diff --git a/src/components/bottomPanel/tabs/terminal/BaseTerminal.vue b/src/components/bottomPanel/tabs/terminal/BaseTerminal.vue
index 4d921d97b..52cb75a7f 100644
--- a/src/components/bottomPanel/tabs/terminal/BaseTerminal.vue
+++ b/src/components/bottomPanel/tabs/terminal/BaseTerminal.vue
@@ -3,15 +3,37 @@
     <div class="p-terminal rounded-none h-full w-full p-2">
       <div ref="terminalEl" class="h-full terminal-host" />
     </div>
+    <Button
+      v-tooltip.left="{
+        value: tooltipText,
+        showDelay: 300
+      }"
+      icon="pi pi-copy"
+      severity="secondary"
+      size="small"
+      :class="
+        cn('absolute top-2 right-8 transition-opacity', {
+          'opacity-0 pointer-events-none select-none': !isHovered
+        })
+      "
+      :aria-label="tooltipText"
+      @click="handleCopy"
+    />
   </div>
 </template>
 
 <script setup lang="ts">
-import { useEventListener } from '@vueuse/core'
-import { Ref, onUnmounted, ref } from 'vue'
+import { useElementHover, useEventListener } from '@vueuse/core'
+import type { IDisposable } from '@xterm/xterm'
+import Button from 'primevue/button'
+import { Ref, computed, onMounted, onUnmounted, ref } from 'vue'
+import { useI18n } from 'vue-i18n'
 
 import { useTerminal } from '@/composables/bottomPanelTabs/useTerminal'
 import { electronAPI, isElectron } from '@/utils/envUtil'
+import { cn } from '@/utils/tailwindUtil'
+
+const { t } = useI18n()
 
 const emit = defineEmits<{
   created: [ReturnType<typeof useTerminal>, Ref<HTMLElement | undefined>]
@@ -19,7 +41,39 @@ const emit = defineEmits<{
 }>()
 const terminalEl = ref<HTMLElement | undefined>()
 const rootEl = ref<HTMLElement | undefined>()
-emit('created', useTerminal(terminalEl), rootEl)
+const hasSelection = ref(false)
+
+const isHovered = useElementHover(rootEl)
+
+const terminalData = useTerminal(terminalEl)
+emit('created', terminalData, rootEl)
+
+const { terminal } = terminalData
+let selectionDisposable: IDisposable | undefined
+
+const tooltipText = computed(() => {
+  return hasSelection.value
+    ? t('serverStart.copySelectionTooltip')
+    : t('serverStart.copyAllTooltip')
+})
+
+const handleCopy = async () => {
+  const existingSelection = terminal.getSelection()
+  const shouldSelectAll = !existingSelection
+  if (shouldSelectAll) terminal.selectAll()
+
+  const selectedText = shouldSelectAll
+    ? terminal.getSelection()
+    : existingSelection
+
+  if (selectedText) {
+    await navigator.clipboard.writeText(selectedText)
+
+    if (shouldSelectAll) {
+      terminal.clearSelection()
+    }
+  }
+}
 
 const showContextMenu = (event: MouseEvent) => {
   event.preventDefault()
@@ -30,7 +84,16 @@ if (isElectron()) {
   useEventListener(terminalEl, 'contextmenu', showContextMenu)
 }
 
-onUnmounted(() => emit('unmounted'))
+onMounted(() => {
+  selectionDisposable = terminal.onSelectionChange(() => {
+    hasSelection.value = terminal.hasSelection()
+  })
+})
+
+onUnmounted(() => {
+  selectionDisposable?.dispose()
+  emit('unmounted')
+})
 </script>
 
 <style scoped>
diff --git a/src/locales/en/main.json b/src/locales/en/main.json
index cb1493258..e70301ce7 100644
--- a/src/locales/en/main.json
+++ b/src/locales/en/main.json
@@ -495,6 +495,8 @@
     "reportIssue": "Report Issue",
     "openLogs": "Open Logs",
     "showTerminal": "Show Terminal",
+    "copySelectionTooltip": "Copy selection",
+    "copyAllTooltip": "Copy all",
     "process": {
       "initial-state": "Loading...",
       "python-setup": "Setting up Python Environment...",
diff --git a/tests-ui/tests/components/bottomPanel/tabs/terminal/BaseTerminal.test.ts b/tests-ui/tests/components/bottomPanel/tabs/terminal/BaseTerminal.test.ts
new file mode 100644
index 000000000..9f8743318
--- /dev/null
+++ b/tests-ui/tests/components/bottomPanel/tabs/terminal/BaseTerminal.test.ts
@@ -0,0 +1,218 @@
+import { createTestingPinia } from '@pinia/testing'
+import { VueWrapper, mount } from '@vue/test-utils'
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
+import { nextTick } from 'vue'
+import { createI18n } from 'vue-i18n'
+
+import BaseTerminal from '@/components/bottomPanel/tabs/terminal/BaseTerminal.vue'
+
+// Mock xterm and related modules
+vi.mock('@xterm/xterm', () => ({
+  Terminal: vi.fn().mockImplementation(() => ({
+    open: vi.fn(),
+    dispose: vi.fn(),
+    onSelectionChange: vi.fn(() => {
+      // Return a disposable
+      return {
+        dispose: vi.fn()
+      }
+    }),
+    hasSelection: vi.fn(() => false),
+    getSelection: vi.fn(() => ''),
+    selectAll: vi.fn(),
+    clearSelection: vi.fn(),
+    loadAddon: vi.fn()
+  })),
+  IDisposable: vi.fn()
+}))
+
+vi.mock('@xterm/addon-fit', () => ({
+  FitAddon: vi.fn().mockImplementation(() => ({
+    fit: vi.fn(),
+    proposeDimensions: vi.fn(() => ({ rows: 24, cols: 80 }))
+  }))
+}))
+
+const mockTerminal = {
+  open: vi.fn(),
+  dispose: vi.fn(),
+  onSelectionChange: vi.fn(() => ({
+    dispose: vi.fn()
+  })),
+  hasSelection: vi.fn(() => false),
+  getSelection: vi.fn(() => ''),
+  selectAll: vi.fn(),
+  clearSelection: vi.fn()
+}
+
+vi.mock('@/composables/bottomPanelTabs/useTerminal', () => ({
+  useTerminal: vi.fn(() => ({
+    terminal: mockTerminal,
+    useAutoSize: vi.fn(() => ({ resize: vi.fn() }))
+  }))
+}))
+
+vi.mock('@/utils/envUtil', () => ({
+  isElectron: vi.fn(() => false),
+  electronAPI: vi.fn(() => null)
+}))
+
+// Mock clipboard API
+Object.defineProperty(navigator, 'clipboard', {
+  value: {
+    writeText: vi.fn().mockResolvedValue(undefined)
+  },
+  configurable: true
+})
+
+const i18n = createI18n({
+  legacy: false,
+  locale: 'en',
+  messages: {
+    en: {
+      serverStart: {
+        copySelectionTooltip: 'Copy selection',
+        copyAllTooltip: 'Copy all'
+      }
+    }
+  }
+})
+
+const mountBaseTerminal = () => {
+  return mount(BaseTerminal, {
+    global: {
+      plugins: [
+        createTestingPinia({
+          createSpy: vi.fn
+        }),
+        i18n
+      ],
+      stubs: {
+        Button: {
+          template: '<button v-bind="$attrs"><slot /></button>',
+          props: ['icon', 'severity', 'size']
+        }
+      }
+    }
+  })
+}
+
+describe('BaseTerminal', () => {
+  let wrapper: VueWrapper<InstanceType<typeof BaseTerminal>> | undefined
+
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  afterEach(() => {
+    wrapper?.unmount()
+  })
+
+  it('emits created event on mount', () => {
+    wrapper = mountBaseTerminal()
+
+    expect(wrapper.emitted('created')).toBeTruthy()
+    expect(wrapper.emitted('created')![0]).toHaveLength(2)
+  })
+
+  it('emits unmounted event on unmount', () => {
+    wrapper = mountBaseTerminal()
+    wrapper.unmount()
+
+    expect(wrapper.emitted('unmounted')).toBeTruthy()
+  })
+
+  it('button exists and has correct initial state', async () => {
+    wrapper = mountBaseTerminal()
+
+    const button = wrapper.find('button[aria-label]')
+    expect(button.exists()).toBe(true)
+
+    expect(button.classes()).toContain('opacity-0')
+    expect(button.classes()).toContain('pointer-events-none')
+  })
+
+  it('shows correct tooltip when no selection', async () => {
+    mockTerminal.hasSelection.mockReturnValue(false)
+    wrapper = mountBaseTerminal()
+
+    await wrapper.trigger('mouseenter')
+    await nextTick()
+
+    const button = wrapper.find('button[aria-label]')
+    expect(button.attributes('aria-label')).toBe('Copy all')
+  })
+
+  it('shows correct tooltip when selection exists', async () => {
+    mockTerminal.hasSelection.mockReturnValue(true)
+    wrapper = mountBaseTerminal()
+
+    // Trigger the selection change callback that was registered during mount
+    expect(mockTerminal.onSelectionChange).toHaveBeenCalled()
+    // Access the mock calls - TypeScript can't infer the mock structure dynamically
+    const selectionCallback = (mockTerminal.onSelectionChange as any).mock
+      .calls[0][0]
+    selectionCallback()
+    await nextTick()
+
+    await wrapper.trigger('mouseenter')
+    await nextTick()
+
+    const button = wrapper.find('button[aria-label]')
+    expect(button.attributes('aria-label')).toBe('Copy selection')
+  })
+
+  it('copies selected text when selection exists', async () => {
+    const selectedText = 'selected text'
+    mockTerminal.hasSelection.mockReturnValue(true)
+    mockTerminal.getSelection.mockReturnValue(selectedText)
+
+    wrapper = mountBaseTerminal()
+
+    await wrapper.trigger('mouseenter')
+    await nextTick()
+
+    const button = wrapper.find('button[aria-label]')
+    await button.trigger('click')
+
+    expect(mockTerminal.selectAll).not.toHaveBeenCalled()
+    expect(navigator.clipboard.writeText).toHaveBeenCalledWith(selectedText)
+    expect(mockTerminal.clearSelection).not.toHaveBeenCalled()
+  })
+
+  it('copies all text when no selection exists', async () => {
+    const allText = 'all terminal content'
+    mockTerminal.hasSelection.mockReturnValue(false)
+    mockTerminal.getSelection
+      .mockReturnValueOnce('') // First call returns empty (no selection)
+      .mockReturnValueOnce(allText) // Second call after selectAll returns all text
+
+    wrapper = mountBaseTerminal()
+
+    await wrapper.trigger('mouseenter')
+    await nextTick()
+
+    const button = wrapper.find('button[aria-label]')
+    await button.trigger('click')
+
+    expect(mockTerminal.selectAll).toHaveBeenCalled()
+    expect(navigator.clipboard.writeText).toHaveBeenCalledWith(allText)
+    expect(mockTerminal.clearSelection).toHaveBeenCalled()
+  })
+
+  it('does not copy when no text available', async () => {
+    mockTerminal.hasSelection.mockReturnValue(false)
+    mockTerminal.getSelection.mockReturnValue('')
+
+    wrapper = mountBaseTerminal()
+
+    await wrapper.trigger('mouseenter')
+    await nextTick()
+
+    const button = wrapper.find('button[aria-label]')
+    await button.trigger('click')
+
+    expect(mockTerminal.selectAll).toHaveBeenCalled()
+    expect(navigator.clipboard.writeText).not.toHaveBeenCalled()
+  })
+})