diff --git a/src/app/App.tsx b/src/app/App.tsx
index 7de0d9372..edd424f66 100644
--- a/src/app/App.tsx
+++ b/src/app/App.tsx
@@ -3014,29 +3014,6 @@ function Workspace({
     onOpenTerminal(terminalCwd);
   }, [terminalCwd, onOpenTerminal]);
 
-  const onShowProjectTerminal = useCallback(() => {
-    leaveCoveringMono();
-    const dock = findProjectTerminal(projectTerminalsRef.current, projectCwd);
-    if (dock && dock.pane.files.length > 0) {
-      if (!dock.open) {
-        setProjectTerminals((prev) =>
-          mapProjectTerminal(prev, projectCwd, (entry) =>
-            withDockOpen(entry, true),
-          ),
-        );
-      }
-      focusProjectTerminal();
-      return;
-    }
-    onOpenTerminal(terminalCwd);
-  }, [
-    terminalCwd,
-    focusProjectTerminal,
-    leaveCoveringMono,
-    onOpenTerminal,
-    projectCwd,
-  ]);
-
   const onNewTerminalInSession = useCallback(
     (sessionId: string) => {
       const session = sessionsRef.current.find(
@@ -13381,9 +13358,9 @@ function Workspace({
                       ? onNewTerminal
                       : undefined
                   }
-                  onShowTerminal={
+                  onToggleProjectTerminal={
                     !monoCovers && isLocalProject(projectCwd)
-                      ? onShowProjectTerminal
+                      ? onToggleProjectTerminal
                       : undefined
                   }
                   projectTerminalActive={
@@ -13391,6 +13368,9 @@ function Workspace({
                     !!currentProjectDock &&
                     currentProjectDock.pane.files.length > 0
                   }
+                  projectTerminalOpen={
+                    !monoCovers && !!currentProjectDock?.open
+                  }
                 />
               )}
             </div>
diff --git a/src/app/shell/UsageFooter.test.ts b/src/app/shell/UsageFooter.test.ts
index 2969d1740..2ba3a0fb8 100644
--- a/src/app/shell/UsageFooter.test.ts
+++ b/src/app/shell/UsageFooter.test.ts
@@ -1,8 +1,28 @@
-import { createElement } from "react";
+// @vitest-environment happy-dom
+import { act, createElement } from "react";
 import { renderToStaticMarkup } from "react-dom/server";
-import { describe, expect, it, vi } from "vitest";
+import { createRoot, type Root } from "react-dom/client";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 import { UsageFooter } from "./UsageFooter";
 
+let container: HTMLDivElement;
+let root: Root | null = null;
+
+beforeEach(() => {
+  vi.stubGlobal("IS_REACT_ACT_ENVIRONMENT", true);
+  container = document.createElement("div");
+  document.body.append(container);
+});
+
+afterEach(() => {
+  if (root) {
+    act(() => root!.unmount());
+    root = null;
+  }
+  container.remove();
+  vi.unstubAllGlobals();
+});
+
 describe("UsageFooter terminal control", () => {
   it("replaces the generic terminal button with the live process control", () => {
     const markup = renderToStaticMarkup(
@@ -19,7 +39,7 @@ describe("UsageFooter terminal control", () => {
         terminalOpen: true,
         onToggleTerminal: vi.fn(),
         onNewTerminal: vi.fn(),
-        onShowTerminal: vi.fn(),
+        onToggleProjectTerminal: vi.fn(),
         projectTerminalActive: true,
       }),
     );
@@ -40,4 +60,98 @@ describe("UsageFooter terminal control", () => {
     expect(markup).toContain(">Terminal</span>");
     expect(markup.match(/<button/g)).toHaveLength(1);
   });
+
+  it("marks the terminal button pressed only while the dock is open", () => {
+    const open = renderToStaticMarkup(
+      createElement(UsageFooter, {
+        providers: [],
+        onNewTerminal: vi.fn(),
+        onToggleProjectTerminal: vi.fn(),
+        projectTerminalActive: true,
+        projectTerminalOpen: true,
+      }),
+    );
+    const collapsed = renderToStaticMarkup(
+      createElement(UsageFooter, {
+        providers: [],
+        onNewTerminal: vi.fn(),
+        onToggleProjectTerminal: vi.fn(),
+        projectTerminalActive: true,
+        projectTerminalOpen: false,
+      }),
+    );
+
+    // Label still reflects "has terminals" in both states.
+    expect(open).toContain('aria-label="Terminal"');
+    expect(collapsed).toContain('aria-label="Terminal"');
+    expect(open).toContain('aria-pressed="true"');
+    expect(collapsed).toContain('aria-pressed="false"');
+  });
+
+  it("toggles the dock instead of only showing it", () => {
+    const onToggleProjectTerminal = vi.fn();
+    const onNewTerminal = vi.fn();
+    root = createRoot(container);
+    act(() =>
+      root!.render(
+        createElement(UsageFooter, {
+          providers: [],
+          onNewTerminal,
+          onToggleProjectTerminal,
+          projectTerminalActive: true,
+          projectTerminalOpen: true,
+        }),
+      ),
+    );
+
+    const button = container.querySelector('button[aria-label="Terminal"]');
+    expect(button).not.toBeNull();
+    act(() => (button as HTMLButtonElement).click());
+    expect(onToggleProjectTerminal).toHaveBeenCalledTimes(1);
+    expect(onNewTerminal).not.toHaveBeenCalled();
+  });
+
+  it.each([false, true])(
+    "handles a toggle-only caller when projectTerminalActive is %s",
+    (projectTerminalActive) => {
+      const onToggleProjectTerminal = vi.fn();
+      root = createRoot(container);
+      act(() =>
+        root!.render(
+          createElement(UsageFooter, {
+            providers: [],
+            onToggleProjectTerminal,
+            projectTerminalActive,
+          }),
+        ),
+      );
+
+      const button = container.querySelector("button");
+      expect(button).not.toBeNull();
+      act(() => button!.click());
+      expect(onToggleProjectTerminal).toHaveBeenCalledTimes(1);
+    },
+  );
+
+  it("prefers creating a terminal when no project terminal is active", () => {
+    const onNewTerminal = vi.fn();
+    const onToggleProjectTerminal = vi.fn();
+    root = createRoot(container);
+    act(() =>
+      root!.render(
+        createElement(UsageFooter, {
+          providers: [],
+          onNewTerminal,
+          onToggleProjectTerminal,
+          projectTerminalActive: false,
+        }),
+      ),
+    );
+
+    const button = container.querySelector("button");
+    expect(button).not.toBeNull();
+    act(() => button!.click());
+    expect(onNewTerminal).toHaveBeenCalledTimes(1);
+    expect(onToggleProjectTerminal).not.toHaveBeenCalled();
+  });
 });
diff --git a/src/app/shell/UsageFooter.tsx b/src/app/shell/UsageFooter.tsx
index cb1a1ea0e..3489f56c9 100644
--- a/src/app/shell/UsageFooter.tsx
+++ b/src/app/shell/UsageFooter.tsx
@@ -73,8 +73,9 @@ export function UsageFooter({
   terminalOpen = false,
   onToggleTerminal,
   onNewTerminal,
-  onShowTerminal,
+  onToggleProjectTerminal,
   projectTerminalActive = false,
+  projectTerminalOpen = false,
   onSelectAccount,
   onManageAccounts,
 }: {
@@ -85,8 +86,9 @@ export function UsageFooter({
   terminalOpen?: boolean;
   onToggleTerminal?: (fileId: string) => void;
   onNewTerminal?: () => void;
-  onShowTerminal?: () => void;
+  onToggleProjectTerminal?: () => void;
   projectTerminalActive?: boolean;
+  projectTerminalOpen?: boolean;
   onSelectAccount?: (
     provider: ProviderAccountProvider,
     accountId: string,
@@ -98,13 +100,15 @@ export function UsageFooter({
     providers.some((provider) => provider !== "opencode") ||
     (providers.includes("opencode") && opencode.status !== "unavailable");
   const showTerminals = terminals.length > 0;
-  const showTerminalButton = Boolean(onNewTerminal || onShowTerminal);
+  const showTerminalButton = Boolean(
+    onNewTerminal || onToggleProjectTerminal,
+  );
   const terminalLabel = projectTerminalActive
     ? "Terminal"
     : `New Terminal (${MOD}\`)`;
   const onTerminalClick = projectTerminalActive
-    ? (onShowTerminal ?? onNewTerminal)
-    : (onNewTerminal ?? onShowTerminal);
+    ? (onToggleProjectTerminal ?? onNewTerminal)
+    : (onNewTerminal ?? onToggleProjectTerminal);
   const ariaLabel = showUsage || session?.harness === "pi"
     ? "Provider usage"
     : showTerminals || showTerminalButton
@@ -145,12 +149,12 @@ export function UsageFooter({
             <button
               type="button"
               className={`inline-flex h-5 shrink-0 items-center gap-1.5 whitespace-nowrap rounded px-1.5 hover:bg-content/10 ${
-                projectTerminalActive
+                projectTerminalOpen
                   ? "text-accent"
                   : "text-content/40 hover:text-content"
               }`}
               aria-label={terminalLabel}
-              aria-pressed={projectTerminalActive}
+              aria-pressed={projectTerminalOpen}
               title={terminalLabel}
               onClick={onTerminalClick}
             >