diff --git a/.changeset/fn-8633-tablet-terminal-drag.md b/.changeset/fn-8633-tablet-terminal-drag.md
new file mode 100644
index 0000000000..4f0f38f2a8
--- /dev/null
+++ b/.changeset/fn-8633-tablet-terminal-drag.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Make floating terminal windows reliably draggable on touch tablets.
+category: fix
+dev: Adds a reserved tablet-only terminal header drag grip and touch-sized pop-out target.
diff --git a/docs/dashboard-guide.md b/docs/dashboard-guide.md
index cb3dd1e612..5c84d51257 100644
--- a/docs/dashboard-guide.md
+++ b/docs/dashboard-guide.md
@@ -817,7 +817,7 @@ Mailbox view shows inbox/outbox communication threads and unread state. When an
 
 ## Interactive Terminal
 
-Fusion embeds a terminal using xterm.js. Desktop and tablet use the footer status bar as the terminal launcher; mobile keeps the full-screen terminal path. Known touch tablets, including at the 768px responsive boundary, retain docked/floating presentation rather than falling back to the phone sheet. Their saved floating size and position and touch drag/edge-or-corner resize controls stay available when a software keyboard shortens the visual viewport. True narrow phones, including folded panes and short phone landscapes, intentionally remain full-screen.
+Fusion embeds a terminal using xterm.js. Desktop and tablet use the footer status bar as the terminal launcher; mobile keeps the full-screen terminal path. Known touch tablets, including at the 768px responsive boundary, retain docked/floating presentation rather than falling back to the phone sheet. Their saved floating size and position and touch drag/edge-or-corner resize controls stay available when a software keyboard shortens the visual viewport. In tablet floating mode, use the reserved grip at the left side of the terminal header to move the window; it stays available even when the tab strip overflows. True narrow phones, including folded panes and short phone landscapes, intentionally remain full-screen.
 
 <!-- FNXC:Terminal 2026-07-11-18:20: FN-7824 first-launch terminal sockets auto-retry with capped backoff until the first successful open, so the manual Reconnect affordance is reserved for terminal sessions that already connected and then exhaust their mid-session reconnect budget. -->
 On first launch or first open, the terminal keeps reconnecting automatically until its initial WebSocket opens; it should show **Reconnecting...** during that cold-start recovery rather than requiring a manual **Reconnect** click. If an already-connected terminal drops and exhausts its bounded reconnect budget, Fusion then parks it as **Disconnected** and surfaces the manual **Reconnect** control.
@@ -838,7 +838,7 @@ Use the terminal on desktop/tablet:
 3. Drag the top edge of the docked or pinned panel.
    Expected outcome: the panel height changes within its viewport-safe bounds and persists per project, with pinned mode clamped shorter so the application remains usable.
 4. Select **Pop out** from the bottom action-control footer.
-   Expected outcome: the terminal switches to a floating window that can be dragged and freely resized; size, position, and display mode are saved per project.
+   Expected outcome: the terminal switches to a floating window that can be dragged and freely resized; size, position, and display mode are saved per project. On touch tablets, drag the reserved header grip rather than the horizontally scrollable tab strip.
 5. Select **Dock** in the floating terminal.
    Expected outcome: the terminal returns to the bottom docked overlay panel using the saved docked height.
 6. Select the scripts chevron beside the footer **Terminal** button.
diff --git a/packages/dashboard/app/components/TerminalModal.css b/packages/dashboard/app/components/TerminalModal.css
index 41599d2aba..8e1b728475 100644
--- a/packages/dashboard/app/components/TerminalModal.css
+++ b/packages/dashboard/app/components/TerminalModal.css
@@ -241,6 +241,67 @@ FN-7897: reserve space for the fixed ExecutorStatusBar footer when it is rendere
   border-radius: 2px;
 }
 
+/*
+FNXC:TerminalModalControls 2026-07-31-22:41:
+The tablet classifier, rather than the legacy 769px media query, owns this grip so a known
+768px touch tablet remains a floating window instead of receiving phone-sheet chrome. Only the
+reserved grip disables browser gesture handling: applying `touch-action: none` to the panel or
+header prevents native horizontal panning in the descendant overflowing tab strip.
+*/
+.modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-header__drag-grip {
+  position: relative;
+  display: flex;
+  flex: 0 0 auto;
+  align-items: center;
+  justify-content: center;
+  min-inline-size: var(--modal-resize-touch-target);
+  min-block-size: var(--modal-resize-touch-target);
+  touch-action: none;
+  cursor: grab;
+  user-select: none;
+}
+
+.modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-header__drag-grip::before {
+  content: "";
+  inline-size: var(--space-lg);
+  block-size: var(--space-xs);
+  border-radius: var(--radius-pill);
+  background: color-mix(in srgb, var(--text-muted) 55%, transparent);
+}
+
+.modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-header__drag-grip:active {
+  cursor: grabbing;
+}
+
+/*
+FNXC:TerminalModalControls 2026-07-31-22:41:
+The tab strip must retain native horizontal touch panning while the sibling grip owns window
+movement. This explicit contract prevents future tablet drag rules from suppressing tab scrolling.
+*/
+.modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-tabs {
+  touch-action: pan-x;
+}
+
+/*
+FNXC:TerminalModalControls 2026-07-31-22:19:
+Tablets start docked, so the footer pop-out control needs the same touch-sized reach without
+changing its established 14px icon or footer layout. Its pseudo-element only enlarges the button
+hit area; it is not a second terminal control.
+*/
+.modal.terminal-modal.terminal-modal--tablet .terminal-clear-btn.terminal-clear-btn--icon[data-testid="terminal-popout-toggle"] {
+  position: relative;
+}
+
+.modal.terminal-modal.terminal-modal--tablet .terminal-clear-btn.terminal-clear-btn--icon[data-testid="terminal-popout-toggle"]::before {
+  content: "";
+  position: absolute;
+  inline-size: var(--modal-resize-touch-target);
+  block-size: var(--modal-resize-touch-target);
+  inset-inline-start: 50%;
+  inset-block-start: 50%;
+  transform: translate(-50%, -50%);
+}
+
 .terminal-tab {
   display: flex;
   align-items: center;
diff --git a/packages/dashboard/app/components/TerminalModal.tsx b/packages/dashboard/app/components/TerminalModal.tsx
index 4ff0737d8b..04ce09583f 100644
--- a/packages/dashboard/app/components/TerminalModal.tsx
+++ b/packages/dashboard/app/components/TerminalModal.tsx
@@ -2426,12 +2426,18 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
     </>
   );
 
+  /*
+  FNXC:TerminalModalControls 2026-07-31-22:19:
+  The tab scroller owns tab presses and horizontal panning; floating-window drags begin only on
+  the reserved grip so a tab interaction cannot leave a captured header drag behind.
+  */
   const renderTerminalTabStrip = (measuring = false) => (
     <div
       ref={measuring || !tabsOverflow ? terminalTabsMeasureRef : undefined}
       className={`terminal-tabs${measuring ? " terminal-tabs--measuring" : ""}`}
       data-testid={measuring ? "terminal-tabs-measuring" : "terminal-tabs"}
       aria-hidden={measuring || undefined}
+      onPointerDown={measuring ? undefined : (event) => event.stopPropagation()}
     >
       {tabs.map((tab) => (
         <div
@@ -2541,6 +2547,16 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
         {/* Header — on mobile (≤768px) use compact selector/actions;
             .terminal-title is hidden; action button labels are hidden (icons only) */}
         <div className="terminal-header">
+          {/*
+          FNXC:TerminalModalControls 2026-07-31-22:19:
+          Tablet floating terminals need a reserved, real pointer target because the flexing tab
+          strip otherwise consumes the entire delegated header handle. This plain element—not a
+          pseudo-element—is the testable drag target and remains outside the interactive-element
+          suppression filter in FloatingWindow.
+          */}
+          {isTabletTerminal && !isMobileTerminal && !embedded && isFloatingMode && (
+            <div className="terminal-header__drag-grip" data-testid="terminal-drag-grip" aria-hidden="true" />
+          )}
           {/* Tab Bar */}
           {isMobileTerminal ? renderTerminalMobileTabs() : (
             <div className="terminal-tab-region" ref={terminalTabRegionRef}>
diff --git a/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx b/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
index 6e736294e5..42a85a7901 100644
--- a/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
+++ b/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
@@ -504,6 +504,7 @@ describe("TerminalModal", () => {
     expect(screen.queryByTestId("terminal-close-btn")).toBeNull();
     expect(screen.queryByTestId("terminal-popout-toggle")).toBeNull();
     expect(screen.queryByTestId("terminal-pin-toggle")).toBeNull();
+    expect(screen.queryByTestId("terminal-drag-grip")).toBeNull();
     expect(screen.getByTestId("terminal-tabs")).toBeTruthy();
     expect(mockUseTerminalSessions).toHaveBeenCalledWith("proj-123", {
       storageScope: "task:FN-7813",
@@ -959,6 +960,7 @@ describe("TerminalModal", () => {
 
     const modal = await screen.findByTestId("terminal-modal");
     expect(modal).toHaveClass("terminal-modal--docked");
+    expect(screen.queryByTestId("terminal-drag-grip")).toBeNull();
     expect(screen.getByTestId("terminal-docked-resize-handle")).toBeInTheDocument();
 
     fireEvent.click(screen.getByTestId("terminal-popout-toggle"));
@@ -966,6 +968,7 @@ describe("TerminalModal", () => {
     await waitFor(() => {
       expect(screen.getByTestId("terminal-modal")).toHaveClass("terminal-modal--floating");
       expect(screen.getByTestId("terminal-modal")).not.toHaveClass("terminal-modal--docked");
+      expect(screen.queryByTestId("terminal-drag-grip")).toBeNull();
       expect(screen.getByTestId("floating-window-resize-se")).toBeInTheDocument();
     });
 
@@ -1351,6 +1354,8 @@ describe("TerminalModal", () => {
       const modal = await screen.findByTestId("terminal-modal");
       await waitFor(() => expect(mockTerminalInstance.open).toHaveBeenCalled());
       expect(modal).toHaveClass("terminal-modal--tablet", "terminal-modal--floating");
+      expect(modal).not.toHaveClass("terminal-modal--mobile");
+      expect(screen.getByTestId("terminal-drag-grip")).toBeInTheDocument();
       // The 768px CSS fallback is full-screen only for true phones. A known
       // tablet must win that cascade with its stored floating geometry.
       const modalStyle = screen.getByTestId(`floating-window-terminal-${projectId}`).style;
@@ -1391,6 +1396,99 @@ describe("TerminalModal", () => {
     }
   });
 
+  it("gives tablet floating terminals a real touch drag grip without affecting other presentations", async () => {
+    const projectId = "tablet-terminal-drag-grip";
+    const previousInnerWidth = window.innerWidth;
+    const previousInnerHeight = window.innerHeight;
+    const previousScreen = Object.getOwnPropertyDescriptor(window, "screen");
+    const previousMaxTouchPoints = Object.getOwnPropertyDescriptor(navigator, "maxTouchPoints");
+    const setActiveTab = vi.fn();
+    const tabs = [
+      defaultTab,
+      { ...defaultTab, id: "tab-2", title: "a deliberately long second terminal tab", isActive: false },
+      { ...defaultTab, id: "tab-3", title: "a deliberately long third terminal tab", isActive: false },
+    ];
+    Object.defineProperty(window, "innerWidth", { configurable: true, value: 1024 });
+    Object.defineProperty(window, "innerHeight", { configurable: true, value: 768 });
+    Object.defineProperty(window, "screen", { configurable: true, value: { width: 1024, height: 768 } });
+    Object.defineProperty(navigator, "maxTouchPoints", { configurable: true, value: 1 });
+    vi.spyOn(window, "matchMedia").mockImplementation((query: string) => ({
+      matches: query === "(min-width: 769px) and (max-width: 1024px)",
+      media: query,
+      onchange: null,
+      addListener: vi.fn(),
+      removeListener: vi.fn(),
+      addEventListener: vi.fn(),
+      removeEventListener: vi.fn(),
+      dispatchEvent: vi.fn(),
+    }));
+    window.localStorage.setItem(`fusion:terminal-display-mode-${projectId}`, "floating");
+    mockUseTerminalSessions.mockReturnValue({ ...defaultSessionState, tabs, activeTab: tabs[0], setActiveTab });
+
+    try {
+      const { unmount } = render(<TerminalModal isOpen={true} onClose={mockOnClose} projectId={projectId} />);
+      const modal = await screen.findByTestId("terminal-modal");
+      const panel = screen.getByTestId(`floating-window-terminal-${projectId}`) as HTMLElement & {
+        setPointerCapture: (pointerId: number) => void;
+        releasePointerCapture: (pointerId: number) => void;
+      };
+      const grip = screen.getByTestId("terminal-drag-grip");
+      panel.setPointerCapture = vi.fn();
+      panel.releasePointerCapture = vi.fn();
+
+      expect(modal).toHaveClass("terminal-modal--tablet", "terminal-modal--floating");
+      expect(modal).not.toHaveClass("terminal-modal--mobile");
+      expect(grip).toHaveAttribute("aria-hidden", "true");
+      expect(grip.previousElementSibling).toBeNull();
+      expect(grip.tagName).toBe("DIV");
+
+      const initialLeft = panel.style.left;
+      const initialTop = panel.style.top;
+      fireEvent.pointerDown(grip, { pointerId: 63, pointerType: "touch", clientX: 100, clientY: 100 });
+      fireEvent.pointerMove(grip, { pointerId: 63, pointerType: "touch", clientX: 20, clientY: 20 });
+      fireEvent.pointerUp(grip, { pointerId: 63, pointerType: "touch" });
+      await waitFor(() => {
+        expect(panel.setPointerCapture).toHaveBeenCalledWith(63);
+        expect(panel.style.left).not.toBe(initialLeft);
+        expect(panel.style.top).not.toBe(initialTop);
+        expect(JSON.parse(window.localStorage.getItem(`fusion:terminal-float-geometry-${projectId}`) ?? "{}").position).toEqual({ x: 16, y: 80 });
+      });
+
+      fireEvent.pointerDown(screen.getAllByRole("tab")[1], { pointerId: 64, pointerType: "touch" });
+      fireEvent.click(screen.getAllByRole("tab")[1]);
+      expect(setActiveTab).toHaveBeenCalledWith("tab-2");
+      expect(panel.setPointerCapture).toHaveBeenCalledTimes(1);
+      unmount();
+    } finally {
+      Object.defineProperty(window, "innerWidth", { configurable: true, value: previousInnerWidth });
+      Object.defineProperty(window, "innerHeight", { configurable: true, value: previousInnerHeight });
+      if (previousScreen) Object.defineProperty(window, "screen", previousScreen);
+      if (previousMaxTouchPoints) Object.defineProperty(navigator, "maxTouchPoints", previousMaxTouchPoints);
+    }
+  });
+
+  it("keeps the tablet drag grip isolated from the horizontally pannable tab strip", () => {
+    const gripSelector = ".modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-header__drag-grip";
+    const tabsSelector = ".modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-tabs";
+    const gripSelectorIndex = terminalModalCss.indexOf(gripSelector);
+    const gripRuleEnd = terminalModalCss.indexOf("}", gripSelectorIndex);
+    const gripRule = terminalModalCss.slice(gripSelectorIndex, gripRuleEnd);
+    const tabsSelectorIndex = terminalModalCss.indexOf(tabsSelector);
+    const tabsRuleEnd = terminalModalCss.indexOf("}", tabsSelectorIndex);
+    const tabsRule = terminalModalCss.slice(tabsSelectorIndex, tabsRuleEnd);
+
+    expect(gripSelectorIndex).toBeGreaterThan(-1);
+    expect(gripRule).toContain("min-block-size: var(--modal-resize-touch-target);");
+    expect(gripRule).toContain("min-inline-size: var(--modal-resize-touch-target);");
+    expect(gripRule).toContain("touch-action: none;");
+    expect(tabsSelectorIndex).toBeGreaterThan(-1);
+    expect(tabsRule).toContain("touch-action: pan-x;");
+    expect(terminalModalCss).not.toContain(".modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating {\n  touch-action: none;");
+    expect(terminalModalCss).not.toContain(".modal.terminal-modal.terminal-modal--tablet.terminal-modal--floating .terminal-header {\n  touch-action: none;");
+    expect(terminalModalCss.slice(0, gripSelectorIndex)).not.toContain("@media (min-width: 769px)");
+    expect(loadAllAppCss()).toContain(gripSelector);
+  });
+
   it("keeps the floating terminal touch-draggable with theme-controlled shadow", () => {
     const floatingWindowCss = readAppFile("components/FloatingWindow.css");
     expect(floatingWindowCss).toContain("box-shadow: var(--floating-window-shadow, var(--shadow-lg));");
@@ -1412,6 +1510,7 @@ describe("TerminalModal", () => {
       expect(modal).not.toHaveClass("terminal-modal--floating");
       expect(screen.queryByTestId("terminal-docked-resize-handle")).toBeNull();
       expect(screen.queryByTestId("terminal-popout-toggle")).toBeNull();
+      expect(screen.queryByTestId("terminal-drag-grip")).toBeNull();
       expect(screen.queryByTestId("floating-window-resize-se")).toBeNull();
     } finally {
       Object.defineProperty(window, "innerWidth", { value: previousInnerWidth, configurable: true });