diff --git a/src/lib/components/chat/Chat.svelte b/src/lib/components/chat/Chat.svelte
index 4d8d06f54..86cd04113 100644
--- a/src/lib/components/chat/Chat.svelte
+++ b/src/lib/components/chat/Chat.svelte
@@ -146,33 +146,7 @@
 	let webSearchEnabled = false;
 	let codeInterpreterEnabled = false;
 
-	// Auto-inject direct terminal servers into selected tool IDs so they act like toggled-on tools
-	// System terminals (with id field) are handled server-side via terminal_id, not as direct tool servers
-	$: if ($terminalServers && $terminalServers.length > 0) {
-		const directTerminalServers = $terminalServers.filter((t) => !t.id);
-		const terminalIds = directTerminalServers.map(
-			(_, i) => `direct_server:terminal_${$terminalServers.indexOf(directTerminalServers[i])}`
-		);
-		const missingIds = terminalIds.filter((id) => !selectedToolIds.includes(id));
-		if (missingIds.length > 0) {
-			selectedToolIds = [...selectedToolIds, ...missingIds];
-		}
-	}
 
-	// Remove disabled terminal servers from selectedToolIds automatically
-	$: if (selectedToolIds.length > 0) {
-		const directTerminalServers = ($terminalServers ?? []).filter((t) => !t.id);
-		const terminalIds = directTerminalServers.map(
-			(_, i) =>
-				`direct_server:terminal_${($terminalServers ?? []).indexOf(directTerminalServers[i])}`
-		);
-		const invalidTerminalIds = selectedToolIds.filter(
-			(id) => id.startsWith('direct_server:terminal_') && !terminalIds.includes(id)
-		);
-		if (invalidTerminalIds.length > 0) {
-			selectedToolIds = selectedToolIds.filter((id) => !invalidTerminalIds.includes(id));
-		}
-	}
 
 	let showCommands = false;
 
@@ -354,25 +328,12 @@
 						[...(model?.info?.meta?.toolIds ?? [])].filter((id) => $tools.find((t) => t.id === id))
 					)
 				];
-			} else if (
-				$settings?.tools &&
-				$settings.tools.some((id) => !id.startsWith('direct_server:terminal_'))
-			) {
+			} else if ($settings?.tools) {
 				selectedToolIds = $settings.tools;
 			} else {
-				// Don't wipe existing terminal servers if no default tool IDs
 				selectedToolIds = selectedToolIds.filter((id) => !id.startsWith('direct_server:'));
 			}
 
-			// Auto-inject direct terminal servers (system ones are handled via terminal_id)
-			if ($terminalServers && $terminalServers.length > 0) {
-				const directTerminalServers = $terminalServers.filter((t) => !t.id);
-				const terminalIds = directTerminalServers.map(
-					(_, i) => `direct_server:terminal_${$terminalServers.indexOf(directTerminalServers[i])}`
-				);
-				selectedToolIds = [...new Set([...selectedToolIds, ...terminalIds])];
-			}
-
 			// Set Default Filters (Toggleable only)
 			if (model?.info?.meta?.defaultFilterIds) {
 				selectedFilterIds = model.info.meta.defaultFilterIds.filter((id) =>
@@ -2210,7 +2171,9 @@
 				tool_servers: [
 					...($toolServers ?? []).filter(
 						(server, idx) => toolServerIds.includes(idx) || toolServerIds.includes(server?.id)
-					)
+					),
+					// Direct terminal servers — always included when enabled (not routed through selectedToolIds)
+					...($terminalServers ?? []).filter((t) => !t.id)
 				],
 				features: getFeatures(),
 				variables: {
diff --git a/src/lib/components/chat/MessageInput.svelte b/src/lib/components/chat/MessageInput.svelte
index a222783be..f3108abf2 100644
--- a/src/lib/components/chat/MessageInput.svelte
+++ b/src/lib/components/chat/MessageInput.svelte
@@ -1636,12 +1636,10 @@
 									{/if}
 
 									<div class="ml-1 flex gap-1.5">
-										{#if (selectedToolIds ?? []).filter((id) => !id.startsWith('direct_server:terminal_')).length > 0}
+										{#if (selectedToolIds ?? []).length > 0}
 											<Tooltip
 												content={$i18n.t('{{COUNT}} Available Tools', {
-													COUNT: (selectedToolIds ?? []).filter(
-														(id) => !id.startsWith('direct_server:terminal_')
-													).length
+													COUNT: (selectedToolIds ?? []).length
 												})}
 											>
 												<button
@@ -1655,9 +1653,7 @@
 													<Wrench className="size-4" strokeWidth="1.75" />
 
 													<span class="text-sm">
-														{(selectedToolIds ?? []).filter(
-															(id) => !id.startsWith('direct_server:terminal_')
-														).length}
+														{(selectedToolIds ?? []).length}
 													</span>
 												</button>
 											</Tooltip>
diff --git a/src/lib/components/chat/MessageInput/IntegrationsMenu.svelte b/src/lib/components/chat/MessageInput/IntegrationsMenu.svelte
index e671b4757..3e32571d2 100644
--- a/src/lib/components/chat/MessageInput/IntegrationsMenu.svelte
+++ b/src/lib/components/chat/MessageInput/IntegrationsMenu.svelte
@@ -97,7 +97,7 @@
 		}
 
 		selectedToolIds = selectedToolIds.filter(
-			(id) => Object.keys(tools).includes(id) || id.startsWith('direct_server:terminal_')
+			(id) => Object.keys(tools).includes(id)
 		);
 	};
 </script>
diff --git a/src/lib/components/chat/XTerminal.svelte b/src/lib/components/chat/XTerminal.svelte
index 7ed376175..3f48c59c1 100644
--- a/src/lib/components/chat/XTerminal.svelte
+++ b/src/lib/components/chat/XTerminal.svelte
@@ -239,6 +239,16 @@
 		connect();
 	};
 
+	// Reconnect when the selected terminal changes
+	$: if ($selectedTerminalId !== undefined && term) {
+		// Clear the terminal screen and reconnect to the new server
+		disconnect();
+		term.clear();
+		if ($selectedTerminalId) {
+			connect();
+		}
+	}
+
 	onMount(() => {
 		initTerminal();
 	});