diff --git a/src-tauri/capabilities/default.json b/src-tauri/capabilities/default.json
index f47d967..5e2db1c 100644
--- a/src-tauri/capabilities/default.json
+++ b/src-tauri/capabilities/default.json
@@ -9,6 +9,10 @@
     "opener:default",
     "shell:allow-spawn",
     "shell:allow-stdin-write",
-    "shell:allow-kill"
+    "shell:allow-kill",
+    "notification:default",
+    "notification:allow-is-permission-granted",
+    "notification:allow-request-permission",
+    "notification:allow-notify"
   ]
 }
diff --git a/src/lib/components/ConversationTabs.svelte b/src/lib/components/ConversationTabs.svelte
new file mode 100644
index 0000000..63a93df
--- /dev/null
+++ b/src/lib/components/ConversationTabs.svelte
@@ -0,0 +1,232 @@
+<script lang="ts">
+  import { claudeStore } from "$lib/stores/claude";
+  import { onMount } from "svelte";
+  import type { Conversation } from "$lib/stores/conversations";
+
+  let conversations: Map<string, Conversation> = new Map();
+  let activeConversationId: string | null = null;
+  let editingTabId: string | null = null;
+  let editingName = "";
+
+  // Track which conversation actually has the Claude connection
+  let connectedConversationId: string | null = null;
+
+  claudeStore.conversations.subscribe((convs) => {
+    conversations = convs;
+  });
+
+  claudeStore.activeConversationId.subscribe((id) => {
+    activeConversationId = id;
+  });
+
+  // Find the connected conversation
+  $: {
+    let foundConnected = false;
+    for (const [id, conv] of conversations) {
+      if (conv.connectionStatus === "connected" || conv.connectionStatus === "connecting") {
+        connectedConversationId = id;
+        foundConnected = true;
+        break;
+      }
+    }
+    if (!foundConnected) {
+      connectedConversationId = null;
+    }
+  }
+
+  function createNewTab() {
+    claudeStore.createConversation();
+  }
+
+  async function switchTab(id: string) {
+    if (editingTabId) {
+      saveTabName();
+    }
+    await claudeStore.switchConversation(id);
+  }
+
+  function deleteTab(id: string, event: MouseEvent) {
+    event.stopPropagation();
+    if (conversations.size > 1) {
+      claudeStore.deleteConversation(id);
+    }
+  }
+
+  function startEditing(id: string, name: string, event: MouseEvent) {
+    event.stopPropagation();
+    editingTabId = id;
+    editingName = name;
+  }
+
+  function saveTabName() {
+    if (editingTabId && editingName.trim()) {
+      claudeStore.renameConversation(editingTabId, editingName.trim());
+    }
+    editingTabId = null;
+    editingName = "";
+  }
+
+  function getConnectionStatusColor(status: Conversation["connectionStatus"]): string {
+    switch (status) {
+      case "connected":
+        return "bg-green-500";
+      case "connecting":
+        return "bg-yellow-500";
+      case "disconnected":
+        return "bg-red-500";
+      default:
+        return "bg-gray-500";
+    }
+  }
+
+  function handleKeydown(event: KeyboardEvent) {
+    if (event.key === "Enter") {
+      saveTabName();
+    } else if (event.key === "Escape") {
+      editingTabId = null;
+      editingName = "";
+    }
+  }
+
+  // Keyboard shortcuts
+  onMount(() => {
+    function handleGlobalKeydown(event: KeyboardEvent) {
+      // Ctrl/Cmd + T: New tab
+      if ((event.ctrlKey || event.metaKey) && event.key === "t") {
+        event.preventDefault();
+        createNewTab();
+      }
+      // Ctrl/Cmd + W: Close current tab
+      else if ((event.ctrlKey || event.metaKey) && event.key === "w") {
+        event.preventDefault();
+        if (activeConversationId && conversations.size > 1) {
+          claudeStore.deleteConversation(activeConversationId);
+        }
+      }
+      // Ctrl/Cmd + Tab: Next tab
+      else if ((event.ctrlKey || event.metaKey) && event.key === "Tab" && !event.shiftKey) {
+        event.preventDefault();
+        const tabs = Array.from(conversations.keys());
+        const currentIndex = tabs.findIndex((id) => id === activeConversationId);
+        if (currentIndex !== -1) {
+          const nextIndex = (currentIndex + 1) % tabs.length;
+          claudeStore.switchConversation(tabs[nextIndex]);
+        }
+      }
+      // Ctrl/Cmd + Shift + Tab: Previous tab
+      else if ((event.ctrlKey || event.metaKey) && event.key === "Tab" && event.shiftKey) {
+        event.preventDefault();
+        const tabs = Array.from(conversations.keys());
+        const currentIndex = tabs.findIndex((id) => id === activeConversationId);
+        if (currentIndex !== -1) {
+          const prevIndex = (currentIndex - 1 + tabs.length) % tabs.length;
+          claudeStore.switchConversation(tabs[prevIndex]);
+        }
+      }
+    }
+
+    window.addEventListener("keydown", handleGlobalKeydown);
+    return () => window.removeEventListener("keydown", handleGlobalKeydown);
+  });
+</script>
+
+<div
+  class="terminal-tabs flex items-center gap-1 px-2 py-1 bg-[var(--bg-secondary)] border-b border-[var(--border-color)]"
+>
+  {#each Array.from(conversations.entries()) as [id, conversation] (id)}
+    <div
+      class="tab-item group relative flex items-center px-3 py-1.5 rounded-t cursor-pointer transition-all
+        {id === activeConversationId
+        ? 'bg-[var(--bg-terminal)] text-[var(--text-primary)] border-t border-l border-r border-[var(--border-color)]'
+        : 'bg-[var(--bg-tertiary)] text-[var(--text-secondary)] hover:bg-[var(--bg-terminal)]/50'}"
+      onclick={() => switchTab(id)}
+      role="tab"
+      tabindex={0}
+      aria-selected={id === activeConversationId}
+    >
+      {#if editingTabId === id}
+        <input
+          type="text"
+          bind:value={editingName}
+          onblur={saveTabName}
+          onkeydown={handleKeydown}
+          onclick={(e) => e.stopPropagation()}
+          class="bg-transparent border-b border-[var(--border-color)] outline-none px-0 py-0 text-sm w-32"
+          autofocus
+        />
+      {:else}
+        <div class="flex items-center gap-2">
+          <div
+            class="w-2 h-2 rounded-full {getConnectionStatusColor(conversation.connectionStatus)}"
+            title="Connection: {conversation.connectionStatus}{id !== connectedConversationId && connectedConversationId ? ' (Another tab is connected)' : ''}"
+          />
+          <span
+            class="text-sm pr-6 max-w-[150px] truncate"
+            ondblclick={(e) => startEditing(id, conversation.name, e)}
+          >
+            {conversation.name}
+          </span>
+          {#if id !== activeConversationId && id === connectedConversationId}
+            <span class="text-xs text-[var(--text-tertiary)]" title="This tab has the active Claude connection">
+              (active)
+            </span>
+          {/if}
+        </div>
+      {/if}
+
+      {#if conversations.size > 1}
+        <button
+          onclick={(e) => deleteTab(id, e)}
+          class="absolute right-1 top-1/2 -translate-y-1/2 w-4 h-4 flex items-center justify-center rounded hover:bg-[var(--bg-secondary)] opacity-0 group-hover:opacity-100 transition-opacity"
+          title="Close tab"
+        >
+          <svg
+            class="w-3 h-3"
+            fill="none"
+            stroke="currentColor"
+            viewBox="0 0 24 24"
+            xmlns="http://www.w3.org/2000/svg"
+          >
+            <path
+              stroke-linecap="round"
+              stroke-linejoin="round"
+              stroke-width="2"
+              d="M6 18L18 6M6 6l12 12"
+            />
+          </svg>
+        </button>
+      {/if}
+    </div>
+  {/each}
+
+  <button
+    onclick={createNewTab}
+    class="new-tab-btn flex items-center justify-center w-7 h-7 rounded hover:bg-[var(--bg-tertiary)] text-[var(--text-secondary)] transition-colors"
+    title="New conversation (Ctrl+T)&#10;Note: Only one tab can be connected at a time"
+  >
+    <svg
+      class="w-4 h-4"
+      fill="none"
+      stroke="currentColor"
+      viewBox="0 0 24 24"
+      xmlns="http://www.w3.org/2000/svg"
+    >
+      <path
+        stroke-linecap="round"
+        stroke-linejoin="round"
+        stroke-width="2"
+        d="M12 4v16m8-8H4"
+      />
+    </svg>
+  </button>
+</div>
+
+<style>
+  .terminal-tabs {
+    min-height: 36px;
+  }
+
+  .tab-item {
+    min-width: 100px;
+  }
+</style>
\ No newline at end of file
diff --git a/src/lib/components/ConversationTabsDebug.svelte b/src/lib/components/ConversationTabsDebug.svelte
new file mode 100644
index 0000000..5ec3a4d
--- /dev/null
+++ b/src/lib/components/ConversationTabsDebug.svelte
@@ -0,0 +1,7 @@
+<script lang="ts">
+  console.log("ConversationTabs component loading...");
+</script>
+
+<div class="terminal-tabs" style="background: red; height: 36px; color: white;">
+  Debug: Tabs Component Loaded
+</div>
\ No newline at end of file
diff --git a/src/lib/components/Terminal.svelte b/src/lib/components/Terminal.svelte
index cd432f1..4a8c55f 100644
--- a/src/lib/components/Terminal.svelte
+++ b/src/lib/components/Terminal.svelte
@@ -1,6 +1,7 @@
 <script lang="ts">
   import { claudeStore, type TerminalLine } from "$lib/stores/claude";
   import { afterUpdate } from "svelte";
+  import ConversationTabs from "./ConversationTabs.svelte";
 
   let terminalElement: HTMLDivElement;
   let shouldAutoScroll = true;
@@ -78,10 +79,12 @@
     <span class="text-sm terminal-header-text ml-2">Terminal</span>
   </div>
 
+  <ConversationTabs />
+
   <div
     bind:this={terminalElement}
     onscroll={handleScroll}
-    class="terminal-content h-[calc(100%-40px)] overflow-y-auto p-4 font-mono text-sm"
+    class="terminal-content h-[calc(100%-76px)] overflow-y-auto p-4 font-mono text-sm"
   >
     {#if lines.length === 0}
       <div class="terminal-waiting italic">
diff --git a/src/lib/stores/claude.ts b/src/lib/stores/claude.ts
index 78d982c..29931f2 100644
--- a/src/lib/stores/claude.ts
+++ b/src/lib/stores/claude.ts
@@ -1,125 +1,65 @@
-import { writable, derived } from "svelte/store";
-import type { ConnectionStatus, PermissionRequest } from "$lib/types/messages";
+import { derived } from "svelte/store";
+import { conversationsStore } from "./conversations";
+import type { ConnectionStatus, PermissionRequest, TerminalLine } from "$lib/types/messages";
 
-export interface TerminalLine {
-  id: string;
-  type: "user" | "assistant" | "system" | "tool" | "error";
-  content: string;
-  timestamp: Date;
-  toolName?: string;
-}
+// Re-export TerminalLine type for backwards compatibility
+export type { TerminalLine };
 
-function createClaudeStore() {
-  const connectionStatus = writable<ConnectionStatus>("disconnected");
-  const sessionId = writable<string | null>(null);
-  const currentWorkingDirectory = writable<string>("");
-  const terminalLines = writable<TerminalLine[]>([]);
-  const pendingPermission = writable<PermissionRequest | null>(null);
-  const isProcessing = writable<boolean>(false);
-  const grantedTools = writable<Set<string>>(new Set());
-  const pendingRetryMessage = writable<string | null>(null);
+// Re-export from conversations store for backwards compatibility
+export const claudeStore = {
+  // Existing subscriptions
+  connectionStatus: conversationsStore.connectionStatus,
+  sessionId: conversationsStore.sessionId,
+  currentWorkingDirectory: conversationsStore.currentWorkingDirectory,
+  terminalLines: conversationsStore.terminalLines,
+  pendingPermission: conversationsStore.pendingPermission,
+  isProcessing: conversationsStore.isProcessing,
+  grantedTools: conversationsStore.grantedTools,
+  pendingRetryMessage: conversationsStore.pendingRetryMessage,
 
-  let lineIdCounter = 0;
+  // New conversation-aware subscriptions
+  conversations: conversationsStore.conversations,
+  activeConversationId: conversationsStore.activeConversationId,
+  activeConversation: conversationsStore.activeConversation,
 
-  function generateLineId(): string {
-    return `line-${Date.now()}-${lineIdCounter++}`;
-  }
+  // Methods
+  setConnectionStatus: conversationsStore.setConnectionStatus,
+  setSessionId: conversationsStore.setSessionId,
+  setWorkingDirectory: conversationsStore.setWorkingDirectory,
+  setProcessing: conversationsStore.setProcessing,
+  addLine: conversationsStore.addLine,
+  updateLine: conversationsStore.updateLine,
+  appendToLine: conversationsStore.appendToLine,
+  clearTerminal: conversationsStore.clearTerminal,
+  getConversationHistory: conversationsStore.getConversationHistory,
+  requestPermission: conversationsStore.requestPermission,
+  clearPermission: conversationsStore.clearPermission,
+  grantTool: conversationsStore.grantTool,
+  revokeAllTools: conversationsStore.revokeAllTools,
+  isToolGranted: conversationsStore.isToolGranted,
+  setPendingRetryMessage: conversationsStore.setPendingRetryMessage,
 
-  return {
-    connectionStatus: { subscribe: connectionStatus.subscribe },
-    sessionId: { subscribe: sessionId.subscribe },
-    currentWorkingDirectory: { subscribe: currentWorkingDirectory.subscribe },
-    terminalLines: { subscribe: terminalLines.subscribe },
-    pendingPermission: { subscribe: pendingPermission.subscribe },
-    isProcessing: { subscribe: isProcessing.subscribe },
-    grantedTools: { subscribe: grantedTools.subscribe },
-    pendingRetryMessage: { subscribe: pendingRetryMessage.subscribe },
+  // Conversation management
+  createConversation: conversationsStore.createConversation,
+  deleteConversation: conversationsStore.deleteConversation,
+  switchConversation: conversationsStore.switchConversation,
+  renameConversation: conversationsStore.renameConversation,
 
-    setConnectionStatus: (status: ConnectionStatus) => connectionStatus.set(status),
-    setSessionId: (id: string | null) => sessionId.set(id),
-    setWorkingDirectory: (dir: string) => currentWorkingDirectory.set(dir),
-    setProcessing: (processing: boolean) => isProcessing.set(processing),
+  getGrantedTools: (): string[] => {
+    let tools: string[] = [];
+    conversationsStore.grantedTools.subscribe((t) => (tools = Array.from(t)))();
+    return tools;
+  },
 
-    addLine: (type: TerminalLine["type"], content: string, toolName?: string) => {
-      const line: TerminalLine = {
-        id: generateLineId(),
-        type,
-        content,
-        timestamp: new Date(),
-        toolName,
-      };
-      terminalLines.update((lines) => [...lines, line]);
-      return line.id;
-    },
-
-    updateLine: (id: string, content: string) => {
-      terminalLines.update((lines) =>
-        lines.map((line) => (line.id === id ? { ...line, content } : line))
-      );
-    },
-
-    appendToLine: (id: string, additionalContent: string) => {
-      terminalLines.update((lines) =>
-        lines.map((line) =>
-          line.id === id ? { ...line, content: line.content + additionalContent } : line
-        )
-      );
-    },
-
-    clearTerminal: () => terminalLines.set([]),
-
-    getConversationHistory: (): string => {
-      let lines: TerminalLine[] = [];
-      terminalLines.subscribe((l) => (lines = l))();
-
-      // Filter to just user and assistant messages, skip system/tool noise
-      const relevantLines = lines.filter(
-        (line) => line.type === "user" || line.type === "assistant"
-      );
-
-      if (relevantLines.length === 0) return "";
-
-      return relevantLines
-        .map((line) => {
-          const role = line.type === "user" ? "User" : "Assistant";
-          return `${role}: ${line.content}`;
-        })
-        .join("\n\n");
-    },
-
-    requestPermission: (request: PermissionRequest) => pendingPermission.set(request),
-    clearPermission: () => pendingPermission.set(null),
-
-    grantTool: (toolName: string) => {
-      grantedTools.update((tools) => {
-        const newTools = new Set(tools);
-        newTools.add(toolName);
-        return newTools;
-      });
-    },
-
-    getGrantedTools: (): string[] => {
-      let tools: string[] = [];
-      grantedTools.subscribe((t) => (tools = Array.from(t)))();
-      return tools;
-    },
-
-    setPendingRetryMessage: (message: string | null) => pendingRetryMessage.set(message),
-
-    reset: () => {
-      connectionStatus.set("disconnected");
-      sessionId.set(null);
-      currentWorkingDirectory.set("");
-      terminalLines.set([]);
-      pendingPermission.set(null);
-      isProcessing.set(false);
-      grantedTools.set(new Set());
-      pendingRetryMessage.set(null);
-    },
-  };
-}
-
-export const claudeStore = createClaudeStore();
+  reset: () => {
+    // Reset only the active conversation
+    conversationsStore.clearTerminal();
+    conversationsStore.setSessionId(null);
+    conversationsStore.setWorkingDirectory("");
+    conversationsStore.setProcessing(false);
+    conversationsStore.revokeAllTools();
+  },
+};
 
 export const hasPermissionPending = derived(
   claudeStore.pendingPermission,
diff --git a/src/lib/stores/conversations.ts b/src/lib/stores/conversations.ts
new file mode 100644
index 0000000..e081f70
--- /dev/null
+++ b/src/lib/stores/conversations.ts
@@ -0,0 +1,392 @@
+import { writable, derived, get } from "svelte/store";
+import type { TerminalLine, ConnectionStatus, PermissionRequest } from "$lib/types/messages";
+
+export interface Conversation {
+  id: string;
+  name: string;
+  terminalLines: TerminalLine[];
+  sessionId: string | null;
+  connectionStatus: ConnectionStatus;
+  workingDirectory: string;
+  isProcessing: boolean;
+  grantedTools: Set<string>;
+  createdAt: Date;
+  lastActivityAt: Date;
+}
+
+function createConversationsStore() {
+  const conversations = writable<Map<string, Conversation>>(new Map());
+  const activeConversationId = writable<string | null>(null);
+  const pendingPermission = writable<PermissionRequest | null>(null);
+  const pendingRetryMessage = writable<string | null>(null);
+
+  let conversationCounter = 0;
+  let lineIdCounter = 0;
+
+  function generateConversationId(): string {
+    return `conv-${Date.now()}-${conversationCounter++}`;
+  }
+
+  function generateLineId(): string {
+    return `line-${Date.now()}-${lineIdCounter++}`;
+  }
+
+  function createNewConversation(name?: string): Conversation {
+    const id = generateConversationId();
+    return {
+      id,
+      name: name || `Conversation ${conversationCounter}`,
+      terminalLines: [],
+      sessionId: null,
+      connectionStatus: "disconnected",
+      workingDirectory: "",
+      isProcessing: false,
+      grantedTools: new Set(),
+      createdAt: new Date(),
+      lastActivityAt: new Date(),
+    };
+  }
+
+  // Initialize with first conversation lazily
+  let initialized = false;
+  function ensureInitialized() {
+    if (!initialized) {
+      initialized = true;
+      const initialConversation = createNewConversation("Main");
+      conversations.update((convs) => {
+        convs.set(initialConversation.id, initialConversation);
+        return convs;
+      });
+      activeConversationId.set(initialConversation.id);
+    }
+  }
+
+  // Derived store for current conversation
+  const activeConversation = derived(
+    [conversations, activeConversationId],
+    ([$conversations, $activeId]) => {
+      if (!$activeId) return null;
+      return $conversations.get($activeId) || null;
+    }
+  );
+
+  // Derived stores for compatibility with existing code
+  const connectionStatus = derived(activeConversation, ($conv) => $conv?.connectionStatus || "disconnected");
+  const terminalLines = derived(activeConversation, ($conv) => {
+    return $conv?.terminalLines || [];
+  });
+  const sessionId = derived(activeConversation, ($conv) => $conv?.sessionId || null);
+  const currentWorkingDirectory = derived(activeConversation, ($conv) => $conv?.workingDirectory || "");
+  const isProcessing = derived(activeConversation, ($conv) => $conv?.isProcessing || false);
+  const grantedTools = derived(activeConversation, ($conv) => $conv?.grantedTools || new Set());
+
+  return {
+    // Expose derived stores for compatibility
+    connectionStatus: { subscribe: connectionStatus.subscribe },
+    sessionId: { subscribe: sessionId.subscribe },
+    currentWorkingDirectory: { subscribe: currentWorkingDirectory.subscribe },
+    terminalLines: { subscribe: terminalLines.subscribe },
+    pendingPermission: { subscribe: pendingPermission.subscribe },
+    isProcessing: { subscribe: isProcessing.subscribe },
+    grantedTools: { subscribe: grantedTools.subscribe },
+    pendingRetryMessage: { subscribe: pendingRetryMessage.subscribe },
+
+    // New conversation-specific stores
+    conversations: { subscribe: conversations.subscribe },
+    activeConversationId: { subscribe: activeConversationId.subscribe },
+    activeConversation: { subscribe: activeConversation.subscribe },
+
+    // Connection management
+    setConnectionStatus: (status: ConnectionStatus) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.connectionStatus = status;
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+    requestPermission: (request: PermissionRequest) => pendingPermission.set(request),
+    clearPermission: () => pendingPermission.set(null),
+    setPendingRetryMessage: (message: string | null) => pendingRetryMessage.set(message),
+
+    // Conversation management
+    createConversation: (name?: string) => {
+      ensureInitialized();
+      const newConv = createNewConversation(name);
+      conversations.update((convs) => {
+        convs.set(newConv.id, newConv);
+        return convs;
+      });
+      activeConversationId.set(newConv.id);
+      return newConv.id;
+    },
+
+    deleteConversation: (id: string) => {
+      ensureInitialized();
+      const convs = get(conversations);
+      const activeId = get(activeConversationId);
+
+      if (convs.size <= 1) {
+        // Don't delete the last conversation
+        return false;
+      }
+
+      conversations.update((c) => {
+        c.delete(id);
+        return c;
+      });
+
+      // If we deleted the active conversation, switch to another
+      if (activeId === id) {
+        const remaining = Array.from(get(conversations).keys());
+        if (remaining.length > 0) {
+          activeConversationId.set(remaining[0]);
+        }
+      }
+      return true;
+    },
+
+    switchConversation: async (id: string) => {
+      const convs = get(conversations);
+      if (!convs.has(id)) return;
+
+      const currentId = get(activeConversationId);
+      const targetConv = convs.get(id);
+
+      // If switching to a different conversation
+      if (currentId !== id) {
+        activeConversationId.set(id);
+
+        // Auto-reconnect logic
+        if (targetConv && targetConv.connectionStatus === "disconnected") {
+          // Check if another conversation is connected
+          let hasConnectedConv = false;
+          for (const [convId, conv] of convs) {
+            if (convId !== id && (conv.connectionStatus === "connected" || conv.connectionStatus === "connecting")) {
+              hasConnectedConv = true;
+              break;
+            }
+          }
+
+          if (hasConnectedConv) {
+            // Add a note about the limitation
+            const lineId = generateLineId();
+            conversations.update((c) => {
+              const conv = c.get(id);
+              if (conv) {
+                conv.terminalLines.push({
+                  id: lineId,
+                  type: "system",
+                  content: "Another tab is connected. Disconnect it first or use that tab.",
+                  timestamp: new Date(),
+                });
+              }
+              return c;
+            });
+          }
+        }
+      }
+    },
+
+    renameConversation: (id: string, newName: string) => {
+      conversations.update((convs) => {
+        const conv = convs.get(id);
+        if (conv) {
+          conv.name = newName;
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    // Methods that operate on the active conversation
+    setSessionId: (id: string | null) => {
+      ensureInitialized();
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.sessionId = id;
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    setWorkingDirectory: (dir: string) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.workingDirectory = dir;
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    setProcessing: (processing: boolean) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.isProcessing = processing;
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    addLine: (type: TerminalLine["type"], content: string, toolName?: string) => {
+      ensureInitialized();
+      const activeId = get(activeConversationId);
+      if (!activeId) return "";
+
+      const line: TerminalLine = {
+        id: generateLineId(),
+        type,
+        content,
+        timestamp: new Date(),
+        toolName,
+      };
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.terminalLines.push(line);
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+
+      return line.id;
+    },
+
+    updateLine: (id: string, content: string) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          const line = conv.terminalLines.find((l) => l.id === id);
+          if (line) {
+            line.content = content;
+            conv.lastActivityAt = new Date();
+          }
+        }
+        return convs;
+      });
+    },
+
+    appendToLine: (id: string, additionalContent: string) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          const line = conv.terminalLines.find((l) => l.id === id);
+          if (line) {
+            line.content += additionalContent;
+            conv.lastActivityAt = new Date();
+          }
+        }
+        return convs;
+      });
+    },
+
+    clearTerminal: () => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.terminalLines = [];
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    getConversationHistory: (): string => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return "";
+
+      const convs = get(conversations);
+      const conv = convs.get(activeId);
+      if (!conv) return "";
+
+      const relevantLines = conv.terminalLines.filter(
+        (line) => line.type === "user" || line.type === "assistant"
+      );
+
+      if (relevantLines.length === 0) return "";
+
+      return relevantLines
+        .map((line) => {
+          const role = line.type === "user" ? "User" : "Assistant";
+          return `${role}: ${line.content}`;
+        })
+        .join("\n\n");
+    },
+
+    grantTool: (toolName: string) => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.grantedTools.add(toolName);
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    revokeAllTools: () => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return;
+
+      conversations.update((convs) => {
+        const conv = convs.get(activeId);
+        if (conv) {
+          conv.grantedTools.clear();
+          conv.lastActivityAt = new Date();
+        }
+        return convs;
+      });
+    },
+
+    isToolGranted: (toolName: string): boolean => {
+      const activeId = get(activeConversationId);
+      if (!activeId) return false;
+
+      const convs = get(conversations);
+      const conv = convs.get(activeId);
+      return conv?.grantedTools.has(toolName) || false;
+    },
+
+    // Add initialization helper
+    initialize: () => {
+      ensureInitialized();
+    },
+  };
+}
+
+export const conversationsStore = createConversationsStore();
+// Initialize immediately
+conversationsStore.initialize();
\ No newline at end of file
diff --git a/src/lib/types/messages.ts b/src/lib/types/messages.ts
index 4563e81..9ff9909 100644
--- a/src/lib/types/messages.ts
+++ b/src/lib/types/messages.ts
@@ -1,3 +1,11 @@
+export interface TerminalLine {
+  id: string;
+  type: "user" | "assistant" | "system" | "tool" | "error";
+  content: string;
+  timestamp: Date;
+  toolName?: string;
+}
+
 export interface SystemInitMessage {
   type: "system";
   subtype: "init";