diff --git a/.changeset/terminal-dock-default-height.md b/.changeset/terminal-dock-default-height.md
new file mode 100644
index 000000000..9bdbc46fd
--- /dev/null
+++ b/.changeset/terminal-dock-default-height.md
@@ -0,0 +1,5 @@
+---
+"@inkeep/open-knowledge-app": patch
+---
+
+The integrated terminal now opens at about one third of the window height on first use, instead of a fixed 240px that was often too short to read a command's output without dragging the divider. The default is computed as a fraction of the window height (so it scales with window size) and still respects the existing 120px floor and 50vh ceiling. A height you set by dragging is remembered as before.
diff --git a/packages/app/src/lib/terminal-height-store.test.ts b/packages/app/src/lib/terminal-height-store.test.ts
index 961db3f81..ccfd56982 100644
--- a/packages/app/src/lib/terminal-height-store.test.ts
+++ b/packages/app/src/lib/terminal-height-store.test.ts
@@ -21,10 +21,15 @@ function memoryStorage(initial: Record<string, string> = {}): HeightStorage {
 }
 
 const TALL = 1000;
+const TALL_DEFAULT = 333;
 
 describe('readTerminalHeight', () => {
-  test('absent key returns default', () => {
-    expect(readTerminalHeight(memoryStorage(), TALL)).toBe(DEFAULT_TERMINAL_HEIGHT);
+  test('absent key returns the ~1/3-viewport default (1000 → 333)', () => {
+    expect(readTerminalHeight(memoryStorage(), TALL)).toBe(TALL_DEFAULT);
+  });
+
+  test('default below the floor on a short viewport clamps up to MIN (300 → 100 → 120)', () => {
+    expect(readTerminalHeight(memoryStorage(), 300)).toBe(MIN_TERMINAL_HEIGHT);
   });
 
   test('valid stored height is returned', () => {
@@ -50,18 +55,28 @@ describe('readTerminalHeight', () => {
 
   test('non-numeric value falls back to default', () => {
     const s = memoryStorage({ [TERMINAL_HEIGHT_KEY]: 'not a number' });
-    expect(readTerminalHeight(s, TALL)).toBe(DEFAULT_TERMINAL_HEIGHT);
+    expect(readTerminalHeight(s, TALL)).toBe(TALL_DEFAULT);
   });
 
   test('empty string falls back to default', () => {
     const s = memoryStorage({ [TERMINAL_HEIGHT_KEY]: '' });
-    expect(readTerminalHeight(s, TALL)).toBe(DEFAULT_TERMINAL_HEIGHT);
+    expect(readTerminalHeight(s, TALL)).toBe(TALL_DEFAULT);
   });
 
   test('floating-point value is rounded', () => {
     const s = memoryStorage({ [TERMINAL_HEIGHT_KEY]: '240.6' });
     expect(readTerminalHeight(s, TALL)).toBe(240);
   });
+
+  test('throwing storage falls back to the fixed pixel default', () => {
+    const throwing: HeightStorage = {
+      getItem() {
+        throw new Error('SecurityError');
+      },
+      setItem() {},
+    };
+    expect(readTerminalHeight(throwing, TALL)).toBe(DEFAULT_TERMINAL_HEIGHT);
+  });
 });
 
 describe('writeTerminalHeight', () => {
diff --git a/packages/app/src/lib/terminal-height-store.ts b/packages/app/src/lib/terminal-height-store.ts
index 71ffe5316..4cb5f1acc 100644
--- a/packages/app/src/lib/terminal-height-store.ts
+++ b/packages/app/src/lib/terminal-height-store.ts
@@ -2,6 +2,7 @@ export const TERMINAL_HEIGHT_KEY = 'ok-terminal-height-v1';
 
 export const DEFAULT_TERMINAL_HEIGHT = 240;
 export const MIN_TERMINAL_HEIGHT = 120;
+const DEFAULT_TERMINAL_HEIGHT_FRACTION = 1 / 3;
 const MAX_TERMINAL_HEIGHT_FRACTION = 0.5;
 
 export interface HeightStorage {
@@ -14,9 +15,15 @@ function maxHeight(viewportHeight: number): number {
   return Math.max(MIN_TERMINAL_HEIGHT, Math.round(vh * MAX_TERMINAL_HEIGHT_FRACTION));
 }
 
+function defaultHeight(viewportHeight: number): number {
+  const vh = Number.isFinite(viewportHeight) ? viewportHeight : 0;
+  if (vh <= 0) return DEFAULT_TERMINAL_HEIGHT;
+  return Math.round(vh * DEFAULT_TERMINAL_HEIGHT_FRACTION);
+}
+
 function clamp(px: number, viewportHeight: number): number {
   const max = maxHeight(viewportHeight);
-  if (!Number.isFinite(px)) return Math.min(DEFAULT_TERMINAL_HEIGHT, max);
+  if (!Number.isFinite(px)) return Math.min(defaultHeight(viewportHeight), max);
   if (px < MIN_TERMINAL_HEIGHT) return MIN_TERMINAL_HEIGHT;
   if (px > max) return max;
   return Math.round(px);
@@ -32,9 +39,9 @@ export function readTerminalHeight(storage?: HeightStorage, viewportHeight?: num
     const s = storage ?? localStorage;
     const vh = viewportHeight ?? currentViewportHeight();
     const raw = s.getItem(TERMINAL_HEIGHT_KEY);
-    if (raw == null) return clamp(DEFAULT_TERMINAL_HEIGHT, vh);
+    if (raw == null) return clamp(defaultHeight(vh), vh);
     const parsed = Number.parseInt(raw, 10);
-    if (!Number.isFinite(parsed)) return clamp(DEFAULT_TERMINAL_HEIGHT, vh);
+    if (!Number.isFinite(parsed)) return clamp(defaultHeight(vh), vh);
     return clamp(parsed, vh);
   } catch {
     return DEFAULT_TERMINAL_HEIGHT;