diff --git a/src/tests/integration/web-terminal-preservation.test.ts b/src/tests/integration/web-terminal-preservation.test.ts
new file mode 100644
index 000000000..fb0cd2d1a
--- /dev/null
+++ b/src/tests/integration/web-terminal-preservation.test.ts
@@ -0,0 +1,264 @@
+import test from "node:test";
+import assert from "node:assert/strict";
+
+// ---------------------------------------------------------------------------
+// Constants mirrored from the shutdown-gate and app-shell
+// ---------------------------------------------------------------------------
+const SHUTDOWN_DELAY_MS = 3_000;
+
+// ---------------------------------------------------------------------------
+// Test 1: pagehide handler must NOT fire shutdown beacon on tab switches
+// ---------------------------------------------------------------------------
+// The bug: `pagehide` fires both on actual page unload AND on mobile/Safari
+// tab switches (where event.persisted === true because the page enters bfcache).
+// The current handler does not check event.persisted, so it fires shutdown
+// beacons on tab switches — killing the server and all PTY sessions.
+
+/**
+ * Mirrors the pagehide handler logic from app-shell.tsx's
+ * ProjectAwareWorkspace component.  The BUGGY version sends a shutdown
+ * beacon unconditionally.
+ */
+function buggyPageHideHandler(_event: { persisted: boolean }): boolean {
+  // Current code (buggy): always sends beacon regardless of event.persisted
+  return true; // true = beacon was sent
+}
+
+/**
+ * Fixed version: only send shutdown beacon when the page is truly being
+ * unloaded (event.persisted === false).  When persisted is true the page
+ * is being put into bfcache (tab switch, app backgrounding) and the
+ * server should stay alive.
+ */
+function fixedPageHideHandler(event: { persisted: boolean }): boolean {
+  if (event.persisted) {
+    // Page is entering bfcache (tab switch) — do NOT shut down
+    return false;
+  }
+  return true; // true = beacon was sent
+}
+
+test("pagehide: buggy handler sends shutdown beacon on tab switch (persisted=true)", () => {
+  // This test documents the bug — the buggy handler fires on tab switches
+  const beaconSent = buggyPageHideHandler({ persisted: true });
+  assert.equal(beaconSent, true, "Buggy handler sends beacon even on tab switch");
+});
+
+test("pagehide: fixed handler skips shutdown beacon on tab switch (persisted=true)", () => {
+  const beaconSent = fixedPageHideHandler({ persisted: true });
+  assert.equal(beaconSent, false, "Fixed handler must NOT send beacon on tab switch");
+});
+
+test("pagehide: fixed handler still sends shutdown beacon on real page unload (persisted=false)", () => {
+  const beaconSent = fixedPageHideHandler({ persisted: false });
+  assert.equal(beaconSent, true, "Fixed handler must send beacon on real unload");
+});
+
+// ---------------------------------------------------------------------------
+// Test 2: Project switching must NOT destroy PTY sessions
+// ---------------------------------------------------------------------------
+// The bug: ProjectStoreManager.switchProject() changes the active store,
+// which causes React to unmount the entire WorkspaceChrome tree (including
+// ShellTerminal). The PTY processes survive server-side, but the client
+// loses all xterm state and SSE connections.  When the user switches back,
+// a NEW terminal is created instead of reconnecting to the existing one.
+
+/**
+ * Mirrors the session-id generation logic used by ShellTerminal.
+ * The BUGGY version generates a project-agnostic session ID, so switching
+ * projects and switching back creates a collision or a fresh session.
+ *
+ * The FIXED version namespaces session IDs by project so switching back
+ * reconnects to the same server-side PTY session via its stable ID.
+ */
+
+interface TerminalSessionTracker {
+  /** Active PTY session IDs on the server (survives client unmount) */
+  serverSessions: Map<string, { alive: boolean; projectCwd: string }>;
+  /** Client-side session IDs (destroyed on unmount) */
+  clientSessions: Set<string>;
+}
+
+function createTracker(): TerminalSessionTracker {
+  return {
+    serverSessions: new Map(),
+    clientSessions: new Set(),
+  };
+}
+
+/**
+ * Simulates what happens when ShellTerminal mounts for a project.
+ * The BUGGY version uses a plain default ID with no project namespace.
+ */
+function buggyMountTerminal(tracker: TerminalSessionTracker, _projectCwd: string): string {
+  const sessionId = "default"; // No project namespace — always the same ID
+  tracker.serverSessions.set(sessionId, { alive: true, projectCwd: _projectCwd });
+  tracker.clientSessions.add(sessionId);
+  return sessionId;
+}
+
+/**
+ * Simulates what happens when ShellTerminal unmounts (project switch).
+ * Client-side state is destroyed but server session stays alive.
+ */
+function unmountTerminal(tracker: TerminalSessionTracker, sessionId: string): void {
+  tracker.clientSessions.delete(sessionId);
+  // Server session stays alive — this is the correct behavior
+}
+
+/**
+ * FIXED mount: uses a project-scoped session ID so switching back to
+ * a project reconnects to the same server-side PTY.
+ */
+function fixedMountTerminal(tracker: TerminalSessionTracker, projectCwd: string): string {
+  const sessionId = `shell:${projectCwd}:default`;
+  // getOrCreateSession on the server: if alive, returns existing; if dead, creates new
+  if (!tracker.serverSessions.has(sessionId) || !tracker.serverSessions.get(sessionId)!.alive) {
+    tracker.serverSessions.set(sessionId, { alive: true, projectCwd });
+  }
+  tracker.clientSessions.add(sessionId);
+  return sessionId;
+}
+
+test("project switch: buggy flow reuses same session ID for different projects", () => {
+  const tracker = createTracker();
+
+  // Mount terminal for project A
+  const sessionA = buggyMountTerminal(tracker, "/projects/alpha");
+  assert.equal(sessionA, "default");
+  assert.equal(tracker.serverSessions.get("default")?.projectCwd, "/projects/alpha");
+
+  // Switch to project B — unmount A, mount B
+  unmountTerminal(tracker, sessionA);
+  const sessionB = buggyMountTerminal(tracker, "/projects/beta");
+
+  // Bug: same session ID, but now points to a different project
+  assert.equal(sessionB, "default");
+  assert.equal(
+    tracker.serverSessions.get("default")?.projectCwd,
+    "/projects/beta",
+    "Buggy: server session is overwritten with new project",
+  );
+});
+
+test("project switch: fixed flow preserves per-project session identity", () => {
+  const tracker = createTracker();
+
+  // Mount terminal for project A
+  const sessionA = fixedMountTerminal(tracker, "/projects/alpha");
+  assert.ok(sessionA.includes("/projects/alpha"), "Session ID includes project path");
+
+  // Switch to project B — unmount A, mount B
+  unmountTerminal(tracker, sessionA);
+  const sessionB = fixedMountTerminal(tracker, "/projects/beta");
+
+  // Session IDs are different — no collision
+  assert.notEqual(sessionA, sessionB, "Different projects get different session IDs");
+
+  // Both server sessions exist independently
+  assert.equal(tracker.serverSessions.get(sessionA)?.alive, true);
+  assert.equal(tracker.serverSessions.get(sessionB)?.alive, true);
+
+  // Switch back to project A — should reconnect to same session
+  unmountTerminal(tracker, sessionB);
+  const sessionA2 = fixedMountTerminal(tracker, "/projects/alpha");
+  assert.equal(sessionA2, sessionA, "Switching back reconnects to the same session ID");
+  assert.equal(tracker.serverSessions.get(sessionA)?.alive, true, "Original server session is still alive");
+});
+
+// ---------------------------------------------------------------------------
+// Test 3: Shutdown gate must differentiate tab-switch from real unload
+// ---------------------------------------------------------------------------
+// The shutdown gate has a 3s delay to allow page refreshes to cancel the
+// shutdown.  But on mobile tab switches that fire pagehide, the 3s timer
+// starts — and if the user doesn't switch back within 3s, the server dies.
+// The fix is to never start the timer on persisted pagehide events.
+
+interface ShutdownGateState {
+  timerScheduled: boolean;
+  shutdownExecuted: boolean;
+}
+
+function createShutdownGate(): ShutdownGateState {
+  return { timerScheduled: false, shutdownExecuted: false };
+}
+
+function scheduleShutdownIfAllowed(gate: ShutdownGateState, event: { persisted: boolean }): void {
+  // Fixed: only schedule shutdown when the page is truly unloading
+  if (event.persisted) return;
+  gate.timerScheduled = true;
+}
+
+function cancelShutdown(gate: ShutdownGateState): void {
+  gate.timerScheduled = false;
+}
+
+test("shutdown gate: tab switch (persisted=true) must not schedule shutdown", () => {
+  const gate = createShutdownGate();
+  scheduleShutdownIfAllowed(gate, { persisted: true });
+  assert.equal(gate.timerScheduled, false, "No shutdown timer on tab switch");
+});
+
+test("shutdown gate: real page unload (persisted=false) must schedule shutdown", () => {
+  const gate = createShutdownGate();
+  scheduleShutdownIfAllowed(gate, { persisted: false });
+  assert.equal(gate.timerScheduled, true, "Shutdown timer on real unload");
+});
+
+test("shutdown gate: scheduled shutdown can still be cancelled by page refresh", () => {
+  const gate = createShutdownGate();
+  scheduleShutdownIfAllowed(gate, { persisted: false });
+  assert.equal(gate.timerScheduled, true);
+  cancelShutdown(gate);
+  assert.equal(gate.timerScheduled, false, "Timer cancelled on refresh");
+});
+
+// ---------------------------------------------------------------------------
+// Test 4: Shell terminal session ID must be project-scoped
+// ---------------------------------------------------------------------------
+
+/**
+ * Mirrors the session ID derivation that ShellTerminal should use.
+ * The default session ID (when no sessionPrefix is given) must incorporate
+ * the project path so that different projects get different PTY sessions.
+ */
+function deriveSessionId(
+  projectCwd: string | undefined,
+  sessionPrefix?: string,
+  command?: string,
+): string {
+  const base = sessionPrefix ?? (command ? "gsd-default" : "default");
+  if (!projectCwd) return base;
+  // Stable hash-like key from the project path — keeps IDs short but unique
+  return `${base}:${projectCwd}`;
+}
+
+test("session ID derivation: different projects produce different IDs", () => {
+  const idA = deriveSessionId("/projects/alpha");
+  const idB = deriveSessionId("/projects/beta");
+  assert.notEqual(idA, idB);
+});
+
+test("session ID derivation: same project produces stable ID", () => {
+  const id1 = deriveSessionId("/projects/alpha");
+  const id2 = deriveSessionId("/projects/alpha");
+  assert.equal(id1, id2);
+});
+
+test("session ID derivation: explicit sessionPrefix is preserved with project scope", () => {
+  const id = deriveSessionId("/projects/alpha", "my-prefix");
+  assert.ok(id.includes("my-prefix"), "Prefix included");
+  assert.ok(id.includes("/projects/alpha"), "Project path included");
+});
+
+test("session ID derivation: command sessions are also project-scoped", () => {
+  const idA = deriveSessionId("/projects/alpha", undefined, "gsd");
+  const idB = deriveSessionId("/projects/beta", undefined, "gsd");
+  assert.notEqual(idA, idB);
+  assert.ok(idA.includes("gsd-default"), "Uses gsd-default base for command sessions");
+});
+
+test("session ID derivation: no projectCwd falls back to plain base ID", () => {
+  const id = deriveSessionId(undefined);
+  assert.equal(id, "default");
+});
diff --git a/web/components/gsd/app-shell.tsx b/web/components/gsd/app-shell.tsx
index 6c9c2e8a8..588c26cfd 100644
--- a/web/components/gsd/app-shell.tsx
+++ b/web/components/gsd/app-shell.tsx
@@ -564,9 +564,18 @@ function ProjectAwareWorkspace() {
   const activeProjectCwd = useSyncExternalStore(manager.subscribe, manager.getSnapshot, manager.getSnapshot)
   const activeStore = activeProjectCwd ? manager.getActiveStore() : null
 
-  // Shut down all projects when the tab actually closes
+  // Shut down all projects when the tab actually closes.
+  // IMPORTANT: pagehide fires both on real page unload AND on mobile/Safari
+  // tab switches (bfcache entry).  When event.persisted is true the page is
+  // being cached for later reuse — the server must stay alive.  Only send
+  // the shutdown beacon when the page is truly being discarded.
   useEffect(() => {
-    const handlePageHide = () => {
+    const handlePageHide = (event: PageTransitionEvent) => {
+      if (event.persisted) {
+        // Page is entering bfcache (tab switch, app backgrounding) — keep
+        // the server alive so PTY sessions survive.
+        return
+      }
       // sendBeacon cannot set custom headers, so pass the auth token as a
       // query parameter instead (the proxy accepts `_token` as a fallback).
       const token = getAuthToken()
diff --git a/web/components/gsd/shell-terminal.tsx b/web/components/gsd/shell-terminal.tsx
index 22050df45..c60b92ceb 100644
--- a/web/components/gsd/shell-terminal.tsx
+++ b/web/components/gsd/shell-terminal.tsx
@@ -465,6 +465,23 @@ async function uploadAndInjectImage(file: File, sessionId: string, projectCwd?:
 
 // ─── Multi-instance terminal panel ────────────────────────────────────────────
 
+/**
+ * Derive a session ID that is scoped to the project path.  This ensures
+ * that switching projects creates a separate PTY session per project, and
+ * switching back reconnects to the *same* server-side PTY instead of
+ * spawning a new one (the server's getOrCreateSession returns the existing
+ * live session when the ID matches).
+ */
+function deriveProjectScopedSessionId(
+  projectCwd: string | undefined,
+  sessionPrefix?: string,
+  command?: string,
+): string {
+  const base = sessionPrefix ?? (command ? "gsd-default" : "default")
+  if (!projectCwd) return base
+  return `${base}:${projectCwd}`
+}
+
 export function ShellTerminal({
   className,
   command,
@@ -477,7 +494,7 @@ export function ShellTerminal({
 }: ShellTerminalProps) {
   const { resolvedTheme } = useTheme()
   const isDark = resolvedTheme !== "light"
-  const defaultId = sessionPrefix ?? (command ? "gsd-default" : "default")
+  const defaultId = deriveProjectScopedSessionId(projectCwd, sessionPrefix, command)
   const commandLabel = deriveCommandLabel(command)
   const [tabs, setTabs] = useState<TerminalTab[]>([
     { id: defaultId, label: commandLabel, connected: false },
@@ -486,6 +503,19 @@ export function ShellTerminal({
   const [isDragOver, setIsDragOver] = useState(false)
   const terminalAreaRef = useRef<HTMLDivElement>(null)
 
+  // When the project changes, the defaultId changes.  Reset tabs so the
+  // terminal reconnects to the project-scoped PTY session on the server.
+  // The server's getOrCreateSession will return the existing live session
+  // when the session ID matches, preserving terminal state.
+  const prevDefaultIdRef = useRef(defaultId)
+  useEffect(() => {
+    if (prevDefaultIdRef.current !== defaultId) {
+      prevDefaultIdRef.current = defaultId
+      setTabs([{ id: defaultId, label: commandLabel, connected: false }])
+      setActiveTabId(defaultId)
+    }
+  }, [defaultId, commandLabel])
+
   // ── Drag-and-drop handlers (native DOM, capture phase) ──────────────────
   // React synthetic events don't reliably fire through xterm's internal DOM.
   // Native capture-phase listeners intercept before xterm can swallow them —