diff --git a/pyscript.core/src/plugins/py-terminal.js b/pyscript.core/src/plugins/py-terminal.js
new file mode 100644
index 00000000000..cfc9da5de09
--- /dev/null
+++ b/pyscript.core/src/plugins/py-terminal.js
@@ -0,0 +1,114 @@
+// PyScript py-terminal plugin
+import { hooks } from "../core.js";
+
+const XTERM = "5.3.0";
+const XTERM_READLINE = "1.1.1";
+
+const { assign } = Object;
+
+// Avoid conflicts with py-terminal re-definition
+if (!customElements.get("py-terminal")) {
+    document.head.append(
+        assign(document.createElement("link"), {
+            rel: "stylesheet",
+            href: `https://cdn.jsdelivr.net/npm/xterm@${XTERM}/css/xterm.min.css`,
+        }),
+    );
+
+    const [{ Terminal }, { Readline }] = await Promise.all([
+        import(
+            /* webpackIgnore: true */ `https://cdn.jsdelivr.net/npm/xterm@${XTERM}/+esm`
+        ),
+        import(
+            /* webpackIgnore: true */ `https://cdn.jsdelivr.net/npm/xterm-readline@${XTERM_READLINE}/+esm`
+        ),
+    ]);
+
+    customElements.define(
+        "py-terminal",
+        class extends HTMLElement {
+            #terminal;
+            #readline;
+            init(options) {
+                this.#readline = new Readline();
+                this.#terminal = new Terminal({
+                    theme: {
+                        background: "#191A19",
+                        foreground: "#F5F2E7",
+                    },
+                    ...options,
+                });
+                this.#terminal.loadAddon(this.#readline);
+                this.#terminal.open(this);
+                this.#terminal.focus();
+            }
+            readline(prompt) {
+                return this.#readline.read(prompt);
+            }
+            write(line) {
+                this.#readline.write(line);
+            }
+        },
+    );
+
+    const codeBefore = `
+        from pyscript import pyterminal as _pyterminal
+        _pyterminal.init()
+    `;
+
+    const codeAfter = `
+        from pyscript import pyterminal as _pyterminal
+
+        # avoid bootstrapping interact() if no terminal exists
+        if _pyterminal.PY_TERMINAL:
+            import code as _code
+            _code.interact()
+    `;
+
+    const main = ({ io }) => {
+        const pt = document.querySelector("py-terminal");
+        if (pt) {
+            cleanUp(true);
+            pt.init({
+                disableStdin: true,
+                cursorBlink: false,
+                cursorStyle: "underline",
+            });
+            io.stdout = (value) => {
+                pt.write(`${value}\n`);
+            };
+            io.stderr = (error) => {
+                pt.write(`${error.message || error}\n`);
+            };
+        }
+    };
+
+    const thread = (_, xworker) => {
+        const pt = document.querySelector("py-terminal");
+        if (pt) {
+            cleanUp(false);
+            pt.init({
+                disableStdin: false,
+                cursorBlink: true,
+                cursorStyle: "block",
+            });
+            xworker.sync.pyterminal_readline = pt.readline.bind(pt);
+            xworker.sync.pyterminal_write = pt.write.bind(pt);
+        }
+    };
+
+    // we currently support only one <py-terminal>
+    const cleanUp = (fromMain) => {
+        hooks.onInterpreterReady.delete(main);
+        hooks.onWorkerReady.delete(thread);
+        if (fromMain) {
+            hooks.codeBeforeRunWorker.delete(codeBefore);
+            hooks.codeAfterRunWorker.delete(codeBefore);
+        }
+    };
+
+    hooks.onInterpreterReady.add(main);
+    hooks.onWorkerReady.add(thread);
+    hooks.codeBeforeRunWorker.add(codeBefore);
+    hooks.codeAfterRunWorker.add(codeAfter);
+}
diff --git a/pyscript.core/src/stdlib/pyscript/pyterminal.py b/pyscript.core/src/stdlib/pyscript/pyterminal.py
new file mode 100644
index 00000000000..6d1e06d39a5
--- /dev/null
+++ b/pyscript.core/src/stdlib/pyscript/pyterminal.py
@@ -0,0 +1,26 @@
+import builtins
+import sys
+
+import js
+from pyscript import RUNNING_IN_WORKER, document, sync
+
+
+class _PyTerminal:
+    def write(self, line):
+        sync.pyterminal_write(line)
+
+    def input(self, prompt):
+        return sync.pyterminal_readline(prompt)
+
+
+PY_TERMINAL = None
+
+
+def init():
+    global PY_TERMINAL
+    # we currently support only one terminal
+    # and it's interactive only within a worker tag
+    if not PY_TERMINAL and RUNNING_IN_WORKER and document.querySelector("py-terminal"):
+        PY_TERMINAL = _PyTerminal()
+        sys.stdout = sys.stderr = PY_TERMINAL
+        builtins.input = PY_TERMINAL.input
diff --git a/pyscript.core/test/py-terminal.html b/pyscript.core/test/py-terminal.html
new file mode 100644
index 00000000000..c0949edfbba
--- /dev/null
+++ b/pyscript.core/test/py-terminal.html
@@ -0,0 +1,24 @@
+<!doctype html>
+<html lang="en">
+    <head>
+        <meta charset="UTF-8" />
+        <meta name="viewport" content="width=device-width, initial-scale=1.0" />
+        <title>PyTerminal</title>
+        <link rel="stylesheet" href="../dist/core.css">
+        <script type="module" src="../dist/core.js"></script>
+        <style>.xterm { padding: .5rem; }</style>
+    </head>
+    <body>
+        <script type="py" worker>
+            import sys
+            from pyscript import display
+            display("Hello", "PyScript Next - PyTerminal", append=False)
+            print("this should go to the terminal")
+            print("another line")
+
+            # this works as expected
+            print("this goes to stderr", file=sys.stderr)
+        </script>
+        <py-terminal></py-terminal>
+    </body>
+</html>
diff --git a/pyscript.core/types/plugins.d.ts b/pyscript.core/types/plugins.d.ts
index 1afe130852c..abce670d72d 100644
--- a/pyscript.core/types/plugins.d.ts
+++ b/pyscript.core/types/plugins.d.ts
@@ -1,4 +1,5 @@
-declare namespace _default {
-    function error(): Promise<typeof import("./plugins/error.js")>;
-}
+declare const _default: {
+    error: () => Promise<typeof import("./plugins/error.js")>;
+    "py-terminal": () => Promise<typeof import("./plugins/py-terminal.js")>;
+};
 export default _default;
diff --git a/pyscript.core/types/plugins/py-terminal.d.ts b/pyscript.core/types/plugins/py-terminal.d.ts
new file mode 100644
index 00000000000..cb0ff5c3b54
--- /dev/null
+++ b/pyscript.core/types/plugins/py-terminal.d.ts
@@ -0,0 +1 @@
+export {};
diff --git a/pyscript.core/types/stdlib/pyscript.d.ts b/pyscript.core/types/stdlib/pyscript.d.ts
index fa33defe76c..12891e9ca3d 100644
--- a/pyscript.core/types/stdlib/pyscript.d.ts
+++ b/pyscript.core/types/stdlib/pyscript.d.ts
@@ -4,6 +4,7 @@ declare namespace _default {
         "display.py": string;
         "event_handling.py": string;
         "magic_js.py": string;
+        "pyterminal.py": string;
         "util.py": string;
     };
     let pyweb: {