diff --git a/packages/types/src/vscode-extension-host.ts b/packages/types/src/vscode-extension-host.ts
index b20539afe4..91fa11b186 100644
--- a/packages/types/src/vscode-extension-host.ts
+++ b/packages/types/src/vscode-extension-host.ts
@@ -41,6 +41,7 @@ export interface ExtensionMessage {
 		| "mcpServers"
 		| "enhancedPrompt"
 		| "commitSearchResults"
+		| "terminalSearchResults"
 		| "listApiConfig"
 		| "routerModels"
 		| "openAiModels"
@@ -143,6 +144,7 @@ export interface ExtensionMessage {
 	vsCodeLmModels?: { vendor?: string; family?: string; version?: string; id?: string }[]
 	mcpServers?: McpServer[]
 	commits?: GitCommit[]
+	terminals?: TerminalInfo[] // For terminalSearchResults
 	listApiConfig?: ProviderSettingsEntry[]
 	mode?: string
 	customMode?: ModeConfig
@@ -392,6 +394,15 @@ export interface Command {
 	argumentHint?: string
 }
 
+/**
+ * Terminal instance information for terminal selection
+ */
+export interface TerminalInfo {
+	id: number
+	name: string
+	isActive: boolean
+}
+
 /**
  * WebviewMessage
  * Webview | CLI -> Extension
@@ -478,6 +489,7 @@ export interface WebviewMessage {
 		| "editMessageConfirm"
 		| "taskSyncEnabled"
 		| "searchCommits"
+		| "searchTerminals"
 		| "setApiConfigPassword"
 		| "mode"
 		| "updatePrompt"
diff --git a/src/core/mentions/index.ts b/src/core/mentions/index.ts
index 1bfb90d23f..a65872dbaf 100644
--- a/src/core/mentions/index.ts
+++ b/src/core/mentions/index.ts
@@ -38,6 +38,14 @@ export async function openMention(cwd: string, mention?: string): Promise<void>
 		vscode.commands.executeCommand("workbench.actions.view.problems")
 	} else if (mention === "terminal") {
 		vscode.commands.executeCommand("workbench.action.terminal.focus")
+	} else if (mention.startsWith("terminal:")) {
+		const terminalName = mention.slice(9)
+		const targetTerminal = vscode.window.terminals.find((t) => t.name === terminalName)
+		if (targetTerminal) {
+			targetTerminal.show()
+		} else {
+			vscode.commands.executeCommand("workbench.action.terminal.focus")
+		}
 	} else if (mention.startsWith("http")) {
 		vscode.env.openExternal(vscode.Uri.parse(mention))
 	}
@@ -176,6 +184,9 @@ export async function parseMentions(
 			return `Git commit '${mention}' (see below for commit info)`
 		} else if (mention === "terminal") {
 			return `Terminal Output (see below for output)`
+		} else if (mention.startsWith("terminal:")) {
+			const terminalName = mention.slice(9)
+			return `Terminal Output from '${terminalName}' (see below for output)`
 		}
 		return match
 	})
@@ -228,6 +239,14 @@ export async function parseMentions(
 			} catch (error) {
 				parsedText += `\n\n<terminal_output>\nError fetching terminal output: ${error.message}\n</terminal_output>`
 			}
+		} else if (mention.startsWith("terminal:")) {
+			const terminalName = mention.slice(9)
+			try {
+				const terminalOutput = await getLatestTerminalOutput(terminalName)
+				parsedText += `\n\n<terminal_output name="${terminalName}">\n${terminalOutput}\n</terminal_output>`
+			} catch (error) {
+				parsedText += `\n\n<terminal_output name="${terminalName}">\nError fetching terminal output: ${error.message}\n</terminal_output>`
+			}
 		}
 	}
 
@@ -410,14 +429,27 @@ async function getWorkspaceProblems(
 }
 
 /**
- * Gets the contents of the active terminal
+ * Gets the contents of a terminal
+ * @param terminalName Optional name of the terminal to get output from. If not provided, gets output from the active terminal.
  * @returns The terminal contents as a string
  */
-export async function getLatestTerminalOutput(): Promise<string> {
+export async function getLatestTerminalOutput(terminalName?: string): Promise<string> {
 	// Store original clipboard content to restore later
 	const originalClipboard = await vscode.env.clipboard.readText()
 
 	try {
+		// If a specific terminal name is provided, find and focus it first
+		if (terminalName) {
+			const targetTerminal = vscode.window.terminals.find((t) => t.name === terminalName)
+			if (!targetTerminal) {
+				return `Terminal '${terminalName}' not found`
+			}
+			// Show the terminal to make it active
+			targetTerminal.show()
+			// Small delay to ensure terminal is focused
+			await new Promise((resolve) => setTimeout(resolve, 100))
+		}
+
 		// Select terminal content
 		await vscode.commands.executeCommand("workbench.action.terminal.selectAll")
 
diff --git a/src/core/webview/webviewMessageHandler.ts b/src/core/webview/webviewMessageHandler.ts
index e3b8c1bea8..2043ae44ce 100644
--- a/src/core/webview/webviewMessageHandler.ts
+++ b/src/core/webview/webviewMessageHandler.ts
@@ -1763,6 +1763,26 @@ export const webviewMessageHandler = async (
 			}
 			break
 		}
+		case "searchTerminals": {
+			try {
+				// Get all VS Code terminal instances
+				const vsCodeTerminals = vscode.window.terminals
+				const terminals = vsCodeTerminals.map((terminal, index) => ({
+					id: index,
+					name: terminal.name,
+					isActive: vscode.window.activeTerminal === terminal,
+				}))
+				await provider.postMessageToWebview({
+					type: "terminalSearchResults",
+					terminals,
+				})
+			} catch (error) {
+				provider.log(
+					`Error searching terminals: ${JSON.stringify(error, Object.getOwnPropertyNames(error), 2)}`,
+				)
+			}
+			break
+		}
 		case "searchFiles": {
 			const workspacePath = getCurrentCwd()
 
diff --git a/webview-ui/src/components/chat/ChatTextArea.tsx b/webview-ui/src/components/chat/ChatTextArea.tsx
index e72c1726f3..ed8b7f9dc3 100644
--- a/webview-ui/src/components/chat/ChatTextArea.tsx
+++ b/webview-ui/src/components/chat/ChatTextArea.tsx
@@ -111,6 +111,7 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 		}, [listApiConfigMeta, currentApiConfigName])
 
 		const [gitCommits, setGitCommits] = useState<any[]>([])
+		const [terminalInstances, setTerminalInstances] = useState<any[]>([])
 		const [showDropdown, setShowDropdown] = useState(false)
 		const [fileSearchResults, setFileSearchResults] = useState<SearchResult[]>([])
 		const [searchLoading, setSearchLoading] = useState(false)
@@ -201,6 +202,16 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 					if (message.requestId === searchRequestId) {
 						setFileSearchResults(message.results || [])
 					}
+				} else if (message.type === "terminalSearchResults") {
+					const terminals =
+						message.terminals?.map((terminal: { id: number; name: string; isActive: boolean }) => ({
+							type: ContextMenuOptionType.Terminal,
+							value: `terminal:${terminal.name}`,
+							label: terminal.name,
+							description: terminal.isActive ? "Active terminal" : "Terminal instance",
+							icon: "$(terminal)",
+						})) || []
+					setTerminalInstances(terminals)
 				}
 			}
 
@@ -244,6 +255,16 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 			}
 		}, [selectedType, searchQuery])
 
+		// Fetch terminal instances when Terminal is selected.
+		useEffect(() => {
+			if (selectedType === ContextMenuOptionType.Terminal) {
+				const message: WebviewMessage = {
+					type: "searchTerminals",
+				} as const
+				vscode.postMessage(message)
+			}
+		}, [selectedType])
+
 		const handleEnhancePrompt = useCallback(() => {
 			const trimmedInput = inputValue.trim()
 
@@ -278,6 +299,7 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 				{ type: ContextMenuOptionType.Problems, value: "problems" },
 				{ type: ContextMenuOptionType.Terminal, value: "terminal" },
 				...gitCommits,
+				...terminalInstances,
 				...openedTabs
 					.filter((tab) => tab.path)
 					.map((tab) => ({
@@ -292,7 +314,7 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 						value: path,
 					})),
 			]
-		}, [filePaths, gitCommits, openedTabs])
+		}, [filePaths, gitCommits, terminalInstances, openedTabs])
 
 		useEffect(() => {
 			const handleClickOutside = (event: MouseEvent) => {
@@ -352,7 +374,8 @@ export const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 				if (
 					type === ContextMenuOptionType.File ||
 					type === ContextMenuOptionType.Folder ||
-					type === ContextMenuOptionType.Git
+					type === ContextMenuOptionType.Git ||
+					type === ContextMenuOptionType.Terminal
 				) {
 					if (!value) {
 						setSelectedType(type)
diff --git a/webview-ui/src/utils/context-mentions.ts b/webview-ui/src/utils/context-mentions.ts
index 22dba8864f..ae3b8da29a 100644
--- a/webview-ui/src/utils/context-mentions.ts
+++ b/webview-ui/src/utils/context-mentions.ts
@@ -248,6 +248,19 @@ export function getContextMenuOptions(
 			return commits.length > 0 ? [workingChanges, ...commits] : [workingChanges]
 		}
 
+		if (selectedType === ContextMenuOptionType.Terminal) {
+			const terminals = queryItems.filter((item) => item.type === ContextMenuOptionType.Terminal)
+			// Always include "All Terminals" option first, then specific terminals
+			const allTerminalsOption: ContextMenuQueryItem = {
+				type: ContextMenuOptionType.Terminal,
+				value: "terminal",
+				label: "All Terminals",
+				description: "Output from all terminal instances",
+				icon: "$(terminal)",
+			}
+			return terminals.length > 0 ? [allTerminalsOption, ...terminals] : [allTerminalsOption]
+		}
+
 		return [
 			{ type: ContextMenuOptionType.Problems },
 			{ type: ContextMenuOptionType.Terminal },