diff --git a/__tests__/components/terminal/terminal.test.tsx b/__tests__/components/terminal/terminal.test.tsx
deleted file mode 100644
index ae25748a8b..0000000000
--- a/__tests__/components/terminal/terminal.test.tsx
+++ /dev/null
@@ -1,128 +0,0 @@
-import { act, screen } from "@testing-library/react";
-import { renderWithProviders } from "test-utils";
-import { vi, describe, afterEach, it, expect } from "vitest";
-import { Command, useCommandStore } from "#/stores/command-store";
-import Terminal from "#/components/features/terminal/terminal";
-
-const renderTerminal = (commands: Command[] = []) => {
-  // Set initial commands in Zustand store
-  useCommandStore.setState({ commands });
-  return renderWithProviders(<Terminal />);
-};
-
-describe.skip("Terminal", () => {
-  // Terminal is now read-only - no user input functionality
-  global.ResizeObserver = vi.fn().mockImplementation(() => ({
-    observe: vi.fn(),
-    disconnect: vi.fn(),
-  }));
-
-  const mockTerminal = {
-    open: vi.fn(),
-    write: vi.fn(),
-    writeln: vi.fn(),
-    dispose: vi.fn(),
-    loadAddon: vi.fn(),
-  };
-
-  vi.mock("@xterm/xterm", async (importOriginal) => ({
-    ...(await importOriginal<typeof import("@xterm/xterm")>()),
-    Terminal: vi.fn().mockImplementation(() => mockTerminal),
-  }));
-
-  afterEach(() => {
-    vi.clearAllMocks();
-  });
-
-  it("should render a terminal", () => {
-    renderTerminal();
-
-    expect(screen.getByText("Terminal")).toBeInTheDocument();
-    expect(mockTerminal.open).toHaveBeenCalledTimes(1);
-
-    expect(mockTerminal.write).toHaveBeenCalledWith("$ ");
-  });
-
-  it("should load commands to the terminal", () => {
-    renderTerminal([
-      { type: "input", content: "INPUT" },
-      { type: "output", content: "OUTPUT" },
-    ]);
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(1, "INPUT");
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(2, "OUTPUT");
-  });
-
-  it("should write commands to the terminal", () => {
-    renderTerminal();
-
-    act(() => {
-      useCommandStore.getState().appendInput("echo Hello");
-      useCommandStore.getState().appendOutput("Hello");
-    });
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(1, "echo Hello");
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(2, "Hello");
-
-    act(() => {
-      useCommandStore.getState().appendInput("echo World");
-    });
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(3, "echo World");
-  });
-
-  it("should load and write commands to the terminal", () => {
-    renderTerminal([
-      { type: "input", content: "echo Hello" },
-      { type: "output", content: "Hello" },
-    ]);
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(1, "echo Hello");
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(2, "Hello");
-
-    act(() => {
-      useCommandStore.getState().appendInput("echo Hello");
-    });
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(3, "echo Hello");
-  });
-
-  it("should end the line with a dollar sign after writing a command", () => {
-    renderTerminal();
-
-    act(() => {
-      useCommandStore.getState().appendInput("echo Hello");
-    });
-
-    expect(mockTerminal.writeln).toHaveBeenCalledWith("echo Hello");
-    expect(mockTerminal.write).toHaveBeenCalledWith("$ ");
-  });
-
-  it("should display a custom symbol if output contains a custom symbol", () => {
-    renderTerminal([
-      { type: "input", content: "echo Hello" },
-      {
-        type: "output",
-        content:
-          "Hello\r\n\r\n[Python Interpreter: /openhands/poetry/openhands-5O4_aCHf-py3.12/bin/python]\nopenhands@659478cb008c:/workspace $ ",
-      },
-    ]);
-
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(1, "echo Hello");
-    expect(mockTerminal.writeln).toHaveBeenNthCalledWith(2, "Hello");
-    expect(mockTerminal.write).toHaveBeenCalledWith(
-      "\nopenhands@659478cb008c:/workspace $ ",
-    );
-  });
-
-  // This test fails because it expects `disposeMock` to have been called before the component is unmounted.
-  it.skip("should dispose the terminal on unmount", () => {
-    const { unmount } = renderWithProviders(<Terminal />);
-
-    expect(mockTerminal.dispose).not.toHaveBeenCalled();
-
-    unmount();
-
-    expect(mockTerminal.dispose).toHaveBeenCalledTimes(1);
-  });
-});
diff --git a/__tests__/fixtures/library-consumer-smoke.tsx b/__tests__/fixtures/library-consumer-smoke.tsx
deleted file mode 100644
index a74d580ac4..0000000000
--- a/__tests__/fixtures/library-consumer-smoke.tsx
+++ /dev/null
@@ -1,23 +0,0 @@
-import {
-  AgentServerUIProviders,
-  BrowserPanel,
-  ConversationView,
-  SettingsPanel,
-  TerminalPanel,
-} from "@openhands/agent-canvas";
-import { LLMSettings } from "@openhands/agent-canvas/settings";
-import { Sidebar } from "@openhands/agent-canvas/sidebar";
-
-export function SmokeImportConsumer() {
-  return (
-    <AgentServerUIProviders>
-      <ConversationView />
-      <BrowserPanel />
-      <TerminalPanel />
-      <SettingsPanel navigationItems={[]}>
-        <LLMSettings />
-      </SettingsPanel>
-      <Sidebar />
-    </AgentServerUIProviders>
-  );
-}
diff --git a/tsconfig.json b/tsconfig.json
index 2d3af9f2bf..ef211e41eb 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -8,7 +8,6 @@
     "**/.client/**/*.tsx",
     ".react-router/types/**/*"
   ],
-  "exclude": ["__tests__/fixtures/**/*"],
   "compilerOptions": {
     "lib": ["dom", "dom.iterable", "es2022"],
     "target": "es2022",