diff --git a/app/components/workbench/EditorPanel.tsx b/app/components/workbench/EditorPanel.tsx
index a6248e5..45d51a4 100644
--- a/app/components/workbench/EditorPanel.tsx
+++ b/app/components/workbench/EditorPanel.tsx
@@ -60,8 +60,9 @@ export const EditorPanel = memo(
 
     const theme = useStore(themeStore);
     const showTerminal = useStore(workbenchStore.showTerminal);
+    const showBoltTerminal = useStore(workbenchStore.showBoltTerminal);
 
-    const terminalRefs = useRef<Array<TerminalRef | null>>([]);
+    const terminalRefs = useRef<(TerminalRef | null)[]>([]);
     const terminalPanelRef = useRef<ImperativePanelHandle>(null);
     const terminalToggledByShortcut = useRef(false);
 
@@ -105,15 +106,16 @@ export const EditorPanel = memo(
       }
 
       const isCollapsed = terminal.isCollapsed();
+      const shouldShowTerminal = showTerminal || showBoltTerminal;
 
-      if (!showTerminal && !isCollapsed) {
+      if (!shouldShowTerminal && !isCollapsed) {
         terminal.collapse();
-      } else if (showTerminal && isCollapsed) {
+      } else if (shouldShowTerminal && isCollapsed) {
         terminal.resize(DEFAULT_TERMINAL_SIZE);
       }
 
       terminalToggledByShortcut.current = false;
-    }, [showTerminal]);
+    }, [showTerminal, showBoltTerminal]);
 
     const addTerminal = () => {
       if (terminalCount < MAX_TERMINALS) {
@@ -124,7 +126,7 @@ export const EditorPanel = memo(
 
     return (
       <PanelGroup direction="vertical">
-        <Panel defaultSize={showTerminal ? DEFAULT_EDITOR_SIZE : 100} minSize={20}>
+        <Panel defaultSize={showTerminal || showBoltTerminal ? DEFAULT_EDITOR_SIZE : 100} minSize={20}>
           <PanelGroup direction="horizontal">
             <Panel defaultSize={20} minSize={10} collapsible>
               <div className="flex flex-col border-r border-bolt-elements-borderColor h-full">
@@ -182,25 +184,38 @@ export const EditorPanel = memo(
         <PanelResizeHandle />
         <Panel
           ref={terminalPanelRef}
-          defaultSize={showTerminal ? DEFAULT_TERMINAL_SIZE : 0}
+          defaultSize={DEFAULT_TERMINAL_SIZE}
           minSize={10}
           collapsible
-          onExpand={() => {
-            if (!terminalToggledByShortcut.current) {
-              workbenchStore.toggleTerminal(true);
-            }
-          }}
           onCollapse={() => {
             if (!terminalToggledByShortcut.current) {
               workbenchStore.toggleTerminal(false);
+              workbenchStore.toggleBoltTerminal(false);
             }
           }}
         >
           <div className="h-full">
             <div className="bg-bolt-elements-terminals-background h-full flex flex-col">
               <div className="flex items-center bg-bolt-elements-background-depth-2 border-y border-bolt-elements-borderColor gap-1.5 min-h-[34px] p-2">
+                <button
+                  className={classNames(
+                    'flex items-center text-sm cursor-pointer gap-1.5 px-3 py-2 h-full whitespace-nowrap rounded-full',
+                    {
+                      'bg-bolt-elements-terminals-buttonBackground text-bolt-elements-textPrimary': showBoltTerminal,
+                      'bg-bolt-elements-background-depth-2 text-bolt-elements-textSecondary hover:bg-bolt-elements-terminals-buttonBackground':
+                        !showBoltTerminal,
+                    },
+                  )}
+                  onClick={() => {
+                    workbenchStore.toggleBoltTerminal(true);
+                    workbenchStore.toggleTerminal(false);
+                  }}
+                >
+                  <div className="i-ph:lightning-duotone text-lg" />
+                  Bolt Terminal
+                </button>
                 {Array.from({ length: terminalCount }, (_, index) => {
-                  const isActive = activeTerminal === index;
+                  const isActive = !showBoltTerminal && activeTerminal === index;
 
                   return (
                     <button
@@ -213,7 +228,11 @@ export const EditorPanel = memo(
                             !isActive,
                         },
                       )}
-                      onClick={() => setActiveTerminal(index)}
+                      onClick={() => {
+                        setActiveTerminal(index);
+                        workbenchStore.toggleBoltTerminal(false);
+                        workbenchStore.toggleTerminal(true);
+                      }}
                     >
                       <div className="i-ph:terminal-window-duotone text-lg" />
                       Terminal {terminalCount > 1 && index + 1}
@@ -226,11 +245,23 @@ export const EditorPanel = memo(
                   icon="i-ph:caret-down"
                   title="Close"
                   size="md"
-                  onClick={() => workbenchStore.toggleTerminal(false)}
+                  onClick={() => {
+                    workbenchStore.toggleTerminal(false);
+                    workbenchStore.toggleBoltTerminal(false);
+                  }}
                 />
               </div>
+              <Terminal
+                className={classNames('h-full overflow-hidden', {
+                  hidden: !showBoltTerminal,
+                })}
+                readonly={true}
+                onTerminalReady={(terminal) => workbenchStore.attachBoltTerminal(terminal)}
+                onTerminalResize={(cols, rows) => workbenchStore.onBoltTerminalResize(cols, rows)}
+                theme={theme}
+              />
               {Array.from({ length: terminalCount }, (_, index) => {
-                const isActive = activeTerminal === index;
+                const isActive = !showBoltTerminal && activeTerminal === index;
 
                 return (
                   <Terminal
@@ -239,7 +270,7 @@ export const EditorPanel = memo(
                       hidden: !isActive,
                     })}
                     ref={(ref) => {
-                      terminalRefs.current.push(ref);
+                      terminalRefs.current[index] = ref;
                     }}
                     onTerminalReady={(terminal) => workbenchStore.attachTerminal(terminal)}
                     onTerminalResize={(cols, rows) => workbenchStore.onTerminalResize(cols, rows)}
diff --git a/app/lib/runtime/action-runner.ts b/app/lib/runtime/action-runner.ts
index 838c26e..a2c308d 100644
--- a/app/lib/runtime/action-runner.ts
+++ b/app/lib/runtime/action-runner.ts
@@ -5,6 +5,7 @@ import type { ActionCallbackData } from './message-parser';
 import type { BoltAction } from '~/types/actions';
 import { createScopedLogger } from '~/utils/logger';
 import { unreachable } from '~/utils/unreachable';
+import { workbenchStore } from '~/lib/stores/workbench';
 
 const logger = createScopedLogger('ActionRunner');
 
@@ -128,18 +129,23 @@ export class ActionRunner {
 
     const webcontainer = await this.#webcontainer;
 
+    // Write the command to the Bolt terminal
+    workbenchStore.writeToBoltTerminal(`\x1b[1;34m$ ${action.content}\x1b[0m\n`);
+
     const process = await webcontainer.spawn('jsh', ['-c', action.content], {
       env: { npm_config_yes: true },
     });
 
     action.abortSignal.addEventListener('abort', () => {
       process.kill();
+      workbenchStore.writeToBoltTerminal('\x1b[1;31mCommand aborted\x1b[0m\n');
     });
 
     process.output.pipeTo(
       new WritableStream({
         write(data) {
           console.log(data);
+          workbenchStore.writeToBoltTerminal(data);
         },
       }),
     );
@@ -147,6 +153,7 @@ export class ActionRunner {
     const exitCode = await process.exit;
 
     logger.debug(`Process terminated with code ${exitCode}`);
+    workbenchStore.writeToBoltTerminal(`\x1b[1;${exitCode === 0 ? '32' : '31'}mProcess exited with code ${exitCode}\x1b[0m\n\n`);
   }
 
   async #runFileAction(action: ActionState) {
@@ -161,20 +168,27 @@ export class ActionRunner {
     // remove trailing slashes
     folder = folder.replace(/\/+$/g, '');
 
+    // Write file creation to Bolt terminal
+    workbenchStore.writeToBoltTerminal(`\x1b[1;34mCreating file: ${action.filePath}\x1b[0m\n`);
+
     if (folder !== '.') {
       try {
         await webcontainer.fs.mkdir(folder, { recursive: true });
         logger.debug('Created folder', folder);
+        workbenchStore.writeToBoltTerminal(`\x1b[1;32mCreated folder: ${folder}\x1b[0m\n`);
       } catch (error) {
         logger.error('Failed to create folder\n\n', error);
+        workbenchStore.writeToBoltTerminal(`\x1b[1;31mFailed to create folder: ${folder}\x1b[0m\n${error}\n`);
       }
     }
 
     try {
       await webcontainer.fs.writeFile(action.filePath, action.content);
       logger.debug(`File written ${action.filePath}`);
+      workbenchStore.writeToBoltTerminal(`\x1b[1;32mFile created: ${action.filePath}\x1b[0m\n\n`);
     } catch (error) {
       logger.error('Failed to write file\n\n', error);
+      workbenchStore.writeToBoltTerminal(`\x1b[1;31mFailed to write file: ${action.filePath}\x1b[0m\n${error}\n\n`);
     }
   }
 
diff --git a/app/lib/stores/bolt-terminal.ts b/app/lib/stores/bolt-terminal.ts
new file mode 100644
index 0000000..486fe1e
--- /dev/null
+++ b/app/lib/stores/bolt-terminal.ts
@@ -0,0 +1,45 @@
+import type { WebContainer, WebContainerProcess } from '@webcontainer/api';
+import { atom, type WritableAtom } from 'nanostores';
+import type { ITerminal } from '~/types/terminal';
+import { newShellProcess } from '~/utils/shell';
+import { coloredText } from '~/utils/terminal';
+
+export class BoltTerminalStore {
+  #webcontainer: Promise<WebContainer>;
+  #terminal: { terminal: ITerminal; process: WebContainerProcess } | null = null;
+  showBoltTerminal: WritableAtom<boolean> = atom(false);
+
+  constructor(webcontainerPromise: Promise<WebContainer>) {
+    this.#webcontainer = webcontainerPromise;
+
+    if (import.meta.hot) {
+      import.meta.hot.data.showBoltTerminal = this.showBoltTerminal;
+    }
+  }
+
+  toggleBoltTerminal(value?: boolean) {
+    this.showBoltTerminal.set(value !== undefined ? value : !this.showBoltTerminal.get());
+  }
+
+  async attachTerminal(terminal: ITerminal) {
+    try {
+      const shellProcess = await newShellProcess(await this.#webcontainer, terminal);
+      this.#terminal = { terminal, process: shellProcess };
+    } catch (error: any) {
+      terminal.write(coloredText.red('Failed to spawn shell\n\n') + error.message);
+      return;
+    }
+  }
+
+  onTerminalResize(cols: number, rows: number) {
+    if (this.#terminal) {
+      this.#terminal.process.resize({ cols, rows });
+    }
+  }
+
+  writeToTerminal(data: string) {
+    if (this.#terminal) {
+      this.#terminal.terminal.write(data);
+    }
+  }
+} 
\ No newline at end of file
diff --git a/app/lib/stores/settings.ts b/app/lib/stores/settings.ts
index 5e48bfe..b366a49 100644
--- a/app/lib/stores/settings.ts
+++ b/app/lib/stores/settings.ts
@@ -13,6 +13,7 @@ export interface Shortcut {
 
 export interface Shortcuts {
   toggleTerminal: Shortcut;
+  toggleBoltTerminal: Shortcut;
 }
 
 export interface Settings {
@@ -25,6 +26,11 @@ export const shortcutsStore = map<Shortcuts>({
     ctrlOrMetaKey: true,
     action: () => workbenchStore.toggleTerminal(),
   },
+  toggleBoltTerminal: {
+    key: 'k',
+    ctrlOrMetaKey: true,
+    action: () => workbenchStore.toggleBoltTerminal(),
+  },
 });
 
 export const settingsStore = map<Settings>({
diff --git a/app/lib/stores/workbench.ts b/app/lib/stores/workbench.ts
index b0a5f4f..c5e1d31 100644
--- a/app/lib/stores/workbench.ts
+++ b/app/lib/stores/workbench.ts
@@ -3,6 +3,7 @@ import { EditorStore } from './editor';
 import { FilesStore, type FileMap } from './files';
 import { PreviewsStore } from './previews';
 import { TerminalStore } from './terminal';
+import { BoltTerminalStore } from './bolt-terminal';
 import type { EditorDocument, ScrollPosition } from '~/components/editor/codemirror/CodeMirrorEditor';
 import { ActionRunner } from '~/lib/runtime/action-runner';
 import type { ActionCallbackData, ArtifactCallbackData } from '~/lib/runtime/message-parser';
@@ -28,6 +29,7 @@ export class WorkbenchStore {
   #filesStore = new FilesStore(webcontainer);
   #editorStore = new EditorStore(this.#filesStore);
   #terminalStore = new TerminalStore(webcontainer);
+  #boltTerminalStore = new BoltTerminalStore(webcontainer);
 
   artifacts: Artifacts = import.meta.hot?.data.artifacts ?? map({});
 
@@ -86,6 +88,26 @@ export class WorkbenchStore {
     this.#terminalStore.onTerminalResize(cols, rows);
   }
 
+  get showBoltTerminal() {
+    return this.#boltTerminalStore.showBoltTerminal;
+  }
+
+  toggleBoltTerminal(value?: boolean) {
+    this.#boltTerminalStore.toggleBoltTerminal(value);
+  }
+
+  attachBoltTerminal(terminal: ITerminal) {
+    this.#boltTerminalStore.attachTerminal(terminal);
+  }
+
+  onBoltTerminalResize(cols: number, rows: number) {
+    this.#boltTerminalStore.onTerminalResize(cols, rows);
+  }
+
+  writeToBoltTerminal(data: string) {
+    this.#boltTerminalStore.writeToTerminal(data);
+  }
+
   setDocuments(files: FileMap) {
     this.#editorStore.setDocuments(files);