the device WebSocket.
+ */
+function sendTerminalMessage(
+  socket: WebSocket,
+  message: Record<string, unknown>,
+): void {
+  if (socket.readyState === WebSocket.OPEN) {
+    socket.send(JSON.stringify(message));
+  }
+}
+
+/**
+ * Spawn a new PTY terminal session using Bun's native Terminal API.
+ */
+export function handleTerminalSpawn(
+  msg: { terminal_id: string; cols: number; rows: number },
+  socket: WebSocket,
+  cwd: string,
+): void {
+  const { terminal_id, cols, rows } = msg;
+
+  // Kill existing session with same ID if any
+  killTerminal(terminal_id);
+
+  const shell = getDefaultShell();
+
+  console.log(
+    `[Terminal] Spawning PTY: shell=${shell}, cwd=${cwd}, cols=${cols}, rows=${rows}`,
+  );
+
+  try {
+    const proc = Bun.spawn([shell], {
+      cwd,
+      env: {
+        ...process.env,
+        TERM: "xterm-256color",
+        COLORTERM: "truecolor",
+      },
+      terminal: {
+        cols: cols || 80,
+        rows: rows || 24,
+        data: (() => {
+          // Batch output chunks within a 16ms window into a single WS message
+          // to avoid flooding the WebSocket with many small frames.
+          let buffer = "";
+          let flushTimer: ReturnType<typeof setTimeout> | null = null;
+
+          return (_terminal: unknown, data: Uint8Array) => {
+            buffer += new TextDecoder().decode(data);
+
+            if (!flushTimer) {
+              flushTimer = setTimeout(() => {
+                if (buffer.length > 0) {
+                  sendTerminalMessage(socket, {
+                    type: "terminal_output",
+                    terminal_id,
+                    data: buffer,
+                  });
+                  buffer = "";
+                }
+                flushTimer = null;
+              }, 16);
+            }
+          };
+        })(),
+      },
+    });
+
+    // The terminal object is available on the proc when using the terminal option
+    const terminal = (
+      proc as unknown as { terminal: TerminalSession["terminal"] }
+    ).terminal;
+
+    console.log(
+      `[Terminal] proc.pid=${proc.pid}, terminal=${typeof terminal}, keys=${Object.keys(proc as unknown as Record<string, unknown>).join(",")}`,
+    );
+
+    if (!terminal) {
+      console.error(
+        "[Terminal] terminal object is undefined on proc — Bun.Terminal API may not be available",
+      );
+      sendTerminalMessage(socket, {
+        type: "terminal_exited",
+        terminal_id,
+        exitCode: 1,
+      });
+      return;
+    }
+
+    const session: TerminalSession = {
+      process: proc,
+      terminal,
+      terminalId: terminal_id,
+      spawnedAt: Date.now(),
+    };
+    terminals.set(terminal_id, session);
+    console.log(
+      `[Terminal] Session stored for terminal_id=${terminal_id}, map size=${terminals.size}`,
+    );
+
+    // Handle process exit — only clean up if this is still the active session
+    // (a newer spawn may have replaced us in the map)
+    const myPid = proc.pid;
+    proc.exited.then((exitCode) => {
+      const current = terminals.get(terminal_id);
+      if (current && current.process.pid === myPid) {
+        console.log(
+          `[Terminal] PTY process exited: terminal_id=${terminal_id}, pid=${myPid}, exitCode=${exitCode}`,
+        );
+        terminals.delete(terminal_id);
+        sendTerminalMessage(socket, {
+          type: "terminal_exited",
+          terminal_id,
+          exitCode: exitCode ?? 0,
+        });
+      } else {
+        console.log(
+          `[Terminal] Stale PTY exit ignored: terminal_id=${terminal_id}, pid=${myPid} (current pid=${current?.process.pid})`,
+        );
+      }
+    });
+
+    sendTerminalMessage(socket, {
+      type: "terminal_spawned",
+      terminal_id,
+      pid: proc.pid,
+    });
+  } catch (error) {
+    console.error("[Terminal] Failed to spawn PTY:", error);
+    sendTerminalMessage(socket, {
+      type: "terminal_exited",
+      terminal_id,
+      exitCode: 1,
+    });
+  }
+}
+
+/**
+ * Write input data to a terminal session.
+ */
+export function handleTerminalInput(msg: {
+  terminal_id: string;
+  data: string;
+}): void {
+  const session = terminals.get(msg.terminal_id);
+  if (session) {
+    session.terminal.write(msg.data);
+  }
+}
+
+/**
+ * Resize a terminal session.
+ */
+export function handleTerminalResize(msg: {
+  terminal_id: string;
+  cols: number;
+  rows: number;
+}): void {
+  const session = terminals.get(msg.terminal_id);
+  if (session) {
+    session.terminal.resize(msg.cols, msg.rows);
+  }
+}
+
+/**
+ * Kill a terminal session.
+ */
+export function handleTerminalKill(msg: { terminal_id: string }): void {
+  const session = terminals.get(msg.terminal_id);
+  // Ignore kill if the session was spawned very recently (< 2s).
+  // This handles the React Strict Mode race where cleanup's kill arrives
+  // after the remount's spawn due to async WS relay latency.
+  if (session && Date.now() - session.spawnedAt < 2000) {
+    console.log(
+      `[Terminal] Ignoring kill for recently spawned session (age=${Date.now() - session.spawnedAt}ms)`,
+    );
+    return;
+  }
+  killTerminal(msg.terminal_id);
+}
+
+function killTerminal(terminalId: string): void {
+  const session = terminals.get(terminalId);
+  if (session) {
+    console.log(
+      `[Terminal] killTerminal: terminalId=${terminalId}, pid=${session.process.pid}`,
+    );
+    try {
+      session.terminal.close();
+    } catch {
+      // terminal may already be closed
+    }
+    session.process.kill();
+    terminals.delete(terminalId);
+  }
+}
+
+/**
+ * Kill all active terminal sessions.
+ * Call on disconnect/cleanup.
+ */
+export function killAllTerminals(): void {
+  for (const [id] of terminals) {
+    killTerminal(id);
+  }
+}