diff --git a/ui/litellm-dashboard/src/app/(dashboard)/agents/components/three-pane/terminal-tab.tsx b/ui/litellm-dashboard/src/app/(dashboard)/agents/components/three-pane/terminal-tab.tsx
new file mode 100644
index 00000000000..8a05f1297e1
--- /dev/null
+++ b/ui/litellm-dashboard/src/app/(dashboard)/agents/components/three-pane/terminal-tab.tsx
@@ -0,0 +1,137 @@
+"use client";
+
+/**
+ * TerminalTab — right pane Terminal view.
+ *
+ * Renders an ANSI-colored tail of `terminal_chunk` events. We intentionally
+ * avoid xterm.js (heavy dep, virtual cursor model) and instead split the
+ * stream into <span>s with computed CSS colors. That's enough for the
+ * read-only "watch the build run" UX in the Cursor Cloud Agents reference.
+ *
+ * Validation #7 expects a span with computed color: red for ANSI \x1b[31m.
+ */
+import { useMemo } from "react";
+import { Empty, Typography } from "antd";
+import type { CloudAgentRunEvent, TerminalChunkPayload } from "@/types/cloud-agents";
+
+const { Title } = Typography;
+
+const ANSI_TO_COLOR: Record<string, string> = {
+  "30": "#000000",
+  "31": "#ff0000",
+  "32": "#00aa00",
+  "33": "#aa6600",
+  "34": "#0000ff",
+  "35": "#aa00aa",
+  "36": "#00aaaa",
+  "37": "#aaaaaa",
+  "90": "#666666",
+  "91": "#ff5555",
+  "92": "#55ff55",
+  "93": "#ffff55",
+  "94": "#5555ff",
+  "95": "#ff55ff",
+  "96": "#55ffff",
+  "97": "#ffffff",
+};
+
+interface AnsiSpan {
+  key: string;
+  text: string;
+  color: string | null;
+  bold: boolean;
+}
+
+const ESC = "\x1b";
+
+/**
+ * Tiny SGR (Select Graphic Rendition) renderer. Handles \x1b[<n>m sequences
+ * for foreground color and bold; resets on \x1b[0m. Anything else (cursor
+ * moves, background colors, 256-color, truecolor) is dropped silently —
+ * good enough for the read-only build-log UX.
+ */
+function parseAnsi(text: string): AnsiSpan[] {
+  const spans: AnsiSpan[] = [];
+  let color: string | null = null;
+  let bold = false;
+  let buf = "";
+  let i = 0;
+  let key = 0;
+  const flush = () => {
+    if (buf.length > 0) {
+      spans.push({ key: `s-${key++}`, text: buf, color, bold });
+      buf = "";
+    }
+  };
+  while (i < text.length) {
+    if (text[i] === ESC && text[i + 1] === "[") {
+      flush();
+      const end = text.indexOf("m", i + 2);
+      if (end === -1) {
+        // malformed — drop the rest
+        break;
+      }
+      const codes = text.slice(i + 2, end).split(";");
+      for (const c of codes) {
+        if (c === "" || c === "0") {
+          color = null;
+          bold = false;
+        } else if (c === "1") {
+          bold = true;
+        } else if (ANSI_TO_COLOR[c]) {
+          color = ANSI_TO_COLOR[c];
+        }
+      }
+      i = end + 1;
+    } else {
+      buf += text[i];
+      i += 1;
+    }
+  }
+  flush();
+  return spans;
+}
+
+interface TerminalTabProps {
+  events: CloudAgentRunEvent[];
+}
+
+export default function TerminalTab({ events }: TerminalTabProps) {
+  const spans = useMemo(() => {
+    const text = events
+      .filter((e) => e.type === "terminal_chunk")
+      .map((e) => (e.payload as unknown as TerminalChunkPayload).text)
+      .join("");
+    return parseAnsi(text);
+  }, [events]);
+
+  return (
+    <div className="flex h-full flex-col" data-testid="terminal-tab">
+      <div className="border-b border-gray-200 px-4 py-2">
+        <Title level={5} className="!mb-0">
+          Terminal
+        </Title>
+      </div>
+      <div className="min-h-0 flex-1 overflow-y-auto bg-black p-3 font-mono text-xs leading-snug">
+        {spans.length === 0 ? (
+          <Empty
+            image={Empty.PRESENTED_IMAGE_SIMPLE}
+            description={<span className="text-gray-400">No terminal output yet</span>}
+          />
+        ) : (
+          <pre className="whitespace-pre-wrap !m-0" data-testid="terminal-output">
+            {spans.map((s) => (
+              <span
+                key={s.key}
+                data-testid={s.color ? `ansi-${s.color}` : undefined}
+                style={{ color: s.color ?? "#e5e5e5", fontWeight: s.bold ? 700 : 400 }}
+              >
+                {s.text}
+              </span>
+            ))}
+          </pre>
+        )}
+      </div>
+    </div>
+  );
+}