diff --git a/packages/app/src/components/terminal-emulator.tsx b/packages/app/src/components/terminal-emulator.tsx
index 854fa4edc..be6357e9e 100644
--- a/packages/app/src/components/terminal-emulator.tsx
+++ b/packages/app/src/components/terminal-emulator.tsx
@@ -116,6 +116,7 @@ interface TerminalEmulatorProps {
   streamKey: string;
   testId?: string;
   xtermTheme?: ITheme;
+  scrollbackLines: number;
   swipeGesturesEnabled?: boolean;
   onSwipeLeft?: () => void;
   onSwipeRight?: () => void;
@@ -188,6 +189,7 @@ export default function TerminalEmulator({
     foreground: "#e6e6e6",
     cursor: "#e6e6e6",
   },
+  scrollbackLines,
   swipeGesturesEnabled = false,
   onSwipeLeft,
   onSwipeRight,
@@ -206,6 +208,8 @@ export default function TerminalEmulator({
   const hostRef = useRef<HTMLDivElement | null>(null);
   const runtimeRef = useRef<TerminalEmulatorRuntime | null>(null);
   const mountedThemeRef = useRef<ITheme>(xtermTheme);
+  const scrollbackLinesRef = useRef(scrollbackLines);
+  scrollbackLinesRef.current = scrollbackLines;
   const viewportRef = useRef<HTMLElement | null>(null);
   const dragStartOffsetRef = useRef(0);
   const dragStartClientYRef = useRef(0);
@@ -289,6 +293,10 @@ export default function TerminalEmulator({
     runtimeRef.current?.setTheme({ theme: nextTheme });
   }, [themeKey]);
 
+  useEffect(() => {
+    runtimeRef.current?.setScrollback({ lines: scrollbackLines });
+  }, [scrollbackLines]);
+
   useEffect(() => {
     ensureTerminalScrollbarStyle();
   }, []);
@@ -429,6 +437,7 @@ export default function TerminalEmulator({
       root,
       host,
       initialSnapshot: initialSnapshotRef.current,
+      scrollback: scrollbackLinesRef.current,
       theme: mountedThemeRef.current,
     });
     onRendererReadyChangeRef.current?.({ streamKey, isReady: true });
diff --git a/packages/app/src/components/terminal-pane.tsx b/packages/app/src/components/terminal-pane.tsx
index 1492f7b82..2e729ae73 100644
--- a/packages/app/src/components/terminal-pane.tsx
+++ b/packages/app/src/components/terminal-pane.tsx
@@ -35,6 +35,7 @@ import {
   shouldShowTerminalLoadingOverlay,
   type TerminalRendererReadyChange,
 } from "@/utils/terminal-renderer-readiness";
+import { useAppSettings } from "@/hooks/use-settings";
 
 interface TerminalPaneProps {
   serverId: string;
@@ -157,6 +158,7 @@ export function TerminalPane({
 }: TerminalPaneProps) {
   const isAppVisible = useAppVisible();
   const { theme } = useUnistyles();
+  const { settings } = useAppSettings();
   const xtermTheme = useMemo(() => toXtermTheme(theme.colors.terminal), [theme]);
   const isMobile = useIsCompactFormFactor();
   const mobileView = usePanelStore((state) => state.mobileView);
@@ -681,6 +683,7 @@ export function TerminalPane({
               streamKey={terminalStreamKey}
               testId="terminal-surface"
               xtermTheme={xtermTheme}
+              scrollbackLines={settings.terminalScrollbackLines}
               swipeGesturesEnabled={swipeGesturesEnabled}
               initialSnapshot={initialSnapshot}
               onRendererReadyChange={handleRendererReadyChange}
diff --git a/packages/app/src/hooks/use-settings.test.ts b/packages/app/src/hooks/use-settings.test.ts
index ec1b14bd9..cef8146dc 100644
--- a/packages/app/src/hooks/use-settings.test.ts
+++ b/packages/app/src/hooks/use-settings.test.ts
@@ -1,4 +1,5 @@
 import { beforeEach, describe, expect, it, vi } from "vitest";
+import { QueryClient } from "@tanstack/react-query";
 
 const asyncStorageMock = vi.hoisted(() => ({
   getItem: vi.fn<(_: string) => Promise<string | null>>(),
@@ -87,6 +88,7 @@ describe("use-settings", () => {
       manageBuiltInDaemon: true,
       sendBehavior: "interrupt",
       serviceUrlBehavior: "ask",
+      terminalScrollbackLines: 10_000,
       releaseChannel: "stable",
     });
   });
@@ -130,6 +132,7 @@ describe("use-settings", () => {
       theme: "dark",
       sendBehavior: "interrupt",
       serviceUrlBehavior: "ask",
+      terminalScrollbackLines: 10_000,
     });
     expect(asyncStorageMock.setItem).toHaveBeenCalledWith(
       mod.APP_SETTINGS_KEY,
@@ -169,6 +172,7 @@ describe("use-settings", () => {
       theme: "light",
       sendBehavior: "interrupt",
       serviceUrlBehavior: "ask",
+      terminalScrollbackLines: 10_000,
       manageBuiltInDaemon: false,
       releaseChannel: "beta",
     });
@@ -188,8 +192,58 @@ describe("use-settings", () => {
       theme: "light",
       sendBehavior: "interrupt",
       serviceUrlBehavior: "ask",
+      terminalScrollbackLines: 10_000,
       manageBuiltInDaemon: true,
       releaseChannel: "stable",
     });
   });
+
+  it("loads configured terminal scrollback lines from app settings", async () => {
+    asyncStorageMock.getItem.mockResolvedValue(
+      JSON.stringify({
+        terminalScrollbackLines: 42_000,
+      }),
+    );
+
+    const mod = await import("./use-settings");
+    const result = await mod.loadAppSettingsFromStorage();
+
+    expect(result.terminalScrollbackLines).toBe(42_000);
+  });
+
+  it("saves terminal scrollback through app settings persistence", async () => {
+    asyncStorageMock.setItem.mockResolvedValue();
+
+    const mod = await import("./use-settings");
+    asyncStorageMock.getItem.mockResolvedValue(JSON.stringify(mod.DEFAULT_CLIENT_SETTINGS));
+    const queryClient = new QueryClient();
+
+    await mod.saveAppSettings({
+      queryClient,
+      updates: { terminalScrollbackLines: 42_000 },
+    });
+
+    expect(asyncStorageMock.setItem).toHaveBeenLastCalledWith(
+      mod.APP_SETTINGS_KEY,
+      JSON.stringify({
+        ...mod.DEFAULT_CLIENT_SETTINGS,
+        terminalScrollbackLines: 42_000,
+      }),
+    );
+  });
+
+  it("normalizes terminal scrollback lines from storage", async () => {
+    asyncStorageMock.getItem.mockResolvedValue(
+      JSON.stringify({
+        terminalScrollbackLines: 1_000_000.9,
+      }),
+    );
+
+    const mod = await import("./use-settings");
+    const result = await mod.loadAppSettingsFromStorage();
+
+    expect(result.terminalScrollbackLines).toBe(1_000_000);
+    expect(mod.parseTerminalScrollbackLines("-10")).toBe(0);
+    expect(mod.parseTerminalScrollbackLines("abc")).toBeNull();
+  });
 });
diff --git a/packages/app/src/hooks/use-settings.ts b/packages/app/src/hooks/use-settings.ts
index a0492bff9..ecc3a8d78 100644
--- a/packages/app/src/hooks/use-settings.ts
+++ b/packages/app/src/hooks/use-settings.ts
@@ -1,6 +1,6 @@
 import { useCallback } from "react";
 import AsyncStorage from "@react-native-async-storage/async-storage";
-import { useQuery, useQueryClient } from "@tanstack/react-query";
+import { useQuery, useQueryClient, type QueryClient } from "@tanstack/react-query";
 import { queryClient as appQueryClient } from "@/query/query-client";
 import {
   DEFAULT_DESKTOP_SETTINGS,
@@ -21,11 +21,15 @@ export type ServiceUrlBehavior = "ask" | "in-app" | "external";
 
 const VALID_THEMES = new Set<string>([...Object.keys(THEME_TO_UNISTYLES), "auto"]);
 const VALID_SERVICE_URL_BEHAVIORS = new Set<ServiceUrlBehavior>(["ask", "in-app", "external"]);
+export const DEFAULT_TERMINAL_SCROLLBACK_LINES = 10_000;
+export const MIN_TERMINAL_SCROLLBACK_LINES = 0;
+export const MAX_TERMINAL_SCROLLBACK_LINES = 1_000_000;
 
 export interface AppSettings {
   theme: ThemeName | "auto";
   sendBehavior: SendBehavior;
   serviceUrlBehavior: ServiceUrlBehavior;
+  terminalScrollbackLines: number;
 }
 
 export interface Settings extends AppSettings {
@@ -37,6 +41,7 @@ export const DEFAULT_CLIENT_SETTINGS: AppSettings = {
   theme: "auto",
   sendBehavior: "interrupt",
   serviceUrlBehavior: "ask",
+  terminalScrollbackLines: DEFAULT_TERMINAL_SCROLLBACK_LINES,
 };
 
 export const DEFAULT_APP_SETTINGS: Settings = {
@@ -73,11 +78,7 @@ export function useAppSettings(): UseAppSettingsReturn {
   const updateSettings = useCallback(
     async (updates: Partial<AppSettings>) => {
       try {
-        const prev =
-          queryClient.getQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY) ?? DEFAULT_CLIENT_SETTINGS;
-        const next = { ...prev, ...updates };
-        queryClient.setQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY, next);
-        await AsyncStorage.setItem(APP_SETTINGS_KEY, JSON.stringify(next));
+        await saveAppSettings({ queryClient, updates });
       } catch (err) {
         console.error("[AppSettings] Failed to save settings:", err);
         throw err;
@@ -122,7 +123,9 @@ export function useSettings(): UseSettingsReturn {
       if (updates.serviceUrlBehavior !== undefined) {
         appUpdates.serviceUrlBehavior = updates.serviceUrlBehavior;
       }
-
+      if (updates.terminalScrollbackLines !== undefined) {
+        appUpdates.terminalScrollbackLines = updates.terminalScrollbackLines;
+      }
       const promises: Promise<void>[] = [];
       if (Object.keys(appUpdates).length > 0) {
         promises.push(appSettings.updateSettings(appUpdates));
@@ -171,11 +174,18 @@ export function useSettings(): UseSettingsReturn {
 }
 
 export async function persistAppSettings(updates: Partial<AppSettings>): Promise<void> {
+  await saveAppSettings({ queryClient: appQueryClient, updates });
+}
+
+export async function saveAppSettings(input: {
+  queryClient: QueryClient;
+  updates: Partial<AppSettings>;
+}): Promise<void> {
   const current =
-    appQueryClient.getQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY) ??
+    input.queryClient.getQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY) ??
     (await loadAppSettingsFromStorage());
-  const next = { ...current, ...updates };
-  appQueryClient.setQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY, next);
+  const next = { ...current, ...input.updates };
+  input.queryClient.setQueryData<AppSettings>(APP_SETTINGS_QUERY_KEY, next);
   await AsyncStorage.setItem(APP_SETTINGS_KEY, JSON.stringify(next));
 }
 
@@ -246,6 +256,10 @@ function pickAppSettings(stored: Partial<AppSettings>): Partial<AppSettings> {
   ) {
     result.serviceUrlBehavior = stored.serviceUrlBehavior;
   }
+  const terminalScrollbackLines = parseTerminalScrollbackLines(stored.terminalScrollbackLines);
+  if (terminalScrollbackLines !== null) {
+    result.terminalScrollbackLines = terminalScrollbackLines;
+  }
   return result;
 }
 
@@ -257,6 +271,22 @@ function pickAppSettingsFromLegacy(legacy: Record<string, unknown>): Partial<App
   return result;
 }
 
+export function parseTerminalScrollbackLines(value: unknown): number | null {
+  let numericValue = NaN;
+  if (typeof value === "number") {
+    numericValue = value;
+  } else if (typeof value === "string" && value.trim().length > 0) {
+    numericValue = Number(value);
+  }
+  if (!Number.isFinite(numericValue)) {
+    return null;
+  }
+  return Math.min(
+    MAX_TERMINAL_SCROLLBACK_LINES,
+    Math.max(MIN_TERMINAL_SCROLLBACK_LINES, Math.floor(numericValue)),
+  );
+}
+
 async function loadLegacyDesktopSettingsFromStorage(): Promise<{
   manageBuiltInDaemon?: boolean;
   releaseChannel?: ReleaseChannel;
diff --git a/packages/app/src/screens/settings-screen.tsx b/packages/app/src/screens/settings-screen.tsx
index e57a15fbf..090e7cd98 100644
--- a/packages/app/src/screens/settings-screen.tsx
+++ b/packages/app/src/screens/settings-screen.tsx
@@ -1,10 +1,11 @@
-import { Fragment, useCallback, useMemo, useState, useSyncExternalStore } from "react";
+import { Fragment, useCallback, useEffect, useMemo, useState, useSyncExternalStore } from "react";
 import type { ComponentType, ReactNode } from "react";
 import {
   Alert,
   Pressable,
   ScrollView,
   Text,
+  TextInput,
   View,
   type PressableStateCallbackType,
 } from "react-native";
@@ -37,6 +38,7 @@ import { SettingsSection } from "@/screens/settings/settings-section";
 import {
   useAppSettings,
   useSettings,
+  parseTerminalScrollbackLines,
   type AppSettings,
   type SendBehavior,
   type ServiceUrlBehavior,
@@ -209,6 +211,7 @@ interface GeneralSectionProps {
   handleThemeChange: (theme: AppSettings["theme"]) => void;
   handleSendBehaviorChange: (behavior: SendBehavior) => void;
   handleServiceUrlBehaviorChange: (behavior: ServiceUrlBehavior) => void;
+  handleTerminalScrollbackLinesChange: (lines: number) => void;
 }
 
 interface ThemeMenuItemProps {
@@ -267,10 +270,35 @@ function GeneralSection({
   handleThemeChange,
   handleSendBehaviorChange,
   handleServiceUrlBehaviorChange,
+  handleTerminalScrollbackLinesChange,
 }: GeneralSectionProps) {
   const { theme } = useUnistyles();
   const iconSize = theme.iconSize.md;
   const iconColor = theme.colors.foregroundMuted;
+  const [terminalScrollbackValue, setTerminalScrollbackValue] = useState(
+    String(settings.terminalScrollbackLines),
+  );
+
+  const handleTerminalScrollbackChangeText = useCallback((value: string) => {
+    setTerminalScrollbackValue(value.replace(/[^\d]/g, ""));
+  }, []);
+
+  const commitTerminalScrollback = useCallback(() => {
+    const parsed = parseTerminalScrollbackLines(terminalScrollbackValue);
+    const nextValue = parsed ?? settings.terminalScrollbackLines;
+    setTerminalScrollbackValue(String(nextValue));
+    if (nextValue !== settings.terminalScrollbackLines) {
+      handleTerminalScrollbackLinesChange(nextValue);
+    }
+  }, [
+    handleTerminalScrollbackLinesChange,
+    settings.terminalScrollbackLines,
+    terminalScrollbackValue,
+  ]);
+
+  useEffect(() => {
+    setTerminalScrollbackValue(String(settings.terminalScrollbackLines));
+  }, [settings.terminalScrollbackLines]);
 
   return (
     <SettingsSection title="General">
@@ -350,6 +378,23 @@ function GeneralSection({
             </DropdownMenu>
           </View>
         ) : null}
+        <View style={ROW_WITH_BORDER_STYLE}>
+          <View style={settingsStyles.rowContent}>
+            <Text style={settingsStyles.rowTitle}>Terminal scrollback</Text>
+            <Text style={settingsStyles.rowHint}>Lines kept in the built-in terminal buffer</Text>
+          </View>
+          <TextInput
+            value={terminalScrollbackValue}
+            onChangeText={handleTerminalScrollbackChangeText}
+            onBlur={commitTerminalScrollback}
+            onSubmitEditing={commitTerminalScrollback}
+            keyboardType="number-pad"
+            inputMode="numeric"
+            selectTextOnFocus
+            style={styles.terminalScrollbackInput}
+            accessibilityLabel="Terminal scrollback lines"
+          />
+        </View>
       </View>
     </SettingsSection>
   );
@@ -850,6 +895,13 @@ export default function SettingsScreen({ view }: SettingsScreenProps) {
     [updateSettings],
   );
 
+  const handleTerminalScrollbackLinesChange = useCallback(
+    (terminalScrollbackLines: number) => {
+      void updateSettings({ terminalScrollbackLines });
+    },
+    [updateSettings],
+  );
+
   const handlePlaybackTest = useCallback(async () => {
     if (!voiceAudioEngine || isPlaybackTestRunning) {
       return;
@@ -1031,6 +1083,7 @@ export default function SettingsScreen({ view }: SettingsScreenProps) {
               handleThemeChange={handleThemeChange}
               handleSendBehaviorChange={handleSendBehaviorChange}
               handleServiceUrlBehaviorChange={handleServiceUrlBehaviorChange}
+              handleTerminalScrollbackLinesChange={handleTerminalScrollbackLinesChange}
             />
           );
         case "shortcuts":
@@ -1233,6 +1286,19 @@ const styles = StyleSheet.create((theme) => ({
     color: theme.colors.foreground,
     fontSize: theme.fontSize.sm,
   },
+  terminalScrollbackInput: {
+    width: 112,
+    minHeight: 36,
+    paddingVertical: theme.spacing[2],
+    paddingHorizontal: theme.spacing[3],
+    borderRadius: theme.borderRadius.md,
+    borderWidth: 1,
+    borderColor: theme.colors.border,
+    backgroundColor: theme.colors.surface2,
+    color: theme.colors.foreground,
+    fontSize: theme.fontSize.sm,
+    textAlign: "right",
+  },
   placeholder: {
     flex: 1,
     alignItems: "center",
diff --git a/packages/app/src/terminal/runtime/terminal-emulator-runtime.browser.test.ts b/packages/app/src/terminal/runtime/terminal-emulator-runtime.browser.test.ts
index da95f6d5a..4a9b7f028 100644
--- a/packages/app/src/terminal/runtime/terminal-emulator-runtime.browser.test.ts
+++ b/packages/app/src/terminal/runtime/terminal-emulator-runtime.browser.test.ts
@@ -61,7 +61,11 @@ async function waitFor(input: { predicate: () => boolean; timeoutMs?: number }):
   }
 }
 
-function createTerminalHost(input: { width: number; height: number }): MountedTerminal {
+function createTerminalHost(input: {
+  width: number;
+  height: number;
+  scrollback?: number;
+}): MountedTerminal {
   const root = document.createElement("div");
   root.style.width = `${input.width}px`;
   root.style.height = `${input.height}px`;
@@ -101,6 +105,7 @@ function createTerminalHost(input: { width: number; height: number }): MountedTe
     root,
     host,
     initialSnapshot: null,
+    scrollback: input.scrollback ?? 10_000,
     theme: {
       background: "#0b0b0b",
       foreground: "#e6e6e6",
@@ -163,6 +168,32 @@ afterEach(() => {
 });
 
 describe("terminal emulator runtime in a real browser", () => {
+  it("passes configured scrollback to xterm", async () => {
+    await page.viewport(900, 600);
+    createTerminalHost({ width: 720, height: 360, scrollback: 42_000 });
+
+    await waitFor({
+      predicate: () => window.__paseoTerminal !== undefined,
+    });
+
+    expect(window.__paseoTerminal?.options.scrollback).toBe(42_000);
+  });
+
+  it("updates scrollback on the mounted xterm", async () => {
+    await page.viewport(900, 600);
+    const mounted = createTerminalHost({ width: 720, height: 360, scrollback: 10_000 });
+
+    await waitFor({
+      predicate: () => window.__paseoTerminal !== undefined,
+    });
+    const terminal = window.__paseoTerminal;
+
+    mounted.runtime.setScrollback({ lines: 42_000 });
+
+    expect(window.__paseoTerminal).toBe(terminal);
+    expect(window.__paseoTerminal?.options.scrollback).toBe(42_000);
+  });
+
   it("reports a larger PTY size when the terminal container grows", async () => {
     await page.viewport(900, 600);
     const mounted = createTerminalHost({ width: 360, height: 180 });
diff --git a/packages/app/src/terminal/runtime/terminal-emulator-runtime.test.ts b/packages/app/src/terminal/runtime/terminal-emulator-runtime.test.ts
index b16aa4c4e..a58d63a61 100644
--- a/packages/app/src/terminal/runtime/terminal-emulator-runtime.test.ts
+++ b/packages/app/src/terminal/runtime/terminal-emulator-runtime.test.ts
@@ -49,9 +49,29 @@ vi.mock("@xterm/addon-webgl", () => ({
   },
 }));
 
+const terminalConstructorOptions = vi.hoisted(() => ({
+  values: [] as unknown[],
+}));
+
 vi.mock("@xterm/xterm", () => ({
   Terminal: class Terminal {
+    rows = 24;
+    cols = 80;
+    unicode = { activeVersion: "" };
+    parser = {
+      registerCsiHandler: () => undefined,
+    };
+    constructor(options: unknown) {
+      terminalConstructorOptions.values.push(options);
+    }
+    loadAddon(): void {}
+    open(): void {}
+    onData(): { dispose: () => void } {
+      return { dispose: () => undefined };
+    }
+    attachCustomKeyEventHandler(): void {}
     dispose(): void {}
+    refresh(): void {}
   },
 }));
 
@@ -63,7 +83,7 @@ interface StubTerminal {
   resize?: (cols: number, rows: number) => void;
   focus: () => void;
   refresh?: (start: number, end: number) => void;
-  options?: { theme?: unknown };
+  options?: { theme?: unknown; scrollback?: number };
   rows?: number;
   cols?: number;
 }
@@ -118,6 +138,7 @@ describe("terminal-emulator-runtime", () => {
     (globalThis as { window?: { __paseoTerminal?: unknown } }).window = {
       __paseoTerminal: undefined,
     };
+    terminalConstructorOptions.values = [];
   });
 
   afterEach(() => {
@@ -317,6 +338,26 @@ describe("terminal-emulator-runtime", () => {
     expect(refresh).toHaveBeenCalledWith(0, 11);
   });
 
+  it("updates terminal scrollback without remounting", () => {
+    const runtime = new TerminalEmulatorRuntime();
+    const refresh = vi.fn();
+    const terminal: StubTerminal = {
+      write: () => {},
+      reset: () => {},
+      focus: () => {},
+      refresh,
+      options: { scrollback: 10_000 },
+      rows: 12,
+      cols: 40,
+    };
+    (runtime as unknown as { terminal: StubTerminal }).terminal = terminal;
+
+    runtime.setScrollback({ lines: 42_000 });
+
+    expect(terminal.options?.scrollback).toBe(42_000);
+    expect(refresh).toHaveBeenCalledWith(0, 11);
+  });
+
   it("forces a refit when the page becomes visible again", () => {
     const runtime = new TerminalEmulatorRuntime();
     const fitAndEmitResize = vi.fn();
diff --git a/packages/app/src/terminal/runtime/terminal-emulator-runtime.ts b/packages/app/src/terminal/runtime/terminal-emulator-runtime.ts
index aeb18d7b0..1feff96e3 100644
--- a/packages/app/src/terminal/runtime/terminal-emulator-runtime.ts
+++ b/packages/app/src/terminal/runtime/terminal-emulator-runtime.ts
@@ -27,6 +27,7 @@ export interface TerminalEmulatorRuntimeMountInput {
   root: HTMLDivElement;
   host: HTMLDivElement;
   initialSnapshot: TerminalState | null;
+  scrollback: number;
   theme: ITheme;
 }
 
@@ -178,7 +179,7 @@ export class TerminalEmulatorRuntime {
       overviewRuler: {
         width: 8,
       },
-      scrollback: 10_000,
+      scrollback: input.scrollback,
       theme: withOverviewRulerBorderHidden(input.theme),
     });
     const fitAddon = new FitAddon();
@@ -578,6 +579,22 @@ export class TerminalEmulatorRuntime {
     this.refreshVisibleRows();
   }
 
+  setScrollback(input: { lines: number }): void {
+    const terminal = this.terminal;
+    if (!terminal) {
+      return;
+    }
+
+    try {
+      terminal.options.scrollback = input.lines;
+    } catch {
+      // ignore
+      return;
+    }
+
+    this.refreshVisibleRows();
+  }
+
   focus(): void {
     this.terminal?.focus();
   }