diff --git a/apps/api/src/api/terminal.py b/apps/api/src/api/terminal.py
index 510e73e..7f11773 100644
--- a/apps/api/src/api/terminal.py
+++ b/apps/api/src/api/terminal.py
@@ -254,7 +254,6 @@ async def _handle_terminal_websocket(
 
 async def _read_loop(session_ref: SessionRef, websocket) -> None:
     """Read output from the container and send to WebSocket."""
-    send_failures = 0
     try:
         while True:
             session = session_ref.session
@@ -265,15 +264,10 @@ async def _read_loop(session_ref: SessionRef, websocket) -> None:
             if data:
                 try:
                     await websocket.send_bytes(data)
-                    send_failures = 0
+                except WebSocketDisconnect:
+                    break
                 except Exception:
-                    # Send failed — client may have disconnected.
-                    # Allow a few retries before giving up so transient
-                    # errors don't kill the whole session.
-                    send_failures += 1
-                    if send_failures >= 3:
-                        break
-                    await asyncio.sleep(0.1)
+                    break
             else:
                 await asyncio.sleep(0.01)
     except Exception:
diff --git a/apps/web/src/components/terminal.tsx b/apps/web/src/components/terminal.tsx
index 5588328..ab2a82b 100644
--- a/apps/web/src/components/terminal.tsx
+++ b/apps/web/src/components/terminal.tsx
@@ -37,6 +37,7 @@ export interface TerminalProps {
 
 export interface TerminalRef {
 	fit: () => void;
+	focus: () => void;
 }
 
 const FONT_SIZE_KEY = "terminal-font-size";
@@ -106,6 +107,7 @@ export const TerminalComponent = React.forwardRef<TerminalRef, TerminalProps>(
 			wsRef.current = ws;
 
 			ws.onopen = () => {
+				console.log(`[Terminal ${sessionId ?? "default"}] WebSocket opened`);
 				setStatus("connected");
 				setError(null);
 				reconnectAttemptsRef.current = 0;
@@ -137,6 +139,8 @@ export const TerminalComponent = React.forwardRef<TerminalRef, TerminalProps>(
 				if (!termRef.current) return;
 
 				if (event.data instanceof Blob) {
+					// eslint-disable-next-line no-console
+					console.log(`[Terminal ${sessionId ?? "default"}] received ${(event.data as Blob).size} bytes`);
 					event.data.arrayBuffer().then((buffer) => {
 						const data = new Uint8Array(buffer);
 						termRef.current?.write(data);
@@ -306,6 +310,8 @@ export const TerminalComponent = React.forwardRef<TerminalRef, TerminalProps>(
 
 			// Open xterm first (must happen before fit)
 			term.open(container);
+			term.focus();
+			console.log(`[Terminal ${sessionId ?? "default"}] xterm opened and focused`);
 			const ws = connectWebSocket();
 
 			// Initial fit after layout settles (terminal must be opened first)
@@ -330,6 +336,8 @@ export const TerminalComponent = React.forwardRef<TerminalRef, TerminalProps>(
 
 			// Handle terminal input
 			term.onData((data) => {
+				// eslint-disable-next-line no-console
+				console.log(`[Terminal ${sessionId ?? "default"}] sending:`, JSON.stringify(data));
 				const currentWs = wsRef.current;
 				if (currentWs?.readyState !== WebSocket.OPEN) return;
 
@@ -466,6 +474,9 @@ export const TerminalComponent = React.forwardRef<TerminalRef, TerminalProps>(
 					}
 				}
 			},
+			focus: () => {
+				termRef.current?.focus();
+			},
 		}));
 
 		// Update parent about status changes
diff --git a/apps/web/src/hooks/use-terminal-sessions.ts b/apps/web/src/hooks/use-terminal-sessions.ts
index e05f527..a995b37 100644
--- a/apps/web/src/hooks/use-terminal-sessions.ts
+++ b/apps/web/src/hooks/use-terminal-sessions.ts
@@ -25,7 +25,7 @@ export function useTerminalSessions(
 ): UseTerminalSessionsResult {
 	const [sessions, setSessions] = useState<TerminalSession[]>([]);
 	const [activeSessionId, setActiveSessionId] = useState<string | null>(null);
-	const [loading, setLoading] = useState(false);
+	const [loading, setLoading] = useState(true);
 	const [error, setError] = useState<string | null>(null);
 
 	const loadSessions = useCallback(async () => {
diff --git a/apps/web/src/pages/terminal.tsx b/apps/web/src/pages/terminal.tsx
index 4fc6d4a..74ea37d 100644
--- a/apps/web/src/pages/terminal.tsx
+++ b/apps/web/src/pages/terminal.tsx
@@ -26,7 +26,6 @@ export const TerminalPage: React.FC = () => {
 	const [isFullscreen, setIsFullscreen] = useState(false);
 	const terminalRefs = useRef<Record<string, React.RefObject<TerminalRef>>>({});
 	const headerAutoHide = useAutoHide({ timeout: 3000, enabled: isMobile });
-	const hasAutoCreated = useRef(false);
 
 	const {
 		sessions,
@@ -40,16 +39,9 @@ export const TerminalPage: React.FC = () => {
 		error,
 	} = useTerminalSessions(instanceId ?? "");
 
-	// Auto-create default session if none exist (guard against double-fire)
+	// Auto-create default session if none exist after loading completes
 	useEffect(() => {
-		if (
-			!loading &&
-			sessions.length === 0 &&
-			!error &&
-			instanceId &&
-			!hasAutoCreated.current
-		) {
-			hasAutoCreated.current = true;
+		if (!loading && sessions.length === 0 && !error && instanceId) {
 			void createSession("Session 1");
 		}
 	}, [loading, sessions.length, error, instanceId, createSession]);
@@ -70,13 +62,14 @@ export const TerminalPage: React.FC = () => {
 		}
 	}, [sessions]);
 
-	// Fit active terminal when switching tabs
+	// Fit and focus active terminal when switching tabs
 	useEffect(() => {
 		if (activeSessionId && terminalRefs.current[activeSessionId]) {
 			const ref = terminalRefs.current[activeSessionId];
 			// Small delay to allow display:block to apply
 			const timer = setTimeout(() => {
 				ref.current?.fit();
+				ref.current?.focus();
 			}, 50);
 			return () => clearTimeout(timer);
 		}