diff --git a/apps/app/src/components/views/terminal-view/terminal-panel.tsx b/apps/app/src/components/views/terminal-view/terminal-panel.tsx
index eb0f8eb8..c0fb1eab 100644
--- a/apps/app/src/components/views/terminal-view/terminal-panel.tsx
+++ b/apps/app/src/components/views/terminal-view/terminal-panel.tsx
@@ -59,6 +59,7 @@ export function TerminalPanel({
   const wsRef = useRef<WebSocket | null>(null);
   const reconnectTimeoutRef = useRef<NodeJS.Timeout | null>(null);
   const [isTerminalReady, setIsTerminalReady] = useState(false);
+  const [shellName, setShellName] = useState("shell");
 
   // Get effective theme from store
   const getEffectiveTheme = useAppStore((state) => state.getEffectiveTheme);
@@ -223,6 +224,11 @@ export function TerminalPanel({
               break;
             case "connected":
               console.log(`[Terminal] Session connected: ${msg.shell} in ${msg.cwd}`);
+              if (msg.shell) {
+                // Extract shell name from path (e.g., "/bin/bash" -> "bash")
+                const name = msg.shell.split("/").pop() || msg.shell;
+                setShellName(name);
+              }
               break;
             case "exit":
               terminal.write(`\r\n\x1b[33m[Process exited with code ${msg.exitCode}]\x1b[0m\r\n`);
@@ -462,7 +468,7 @@ export function TerminalPanel({
         <div className="flex items-center gap-1.5 flex-1 min-w-0">
           <Terminal className="h-3 w-3 shrink-0 text-muted-foreground" />
           <span className="text-xs truncate text-foreground">
-            bash
+            {shellName}
           </span>
           {/* Font size indicator - only show when not default */}
           {fontSize !== DEFAULT_FONT_SIZE && (
diff --git a/apps/app/src/store/app-store.ts b/apps/app/src/store/app-store.ts
index 93deb21f..12547c6a 100644
--- a/apps/app/src/store/app-store.ts
+++ b/apps/app/src/store/app-store.ts
@@ -1605,7 +1605,8 @@ export const useAppStore = create<AppState & AppActions>()(
         if (current.tabs.length === 0) return;
 
         // Find which tab contains this session
-        const findFirstTerminal = (node: TerminalPanelContent): string | null => {
+        const findFirstTerminal = (node: TerminalPanelContent | null): string | null => {
+          if (!node) return null;
           if (node.type === "terminal") return node.sessionId;
           for (const panel of node.panels) {
             const found = findFirstTerminal(panel);
@@ -1640,7 +1641,7 @@ export const useAppStore = create<AppState & AppActions>()(
         // Determine new active session
         const newActiveTabId = newTabs.length > 0 ? (current.activeTabId && newTabs.find(t => t.id === current.activeTabId) ? current.activeTabId : newTabs[0].id) : null;
         const newActiveSessionId = newActiveTabId
-          ? findFirstTerminal(newTabs.find(t => t.id === newActiveTabId)?.layout || null as unknown as TerminalPanelContent)
+          ? findFirstTerminal(newTabs.find(t => t.id === newActiveTabId)?.layout || null)
           : null;
 
         set({