diff --git a/.changeset/fn-7872-terminal-custom-shortcuts.md b/.changeset/fn-7872-terminal-custom-shortcuts.md
new file mode 100644
index 0000000000..85173103c4
--- /dev/null
+++ b/.changeset/fn-7872-terminal-custom-shortcuts.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": minor
+---
+
+summary: Let users define custom terminal shortcut buttons (label + injected sequence) from the terminal Preferences panel.
+category: feature
+dev: Adds a customShortcuts list to the client-local terminalPreferences (kb-terminal-preferences localStorage), a decodeTerminalShortcutSequence escape decoder (\n/\t/\r/\e/\x1b/\\), custom shortcut buttons in TerminalModal's shortcut panel injecting via the focus-preserving sendLiteralShortcut path, and add/edit/remove management UI in the preferences panel. Client-only; no server schema.
diff --git a/docs/dashboard-guide.md b/docs/dashboard-guide.md
index 945ccdce6c..d150bb84e6 100644
--- a/docs/dashboard-guide.md
+++ b/docs/dashboard-guide.md
@@ -684,9 +684,10 @@ Features:
 - PTY-backed shell sessions
 - Ctrl/Cmd+C copies the current terminal selection, while plain Ctrl+C with no selection still sends SIGINT
 - Ctrl/Cmd+V pastes clipboard text exactly once into the active integrated terminal or live embedded CLI session
-- The Shortcuts panel includes Ctrl/Alt helpers, ESC/Tab, common shell shortcuts, and Up/Down/Left/Right arrow buttons that send standard ANSI cursor sequences for keyboard-less shell history and line editing
-- Shortcuts panel buttons preserve terminal focus on the active terminal session during pointer, mouse, and touch activation, so Ctrl combinations reliably emit control bytes to the shell
-- The Preferences panel customizes font family, font size, cursor style, cursor blink, and renderer; changes persist in browser `localStorage` under `kb-terminal-preferences`, with the legacy `kb-terminal-font-size` value migrated automatically
+- The Shortcuts panel includes Ctrl/Alt helpers, ESC/Tab, common shell shortcuts, Up/Down/Left/Right arrow buttons, and any custom shortcut buttons you define for keyboard-less shell history, line editing, or frequent snippets
+- Shortcuts panel buttons preserve terminal focus on the active terminal session during pointer, mouse, and touch activation, so Ctrl combinations and custom snippets reliably emit bytes to the shell
+- The Preferences panel customizes font family, font size, cursor style, cursor blink, renderer, and custom shortcut buttons; changes persist in browser `localStorage` under `kb-terminal-preferences`, with the legacy `kb-terminal-font-size` value migrated automatically
+- Custom shortcuts have a short label and injected value. Use `\n` for Enter, `\t` for Tab, `\r` for Return, `\e` or `\x1b` for Esc, and `\\` for a literal backslash; unknown escapes are sent literally. Add, edit, or remove them from the terminal Preferences panel, and reset terminal preferences to clear them.
 - Font and cursor preferences apply live to the active xterm instance; renderer changes apply the next time the terminal opens, and mobile devices keep the WebGL renderer disabled to avoid glyph artifacts
 - Embedded CLI session terminals honor the same saved preferences and physical copy/paste semantics for live interactive session views: selected text copies with the platform copy modifier, no-selection Ctrl+C stays available to the shell, and Ctrl/Cmd+V sends clipboard text exactly once to the attach channel. Idle, ended, and read-only replay views suppress input handlers and mobile accessory controls. Cursor blink still stays disabled for read-only/replay sessions, renderer changes apply on the next session mount, and WebGL never loads on mobile viewports.
 - Mobile-aware virtual keyboard handling and auto-refit behavior
diff --git a/packages/dashboard/app/components/TerminalModal.css b/packages/dashboard/app/components/TerminalModal.css
index f881055210..3aae4d477d 100644
--- a/packages/dashboard/app/components/TerminalModal.css
+++ b/packages/dashboard/app/components/TerminalModal.css
@@ -1310,6 +1310,100 @@ The shortcut bar (modifier keys + arrow keys) must sit on ONE line, not stack in
   justify-self: start;
 }
 
+.terminal-shortcut-btn--custom {
+  border-color: var(--accent);
+  background: var(--surface-elevated);
+}
+
+.terminal-custom-shortcuts {
+  display: flex;
+  flex-direction: column;
+  gap: var(--space-sm);
+  grid-column: 1 / -1;
+  padding: var(--space-sm);
+  border: var(--btn-border-width) solid var(--border);
+  border-radius: var(--radius-md);
+  background: var(--card);
+}
+
+.terminal-custom-shortcuts__header,
+.terminal-custom-shortcuts__row,
+.terminal-custom-shortcuts__form,
+.terminal-custom-shortcuts__form-actions,
+.terminal-custom-shortcuts__actions {
+  display: flex;
+  gap: var(--space-sm);
+}
+
+.terminal-custom-shortcuts__header {
+  align-items: flex-start;
+  justify-content: space-between;
+}
+
+.terminal-custom-shortcuts__header h3 {
+  margin: 0;
+  color: var(--text);
+  font-size: 0.95rem;
+}
+
+.terminal-custom-shortcuts__count,
+.terminal-custom-shortcuts__empty {
+  color: var(--text-muted);
+  font-size: 0.8rem;
+}
+
+.terminal-custom-shortcuts__list {
+  display: flex;
+  flex-direction: column;
+  gap: var(--space-xs);
+  margin: 0;
+  padding: 0;
+  list-style: none;
+}
+
+.terminal-custom-shortcuts__row {
+  align-items: center;
+  justify-content: space-between;
+  padding: var(--space-xs);
+  border: var(--btn-border-width) solid var(--border);
+  border-radius: var(--radius-sm);
+  background: var(--surface);
+}
+
+.terminal-custom-shortcuts__summary {
+  display: flex;
+  min-width: 0;
+  flex: 1 1 auto;
+  flex-direction: column;
+  gap: var(--space-2xs);
+}
+
+.terminal-custom-shortcuts__summary code {
+  overflow: hidden;
+  color: var(--text-muted);
+  font-family: var(--font-mono);
+  text-overflow: ellipsis;
+  white-space: nowrap;
+}
+
+.terminal-custom-shortcuts__actions,
+.terminal-custom-shortcuts__form-actions {
+  align-items: center;
+  flex: 0 0 auto;
+}
+
+.terminal-custom-shortcuts__form {
+  align-items: flex-end;
+}
+
+.terminal-custom-shortcuts__form .terminal-preference-field {
+  flex: 1 1 0;
+}
+
+.terminal-custom-shortcuts__submit {
+  white-space: nowrap;
+}
+
 .terminal-connection-status {
   font-weight: 500;
   white-space: nowrap;
@@ -1728,6 +1822,18 @@ The Android keyboard-open recurrence can start with a touch-primary visualViewpo
     align-self: stretch;
   }
 
+  .terminal-custom-shortcuts__header,
+  .terminal-custom-shortcuts__row,
+  .terminal-custom-shortcuts__form,
+  .terminal-custom-shortcuts__form-actions {
+    align-items: stretch;
+    flex-direction: column;
+  }
+
+  .terminal-custom-shortcuts__actions {
+    flex-wrap: wrap;
+  }
+
   .terminal-font-size-btn {
     min-width: calc(var(--space-xl) + var(--space-md));
     min-height: calc(var(--space-xl) + var(--space-md));
diff --git a/packages/dashboard/app/components/TerminalModal.tsx b/packages/dashboard/app/components/TerminalModal.tsx
index 4a91f5a4df..e9b7d84085 100644
--- a/packages/dashboard/app/components/TerminalModal.tsx
+++ b/packages/dashboard/app/components/TerminalModal.tsx
@@ -37,17 +37,24 @@ import { nextFloatingZ, currentFloatingZ } from "./floatingWindowStack";
 import { getPathBasename } from "../utils/pathDisplay";
 import {
   DEFAULT_TERMINAL_PREFERENCES,
+  MAX_TERMINAL_CUSTOM_SHORTCUTS,
+  MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH,
+  MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH,
   MAX_TERMINAL_FONT_SIZE,
   MIN_TERMINAL_FONT_SIZE,
   TERMINAL_FONT_FAMILY_PRESETS,
   clampTerminalFontSize,
+  createTerminalCustomShortcutId,
+  decodeTerminalShortcutSequence,
   forceTerminalFontRemeasure,
+  normalizeTerminalCustomShortcuts,
   readTerminalPreferences,
   resolveTerminalFontFamily,
   resolveTerminalGlyphFontFamily,
   waitForTerminalFontMetrics,
   withDomBasedTerminalCharacterMeasurement,
   writeTerminalPreferences,
+  type TerminalCustomShortcut,
   type TerminalPreferences,
   type TerminalRenderer,
 } from "../utils/terminalPreferences";
@@ -551,6 +558,9 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
   const [terminalPreferences, setTerminalPreferences] = useState<TerminalPreferences>(() =>
     readTerminalPreferences(),
   );
+  const [customShortcutLabel, setCustomShortcutLabel] = useState("");
+  const [customShortcutValue, setCustomShortcutValue] = useState("");
+  const [editingCustomShortcutId, setEditingCustomShortcutId] = useState<string | null>(null);
   const fontSize = terminalPreferences.fontSize;
   const resolvedFontFamily = resolveTerminalFontFamily(terminalPreferences.fontFamily);
   /*
@@ -1325,6 +1335,78 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
     setTerminalPreferences((current) => writeTerminalPreferences({ ...current, ...patch }));
   }, []);
 
+  const resetCustomShortcutForm = useCallback(() => {
+    setCustomShortcutLabel("");
+    setCustomShortcutValue("");
+    setEditingCustomShortcutId(null);
+  }, []);
+
+  const persistCustomShortcuts = useCallback(
+    (shortcuts: TerminalCustomShortcut[]) => {
+      updateTerminalPreferences({
+        customShortcuts: normalizeTerminalCustomShortcuts(shortcuts),
+      });
+    },
+    [updateTerminalPreferences],
+  );
+
+  const startEditingCustomShortcut = useCallback((shortcut: TerminalCustomShortcut) => {
+    setCustomShortcutLabel(shortcut.label);
+    setCustomShortcutValue(shortcut.value);
+    setEditingCustomShortcutId(shortcut.id);
+  }, []);
+
+  const removeCustomShortcut = useCallback(
+    (shortcutId: string) => {
+      persistCustomShortcuts(
+        terminalPreferences.customShortcuts.filter((shortcut) => shortcut.id !== shortcutId),
+      );
+      if (editingCustomShortcutId === shortcutId) {
+        resetCustomShortcutForm();
+      }
+    },
+    [editingCustomShortcutId, persistCustomShortcuts, resetCustomShortcutForm, terminalPreferences.customShortcuts],
+  );
+
+  const trimmedCustomShortcutLabel = customShortcutLabel.trim();
+  const trimmedCustomShortcutValue = customShortcutValue.trim();
+  const isEditingCustomShortcut = editingCustomShortcutId !== null;
+  const customShortcutLimitReached =
+    terminalPreferences.customShortcuts.length >= MAX_TERMINAL_CUSTOM_SHORTCUTS;
+  const canSubmitCustomShortcut =
+    trimmedCustomShortcutLabel !== "" &&
+    trimmedCustomShortcutValue !== "" &&
+    (isEditingCustomShortcut || !customShortcutLimitReached);
+
+  const submitCustomShortcut = useCallback(() => {
+    if (!canSubmitCustomShortcut) {
+      return;
+    }
+
+    const nextShortcut: TerminalCustomShortcut = {
+      id: editingCustomShortcutId ?? createTerminalCustomShortcutId(),
+      label: trimmedCustomShortcutLabel,
+      value: trimmedCustomShortcutValue,
+    };
+    const nextShortcuts = isEditingCustomShortcut
+      ? terminalPreferences.customShortcuts.map((shortcut) =>
+          shortcut.id === editingCustomShortcutId ? nextShortcut : shortcut,
+        )
+      : [...terminalPreferences.customShortcuts, nextShortcut];
+
+    persistCustomShortcuts(nextShortcuts);
+    resetCustomShortcutForm();
+  }, [
+    canSubmitCustomShortcut,
+    editingCustomShortcutId,
+    isEditingCustomShortcut,
+    persistCustomShortcuts,
+    resetCustomShortcutForm,
+    terminalPreferences.customShortcuts,
+    trimmedCustomShortcutLabel,
+    trimmedCustomShortcutValue,
+  ]);
+
   const setFontSize = useCallback(
     (value: number | ((current: number) => number)) => {
       setTerminalPreferences((current) => {
@@ -1341,7 +1423,8 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
 
   const resetTerminalPreferences = useCallback(() => {
     setTerminalPreferences(writeTerminalPreferences(DEFAULT_TERMINAL_PREFERENCES));
-  }, []);
+    resetCustomShortcutForm();
+  }, [resetCustomShortcutForm]);
 
   const refitTerminal = useCallback(() => {
     const terminal = xtermRef.current;
@@ -2940,6 +3023,26 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
                 {shortcut.label}
               </button>
             ))}
+            {/**
+             * FNXC:Terminal 2026-07-12-00:00:
+             * FN-7872 user-defined shortcuts must inject their decoded value through the same sendLiteralShortcut path as built-in literal shortcuts. Keep the pointer/mouse/touch focus guards so the FN-6697/FN-6737 xterm-refocus invariant holds for custom buttons on desktop and touch surfaces.
+             */}
+            {terminalPreferences.customShortcuts.map((shortcut) => (
+              <button
+                key={shortcut.id}
+                type="button"
+                className="terminal-shortcut-btn terminal-shortcut-btn--custom"
+                data-testid={`terminal-custom-shortcut-${shortcut.id}`}
+                title={shortcut.label}
+                aria-label={shortcut.label}
+                onPointerDown={preserveShortcutFocus}
+                onMouseDown={preserveShortcutFocus}
+                onTouchStart={preserveShortcutFocus}
+                onClick={() => sendLiteralShortcut(decodeTerminalShortcutSequence(shortcut.value))}
+              >
+                {shortcut.label}
+              </button>
+            ))}
           </div>
         )}
 
@@ -3025,6 +3128,103 @@ export function TerminalModal({ isOpen, onClose, initialCommand, initialCommandG
                 </span>
               )}
             </label>
+            <section className="terminal-custom-shortcuts" data-testid="terminal-custom-shortcuts">
+              <div className="terminal-custom-shortcuts__header">
+                <div>
+                  <h3>{t("terminal.customShortcutsTitle", "Custom shortcuts")}</h3>
+                  <p className="terminal-preference-note">
+                    {t(
+                      "terminal.customShortcutsHelp",
+                      "Use \\n for Enter, \\t for Tab, \\e or \\x1b for Esc, \\r for Return, and \\\\ for a literal backslash.",
+                    )}
+                  </p>
+                </div>
+                <span className="terminal-custom-shortcuts__count">
+                  {terminalPreferences.customShortcuts.length}/{MAX_TERMINAL_CUSTOM_SHORTCUTS}
+                </span>
+              </div>
+              {terminalPreferences.customShortcuts.length === 0 ? (
+                <p className="terminal-custom-shortcuts__empty" data-testid="terminal-custom-shortcuts-empty">
+                  {t("terminal.customShortcutsEmpty", "No custom shortcuts yet.")}
+                </p>
+              ) : (
+                <ul className="terminal-custom-shortcuts__list" aria-label={t("terminal.customShortcutsList", "Custom terminal shortcuts")}>
+                  {terminalPreferences.customShortcuts.map((shortcut) => (
+                    <li key={shortcut.id} className="terminal-custom-shortcuts__row">
+                      <span className="terminal-custom-shortcuts__summary">
+                        <strong>{shortcut.label}</strong>
+                        <code>{shortcut.value}</code>
+                      </span>
+                      <span className="terminal-custom-shortcuts__actions">
+                        <button
+                          type="button"
+                          className="btn btn-secondary"
+                          data-testid={`terminal-custom-shortcut-edit-${shortcut.id}`}
+                          onClick={() => startEditingCustomShortcut(shortcut)}
+                        >
+                          {t("common.edit", "Edit")}
+                        </button>
+                        <button
+                          type="button"
+                          className="btn btn-secondary"
+                          data-testid={`terminal-custom-shortcut-remove-${shortcut.id}`}
+                          onClick={() => removeCustomShortcut(shortcut.id)}
+                        >
+                          {t("common.remove", "Remove")}
+                        </button>
+                      </span>
+                    </li>
+                  ))}
+                </ul>
+              )}
+              <div className="terminal-custom-shortcuts__form">
+                <label className="terminal-preference-field">
+                  <span>{t("terminal.customShortcutLabel", "Button label")}</span>
+                  <input
+                    className="input terminal-preference-control"
+                    data-testid="terminal-custom-shortcut-label-input"
+                    type="text"
+                    maxLength={MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH}
+                    value={customShortcutLabel}
+                    onChange={(event) => setCustomShortcutLabel(event.target.value)}
+                  />
+                </label>
+                <label className="terminal-preference-field">
+                  <span>{t("terminal.customShortcutValue", "Injected value")}</span>
+                  <input
+                    className="input terminal-preference-control"
+                    data-testid="terminal-custom-shortcut-value-input"
+                    type="text"
+                    maxLength={MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH}
+                    value={customShortcutValue}
+                    onChange={(event) => setCustomShortcutValue(event.target.value)}
+                  />
+                </label>
+                <div className="terminal-custom-shortcuts__form-actions">
+                  {isEditingCustomShortcut && (
+                    <button
+                      type="button"
+                      className="btn btn-secondary"
+                      data-testid="terminal-custom-shortcut-cancel"
+                      onClick={resetCustomShortcutForm}
+                    >
+                      {t("common.cancel", "Cancel")}
+                    </button>
+                  )}
+                  <button
+                    type="button"
+                    className="btn terminal-custom-shortcuts__submit"
+                    data-testid="terminal-custom-shortcut-add"
+                    disabled={!canSubmitCustomShortcut}
+                    onClick={submitCustomShortcut}
+                  >
+                    {isEditingCustomShortcut
+                      ? t("terminal.customShortcutSave", "Save shortcut")
+                      : t("terminal.customShortcutAdd", "Add shortcut")}
+                  </button>
+                </div>
+              </div>
+            </section>
             <button
               type="button"
               className="btn terminal-preferences-reset"
diff --git a/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx b/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
index 3b92d3c5b6..2a20657052 100644
--- a/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
+++ b/packages/dashboard/app/components/__tests__/TerminalModal.test.tsx
@@ -9,6 +9,7 @@ import { TerminalModal, _resetInitialViewportHeight, ctrlChar, altChar, evaluate
 import {
   DEFAULT_TERMINAL_PREFERENCES,
   LEGACY_TERMINAL_FONT_SIZE_KEY,
+  MAX_TERMINAL_CUSTOM_SHORTCUTS,
   TERMINAL_PREFERENCES_KEY,
   TERMINAL_SYMBOLS_FONT_FAMILY,
   XTERM_FONT_FAMILY,
@@ -2070,6 +2071,77 @@ describe("TerminalModal", () => {
       expect(screen.getByTestId("terminal-modifier-ctrl").getAttribute("aria-pressed")).toBe("false");
     });
 
+    it("renders persisted custom shortcuts and injects decoded values without stealing focus", async () => {
+      window.localStorage.setItem(
+        TERMINAL_PREFERENCES_KEY,
+        JSON.stringify({
+          ...DEFAULT_TERMINAL_PREFERENCES,
+          customShortcuts: [{ id: "cs-status", label: "Status", value: "git status\\n" }],
+        }),
+      );
+      render(<TerminalModal isOpen={true} onClose={mockOnClose} />);
+      await waitFor(() => expect(mockTerminalInstance.open).toHaveBeenCalled());
+
+      const terminalDiv = screen.getByTestId("terminal-xterm");
+      const helperTextarea = document.createElement("textarea");
+      helperTextarea.className = "xterm-helper-textarea";
+      const focusSpy = vi.spyOn(helperTextarea, "focus");
+      terminalDiv.appendChild(helperTextarea);
+      helperTextarea.focus();
+
+      fireEvent.click(screen.getByTestId("terminal-shortcut-toggle"));
+      const customButton = screen.getByTestId("terminal-custom-shortcut-cs-status");
+      expect(customButton).toHaveClass("terminal-shortcut-btn--custom");
+
+      const mouseDown = new MouseEvent("mousedown", { bubbles: true, cancelable: true });
+      customButton.dispatchEvent(mouseDown);
+      expect(mouseDown.defaultPrevented).toBe(true);
+      expect(document.activeElement).toBe(helperTextarea);
+
+      mockSendInput.mockClear();
+      mockTerminalInstance.focus.mockClear();
+      focusSpy.mockClear();
+
+      fireEvent.click(customButton);
+
+      expect(mockSendInput).toHaveBeenCalledWith("git status\n");
+      expect(mockTerminalInstance.focus).toHaveBeenCalled();
+      expect(focusSpy).toHaveBeenCalled();
+    });
+
+    it("renders custom shortcut controls on mobile without empty shells", async () => {
+      const previousInnerWidth = window.innerWidth;
+      window.localStorage.setItem(
+        TERMINAL_PREFERENCES_KEY,
+        JSON.stringify({
+          ...DEFAULT_TERMINAL_PREFERENCES,
+          customShortcuts: [{ id: "cs-mobile", label: "Clear", value: "clear\\n" }],
+        }),
+      );
+      Object.defineProperty(window, "innerWidth", {
+        value: 375,
+        writable: true,
+        configurable: true,
+      });
+
+      try {
+        render(<TerminalModal isOpen={true} onClose={mockOnClose} />);
+        fireEvent.click(screen.getByTestId("terminal-shortcut-toggle"));
+        fireEvent.click(screen.getByTestId("terminal-preferences-toggle"));
+
+        expect(screen.getByTestId("terminal-modal")).toHaveClass("terminal-modal--mobile");
+        expect(screen.getByTestId("terminal-custom-shortcut-cs-mobile")).toHaveTextContent("Clear");
+        expect(screen.getByTestId("terminal-custom-shortcuts")).toBeTruthy();
+        expect(screen.queryByTestId("terminal-custom-shortcuts-empty")).toBeNull();
+      } finally {
+        Object.defineProperty(window, "innerWidth", {
+          value: previousInnerWidth,
+          writable: true,
+          configurable: true,
+        });
+      }
+    });
+
     it("renders shortcut controls on mobile viewport", async () => {
       const previousInnerWidth = window.innerWidth;
       const previousOntouchstart = window.ontouchstart;
@@ -2326,6 +2398,117 @@ describe("TerminalModal", () => {
         expect(screen.getByTestId("terminal-renderer-reopen-note")).toBeTruthy();
       });
     });
+
+    it("adds and edits custom shortcuts through the shared preferences record", async () => {
+      render(<TerminalModal isOpen={true} onClose={mockOnClose} />);
+
+      fireEvent.click(screen.getByTestId("terminal-preferences-toggle"));
+      expect(screen.getByTestId("terminal-custom-shortcuts-empty")).toBeTruthy();
+      const addButton = screen.getByTestId("terminal-custom-shortcut-add");
+      expect(addButton).toHaveProperty("disabled", true);
+
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-label-input"), {
+        target: { value: "Status" },
+      });
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-value-input"), {
+        target: { value: "git status\\n" },
+      });
+      expect(addButton).toHaveProperty("disabled", false);
+      fireEvent.click(addButton);
+
+      const persisted = JSON.parse(window.localStorage.getItem(TERMINAL_PREFERENCES_KEY) ?? "null");
+      expect(persisted.customShortcuts).toEqual([
+        expect.objectContaining({ label: "Status", value: "git status\\n" }),
+      ]);
+      const shortcutId = persisted.customShortcuts[0].id;
+
+      fireEvent.click(screen.getByTestId("terminal-shortcut-toggle"));
+      expect(screen.getByTestId(`terminal-custom-shortcut-${shortcutId}`)).toHaveTextContent("Status");
+
+      fireEvent.click(screen.getByTestId(`terminal-custom-shortcut-edit-${shortcutId}`));
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-label-input"), {
+        target: { value: "Clear" },
+      });
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-value-input"), {
+        target: { value: "clear\\n" },
+      });
+      fireEvent.click(screen.getByTestId("terminal-custom-shortcut-add"));
+
+      const edited = JSON.parse(window.localStorage.getItem(TERMINAL_PREFERENCES_KEY) ?? "null");
+      expect(edited.customShortcuts).toEqual([
+        { id: shortcutId, label: "Clear", value: "clear\\n" },
+      ]);
+      expect(screen.getByTestId(`terminal-custom-shortcut-${shortcutId}`)).toHaveTextContent("Clear");
+    });
+
+    it("removes custom shortcuts and reset to defaults clears them without leftover shells", async () => {
+      window.localStorage.setItem(
+        TERMINAL_PREFERENCES_KEY,
+        JSON.stringify({
+          ...DEFAULT_TERMINAL_PREFERENCES,
+          customShortcuts: [{ id: "cs-clear", label: "Clear", value: "clear\\n" }],
+        }),
+      );
+      render(<TerminalModal isOpen={true} onClose={mockOnClose} />);
+
+      fireEvent.click(screen.getByTestId("terminal-preferences-toggle"));
+      fireEvent.click(screen.getByTestId("terminal-shortcut-toggle"));
+      expect(screen.getByTestId("terminal-custom-shortcut-cs-clear")).toBeTruthy();
+
+      fireEvent.click(screen.getByTestId("terminal-custom-shortcut-remove-cs-clear"));
+      expect(screen.queryByTestId("terminal-custom-shortcut-cs-clear")).toBeNull();
+      expect(screen.getByTestId("terminal-custom-shortcuts-empty")).toBeTruthy();
+      expect(document.querySelectorAll(".terminal-custom-shortcuts__row")).toHaveLength(0);
+      expect(
+        JSON.parse(window.localStorage.getItem(TERMINAL_PREFERENCES_KEY) ?? "null").customShortcuts,
+      ).toEqual([]);
+
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-label-input"), {
+        target: { value: "Again" },
+      });
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-value-input"), {
+        target: { value: "echo again\\n" },
+      });
+      fireEvent.click(screen.getByTestId("terminal-custom-shortcut-add"));
+      expect(document.querySelectorAll(".terminal-custom-shortcuts__row")).toHaveLength(1);
+
+      fireEvent.click(screen.getByTestId("terminal-preferences-reset"));
+      expect(screen.getByTestId("terminal-custom-shortcuts-empty")).toBeTruthy();
+      expect(document.querySelectorAll(".terminal-custom-shortcuts__row")).toHaveLength(0);
+      expect(JSON.parse(window.localStorage.getItem(TERMINAL_PREFERENCES_KEY) ?? "null")).toEqual(
+        DEFAULT_TERMINAL_PREFERENCES,
+      );
+    });
+
+    it("disables custom shortcut add when inputs are empty or the cap is reached", async () => {
+      window.localStorage.setItem(
+        TERMINAL_PREFERENCES_KEY,
+        JSON.stringify({
+          ...DEFAULT_TERMINAL_PREFERENCES,
+          customShortcuts: Array.from({ length: MAX_TERMINAL_CUSTOM_SHORTCUTS }, (_, index) => ({
+            id: `cs-${index}`,
+            label: `S${index}`,
+            value: `echo ${index}`,
+          })),
+        }),
+      );
+      render(<TerminalModal isOpen={true} onClose={mockOnClose} />);
+
+      fireEvent.click(screen.getByTestId("terminal-preferences-toggle"));
+      const addButton = screen.getByTestId("terminal-custom-shortcut-add");
+      expect(addButton).toHaveProperty("disabled", true);
+
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-label-input"), {
+        target: { value: "Overflow" },
+      });
+      fireEvent.change(screen.getByTestId("terminal-custom-shortcut-value-input"), {
+        target: { value: "echo overflow\\n" },
+      });
+      expect(addButton).toHaveProperty("disabled", true);
+
+      fireEvent.click(screen.getByTestId("terminal-custom-shortcut-edit-cs-0"));
+      expect(addButton).toHaveProperty("disabled", false);
+    });
   });
 
   it("xterm container is rendered (visible under loading overlay) while loading", async () => {
diff --git a/packages/dashboard/app/utils/__tests__/terminalPreferences.test.ts b/packages/dashboard/app/utils/__tests__/terminalPreferences.test.ts
index 70431c3b95..db2081d7c8 100644
--- a/packages/dashboard/app/utils/__tests__/terminalPreferences.test.ts
+++ b/packages/dashboard/app/utils/__tests__/terminalPreferences.test.ts
@@ -2,9 +2,14 @@ import { beforeEach, describe, expect, it, vi } from "vitest";
 import {
   DEFAULT_TERMINAL_PREFERENCES,
   LEGACY_TERMINAL_FONT_SIZE_KEY,
+  MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH,
+  MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH,
+  MAX_TERMINAL_CUSTOM_SHORTCUTS,
   TERMINAL_PREFERENCES_KEY,
   XTERM_FONT_FAMILY,
+  decodeTerminalShortcutSequence,
   forceTerminalFontRemeasure,
+  normalizeTerminalCustomShortcuts,
   readTerminalPreferences,
   waitForTerminalFontMetrics,
   writeTerminalPreferences,
@@ -81,6 +86,7 @@ describe("terminalPreferences", () => {
     });
 
     expect(written).toEqual({
+      ...DEFAULT_TERMINAL_PREFERENCES,
       fontFamily: "system-mono",
       fontSize: 22,
       cursorStyle: "underline",
@@ -91,6 +97,68 @@ describe("terminalPreferences", () => {
     expect(localStorage.getItem(LEGACY_TERMINAL_FONT_SIZE_KEY)).toBe("22");
   });
 
+  it("normalizes missing, corrupt, and non-array custom shortcuts to an empty list", () => {
+    expect(readTerminalPreferences().customShortcuts).toEqual([]);
+
+    localStorage.setItem(
+      TERMINAL_PREFERENCES_KEY,
+      JSON.stringify({ ...DEFAULT_TERMINAL_PREFERENCES, customShortcuts: "bad" }),
+    );
+    expect(readTerminalPreferences().customShortcuts).toEqual([]);
+
+    expect(normalizeTerminalCustomShortcuts(null)).toEqual([]);
+  });
+
+  it("drops invalid custom shortcuts and caps labels, values, ids, and list length", () => {
+    const longLabel = ` ${"L".repeat(MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH + 5)} `;
+    const longValue = ` ${"v".repeat(MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH + 5)} `;
+    const normalized = normalizeTerminalCustomShortcuts([
+      null,
+      { id: "keep", label: "  Status  ", value: " git status\\n " },
+      { id: "empty-label", label: " ", value: "echo nope" },
+      { id: "empty-value", label: "Nope", value: " " },
+      { id: "keep", label: "Duplicate", value: "pwd\\n" },
+      { label: longLabel, value: longValue },
+      ...Array.from({ length: MAX_TERMINAL_CUSTOM_SHORTCUTS + 5 }, (_, index) => ({
+        id: `extra-${index}`,
+        label: `E${index}`,
+        value: `echo ${index}`,
+      })),
+    ]);
+
+    expect(normalized).toHaveLength(MAX_TERMINAL_CUSTOM_SHORTCUTS);
+    expect(normalized[0]).toEqual({ id: "keep", label: "Status", value: "git status\\n" });
+    expect(normalized[1]?.id).not.toBe("keep");
+    expect(new Set(normalized.map((shortcut) => shortcut.id)).size).toBe(normalized.length);
+    expect(normalized[2]?.label).toHaveLength(MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH);
+    expect(normalized[2]?.value).toHaveLength(MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH);
+  });
+
+  it("round-trips valid custom shortcuts through the existing preferences record", () => {
+    const written = writeTerminalPreferences({
+      customShortcuts: [
+        { id: "cs-status", label: "Status", value: "git status\\n" },
+        { id: "cs-clear", label: "Clear", value: "clear\\n" },
+      ],
+    });
+
+    expect(written.customShortcuts).toEqual([
+      { id: "cs-status", label: "Status", value: "git status\\n" },
+      { id: "cs-clear", label: "Clear", value: "clear\\n" },
+    ]);
+    expect(readTerminalPreferences().customShortcuts).toEqual(written.customShortcuts);
+    expect(JSON.parse(localStorage.getItem(TERMINAL_PREFERENCES_KEY) ?? "null")).toEqual(written);
+  });
+
+  it("decodes terminal shortcut escape sequences and preserves unknown escapes", () => {
+    expect(decodeTerminalShortcutSequence("git status\\n")).toBe("git status\n");
+    expect(decodeTerminalShortcutSequence("col1\\tcol2\\r")).toBe("col1\tcol2\r");
+    expect(decodeTerminalShortcutSequence("esc=\\e alt=\\x1b")).toBe("esc=\x1b alt=\x1b");
+    expect(decodeTerminalShortcutSequence("literal=\\\\ unknown=\\q tail=\\")).toBe(
+      "literal=\\ unknown=\\q tail=\\",
+    );
+  });
+
   it("keeps terminal font metrics wait best-effort when iOS rejects the full stack shorthand", async () => {
     let readyAwaited = false;
     const load = vi.fn((font: string) => {
diff --git a/packages/dashboard/app/utils/terminalPreferences.ts b/packages/dashboard/app/utils/terminalPreferences.ts
index 38e2aac000..90e2fee507 100644
--- a/packages/dashboard/app/utils/terminalPreferences.ts
+++ b/packages/dashboard/app/utils/terminalPreferences.ts
@@ -3,6 +3,9 @@ export const LEGACY_TERMINAL_FONT_SIZE_KEY = "kb-terminal-font-size";
 export const DEFAULT_TERMINAL_FONT_SIZE = 14;
 export const MIN_TERMINAL_FONT_SIZE = 8;
 export const MAX_TERMINAL_FONT_SIZE = 32;
+export const MAX_TERMINAL_CUSTOM_SHORTCUTS = 24;
+export const MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH = 24;
+export const MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH = 256;
 
 export const TERMINAL_SYMBOLS_FONT_FAMILY = '"Fusion Terminal Nerd Font Symbols"';
 
@@ -40,17 +43,27 @@ export type TerminalFontFamily = (typeof TERMINAL_FONT_FAMILY_PRESETS)[number]["
 export type TerminalCursorStyle = "block" | "underline" | "bar";
 export type TerminalRenderer = "auto" | "canvas";
 
+export interface TerminalCustomShortcut {
+  id: string;
+  label: string;
+  value: string;
+}
+
 export interface TerminalPreferences {
   fontFamily: TerminalFontFamily;
   fontSize: number;
   cursorStyle: TerminalCursorStyle;
   cursorBlink: boolean;
   renderer: TerminalRenderer;
+  customShortcuts: TerminalCustomShortcut[];
 }
 
 /*
 FNXC:Terminal 2026-06-16-23:35:
-Terminal preferences are intentionally client-local: users can customize font, cursor, and renderer without introducing server settings schema. Reads must tolerate unavailable storage, corrupt JSON, unknown enum values, and legacy font-size data so opening the terminal never throws and always falls back to safe defaults.
+Terminal preferences are intentionally client-local: users can customize font, cursor, renderer, and custom shortcut buttons without introducing server settings schema. Reads must tolerate unavailable storage, corrupt JSON, unknown enum values, legacy font-size data, and malformed shortcut lists so opening the terminal never throws and always falls back to safe defaults.
+
+FNXC:Terminal 2026-07-12-00:00:
+FN-7872 custom shortcuts remain client-local in kb-terminal-preferences, are count/length-capped, and are defensively normalized before use so corrupt localStorage cannot break terminal startup. decodeTerminalShortcutSequence is the single injection-decoding boundary for user-authored shortcut sequences before TerminalModal sends bytes to the PTY.
 */
 export const DEFAULT_TERMINAL_PREFERENCES: TerminalPreferences = {
   fontFamily: "nerd-font",
@@ -58,6 +71,7 @@ export const DEFAULT_TERMINAL_PREFERENCES: TerminalPreferences = {
   cursorStyle: "block",
   cursorBlink: true,
   renderer: "auto",
+  customShortcuts: [],
 };
 
 export function clampTerminalFontSize(value: number): number {
@@ -313,6 +327,129 @@ function isTerminalRenderer(value: unknown): value is TerminalRenderer {
   return value === "auto" || value === "canvas";
 }
 
+let terminalCustomShortcutIdCounter = 0;
+
+export function createTerminalCustomShortcutId(): string {
+  const maybeCrypto = globalThis.crypto as { randomUUID?: () => string } | undefined;
+  if (typeof maybeCrypto?.randomUUID === "function") {
+    return `cs-${maybeCrypto.randomUUID()}`;
+  }
+
+  terminalCustomShortcutIdCounter += 1;
+  return `cs-${terminalCustomShortcutIdCounter.toString(36)}`;
+}
+
+function capTerminalShortcutText(value: string, maxLength: number): string {
+  return value.trim().slice(0, maxLength);
+}
+
+export function normalizeTerminalCustomShortcuts(
+  value: unknown,
+): TerminalCustomShortcut[] {
+  if (!Array.isArray(value)) {
+    return [];
+  }
+
+  const normalized: TerminalCustomShortcut[] = [];
+  const seenIds = new Set<string>();
+
+  for (const entry of value) {
+    if (normalized.length >= MAX_TERMINAL_CUSTOM_SHORTCUTS) {
+      break;
+    }
+
+    if (!isObject(entry)) {
+      continue;
+    }
+
+    const label =
+      typeof entry.label === "string"
+        ? capTerminalShortcutText(entry.label, MAX_TERMINAL_CUSTOM_SHORTCUT_LABEL_LENGTH)
+        : "";
+    const shortcutValue =
+      typeof entry.value === "string"
+        ? capTerminalShortcutText(entry.value, MAX_TERMINAL_CUSTOM_SHORTCUT_VALUE_LENGTH)
+        : "";
+
+    if (!label || !shortcutValue) {
+      continue;
+    }
+
+    const rawId = typeof entry.id === "string" ? entry.id.trim() : "";
+    let id = rawId && !seenIds.has(rawId) ? rawId : createTerminalCustomShortcutId();
+    if (seenIds.has(id)) {
+      const idBase = id;
+      let suffix = 2;
+      while (seenIds.has(`${idBase}-${suffix}`)) {
+        suffix += 1;
+      }
+      id = `${idBase}-${suffix}`;
+    }
+    seenIds.add(id);
+    normalized.push({ id, label, value: shortcutValue });
+  }
+
+  return normalized;
+}
+
+export function decodeTerminalShortcutSequence(value: string): string {
+  let decoded = "";
+
+  for (let index = 0; index < value.length; index += 1) {
+    const character = value[index];
+    if (character !== "\\") {
+      decoded += character;
+      continue;
+    }
+
+    const next = value[index + 1];
+    if (next === undefined) {
+      decoded += character;
+      continue;
+    }
+
+    switch (next) {
+      case "n":
+        decoded += "\n";
+        index += 1;
+        break;
+      case "t":
+        decoded += "\t";
+        index += 1;
+        break;
+      case "r":
+        decoded += "\r";
+        index += 1;
+        break;
+      case "e":
+        decoded += "\x1b";
+        index += 1;
+        break;
+      case "\\":
+        decoded += "\\";
+        index += 1;
+        break;
+      case "x": {
+        const hexEscape = value.slice(index + 1, index + 4).toLowerCase();
+        if (hexEscape === "x1b") {
+          decoded += "\x1b";
+          index += 3;
+          break;
+        }
+        decoded += `\\${next}`;
+        index += 1;
+        break;
+      }
+      default:
+        decoded += `\\${next}`;
+        index += 1;
+        break;
+    }
+  }
+
+  return decoded;
+}
+
 function readLegacyFontSize(): number | undefined {
   if (typeof window === "undefined") {
     return undefined;
@@ -362,6 +499,7 @@ function normalizeTerminalPreferences(value: unknown): TerminalPreferences {
     renderer: isTerminalRenderer(source.renderer)
       ? source.renderer
       : DEFAULT_TERMINAL_PREFERENCES.renderer,
+    customShortcuts: normalizeTerminalCustomShortcuts(source.customShortcuts),
   };
 }