diff --git a/desktop/src/features/terminal/TerminalPanel.tsx b/desktop/src/features/terminal/TerminalPanel.tsx
index b42661fa54..23ca6f8748 100644
--- a/desktop/src/features/terminal/TerminalPanel.tsx
+++ b/desktop/src/features/terminal/TerminalPanel.tsx
@@ -97,7 +97,7 @@ export function TerminalPanel({ channelId, isOpen }: TerminalPanelProps) {
             onPointerDown={handleResizeStart}
           >
             {/* Terminal content */}
-            <div className="min-h-0 flex-1 bg-terminal p-2">
+            <div className="min-h-0 flex-1 bg-terminal p-3">
               <TerminalInstance channelId={channelId} isVisible={isOpen} />
             </div>
           </div>