diff --git a/src-tauri/tauri.conf.json b/src-tauri/tauri.conf.json
index b9dc23a..030847f 100644
--- a/src-tauri/tauri.conf.json
+++ b/src-tauri/tauri.conf.json
@@ -23,7 +23,7 @@
       }
     ],
     "security": {
-      "csp": "default-src 'self'; script-src 'self'; style-src 'self' 'unsafe-inline'; img-src 'self' asset: https://asset.localhost data:; connect-src 'self' ipc: http://ipc.localhost"
+      "csp": "default-src 'self'; script-src 'self' 'unsafe-inline'; style-src 'self' 'unsafe-inline'; img-src 'self' asset: https://asset.localhost data:; connect-src 'self' ipc: http://ipc.localhost"
     },
     "withGlobalTauri": false
   },
diff --git a/src/assets/css/terminal.css b/src/assets/css/terminal.css
index c4ff062..6eaac7f 100644
--- a/src/assets/css/terminal.css
+++ b/src/assets/css/terminal.css
@@ -20,9 +20,11 @@
   height: 100%;
 }
 
-/* Selection styling */
+/* Selection styling — let xterm.js theme handle selection colors.
+   The !important override was removed because it conflicts with
+   theme-driven selectionBackground set via terminal.options.theme. */
 .terminal-container .xterm-selection div {
-  background-color: rgba(88, 166, 255, 0.3) !important;
+  background-color: rgba(88, 166, 255, 0.3);
 }
 
 /* Cursor styling */
diff --git a/src/components/common/StatusBar.vue b/src/components/common/StatusBar.vue
index 2a44ae2..476296f 100644
--- a/src/components/common/StatusBar.vue
+++ b/src/components/common/StatusBar.vue
@@ -1,5 +1,5 @@
 <template>
-  <div class="h-6 flex items-center justify-between px-4 bg-[var(--wraith-bg-secondary)] border-t border-[var(--wraith-border)] text-[10px] text-[var(--wraith-text-muted)] shrink-0">
+  <div class="h-8 flex items-center justify-between px-4 bg-[var(--wraith-bg-secondary)] border-t border-[var(--wraith-border)] text-xs text-[var(--wraith-text-muted)] shrink-0">
     <!-- Left: connection info -->
     <div class="flex items-center gap-3">
       <template v-if="sessionStore.activeSession">
diff --git a/src/components/common/ThemePicker.vue b/src/components/common/ThemePicker.vue
index 1e5d137..00f8004 100644
--- a/src/components/common/ThemePicker.vue
+++ b/src/components/common/ThemePicker.vue
@@ -112,6 +112,8 @@ export interface ThemeDefinition {
   brightMagenta: string;
   brightCyan: string;
   brightWhite: string;
+  selectionBackground?: string;
+  selectionForeground?: string;
   isBuiltin?: boolean;
 }
 
diff --git a/src/components/terminal/LocalTerminalView.vue b/src/components/terminal/LocalTerminalView.vue
index 49bda8d..e0fd82d 100644
--- a/src/components/terminal/LocalTerminalView.vue
+++ b/src/components/terminal/LocalTerminalView.vue
@@ -12,6 +12,7 @@
 import { ref, onMounted, onBeforeUnmount, watch } from "vue";
 import { invoke } from "@tauri-apps/api/core";
 import { useTerminal } from "@/composables/useTerminal";
+import { useSessionStore } from "@/stores/session.store";
 import "@/assets/css/terminal.css";
 
 const props = defineProps<{
@@ -19,13 +20,55 @@ const props = defineProps<{
   isActive: boolean;
 }>();
 
+const sessionStore = useSessionStore();
 const containerRef = ref<HTMLElement | null>(null);
 const { terminal, mount, fit, destroy } = useTerminal(props.sessionId, "pty");
 
+/** Apply the session store's active theme to this local terminal instance. */
+function applyTheme(): void {
+  const theme = sessionStore.activeTheme;
+  if (!theme) return;
+  terminal.options.theme = {
+    background: theme.background,
+    foreground: theme.foreground,
+    cursor: theme.cursor,
+    cursorAccent: theme.background,
+    selectionBackground: theme.selectionBackground ?? "rgba(88, 166, 255, 0.4)",
+    selectionForeground: theme.selectionForeground ?? "#ffffff",
+    selectionInactiveBackground: theme.selectionBackground ?? "rgba(88, 166, 255, 0.2)",
+    black: theme.black,
+    red: theme.red,
+    green: theme.green,
+    yellow: theme.yellow,
+    blue: theme.blue,
+    magenta: theme.magenta,
+    cyan: theme.cyan,
+    white: theme.white,
+    brightBlack: theme.brightBlack,
+    brightRed: theme.brightRed,
+    brightGreen: theme.brightGreen,
+    brightYellow: theme.brightYellow,
+    brightBlue: theme.brightBlue,
+    brightMagenta: theme.brightMagenta,
+    brightCyan: theme.brightCyan,
+    brightWhite: theme.brightWhite,
+  };
+
+  if (containerRef.value) {
+    containerRef.value.style.backgroundColor = theme.background;
+  }
+}
+
 onMounted(() => {
   if (containerRef.value) {
     mount(containerRef.value);
   }
+
+  // Apply current theme immediately if one is already active
+  if (sessionStore.activeTheme) {
+    applyTheme();
+  }
+
   setTimeout(() => {
     fit();
     terminal.focus();
@@ -56,6 +99,11 @@ watch(
   },
 );
 
+// Watch for theme changes and apply to this local terminal
+watch(() => sessionStore.activeTheme, (newTheme) => {
+  if (newTheme) applyTheme();
+}, { deep: true });
+
 onBeforeUnmount(() => {
   destroy();
 });
diff --git a/src/components/terminal/TerminalView.vue b/src/components/terminal/TerminalView.vue
index 70c4df1..1213154 100644
--- a/src/components/terminal/TerminalView.vue
+++ b/src/components/terminal/TerminalView.vue
@@ -185,6 +185,10 @@ function applyTheme(): void {
     background: theme.background,
     foreground: theme.foreground,
     cursor: theme.cursor,
+    cursorAccent: theme.background,
+    selectionBackground: theme.selectionBackground ?? "rgba(88, 166, 255, 0.4)",
+    selectionForeground: theme.selectionForeground ?? "#ffffff",
+    selectionInactiveBackground: theme.selectionBackground ?? "rgba(88, 166, 255, 0.2)",
     black: theme.black,
     red: theme.red,
     green: theme.green,
@@ -202,12 +206,19 @@ function applyTheme(): void {
     brightCyan: theme.brightCyan,
     brightWhite: theme.brightWhite,
   };
+
+  // Sync the container background so areas outside the canvas match the theme
+  if (containerRef.value) {
+    containerRef.value.style.backgroundColor = theme.background;
+  }
 }
 
-// Watch for theme changes in the session store and apply to this terminal
+// Watch for theme changes in the session store and apply to this terminal.
+// Uses deep comparison because the theme is an object — a shallow watch may miss
+// updates if Pinia returns the same reactive proxy wrapper after reassignment.
 watch(() => sessionStore.activeTheme, (newTheme) => {
   if (newTheme) applyTheme();
-});
+}, { deep: true });
 
 onBeforeUnmount(() => {
   if (resizeDisposable) {
diff --git a/src/composables/useTerminal.ts b/src/composables/useTerminal.ts
index 427910c..aaa053f 100644
--- a/src/composables/useTerminal.ts
+++ b/src/composables/useTerminal.ts
@@ -14,7 +14,7 @@ const defaultTheme = {
   foreground: "#e0e0e0",
   cursor: "#58a6ff",
   cursorAccent: "#0d1117",
-  selectionBackground: "rgba(88, 166, 255, 0.3)",
+  selectionBackground: "rgba(88, 166, 255, 0.4)",
   selectionForeground: "#ffffff",
   black: "#0d1117",
   red: "#f85149",
@@ -155,6 +155,7 @@ export function useTerminal(sessionId: string, backend: 'ssh' | 'pty' = 'ssh'):
     // cell widths — producing tiny dashes and 200+ column terminals.
     document.fonts.ready.then(() => {
       fitAddon.fit();
+      terminal.focus();
     });
 
     // Right-click paste on the terminal's DOM element