diff --git a/frontend/__tests__/components/terminal/terminal.test.tsx b/frontend/__tests__/components/terminal/terminal.test.tsx
index 055aa4433c..d8c47d0097 100644
--- a/frontend/__tests__/components/terminal/terminal.test.tsx
+++ b/frontend/__tests__/components/terminal/terminal.test.tsx
@@ -4,26 +4,6 @@ import { vi, describe, afterEach, it, expect } from "vitest";
 import { Command, appendInput, appendOutput } from "#/state/command-slice";
 import Terminal from "#/components/features/terminal/terminal";
 
-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(),
-  onKey: vi.fn(),
-  attachCustomKeyEventHandler: vi.fn(),
-  loadAddon: vi.fn(),
-};
-
-vi.mock("@xterm/xterm", async (importOriginal) => ({
-  ...(await importOriginal<typeof import("@xterm/xterm")>()),
-  Terminal: vi.fn().mockImplementation(() => mockTerminal),
-}));
-
 const renderTerminal = (commands: Command[] = []) =>
   renderWithProviders(<Terminal secrets={[]} />, {
     preloadedState: {
@@ -34,6 +14,26 @@ const renderTerminal = (commands: Command[] = []) =>
   });
 
 describe.skip("Terminal", () => {
+  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(),
+    onKey: vi.fn(),
+    attachCustomKeyEventHandler: 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();
   });
diff --git a/frontend/__tests__/hooks/use-terminal.test.tsx b/frontend/__tests__/hooks/use-terminal.test.tsx
index 6f3f3e4872..137cfc60c4 100644
--- a/frontend/__tests__/hooks/use-terminal.test.tsx
+++ b/frontend/__tests__/hooks/use-terminal.test.tsx
@@ -5,7 +5,6 @@ import { ReactNode } from "react";
 import { useTerminal } from "#/hooks/use-terminal";
 import { Command } from "#/state/command-slice";
 
-
 interface TestTerminalComponentProps {
   commands: Command[];
   secrets: string[];
@@ -15,7 +14,7 @@ function TestTerminalComponent({
   commands,
   secrets,
 }: TestTerminalComponentProps) {
-  const ref = useTerminal(commands, secrets);
+  const ref = useTerminal({ commands, secrets, disabled: false });
   return <div ref={ref} />;
 }
 
@@ -24,9 +23,7 @@ interface WrapperProps {
 }
 
 function Wrapper({ children }: WrapperProps) {
-  return (
-    <div>{children}</div>
-  )
+  return <div>{children}</div>;
 }
 
 describe("useTerminal", () => {
diff --git a/frontend/src/components/features/terminal/terminal-status-label.tsx b/frontend/src/components/features/terminal/terminal-status-label.tsx
new file mode 100644
index 0000000000..5c245cf5f3
--- /dev/null
+++ b/frontend/src/components/features/terminal/terminal-status-label.tsx
@@ -0,0 +1,23 @@
+import {
+  useWsClient,
+  WsClientProviderStatus,
+} from "#/context/ws-client-provider";
+import { cn } from "#/utils/utils";
+
+export function TerminalStatusLabel() {
+  const { status } = useWsClient();
+
+  return (
+    <div className="flex items-center gap-2">
+      <div
+        className={cn(
+          "w-2 h-2 rounded-full",
+          status === WsClientProviderStatus.ACTIVE && "bg-green-500",
+          status !== WsClientProviderStatus.ACTIVE &&
+            "bg-red-500 animate-pulse",
+        )}
+      />
+      Terminal
+    </div>
+  );
+}
diff --git a/frontend/src/components/features/terminal/terminal.tsx b/frontend/src/components/features/terminal/terminal.tsx
index bd8283b890..83afc05eaa 100644
--- a/frontend/src/components/features/terminal/terminal.tsx
+++ b/frontend/src/components/features/terminal/terminal.tsx
@@ -1,16 +1,25 @@
 import { useSelector } from "react-redux";
 import { RootState } from "#/store";
 import { useTerminal } from "#/hooks/use-terminal";
-
 import "@xterm/xterm/css/xterm.css";
+import {
+  useWsClient,
+  WsClientProviderStatus,
+} from "#/context/ws-client-provider";
 
 interface TerminalProps {
   secrets: string[];
 }
 
 function Terminal({ secrets }: TerminalProps) {
+  const { status } = useWsClient();
   const { commands } = useSelector((state: RootState) => state.cmd);
-  const ref = useTerminal(commands, secrets);
+
+  const ref = useTerminal({
+    commands,
+    secrets,
+    disabled: status === WsClientProviderStatus.OPENING,
+  });
 
   return (
     <div className="h-full p-2 min-h-0">
diff --git a/frontend/src/components/layout/container.tsx b/frontend/src/components/layout/container.tsx
index f2dcb39a3f..d4d3a9ac6c 100644
--- a/frontend/src/components/layout/container.tsx
+++ b/frontend/src/components/layout/container.tsx
@@ -3,7 +3,7 @@ import React from "react";
 import { NavTab } from "./nav-tab";
 
 interface ContainerProps {
-  label?: string;
+  label?: React.ReactNode;
   labels?: {
     label: string | React.ReactNode;
     to: string;
diff --git a/frontend/src/hooks/use-terminal.ts b/frontend/src/hooks/use-terminal.ts
index bc351d34f5..464e153478 100644
--- a/frontend/src/hooks/use-terminal.ts
+++ b/frontend/src/hooks/use-terminal.ts
@@ -11,10 +11,23 @@ import { useWsClient } from "#/context/ws-client-provider";
   The reason for this is that the hook exposes a ref that requires a DOM element to be rendered.
 */
 
-export const useTerminal = (
-  commands: Command[] = [],
-  secrets: string[] = [],
-) => {
+interface UseTerminalConfig {
+  commands: Command[];
+  secrets: string[];
+  disabled: boolean;
+}
+
+const DEFAULT_TERMINAL_CONFIG: UseTerminalConfig = {
+  commands: [],
+  secrets: [],
+  disabled: false,
+};
+
+export const useTerminal = ({
+  commands,
+  secrets,
+  disabled,
+}: UseTerminalConfig = DEFAULT_TERMINAL_CONFIG) => {
   const { send } = useWsClient();
   const terminal = React.useRef<Terminal | null>(null);
   const fitAddon = React.useRef<FitAddon | null>(null);
@@ -85,36 +98,12 @@ export const useTerminal = (
     terminal.current = createTerminal();
     fitAddon.current = new FitAddon();
 
-    let resizeObserver: ResizeObserver;
-    let commandBuffer = "";
+    let resizeObserver: ResizeObserver | null = null;
 
     if (ref.current) {
       /* Initialize the terminal in the DOM */
       initializeTerminal();
-
       terminal.current.write("$ ");
-      terminal.current.onKey(({ key, domEvent }) => {
-        if (domEvent.key === "Enter") {
-          handleEnter(commandBuffer);
-          commandBuffer = "";
-        } else if (domEvent.key === "Backspace") {
-          if (commandBuffer.length > 0) {
-            commandBuffer = handleBackspace(commandBuffer);
-          }
-        } else {
-          // Ignore paste event
-          if (key.charCodeAt(0) === 22) {
-            return;
-          }
-          commandBuffer += key;
-          terminal.current?.write(key);
-        }
-      });
-      terminal.current.attachCustomKeyEventHandler((event) =>
-        pasteHandler(event, (text) => {
-          commandBuffer += text;
-        }),
-      );
 
       /* Listen for resize events */
       resizeObserver = new ResizeObserver(() => {
@@ -125,7 +114,7 @@ export const useTerminal = (
 
     return () => {
       terminal.current?.dispose();
-      resizeObserver.disconnect();
+      resizeObserver?.disconnect();
     };
   }, []);
 
@@ -152,5 +141,42 @@ export const useTerminal = (
     }
   }, [commands]);
 
+  React.useEffect(() => {
+    if (terminal.current) {
+      let commandBuffer = "";
+
+      if (!disabled) {
+        terminal.current.onKey(({ key, domEvent }) => {
+          if (domEvent.key === "Enter") {
+            handleEnter(commandBuffer);
+            commandBuffer = "";
+          } else if (domEvent.key === "Backspace") {
+            if (commandBuffer.length > 0) {
+              commandBuffer = handleBackspace(commandBuffer);
+            }
+          } else {
+            // Ignore paste event
+            if (key.charCodeAt(0) === 22) {
+              return;
+            }
+            commandBuffer += key;
+            terminal.current?.write(key);
+          }
+        });
+
+        terminal.current.attachCustomKeyEventHandler((event) =>
+          pasteHandler(event, (text) => {
+            commandBuffer += text;
+          }),
+        );
+      } else {
+        terminal.current.onKey((e) => {
+          e.domEvent.preventDefault();
+          e.domEvent.stopPropagation();
+        });
+      }
+    }
+  }, [disabled, terminal]);
+
   return ref;
 };
diff --git a/frontend/src/routes/_oh.app/route.tsx b/frontend/src/routes/_oh.app/route.tsx
index 8541ec45cc..b83e863dd8 100644
--- a/frontend/src/routes/_oh.app/route.tsx
+++ b/frontend/src/routes/_oh.app/route.tsx
@@ -22,6 +22,7 @@ import { useConversationConfig } from "#/hooks/query/use-conversation-config";
 import { Container } from "#/components/layout/container";
 import Security from "#/components/shared/modals/security/security";
 import { CountBadge } from "#/components/layout/count-badge";
+import { TerminalStatusLabel } from "#/components/features/terminal/terminal-status-label";
 
 function App() {
   const { token, gitHubToken } = useAuth();
@@ -101,7 +102,10 @@ function App() {
               </Container>
               {/* Terminal uses some API that is not compatible in a server-environment. For this reason, we lazy load it to ensure
                * that it loads only in the client-side. */}
-              <Container className="h-1/3 overflow-scroll" label="Terminal">
+              <Container
+                className="h-1/3 overflow-scroll"
+                label={<TerminalStatusLabel />}
+              >
                 <React.Suspense fallback={<div className="h-full" />}>
                   <Terminal secrets={secrets} />
                 </React.Suspense>