diff --git a/app/Livewire/Project/Shared/Terminal.php b/app/Livewire/Project/Shared/Terminal.php
index e070ee367..70b8fd18f 100644
--- a/app/Livewire/Project/Shared/Terminal.php
+++ b/app/Livewire/Project/Shared/Terminal.php
@@ -38,6 +38,9 @@ class Terminal extends Component
         // 1. Laravel Pusher/Echo connection (not possible without a sdk)
         // 2. Ratchet / Revolt / ReactPHP / Event Loop (possible but hard to implement and huge dependencies)
         // 3. Just found out about this https://github.com/sirn-se/websocket-php, perhaps it can be used
+        // 4. Follow-up discussions here:
+        //     - https://github.com/coollabsio/coolify/issues/2298
+        //     - https://github.com/coollabsio/coolify/discussions/3362
         $this->dispatch('send-back-command', $command);
     }
 
diff --git a/docker-compose.dev.yml b/docker-compose.dev.yml
index 16bb354a5..dfd8684cc 100644
--- a/docker-compose.dev.yml
+++ b/docker-compose.dev.yml
@@ -53,6 +53,7 @@ services:
       - "6002:6002"
     volumes:
       - ./storage:/var/www/html/storage
+      - ./docker/coolify-realtime/terminal-server.js:/terminal/terminal-server.js
     environment:
       SOKETI_DEBUG: "false"
       SOKETI_DEFAULT_APP_ID: "${PUSHER_APP_ID:-coolify}"
diff --git a/docker/coolify-realtime/terminal-server.js b/docker/coolify-realtime/terminal-server.js
index 6afbd3445..c03f9b0df 100755
--- a/docker/coolify-realtime/terminal-server.js
+++ b/docker/coolify-realtime/terminal-server.js
@@ -106,7 +106,12 @@ async function handleCommand(ws, command, userId) {
     const userSession = userSessions.get(userId);
 
     if (userSession && userSession.isActive) {
-        await killPtyProcess(userId);
+        const result = await killPtyProcess(userId);
+        if (!result) {
+            // if terminal is still active, even after we tried to kill it, dont continue and show error
+            ws.send('unprocessable');
+            return;
+        }
     }
 
     const commandString = command[0].split('\n').join(' ');
@@ -129,7 +134,8 @@ async function handleCommand(ws, command, userId) {
     userSession.ptyProcess = ptyProcess;
     userSession.isActive = true;
     ptyProcess.write(hereDocContent + '\n');
-    ptyProcess.write('clear\n');
+    // clear the terminal if the user has clear command
+    ptyProcess.write('command -v clear >/dev/null 2>&1 && clear\n');
 
     ws.send('pty-ready');
 
@@ -162,12 +168,32 @@ async function killPtyProcess(userId) {
     if (!session?.ptyProcess) return false;
 
     return new Promise((resolve) => {
-        session.ptyProcess.on('exit', () => {
-            session.isActive = false;
-            resolve(true);
-        });
+        // Loop to ensure terminal is killed before continuing
+        let killAttempts = 0;
+        const maxAttempts = 5;
 
-        session.ptyProcess.kill();
+        const attemptKill = () => {
+            killAttempts++;
+
+            // session.ptyProcess.kill() wont work here because of https://github.com/moby/moby/issues/9098
+            // patch with https://github.com/moby/moby/issues/9098#issuecomment-189743947
+            session.ptyProcess.write('kill -TERM -$$ && exit\n');
+
+            setTimeout(() => {
+                if (!session.isActive || !session.ptyProcess) {
+                    resolve(true);
+                    return;
+                }
+
+                if (killAttempts < maxAttempts) {
+                    attemptKill();
+                } else {
+                    resolve(false);
+                }
+            }, 500);
+        };
+
+        attemptKill();
     });
 }
 
diff --git a/resources/views/livewire/project/shared/terminal.blade.php b/resources/views/livewire/project/shared/terminal.blade.php
index f351bd42f..11c59810e 100644
--- a/resources/views/livewire/project/shared/terminal.blade.php
+++ b/resources/views/livewire/project/shared/terminal.blade.php
@@ -1,12 +1,11 @@
 <div x-data="data()">
     <div x-show="!terminalActive" class="flex items-center justify-center w-full py-4 mx-auto h-[510px]">
-        <div
-            class="w-full h-full bg-white border border-solid rounded dark:text-white dark:bg-coolgray-100 scrollbar border-neutral-300 dark:border-coolgray-300 p-1">
-            <span class="font-mono text-sm text-gray-500 ">(connection closed)</span>
+        <div class="w-full h-full border rounded dark:bg-coolgray-100 dark:border-coolgray-300">
+            <span class="font-mono text-sm text-gray-500" x-text="message"></span>
         </div>
     </div>
     <div x-ref="terminalWrapper"
-        :class="fullscreen ? 'fullscreen' : 'relative w-full h-full py-4     mx-auto max-h-[510px]'">
+        :class="fullscreen ? 'fullscreen' : 'relative w-full h-full py-4 mx-auto max-h-[510px]'">
         <div id="terminal" wire:ignore></div>
         <button title="Minimize" x-show="fullscreen" class="fixed top-4 right-4" x-on:click="makeFullscreen"><svg
                 class="icon" viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg">
@@ -49,6 +48,7 @@
             }
 
             function handleSocketMessage(event) {
+                $data.message = '(connection closed)';
                 // Initialize Terminal
                 if (event.data === 'pty-ready') {
                     term.open(document.getElementById('terminal'));
@@ -57,6 +57,10 @@
                     term.focus();
                     document.querySelector('.xterm-viewport').classList.add('scrollbar', 'rounded')
                     $data.resizeTerminal()
+                } else if (event.data === 'unprocessable') {
+                    term.reset();
+                    $data.terminalActive = false;
+                    $data.message = '(sorry, something went wrong, please try again)';
                 } else {
                     pendingWrites++;
                     term.write(event.data, flowControlCallback);
@@ -91,7 +95,6 @@
                     checkIfProcessIsRunningAndKillIt();
                     setTimeout(() => {
                         term.reset();
-                        term.write('(connection closed)');
                         $data.terminalActive = false;
                     }, 500);
                     commandBuffer = '';
@@ -152,6 +155,7 @@
             Alpine.data('data', () => ({
                 fullscreen: false,
                 terminalActive: false,
+                message: '(connection closed)',
                 init() {
                     this.$watch('terminalActive', (value) => {
                         this.$nextTick(() => {