diff --git a/packages/server/package.json b/packages/server/package.json
index 9e035101c..4ddc8a72b 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -31,7 +31,7 @@
     "dev": "cross-env PASEO_NODE_ENV=development node --import tsx scripts/dev-runner.ts",
     "dev:tsx": "cross-env PASEO_NODE_ENV=development tsx watch --ignore '**/*.timestamp-*' src/server/index.ts",
     "build": "node -e \"require('node:fs').rmSync('dist',{ recursive: true, force: true })\" && npm run build:lib && npm run build:scripts",
-    "build:lib": "tsc -p tsconfig.server.json --incremental false && node -e \"const fs=require('node:fs'); fs.mkdirSync('dist/server/server/speech/providers/local/sherpa/assets',{recursive:true}); fs.copyFileSync('src/server/speech/providers/local/sherpa/assets/silero_vad.onnx','dist/server/server/speech/providers/local/sherpa/assets/silero_vad.onnx'); fs.cpSync('src/terminal/shell-integration','dist/server/terminal/shell-integration',{recursive:true}); fs.cpSync('src/terminal/shell-integration','dist/src/terminal/shell-integration',{recursive:true});\"",
+    "build:lib": "tsc -p tsconfig.server.json --incremental false && node -e \"const fs=require('node:fs'); fs.mkdirSync('dist/server/server/speech/providers/local/sherpa/assets',{recursive:true}); fs.copyFileSync('src/server/speech/providers/local/sherpa/assets/silero_vad.onnx','dist/server/server/speech/providers/local/sherpa/assets/silero_vad.onnx'); fs.cpSync('src/terminal/shell-integration','dist/server/terminal/shell-integration',{recursive:true}); fs.cpSync('src/terminal/shell-integration','dist/src/terminal/shell-integration',{recursive:true}); fs.copyFileSync('src/terminal/terminal-ts-loader.mjs','dist/server/terminal/terminal-ts-loader.mjs');\"",
     "build:scripts": "tsc -p tsconfig.scripts.json --incremental false && node -e \"const fs=require('node:fs'); fs.mkdirSync('dist/scripts',{recursive:true}); fs.copyFileSync('scripts/mcp-stdio-socket-bridge-cli.mjs','dist/scripts/mcp-stdio-socket-bridge-cli.mjs');\"",
     "prepack": "npm run build",
     "start": "node dist/server/server/index.js",
diff --git a/packages/server/src/server/bootstrap.ts b/packages/server/src/server/bootstrap.ts
index 6e7161525..3f8e9c8be 100644
--- a/packages/server/src/server/bootstrap.ts
+++ b/packages/server/src/server/bootstrap.ts
@@ -115,7 +115,8 @@ import { DaemonConfigStore } from "./daemon-config-store.js";
 import { WorkspaceGitServiceImpl } from "./workspace-git-service.js";
 import { archivePersistedWorkspaceRecord } from "./workspace-archive-service.js";
 import { wrapSessionMessage, type SessionOutboundMessage } from "./messages.js";
-import { createTerminalManager, type TerminalManager } from "../terminal/terminal-manager.js";
+import type { TerminalManager } from "../terminal/terminal-manager.js";
+import { createConfiguredTerminalManager } from "../terminal/terminal-manager-factory.js";
 import { createConnectionOfferV2, encodeOfferToFragmentUrl } from "./connection-offer.js";
 import { loadOrCreateDaemonKeyPair } from "./daemon-keypair.js";
 import { startRelayTransport, type RelayTransportController } from "./relay-transport.js";
@@ -434,7 +435,7 @@ export async function createPaseoDaemon(
     paseoHome: config.paseoHome,
     logger,
   });
-  const terminalManager = createTerminalManager();
+  const terminalManager = createConfiguredTerminalManager();
   const github = createGitHubService();
   const workspaceGitService = new WorkspaceGitServiceImpl({
     logger,
diff --git a/packages/server/src/terminal/terminal-manager-factory.test.ts b/packages/server/src/terminal/terminal-manager-factory.test.ts
new file mode 100644
index 000000000..583718cd8
--- /dev/null
+++ b/packages/server/src/terminal/terminal-manager-factory.test.ts
@@ -0,0 +1,10 @@
+import { expect, it } from "vitest";
+import { resolveTerminalBackend } from "./terminal-manager-factory.js";
+
+it("uses the worker terminal backend by default", () => {
+  expect(resolveTerminalBackend({})).toBe("worker");
+});
+
+it("allows explicitly opting back into the in-process terminal backend", () => {
+  expect(resolveTerminalBackend({ PASEO_TERMINAL_BACKEND: "in-process" })).toBe("in-process");
+});
diff --git a/packages/server/src/terminal/terminal-manager-factory.ts b/packages/server/src/terminal/terminal-manager-factory.ts
new file mode 100644
index 000000000..a2d6a5d26
--- /dev/null
+++ b/packages/server/src/terminal/terminal-manager-factory.ts
@@ -0,0 +1,18 @@
+import { createTerminalManager, type TerminalManager } from "./terminal-manager.js";
+import { createWorkerTerminalManager } from "./worker-terminal-manager.js";
+
+export type TerminalBackend = "in-process" | "worker";
+
+export function resolveTerminalBackend(env: NodeJS.ProcessEnv = process.env): TerminalBackend {
+  return env.PASEO_TERMINAL_BACKEND === "in-process" ? "in-process" : "worker";
+}
+
+export function createConfiguredTerminalManager(options?: {
+  backend?: TerminalBackend;
+}): TerminalManager {
+  const backend = options?.backend ?? resolveTerminalBackend();
+  if (backend === "worker") {
+    return createWorkerTerminalManager();
+  }
+  return createTerminalManager();
+}
diff --git a/packages/server/src/terminal/terminal-ts-loader.mjs b/packages/server/src/terminal/terminal-ts-loader.mjs
new file mode 100644
index 000000000..16b4537f1
--- /dev/null
+++ b/packages/server/src/terminal/terminal-ts-loader.mjs
@@ -0,0 +1,20 @@
+import { existsSync } from "node:fs";
+import { fileURLToPath } from "node:url";
+
+export async function resolve(specifier, context, nextResolve) {
+  if (
+    context.parentURL?.startsWith("file:") &&
+    specifier.startsWith(".") &&
+    specifier.endsWith(".js")
+  ) {
+    const candidateUrl = new URL(specifier.replace(/\.js$/, ".ts"), context.parentURL);
+    if (existsSync(fileURLToPath(candidateUrl))) {
+      return {
+        url: candidateUrl.href,
+        shortCircuit: true,
+      };
+    }
+  }
+
+  return nextResolve(specifier, context);
+}
diff --git a/packages/server/src/terminal/terminal-worker-process.ts b/packages/server/src/terminal/terminal-worker-process.ts
new file mode 100644
index 000000000..672da646e
--- /dev/null
+++ b/packages/server/src/terminal/terminal-worker-process.ts
@@ -0,0 +1,213 @@
+import { createTerminalManager } from "./terminal-manager.js";
+import type { TerminalSession } from "./terminal.js";
+import type {
+  TerminalWorkerRequest,
+  TerminalWorkerToParentMessage,
+  WorkerTerminalInfo,
+} from "./terminal-worker-protocol.js";
+
+const manager = createTerminalManager();
+const unsubscribeByTerminalId = new Map<string, Array<() => void>>();
+let ipcClosing = false;
+
+function sendToParent(message: TerminalWorkerToParentMessage): void {
+  if (ipcClosing || !process.connected || !process.send) {
+    return;
+  }
+  try {
+    process.send(message, (error) => {
+      if (error) {
+        ipcClosing = true;
+      }
+    });
+  } catch {
+    ipcClosing = true;
+  }
+}
+
+function toTerminalInfo(session: TerminalSession): WorkerTerminalInfo {
+  return {
+    id: session.id,
+    name: session.name,
+    cwd: session.cwd,
+    ...(session.getTitle() ? { title: session.getTitle() } : {}),
+  };
+}
+
+function clearTerminalSubscriptions(terminalId: string): void {
+  const subscriptions = unsubscribeByTerminalId.get(terminalId);
+  if (subscriptions) {
+    for (const unsubscribe of subscriptions) {
+      try {
+        unsubscribe();
+      } catch {
+        // no-op
+      }
+    }
+  }
+  unsubscribeByTerminalId.delete(terminalId);
+}
+
+function watchTerminal(session: TerminalSession): void {
+  clearTerminalSubscriptions(session.id);
+
+  const unsubscribeMessage = session.subscribe((message) => {
+    sendToParent({
+      type: "terminalMessage",
+      terminalId: session.id,
+      message,
+    });
+  });
+  const unsubscribeExit = session.onExit((info) => {
+    clearTerminalSubscriptions(session.id);
+    sendToParent({
+      type: "terminalExit",
+      terminalId: session.id,
+      info,
+    });
+  });
+  const unsubscribeTitle = session.onTitleChange((title) => {
+    sendToParent({
+      type: "terminalTitleChange",
+      terminalId: session.id,
+      title,
+    });
+  });
+  const unsubscribeCommandFinished = session.onCommandFinished((info) => {
+    sendToParent({
+      type: "terminalCommandFinished",
+      terminalId: session.id,
+      info,
+    });
+  });
+
+  unsubscribeByTerminalId.set(session.id, [
+    unsubscribeMessage,
+    unsubscribeExit,
+    unsubscribeTitle,
+    unsubscribeCommandFinished,
+  ]);
+}
+
+manager.subscribeTerminalsChanged((event) => {
+  sendToParent({
+    type: "terminalsChanged",
+    cwd: event.cwd,
+    terminals: event.terminals,
+  });
+});
+
+async function handleRequest(message: TerminalWorkerRequest): Promise<void> {
+  switch (message.type) {
+    case "getTerminals": {
+      const terminals = await manager.getTerminals(message.cwd);
+      sendToParent({
+        type: "response",
+        requestId: message.requestId,
+        ok: true,
+        result: terminals.map(toTerminalInfo),
+      });
+      return;
+    }
+
+    case "createTerminal": {
+      const session = await manager.createTerminal(message.options);
+      watchTerminal(session);
+      sendToParent({
+        type: "terminalCreated",
+        terminal: toTerminalInfo(session),
+        state: session.getState(),
+      });
+      sendToParent({
+        type: "response",
+        requestId: message.requestId,
+        ok: true,
+        result: {
+          terminal: toTerminalInfo(session),
+          state: session.getState(),
+        },
+      });
+      return;
+    }
+
+    case "registerCwdEnv": {
+      manager.registerCwdEnv({ cwd: message.cwd, env: message.env });
+      sendToParent({ type: "response", requestId: message.requestId, ok: true });
+      return;
+    }
+
+    case "killTerminal": {
+      const session = manager.getTerminal(message.terminalId);
+      const cwd = session?.cwd;
+      manager.killTerminal(message.terminalId);
+      clearTerminalSubscriptions(message.terminalId);
+      if (cwd) {
+        sendToParent({
+          type: "terminalRemoved",
+          terminalId: message.terminalId,
+          cwd,
+        });
+      }
+      sendToParent({ type: "response", requestId: message.requestId, ok: true });
+      return;
+    }
+
+    case "killTerminalAndWait": {
+      const session = manager.getTerminal(message.terminalId);
+      const cwd = session?.cwd;
+      await manager.killTerminalAndWait(message.terminalId, message.options);
+      clearTerminalSubscriptions(message.terminalId);
+      if (cwd) {
+        sendToParent({
+          type: "terminalRemoved",
+          terminalId: message.terminalId,
+          cwd,
+        });
+      }
+      sendToParent({ type: "response", requestId: message.requestId, ok: true });
+      return;
+    }
+
+    case "listDirectories": {
+      sendToParent({
+        type: "response",
+        requestId: message.requestId,
+        ok: true,
+        result: manager.listDirectories(),
+      });
+      return;
+    }
+
+    case "killAll": {
+      manager.killAll();
+      for (const terminalId of Array.from(unsubscribeByTerminalId.keys())) {
+        clearTerminalSubscriptions(terminalId);
+      }
+      sendToParent({ type: "response", requestId: message.requestId, ok: true });
+      return;
+    }
+
+    case "send": {
+      const session = manager.getTerminal(message.terminalId);
+      session?.send(message.message);
+      sendToParent({ type: "response", requestId: message.requestId, ok: true });
+      return;
+    }
+  }
+}
+
+process.on("message", (message: TerminalWorkerRequest) => {
+  void handleRequest(message).catch((error: unknown) => {
+    sendToParent({
+      type: "response",
+      requestId: message.requestId,
+      ok: false,
+      error: error instanceof Error ? error.message : "Terminal worker request failed",
+    });
+  });
+});
+
+process.once("disconnect", () => {
+  ipcClosing = true;
+  manager.killAll();
+});
diff --git a/packages/server/src/terminal/terminal-worker-protocol.ts b/packages/server/src/terminal/terminal-worker-protocol.ts
new file mode 100644
index 000000000..71f0b3c55
--- /dev/null
+++ b/packages/server/src/terminal/terminal-worker-protocol.ts
@@ -0,0 +1,122 @@
+import type { TerminalExitInfo, ServerMessage, ClientMessage } from "./terminal.js";
+import type { TerminalState } from "../shared/messages.js";
+
+export interface WorkerTerminalInfo {
+  id: string;
+  name: string;
+  cwd: string;
+  title?: string;
+}
+
+export interface WorkerCreateTerminalOptions {
+  id?: string;
+  cwd: string;
+  name?: string;
+  title?: string;
+  env?: Record<string, string>;
+  command?: string;
+  args?: string[];
+}
+
+export interface WorkerKillAndWaitOptions {
+  gracefulTimeoutMs?: number;
+  forceTimeoutMs?: number;
+}
+
+export type TerminalWorkerRequest =
+  | {
+      type: "getTerminals";
+      requestId: string;
+      cwd: string;
+    }
+  | {
+      type: "createTerminal";
+      requestId: string;
+      options: WorkerCreateTerminalOptions;
+    }
+  | {
+      type: "registerCwdEnv";
+      requestId: string;
+      cwd: string;
+      env: Record<string, string>;
+    }
+  | {
+      type: "killTerminal";
+      requestId: string;
+      terminalId: string;
+    }
+  | {
+      type: "killTerminalAndWait";
+      requestId: string;
+      terminalId: string;
+      options?: WorkerKillAndWaitOptions;
+    }
+  | {
+      type: "listDirectories";
+      requestId: string;
+    }
+  | {
+      type: "killAll";
+      requestId: string;
+    }
+  | {
+      type: "send";
+      requestId: string;
+      terminalId: string;
+      message: ClientMessage;
+    };
+
+export type TerminalWorkerResponse =
+  | {
+      type: "response";
+      requestId: string;
+      ok: true;
+      result?: unknown;
+    }
+  | {
+      type: "response";
+      requestId: string;
+      ok: false;
+      error: string;
+    };
+
+export type TerminalWorkerEvent =
+  | {
+      type: "terminalCreated";
+      terminal: WorkerTerminalInfo;
+      state: TerminalState;
+    }
+  | {
+      type: "terminalRemoved";
+      terminalId: string;
+      cwd: string;
+    }
+  | {
+      type: "terminalMessage";
+      terminalId: string;
+      message: ServerMessage;
+    }
+  | {
+      type: "terminalExit";
+      terminalId: string;
+      info: TerminalExitInfo;
+    }
+  | {
+      type: "terminalTitleChange";
+      terminalId: string;
+      title?: string;
+    }
+  | {
+      type: "terminalCommandFinished";
+      terminalId: string;
+      info: {
+        exitCode: number | null;
+      };
+    }
+  | {
+      type: "terminalsChanged";
+      cwd: string;
+      terminals: WorkerTerminalInfo[];
+    };
+
+export type TerminalWorkerToParentMessage = TerminalWorkerResponse | TerminalWorkerEvent;
diff --git a/packages/server/src/terminal/worker-terminal-manager.test.ts b/packages/server/src/terminal/worker-terminal-manager.test.ts
new file mode 100644
index 000000000..2466e31d6
--- /dev/null
+++ b/packages/server/src/terminal/worker-terminal-manager.test.ts
@@ -0,0 +1,211 @@
+import { afterEach, expect, it } from "vitest";
+import { EventEmitter } from "node:events";
+import { existsSync, mkdtempSync, readFileSync, rmSync } from "node:fs";
+import { join } from "node:path";
+import { tmpdir } from "node:os";
+import { createWorkerTerminalManager } from "./worker-terminal-manager.js";
+import type { TerminalManager } from "./terminal-manager.js";
+import type { TerminalSession } from "./terminal.js";
+import type { TerminalState } from "../shared/messages.js";
+import type {
+  TerminalWorkerRequest,
+  TerminalWorkerToParentMessage,
+} from "./terminal-worker-protocol.js";
+
+async function waitForCondition(
+  predicate: () => boolean,
+  timeoutMs: number,
+  intervalMs = 25,
+): Promise<void> {
+  const start = Date.now();
+  while (Date.now() - start < timeoutMs) {
+    if (predicate()) {
+      return;
+    }
+    await new Promise((resolve) => setTimeout(resolve, intervalMs));
+  }
+  throw new Error(`Timed out after ${timeoutMs}ms waiting for condition`);
+}
+
+async function withShell<T>(shell: string, run: () => Promise<T>): Promise<T> {
+  const originalShell = process.env.SHELL;
+  process.env.SHELL = shell;
+  try {
+    return await run();
+  } finally {
+    if (originalShell === undefined) {
+      delete process.env.SHELL;
+    } else {
+      process.env.SHELL = originalShell;
+    }
+  }
+}
+
+function getVisibleText(session: TerminalSession): string {
+  return session
+    .getState()
+    .grid.map((row) =>
+      row
+        .map((cell) => cell.char)
+        .join("")
+        .trimEnd(),
+    )
+    .join("\n");
+}
+
+function createTerminalState(): TerminalState {
+  const blankCell = { char: " " };
+  return {
+    rows: 1,
+    cols: 1,
+    grid: [[blankCell]],
+    scrollback: [],
+    cursor: { row: 0, col: 0 },
+  };
+}
+
+class FakeTerminalWorker extends EventEmitter {
+  connected = true;
+  killed = false;
+  readonly sentMessages: TerminalWorkerRequest[] = [];
+
+  send(message: TerminalWorkerRequest, callback: (error: Error | null) => void): boolean {
+    this.sentMessages.push(message);
+    callback(null);
+    return true;
+  }
+
+  disconnect(): void {
+    this.connected = false;
+    this.emit("exit", 0, null);
+  }
+
+  kill(): boolean {
+    this.killed = true;
+    this.connected = false;
+    this.emit("exit", 0, null);
+    return true;
+  }
+
+  emitWorkerMessage(message: TerminalWorkerToParentMessage): void {
+    this.emit("message", message);
+  }
+}
+
+let manager: TerminalManager | null = null;
+const temporaryDirs: string[] = [];
+
+afterEach(() => {
+  manager?.killAll();
+  manager = null;
+  while (temporaryDirs.length > 0) {
+    const dir = temporaryDirs.pop();
+    if (dir) {
+      rmSync(dir, { recursive: true, force: true });
+    }
+  }
+});
+
+it("creates a terminal through the worker and streams output", async () => {
+  await withShell("/bin/sh", async () => {
+    manager = createWorkerTerminalManager();
+    const session = await manager.createTerminal({ cwd: "/tmp", env: { PS1: "$ " } });
+    const messages: string[] = [];
+    let snapshots = 0;
+    const unsubscribe = session.subscribe((message) => {
+      if (message.type === "output") {
+        messages.push(message.data);
+      }
+      if (message.type === "snapshot") {
+        snapshots += 1;
+      }
+    });
+    await new Promise((resolve) => setTimeout(resolve, 100));
+    const snapshotsBeforeOutput = snapshots;
+
+    session.send({ type: "input", data: "printf worker-output\\r" });
+
+    await waitForCondition(
+      () =>
+        messages.join("").includes("worker-output") ||
+        getVisibleText(session).includes("worker-output"),
+      10000,
+    );
+    await new Promise((resolve) => setTimeout(resolve, 100));
+    unsubscribe();
+
+    expect(messages.join("") + getVisibleText(session)).toContain("worker-output");
+    expect(snapshots).toBe(snapshotsBeforeOutput);
+  });
+});
+
+it("does not surface fire-and-forget send timeouts as unhandled rejections", async () => {
+  const worker = new FakeTerminalWorker();
+  manager = createWorkerTerminalManager({
+    requestTimeoutMs: 5,
+    forkWorker: () => worker,
+  });
+
+  worker.emitWorkerMessage({
+    type: "terminalCreated",
+    terminal: { id: "terminal-1", name: "Terminal", cwd: "/tmp" },
+    state: createTerminalState(),
+  });
+  const session = manager.getTerminal("terminal-1");
+  expect(session).toBeDefined();
+
+  const unhandledRejections: unknown[] = [];
+  const onUnhandledRejection = (reason: unknown) => {
+    unhandledRejections.push(reason);
+  };
+  process.on("unhandledRejection", onUnhandledRejection);
+  try {
+    session?.send({ type: "input", data: "x" });
+    await new Promise((resolve) => setTimeout(resolve, 25));
+  } finally {
+    process.off("unhandledRejection", onUnhandledRejection);
+  }
+
+  expect(worker.sentMessages.some((message) => message.type === "send")).toBe(true);
+  expect(unhandledRejections).toEqual([]);
+});
+
+it("keeps registered cwd env inheritance behind the worker manager interface", async () => {
+  await withShell("/bin/sh", async () => {
+    manager = createWorkerTerminalManager();
+    const cwd = mkdtempSync(join(tmpdir(), "worker-terminal-manager-env-"));
+    temporaryDirs.push(cwd);
+    const markerPath = join(cwd, "env.txt");
+
+    manager.registerCwdEnv({
+      cwd,
+      env: { PASEO_WORKER_TERMINAL_TEST: "worker-env" },
+    });
+    const session = await manager.createTerminal({ cwd, env: { PS1: "$ " } });
+    session.send({
+      type: "input",
+      data: `printf '%s' "$PASEO_WORKER_TERMINAL_TEST" > ${JSON.stringify(markerPath)}\r`,
+    });
+
+    await waitForCondition(() => existsSync(markerPath), 10000);
+
+    expect(readFileSync(markerPath, "utf8")).toBe("worker-env");
+  });
+});
+
+it("removes worker terminals after killAndWait", async () => {
+  await withShell("/bin/sh", async () => {
+    manager = createWorkerTerminalManager();
+    const session = await manager.createTerminal({ cwd: "/tmp", env: { PS1: "$ " } });
+
+    await manager.killTerminalAndWait(session.id, {
+      gracefulTimeoutMs: 1000,
+      forceTimeoutMs: 500,
+    });
+
+    await waitForCondition(() => manager?.getTerminal(session.id) === undefined, 5000);
+
+    expect(manager.getTerminal(session.id)).toBeUndefined();
+    expect(manager.listDirectories()).not.toContain("/tmp");
+  });
+});
diff --git a/packages/server/src/terminal/worker-terminal-manager.ts b/packages/server/src/terminal/worker-terminal-manager.ts
new file mode 100644
index 000000000..8d771cf26
--- /dev/null
+++ b/packages/server/src/terminal/worker-terminal-manager.ts
@@ -0,0 +1,527 @@
+import { fork, type ChildProcess } from "node:child_process";
+import { fileURLToPath } from "node:url";
+import { randomUUID } from "node:crypto";
+import type { TerminalState } from "../shared/messages.js";
+import type {
+  ClientMessage,
+  ServerMessage,
+  TerminalCommandFinishedInfo,
+  TerminalExitInfo,
+  TerminalSession,
+} from "./terminal.js";
+import type {
+  TerminalListItem,
+  TerminalManager,
+  TerminalsChangedEvent,
+  TerminalsChangedListener,
+} from "./terminal-manager.js";
+import type {
+  TerminalWorkerRequest,
+  TerminalWorkerResponse,
+  TerminalWorkerToParentMessage,
+  WorkerCreateTerminalOptions,
+  WorkerTerminalInfo,
+} from "./terminal-worker-protocol.js";
+
+const REQUEST_TIMEOUT_MS = 10000;
+
+type TerminalWorkerRequestInput = TerminalWorkerRequest extends infer Request
+  ? Request extends TerminalWorkerRequest
+    ? Omit<Request, "requestId">
+    : never
+  : never;
+
+interface PendingRequest {
+  resolve: (value: unknown) => void;
+  reject: (error: Error) => void;
+  timeout: ReturnType<typeof setTimeout>;
+}
+
+interface WorkerTerminalRecord {
+  info: WorkerTerminalInfo;
+  state: TerminalState;
+  exitInfo: TerminalExitInfo | null;
+  messageListeners: Set<(msg: ServerMessage) => void>;
+  exitListeners: Set<(info: TerminalExitInfo) => void>;
+  commandFinishedListeners: Set<(info: TerminalCommandFinishedInfo) => void>;
+  titleChangeListeners: Set<(title?: string) => void>;
+  session: TerminalSession;
+}
+
+interface TerminalWorkerProcess {
+  connected: boolean;
+  killed: boolean;
+  send(message: TerminalWorkerRequest, callback: (error: Error | null) => void): boolean;
+  disconnect(): void;
+  kill(): boolean;
+  on(event: "message", listener: (message: TerminalWorkerToParentMessage) => void): this;
+  on(event: "exit", listener: (code: number | null, signal: NodeJS.Signals | null) => void): this;
+}
+
+interface WorkerTerminalManagerOptions {
+  requestTimeoutMs?: number;
+  forkWorker?: () => TerminalWorkerProcess;
+}
+
+function resolveWorkerUrl(): URL {
+  const currentUrl = import.meta.url;
+  if (currentUrl.endsWith(".ts")) {
+    return new URL("./terminal-worker-process.ts", currentUrl);
+  }
+  return new URL("./terminal-worker-process.js", currentUrl);
+}
+
+function resolveWorkerExecArgv(): string[] {
+  if (!import.meta.url.endsWith(".ts")) {
+    return [];
+  }
+  const loaderUrl = new URL("./terminal-ts-loader.mjs", import.meta.url).href;
+  const importSource = [
+    'import { register } from "node:module";',
+    'import { pathToFileURL } from "node:url";',
+    `register(${JSON.stringify(loaderUrl)}, pathToFileURL("./"));`,
+  ].join(" ");
+  return [
+    "--experimental-strip-types",
+    "--import",
+    `data:text/javascript,${encodeURIComponent(importSource)}`,
+  ];
+}
+
+function isResponse(message: TerminalWorkerToParentMessage): message is TerminalWorkerResponse {
+  return message.type === "response";
+}
+
+function cloneTerminalInfo(info: WorkerTerminalInfo): WorkerTerminalInfo {
+  return {
+    id: info.id,
+    name: info.name,
+    cwd: info.cwd,
+    ...(info.title ? { title: info.title } : {}),
+  };
+}
+
+function forkTerminalWorker(): TerminalWorkerProcess {
+  return fork(fileURLToPath(resolveWorkerUrl()), [], {
+    execArgv: resolveWorkerExecArgv(),
+    serialization: "advanced",
+    stdio: ["ignore", "ignore", "inherit", "ipc"],
+  }) as ChildProcess as TerminalWorkerProcess;
+}
+
+export function createWorkerTerminalManager(
+  managerOptions: WorkerTerminalManagerOptions = {},
+): TerminalManager {
+  const worker = managerOptions.forkWorker ? managerOptions.forkWorker() : forkTerminalWorker();
+  const requestTimeoutMs = managerOptions.requestTimeoutMs ?? REQUEST_TIMEOUT_MS;
+  const pendingRequests = new Map<string, PendingRequest>();
+  const recordsById = new Map<string, WorkerTerminalRecord>();
+  const terminalIdsByCwd = new Map<string, Set<string>>();
+  const terminalsChangedListeners = new Set<TerminalsChangedListener>();
+  let workerExited = false;
+  let workerShutdownTimer: ReturnType<typeof setTimeout> | null = null;
+
+  function emitTerminalsChanged(event: TerminalsChangedEvent): void {
+    for (const listener of Array.from(terminalsChangedListeners)) {
+      try {
+        listener(event);
+      } catch {
+        // no-op
+      }
+    }
+  }
+
+  function listTerminalItemsForCwd(cwd: string): TerminalListItem[] {
+    const terminalIds = terminalIdsByCwd.get(cwd);
+    if (!terminalIds) {
+      return [];
+    }
+    const terminals: TerminalListItem[] = [];
+    for (const terminalId of terminalIds) {
+      const record = recordsById.get(terminalId);
+      if (!record) {
+        continue;
+      }
+      terminals.push({
+        id: record.info.id,
+        name: record.info.name,
+        cwd: record.info.cwd,
+        ...(record.info.title ? { title: record.info.title } : {}),
+      });
+    }
+    return terminals;
+  }
+
+  function registerRecord(input: {
+    info: WorkerTerminalInfo;
+    state: TerminalState;
+  }): TerminalSession {
+    const existing = recordsById.get(input.info.id);
+    if (existing) {
+      existing.info = cloneTerminalInfo(input.info);
+      existing.state = input.state;
+      return existing.session;
+    }
+
+    const record: WorkerTerminalRecord = {
+      info: cloneTerminalInfo(input.info),
+      state: input.state,
+      exitInfo: null,
+      messageListeners: new Set(),
+      exitListeners: new Set(),
+      commandFinishedListeners: new Set(),
+      titleChangeListeners: new Set(),
+      session: undefined as unknown as TerminalSession,
+    };
+
+    const session: TerminalSession = {
+      get id() {
+        return record.info.id;
+      },
+      get name() {
+        return record.info.name;
+      },
+      get cwd() {
+        return record.info.cwd;
+      },
+      send(message: ClientMessage): void {
+        sendBestEffortRequest({ type: "send", terminalId: record.info.id, message });
+      },
+      subscribe(listener: (msg: ServerMessage) => void): () => void {
+        record.messageListeners.add(listener);
+        queueMicrotask(() => {
+          if (record.messageListeners.has(listener)) {
+            listener({ type: "snapshot", state: record.state });
+          }
+        });
+        return () => {
+          record.messageListeners.delete(listener);
+        };
+      },
+      onExit(listener: (info: TerminalExitInfo) => void): () => void {
+        if (record.exitInfo) {
+          queueMicrotask(() => listener(record.exitInfo!));
+          return () => {};
+        }
+        record.exitListeners.add(listener);
+        return () => {
+          record.exitListeners.delete(listener);
+        };
+      },
+      onCommandFinished(listener: (info: TerminalCommandFinishedInfo) => void): () => void {
+        record.commandFinishedListeners.add(listener);
+        return () => {
+          record.commandFinishedListeners.delete(listener);
+        };
+      },
+      onTitleChange(listener: (title?: string) => void): () => void {
+        record.titleChangeListeners.add(listener);
+        if (record.info.title !== undefined) {
+          queueMicrotask(() => {
+            if (record.titleChangeListeners.has(listener)) {
+              listener(record.info.title);
+            }
+          });
+        }
+        return () => {
+          record.titleChangeListeners.delete(listener);
+        };
+      },
+      getSize(): { rows: number; cols: number } {
+        return {
+          rows: record.state.rows,
+          cols: record.state.cols,
+        };
+      },
+      getState(): TerminalState {
+        return record.state;
+      },
+      getTitle(): string | undefined {
+        return record.info.title;
+      },
+      getExitInfo(): TerminalExitInfo | null {
+        return record.exitInfo;
+      },
+      kill(): void {
+        sendBestEffortRequest({ type: "killTerminal", terminalId: record.info.id });
+      },
+      killAndWait(options?: {
+        gracefulTimeoutMs?: number;
+        forceTimeoutMs?: number;
+      }): Promise<void> {
+        return sendRequest({
+          type: "killTerminalAndWait",
+          terminalId: record.info.id,
+          ...(options ? { options } : {}),
+        }).then(() => undefined);
+      },
+    };
+
+    record.session = session;
+    recordsById.set(record.info.id, record);
+    const terminalIds = terminalIdsByCwd.get(record.info.cwd) ?? new Set<string>();
+    terminalIds.add(record.info.id);
+    terminalIdsByCwd.set(record.info.cwd, terminalIds);
+    return session;
+  }
+
+  function removeRecord(terminalId: string): WorkerTerminalRecord | undefined {
+    const record = recordsById.get(terminalId);
+    if (!record) {
+      return undefined;
+    }
+    recordsById.delete(terminalId);
+    const terminalIds = terminalIdsByCwd.get(record.info.cwd);
+    if (terminalIds) {
+      terminalIds.delete(terminalId);
+      if (terminalIds.size === 0) {
+        terminalIdsByCwd.delete(record.info.cwd);
+      }
+    }
+    return record;
+  }
+
+  function handleWorkerEvent(message: TerminalWorkerToParentMessage): void {
+    switch (message.type) {
+      case "terminalCreated": {
+        registerRecord({ info: message.terminal, state: message.state });
+        return;
+      }
+
+      case "terminalRemoved": {
+        removeRecord(message.terminalId);
+        emitTerminalsChanged({
+          cwd: message.cwd,
+          terminals: listTerminalItemsForCwd(message.cwd),
+        });
+        return;
+      }
+
+      case "terminalMessage": {
+        const record = recordsById.get(message.terminalId);
+        if (!record) {
+          return;
+        }
+        if (message.message.type === "snapshot") {
+          record.state = message.message.state;
+        }
+        for (const listener of Array.from(record.messageListeners)) {
+          listener(message.message);
+        }
+        return;
+      }
+
+      case "terminalExit": {
+        const record = recordsById.get(message.terminalId);
+        if (!record) {
+          return;
+        }
+        record.exitInfo = message.info;
+        for (const listener of Array.from(record.exitListeners)) {
+          listener(message.info);
+        }
+        record.exitListeners.clear();
+        removeRecord(message.terminalId);
+        emitTerminalsChanged({
+          cwd: record.info.cwd,
+          terminals: listTerminalItemsForCwd(record.info.cwd),
+        });
+        return;
+      }
+
+      case "terminalTitleChange": {
+        const record = recordsById.get(message.terminalId);
+        if (!record) {
+          return;
+        }
+        record.info = {
+          ...record.info,
+          ...(message.title ? { title: message.title } : { title: undefined }),
+        };
+        for (const listener of Array.from(record.titleChangeListeners)) {
+          listener(message.title);
+        }
+        emitTerminalsChanged({
+          cwd: record.info.cwd,
+          terminals: listTerminalItemsForCwd(record.info.cwd),
+        });
+        return;
+      }
+
+      case "terminalCommandFinished": {
+        const record = recordsById.get(message.terminalId);
+        if (!record) {
+          return;
+        }
+        for (const listener of Array.from(record.commandFinishedListeners)) {
+          listener(message.info);
+        }
+        return;
+      }
+
+      case "terminalsChanged": {
+        emitTerminalsChanged({
+          cwd: message.cwd,
+          terminals: message.terminals.map((terminal) => ({
+            id: terminal.id,
+            name: terminal.name,
+            cwd: terminal.cwd,
+            ...(terminal.title ? { title: terminal.title } : {}),
+          })),
+        });
+        return;
+      }
+    }
+  }
+
+  function rejectPendingRequests(error: Error): void {
+    for (const [requestId, pending] of pendingRequests) {
+      clearTimeout(pending.timeout);
+      pending.reject(error);
+      pendingRequests.delete(requestId);
+    }
+  }
+
+  worker.on("message", (message: TerminalWorkerToParentMessage) => {
+    if (isResponse(message)) {
+      const pending = pendingRequests.get(message.requestId);
+      if (!pending) {
+        return;
+      }
+      clearTimeout(pending.timeout);
+      pendingRequests.delete(message.requestId);
+      if (message.ok) {
+        pending.resolve(message.result);
+      } else {
+        pending.reject(new Error(message.error));
+      }
+      return;
+    }
+    handleWorkerEvent(message);
+  });
+
+  worker.on("exit", (code, signal) => {
+    workerExited = true;
+    if (workerShutdownTimer) {
+      clearTimeout(workerShutdownTimer);
+      workerShutdownTimer = null;
+    }
+    rejectPendingRequests(new Error(`Terminal worker exited (${signal ?? code ?? "unknown"})`));
+  });
+
+  function sendRequest(input: TerminalWorkerRequestInput): Promise<unknown> {
+    if (workerExited || !worker.connected) {
+      return Promise.reject(new Error("Terminal worker is not running"));
+    }
+    const requestId = randomUUID();
+    const message = { ...input, requestId } as TerminalWorkerRequest;
+    return new Promise((resolve, reject) => {
+      const timeout = setTimeout(() => {
+        pendingRequests.delete(requestId);
+        reject(new Error(`Terminal worker request timed out: ${input.type}`));
+      }, requestTimeoutMs);
+      pendingRequests.set(requestId, { resolve, reject, timeout });
+      worker.send(message, (error) => {
+        if (!error) {
+          return;
+        }
+        clearTimeout(timeout);
+        pendingRequests.delete(requestId);
+        reject(error);
+      });
+    });
+  }
+
+  function sendBestEffortRequest(input: TerminalWorkerRequestInput): void {
+    void sendRequest(input).catch(() => {
+      // The public terminal methods that call this are intentionally synchronous.
+      // Worker failures are surfaced through awaitable manager methods and worker
+      // lifecycle state; do not let fire-and-forget sends crash the daemon.
+    });
+  }
+
+  function toSessions(terminals: WorkerTerminalInfo[]): TerminalSession[] {
+    return terminals
+      .map((terminal) => recordsById.get(terminal.id)?.session)
+      .filter((session): session is TerminalSession => Boolean(session));
+  }
+
+  return {
+    async getTerminals(cwd: string): Promise<TerminalSession[]> {
+      const result = (await sendRequest({ type: "getTerminals", cwd })) as WorkerTerminalInfo[];
+      return toSessions(result);
+    },
+
+    async createTerminal(options: WorkerCreateTerminalOptions): Promise<TerminalSession> {
+      const result = (await sendRequest({ type: "createTerminal", options })) as {
+        terminal: WorkerTerminalInfo;
+        state: TerminalState;
+      };
+      return registerRecord({ info: result.terminal, state: result.state });
+    },
+
+    registerCwdEnv(options: { cwd: string; env: Record<string, string> }): void {
+      sendBestEffortRequest({
+        type: "registerCwdEnv",
+        cwd: options.cwd,
+        env: options.env,
+      });
+    },
+
+    getTerminal(id: string): TerminalSession | undefined {
+      return recordsById.get(id)?.session;
+    },
+
+    killTerminal(id: string): void {
+      void sendRequest({ type: "killTerminal", terminalId: id }).catch(() => {
+        // no-op; kill is intentionally best-effort and synchronous in the public interface.
+      });
+    },
+
+    async killTerminalAndWait(
+      id: string,
+      options?: { gracefulTimeoutMs?: number; forceTimeoutMs?: number },
+    ): Promise<void> {
+      await sendRequest({
+        type: "killTerminalAndWait",
+        terminalId: id,
+        ...(options ? { options } : {}),
+      });
+    },
+
+    listDirectories(): string[] {
+      return Array.from(terminalIdsByCwd.keys());
+    },
+
+    killAll(): void {
+      void sendRequest({ type: "killAll" })
+        .catch(() => {
+          // no-op
+        })
+        .finally(() => {
+          if (worker.connected) {
+            worker.disconnect();
+          }
+          if (!worker.killed && !workerShutdownTimer) {
+            workerShutdownTimer = setTimeout(() => {
+              worker.kill();
+            }, 1000);
+          }
+        });
+      for (const terminalId of Array.from(recordsById.keys())) {
+        removeRecord(terminalId);
+      }
+    },
+
+    subscribeTerminalsChanged(listener: TerminalsChangedListener): () => void {
+      terminalsChangedListeners.add(listener);
+      return () => {
+        terminalsChangedListeners.delete(listener);
+      };
+    },
+  };
+}
+
+export function terminateWorkerTerminalManager(manager: TerminalManager): void {
+  manager.killAll();
+}
diff --git a/packages/server/tsconfig.server.json b/packages/server/tsconfig.server.json
index 8b6228b86..aee1b6367 100644
--- a/packages/server/tsconfig.server.json
+++ b/packages/server/tsconfig.server.json
@@ -22,7 +22,7 @@
     "declarationMap": true,
     "sourceMap": true
   },
-  "include": ["src/server/**/*", "src/services/**/*"],
+  "include": ["src/server/**/*", "src/services/**/*", "src/terminal/**/*"],
   "exclude": [
     "node_modules",
     "dist",