diff --git a/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts b/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
index a9177fc2486..eed32f282b9 100644
--- a/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
+++ b/packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts
@@ -176,6 +176,14 @@ export class AgentManagerProvider implements vscode.Disposable {
       this.terminalManager.showTerminal(msg.sessionId, this.state)
       return null
     }
+    if (type === "agentManager.showLocalTerminal") {
+      this.terminalManager.showLocalTerminal()
+      return null
+    }
+    if (type === "agentManager.showExistingLocalTerminal") {
+      this.terminalManager.showExistingLocal()
+      return null
+    }
     if (type === "agentManager.requestRepoInfo") {
       void this.sendRepoInfo()
       return null
diff --git a/packages/kilo-vscode/src/agent-manager/SessionTerminalManager.ts b/packages/kilo-vscode/src/agent-manager/SessionTerminalManager.ts
index 029d04b7b04..ea8f67a82a7 100644
--- a/packages/kilo-vscode/src/agent-manager/SessionTerminalManager.ts
+++ b/packages/kilo-vscode/src/agent-manager/SessionTerminalManager.ts
@@ -53,6 +53,32 @@ export class SessionTerminalManager {
     this.showOrCreate(sessionId, cwd, name)
   }
 
+  /**
+   * Show (or create) a terminal for the local workspace (no session required).
+   * Used when the user triggers a terminal in local mode without an active session.
+   */
+  private static readonly LOCAL_KEY = "__local__"
+
+  showLocalTerminal(): void {
+    if (this.showExisting(SessionTerminalManager.LOCAL_KEY, false)) return
+
+    const cwd = vscode.workspace.workspaceFolders?.[0]?.uri.fsPath
+    if (!cwd) {
+      this.log("showLocalTerminal: no workspace folder open")
+      vscode.window.showWarningMessage("Open a folder to use the local terminal")
+      return
+    }
+
+    this.showOrCreate(SessionTerminalManager.LOCAL_KEY, cwd, "Agent: local")
+  }
+
+  /**
+   * Show the existing local terminal if one was previously created (used on context switch).
+   */
+  showExistingLocal(): boolean {
+    return this.showExisting(SessionTerminalManager.LOCAL_KEY)
+  }
+
   /**
    * Show the terminal for a session if it already exists (used when switching sessions).
    * Returns true if the terminal was shown, false if no terminal exists for the session.
diff --git a/packages/kilo-vscode/tests/unit/agent-manager-arch.test.ts b/packages/kilo-vscode/tests/unit/agent-manager-arch.test.ts
index 4835e88adb9..6996f868220 100644
--- a/packages/kilo-vscode/tests/unit/agent-manager-arch.test.ts
+++ b/packages/kilo-vscode/tests/unit/agent-manager-arch.test.ts
@@ -158,6 +158,8 @@ describe("Agent Manager Provider — onMessage routing", () => {
       "agentManager.closeSession",
       "agentManager.configureSetupScript",
       "agentManager.showTerminal",
+      "agentManager.showLocalTerminal",
+      "agentManager.showExistingLocalTerminal",
       "agentManager.requestRepoInfo",
       "agentManager.requestState",
       "agentManager.setTabOrder",
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
index 002fd935ce7..e222b646249 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
@@ -579,9 +579,11 @@ const AgentManagerContent: Component = () => {
     } else if (fallback && isPending(fallback.id)) {
       setActivePendingId(fallback.id)
       session.clearCurrentSession()
+      vscode.postMessage({ type: "agentManager.showExistingLocalTerminal" })
     } else {
       setActivePendingId(undefined)
       session.clearCurrentSession()
+      vscode.postMessage({ type: "agentManager.showExistingLocalTerminal" })
     }
   }
 
@@ -612,6 +614,7 @@ const AgentManagerContent: Component = () => {
       else if (msg.action === "showTerminal") {
         const id = session.currentSessionID()
         if (id) vscode.postMessage({ type: "agentManager.showTerminal", sessionId: id })
+        else if (selection() === LOCAL) vscode.postMessage({ type: "agentManager.showLocalTerminal" })
       } else if (msg.action === "toggleDiff") {
         setDiffOpen((prev) => !prev)
       } else if (msg.action === "newTab") handleNewTabForCurrentSelection()
@@ -1713,6 +1716,7 @@ const AgentManagerContent: Component = () => {
                     onClick={() => {
                       const id = session.currentSessionID()
                       if (id) vscode.postMessage({ type: "agentManager.showTerminal", sessionId: id })
+                      else if (selection() === LOCAL) vscode.postMessage({ type: "agentManager.showLocalTerminal" })
                     }}
                   />
                 </TooltipKeybind>
diff --git a/packages/kilo-vscode/webview-ui/src/types/messages.ts b/packages/kilo-vscode/webview-ui/src/types/messages.ts
index d7658473769..668d3755a2d 100644
--- a/packages/kilo-vscode/webview-ui/src/types/messages.ts
+++ b/packages/kilo-vscode/webview-ui/src/types/messages.ts
@@ -1112,6 +1112,16 @@ export interface ShowTerminalRequest {
   sessionId: string
 }
 
+// Show terminal for the local workspace (when no session is active)
+export interface ShowLocalTerminalRequest {
+  type: "agentManager.showLocalTerminal"
+}
+
+// Show existing local terminal when switching to local context (no-op if none exists)
+export interface ShowExistingLocalTerminalRequest {
+  type: "agentManager.showExistingLocalTerminal"
+}
+
 /**
  * Maximum number of parallel worktree versions for multi-version mode.
  * Keep in sync with MAX_MULTI_VERSIONS in src/agent-manager/constants.ts.
@@ -1264,6 +1274,8 @@ export type WebviewMessage =
   | RequestStateMessage
   | ConfigureSetupScriptRequest
   | ShowTerminalRequest
+  | ShowLocalTerminalRequest
+  | ShowExistingLocalTerminalRequest
   | CreateMultiVersionRequest
   | SetTabOrderRequest
   | SetSessionsCollapsedRequest