diff --git a/apps/web/src/components/ChatView.tsx b/apps/web/src/components/ChatView.tsx
index c57c6d227d033afba211cace3b9c25828bfe63a8..4fa52c843d321c34b86fc2951d1e7ac4f3bc22b4 100644
--- a/apps/web/src/components/ChatView.tsx
+++ b/apps/web/src/components/ChatView.tsx
@@ -299,6 +299,21 @@ export default function ChatView() {
     },
     [activeThreadId, dispatch],
   );
+  const closeTerminal = useCallback(
+    (terminalId: string) => {
+      if (!activeThreadId || !api) return;
+      void api.terminal.write({ threadId: activeThreadId, terminalId, data: "exit\n" }).catch(() => {
+        // Ignore write errors so the UI can still close an uninitialized or already-exited terminal.
+      });
+      dispatch({
+        type: "CLOSE_THREAD_TERMINAL",
+        threadId: activeThreadId,
+        terminalId,
+      });
+      setTerminalFocusRequestId((value) => value + 1);
+    },
+    [activeThreadId, api, dispatch],
+  );
 
   const handleRuntimeModeChange = async (mode: "approval-required" | "full-access") => {
     if (mode === state.runtimeMode) return;
@@ -1489,6 +1504,7 @@ export default function ChatView() {
           onSplitTerminal={splitTerminal}
           onNewTerminal={createNewTerminal}
           onActiveTerminalChange={activateTerminal}
+          onCloseTerminal={closeTerminal}
           onHeightChange={(height) =>
             dispatch({
               type: "SET_THREAD_TERMINAL_HEIGHT",
diff --git a/apps/web/src/components/ThreadTerminalDrawer.tsx b/apps/web/src/components/ThreadTerminalDrawer.tsx
index fd9dc07786025b86bdd89785eb0658e684c2f25b..783e5886481d879e647f1645b10ca9d80e381751 100644
--- a/apps/web/src/components/ThreadTerminalDrawer.tsx
+++ b/apps/web/src/components/ThreadTerminalDrawer.tsx
@@ -421,6 +421,7 @@ interface ThreadTerminalDrawerProps {
   onSplitTerminal: () => void;
   onNewTerminal: () => void;
   onActiveTerminalChange: (terminalId: string) => void;
+  onCloseTerminal: (terminalId: string) => void;
   onHeightChange: (height: number) => void;
 }
 
@@ -437,6 +438,7 @@ export default function ThreadTerminalDrawer({
   onSplitTerminal,
   onNewTerminal,
   onActiveTerminalChange,
+  onCloseTerminal,
   onHeightChange,
 }: ThreadTerminalDrawerProps) {
   const [drawerHeight, setDrawerHeight] = useState(() => clampDrawerHeight(height));
@@ -482,6 +484,13 @@ export default function ThreadTerminalDrawer({
       : [resolvedActiveTerminalId];
 
   const showTabBar = terminalLayout === "tabs" && normalizedTerminalIds.length > 1;
+  const terminalLabelById = useMemo(
+    () =>
+      new Map(
+        normalizedTerminalIds.map((terminalId, index) => [terminalId, `Terminal ${index + 1}`]),
+      ),
+    [normalizedTerminalIds],
+  );
 
   useEffect(() => {
     onHeightChangeRef.current = onHeightChange;
@@ -593,21 +602,37 @@ export default function ThreadTerminalDrawer({
         {showTabBar ? (
           <div className="min-w-0 flex-1 overflow-x-auto">
             <div className="inline-flex rounded-md border border-border/80 bg-muted/40 p-0.5">
-              {normalizedTerminalIds.map((terminalId, index) => {
+              {normalizedTerminalIds.map((terminalId) => {
                 const isActive = terminalId === resolvedActiveTerminalId;
                 return (
-                  <button
+                  <div
                     key={terminalId}
-                    type="button"
-                    className={`rounded px-2.5 py-1 text-xs transition-colors ${
+                    className={`inline-flex items-center gap-1 rounded px-2.5 py-1 text-xs transition-colors ${
                       isActive
                         ? "bg-background text-foreground shadow-sm"
-                        : "text-muted-foreground hover:text-foreground"
+                        : "text-muted-foreground"
                     }`}
-                    onClick={() => onActiveTerminalChange(terminalId)}
                   >
-                    {`Terminal ${index + 1}`}
-                  </button>
+                    <button
+                      type="button"
+                      className="pr-1 hover:text-foreground"
+                      onClick={() => onActiveTerminalChange(terminalId)}
+                    >
+                      {terminalLabelById.get(terminalId) ?? "Terminal"}
+                    </button>
+                    <button
+                      type="button"
+                      className="rounded px-1 text-[11px] text-muted-foreground transition-colors hover:bg-accent hover:text-foreground"
+                      onClick={(event) => {
+                        event.stopPropagation();
+                        onCloseTerminal(terminalId);
+                      }}
+                      aria-label={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
+                      title={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
+                    >
+                      ×
+                    </button>
+                  </div>
                 );
               })}
             </div>
@@ -632,6 +657,14 @@ export default function ThreadTerminalDrawer({
           >
             New Terminal
           </button>
+          <div className="h-5 w-px bg-border/80" />
+          <button
+            type="button"
+            className="px-2.5 py-1 text-xs text-foreground/90 transition-colors hover:bg-accent"
+            onClick={() => onCloseTerminal(resolvedActiveTerminalId)}
+          >
+            Close Terminal
+          </button>
         </div>
       </div>
 
@@ -639,17 +672,45 @@ export default function ThreadTerminalDrawer({
         {terminalLayout === "split" && visibleTerminalIds.length === 2 ? (
           <div className="grid h-full w-full grid-cols-2 gap-1">
             {visibleTerminalIds.map((terminalId) => (
-              <TerminalViewport
+              <div
                 key={terminalId}
-                api={api}
-                threadId={threadId}
-                terminalId={terminalId}
-                cwd={cwd}
-                focusRequestId={focusRequestId}
-                autoFocus={terminalId === resolvedActiveTerminalId}
-                resizeEpoch={resizeEpoch}
-                drawerHeight={drawerHeight}
-              />
+                className="flex min-h-0 flex-col rounded-[4px] border border-border/70"
+              >
+                <div className="flex items-center justify-between border-b border-border/70 px-2 py-1">
+                  <button
+                    type="button"
+                    className={`text-xs ${
+                      terminalId === resolvedActiveTerminalId
+                        ? "text-foreground"
+                        : "text-muted-foreground hover:text-foreground"
+                    }`}
+                    onClick={() => onActiveTerminalChange(terminalId)}
+                  >
+                    {terminalLabelById.get(terminalId) ?? "Terminal"}
+                  </button>
+                  <button
+                    type="button"
+                    className="rounded px-1 text-xs text-muted-foreground transition-colors hover:bg-accent hover:text-foreground"
+                    onClick={() => onCloseTerminal(terminalId)}
+                    aria-label={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
+                    title={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
+                  >
+                    ×
+                  </button>
+                </div>
+                <div className="min-h-0 flex-1">
+                  <TerminalViewport
+                    api={api}
+                    threadId={threadId}
+                    terminalId={terminalId}
+                    cwd={cwd}
+                    focusRequestId={focusRequestId}
+                    autoFocus={terminalId === resolvedActiveTerminalId}
+                    resizeEpoch={resizeEpoch}
+                    drawerHeight={drawerHeight}
+                  />
+                </div>
+              </div>
             ))}
           </div>
         ) : (
diff --git a/apps/web/src/store.test.ts b/apps/web/src/store.test.ts
index a06efcd063f0e6c6d91585aa25608d261b5b24b3..8e5e6d011c3a3b83e5ad9751b5920ba0277924a5 100644
--- a/apps/web/src/store.test.ts
+++ b/apps/web/src/store.test.ts
@@ -160,6 +160,42 @@ describe("store reducer thread continuity", () => {
     expect(next.threads[0]?.activeTerminalId).toBe("term-2");
   });
 
+  it("closes a terminal tab and falls back to single layout when one remains", () => {
+    const state = makeState(
+      makeThread({
+        terminalIds: [DEFAULT_THREAD_TERMINAL_ID, "term-2"],
+        activeTerminalId: "term-2",
+        terminalLayout: "tabs",
+      }),
+    );
+    const next = reducer(state, {
+      type: "CLOSE_THREAD_TERMINAL",
+      threadId: "thread-local-1",
+      terminalId: "term-2",
+    });
+
+    expect(next.threads[0]?.terminalIds).toEqual([DEFAULT_THREAD_TERMINAL_ID]);
+    expect(next.threads[0]?.activeTerminalId).toBe(DEFAULT_THREAD_TERMINAL_ID);
+    expect(next.threads[0]?.terminalLayout).toBe("single");
+  });
+
+  it("closes the final terminal and hides the drawer", () => {
+    const state = makeState(
+      makeThread({
+        terminalOpen: true,
+      }),
+    );
+    const next = reducer(state, {
+      type: "CLOSE_THREAD_TERMINAL",
+      threadId: "thread-local-1",
+      terminalId: DEFAULT_THREAD_TERMINAL_ID,
+    });
+
+    expect(next.threads[0]?.terminalOpen).toBe(false);
+    expect(next.threads[0]?.terminalIds).toEqual([DEFAULT_THREAD_TERMINAL_ID]);
+    expect(next.threads[0]?.terminalLayout).toBe("single");
+  });
+
   it("backfills codexThreadId from routed provider events", () => {
     const state = makeState(makeThread({ codexThreadId: null }));
     const next = reducer(state, {
diff --git a/apps/web/src/store.ts b/apps/web/src/store.ts
index 039cf3636987ae321bdd729067df1606da12db53..bd2fe31a9b94c9547e23383da9154463d0aae698 100644
--- a/apps/web/src/store.ts
+++ b/apps/web/src/store.ts
@@ -35,6 +35,7 @@ type Action =
   | { type: "SPLIT_THREAD_TERMINAL"; threadId: string; terminalId: string }
   | { type: "NEW_THREAD_TERMINAL"; threadId: string; terminalId: string }
   | { type: "SET_THREAD_ACTIVE_TERMINAL"; threadId: string; terminalId: string }
+  | { type: "CLOSE_THREAD_TERMINAL"; threadId: string; terminalId: string }
   | { type: "TOGGLE_DIFF" }
   | {
       type: "APPLY_EVENT";
@@ -189,6 +190,48 @@ function normalizeThreadTerminals(thread: Thread): Thread {
   };
 }
 
+function closeThreadTerminal(thread: Thread, terminalId: string): Thread {
+  if (!thread.terminalIds.includes(terminalId)) {
+    return thread;
+  }
+
+  const remainingTerminalIds = thread.terminalIds.filter((id) => id !== terminalId);
+  if (remainingTerminalIds.length === 0) {
+    return normalizeThreadTerminals({
+      ...thread,
+      terminalOpen: false,
+      terminalIds: [DEFAULT_THREAD_TERMINAL_ID],
+      activeTerminalId: DEFAULT_THREAD_TERMINAL_ID,
+      terminalLayout: "single",
+      splitTerminalIds: [],
+    });
+  }
+
+  const nextActiveTerminalId =
+    thread.activeTerminalId === terminalId
+      ? (remainingTerminalIds[0] ?? DEFAULT_THREAD_TERMINAL_ID)
+      : thread.activeTerminalId;
+  let nextLayout = thread.terminalLayout;
+  let nextSplitTerminalIds = thread.splitTerminalIds.filter((id) => id !== terminalId);
+
+  if (nextLayout === "split" && nextSplitTerminalIds.length < 2) {
+    nextLayout = remainingTerminalIds.length > 1 ? "tabs" : "single";
+    nextSplitTerminalIds = [];
+  }
+
+  if (nextLayout === "tabs" && remainingTerminalIds.length < 2) {
+    nextLayout = "single";
+  }
+
+  return normalizeThreadTerminals({
+    ...thread,
+    terminalIds: remainingTerminalIds,
+    activeTerminalId: nextActiveTerminalId,
+    terminalLayout: nextLayout,
+    splitTerminalIds: nextSplitTerminalIds,
+  });
+}
+
 function findThreadBySessionId(threads: Thread[], sessionId: string): Thread | undefined {
   return threads.find((t) => t.session?.sessionId === sessionId);
 }
@@ -454,6 +497,14 @@ export function reducer(state: AppState, action: Action): AppState {
         }),
       };
 
+    case "CLOSE_THREAD_TERMINAL":
+      return {
+        ...state,
+        threads: updateThread(state.threads, action.threadId, (thread) =>
+          closeThreadTerminal(thread, action.terminalId),
+        ),
+      };
+
     case "TOGGLE_DIFF":
       return { ...state, diffOpen: !state.diffOpen };