diff --git a/frontend/types/gotypes.d.ts b/frontend/types/gotypes.d.ts
index ddcb4a63e7..ba2d3c514c 100644
--- a/frontend/types/gotypes.d.ts
+++ b/frontend/types/gotypes.d.ts
@@ -1342,6 +1342,7 @@ declare global {
         "term:bellindicator"?: boolean;
         "term:osc52"?: string;
         "term:durable"?: boolean;
+        "term:closeonlasttermclose"?: boolean;
         "editor:minimapenabled"?: boolean;
         "editor:stickyscrollenabled"?: boolean;
         "editor:wordwrap"?: boolean;
diff --git a/pkg/blockcontroller/shellcontroller.go b/pkg/blockcontroller/shellcontroller.go
index a410225394..5e23e3a893 100644
--- a/pkg/blockcontroller/shellcontroller.go
+++ b/pkg/blockcontroller/shellcontroller.go
@@ -647,6 +647,45 @@ func (union *ConnUnion) getRemoteInfoAndShellType(blockMeta waveobj.MetaMapType)
 	return nil
 }
 
+func isLastShellBlockInWorkspace(ctx context.Context, blockId string) bool {
+	tabId, err := wstore.DBFindTabForBlockId(ctx, blockId)
+	if err != nil || tabId == "" {
+		return false
+	}
+	workspaceId, err := wstore.DBFindWorkspaceForTabId(ctx, tabId)
+	if err != nil || workspaceId == "" {
+		return false
+	}
+	workspace, err := wstore.DBGet[*waveobj.Workspace](ctx, workspaceId)
+	if err != nil || workspace == nil {
+		return false
+	}
+	shellBlockCount := 0
+	for _, wsTabId := range workspace.TabIds {
+		tab, err := wstore.DBGet[*waveobj.Tab](ctx, wsTabId)
+		if err != nil {
+			return false
+		}
+		if tab == nil {
+			continue
+		}
+		for _, wsBlockId := range tab.BlockIds {
+			block, err := wstore.DBGet[*waveobj.Block](ctx, wsBlockId)
+			if err != nil {
+				return false
+			}
+			if block == nil {
+				continue
+			}
+			controller := block.Meta.GetString(waveobj.MetaKey_Controller, "")
+			if controller == BlockController_Shell || controller == BlockController_Cmd {
+				shellBlockCount++
+			}
+		}
+	}
+	return shellBlockCount == 1
+}
+
 func checkCloseOnExit(blockId string, exitCode int) {
 	ctx, cancelFn := context.WithTimeout(context.Background(), DefaultTimeout)
 	defer cancelFn()
@@ -657,10 +696,19 @@ func checkCloseOnExit(blockId string, exitCode int) {
 	}
 	closeOnExit := blockData.Meta.GetBool(waveobj.MetaKey_CmdCloseOnExit, false)
 	closeOnExitForce := blockData.Meta.GetBool(waveobj.MetaKey_CmdCloseOnExitForce, false)
+	defaultDelayMs := 2000.0
 	if !closeOnExitForce && !(closeOnExit && exitCode == 0) {
-		return
+		// Check global setting: close when last terminal exits
+		settings := wconfig.GetWatcher().GetFullConfig().Settings
+		if !settings.TermCloseOnLastTermClose {
+			return
+		}
+		if !isLastShellBlockInWorkspace(ctx, blockId) {
+			return
+		}
+		defaultDelayMs = 0
 	}
-	delayMs := blockData.Meta.GetFloat(waveobj.MetaKey_CmdCloseOnExitDelay, 2000)
+	delayMs := blockData.Meta.GetFloat(waveobj.MetaKey_CmdCloseOnExitDelay, defaultDelayMs)
 	if delayMs < 0 {
 		delayMs = 0
 	}
diff --git a/pkg/wconfig/metaconsts.go b/pkg/wconfig/metaconsts.go
index 084dab1793..6eeca2cc6e 100644
--- a/pkg/wconfig/metaconsts.go
+++ b/pkg/wconfig/metaconsts.go
@@ -58,6 +58,7 @@ const (
 	ConfigKey_TermBellIndicator              = "term:bellindicator"
 	ConfigKey_TermOsc52                      = "term:osc52"
 	ConfigKey_TermDurable                    = "term:durable"
+	ConfigKey_TermCloseOnLastTermClose       = "term:closeonlasttermclose"
 
 	ConfigKey_EditorMinimapEnabled           = "editor:minimapenabled"
 	ConfigKey_EditorStickyScrollEnabled      = "editor:stickyscrollenabled"
diff --git a/pkg/wconfig/settingsconfig.go b/pkg/wconfig/settingsconfig.go
index 17aafa6685..188a3205dc 100644
--- a/pkg/wconfig/settingsconfig.go
+++ b/pkg/wconfig/settingsconfig.go
@@ -109,6 +109,7 @@ type SettingsType struct {
 	TermBellIndicator       *bool    `json:"term:bellindicator,omitempty"`
 	TermOsc52               string   `json:"term:osc52,omitempty" jsonschema:"enum=focus,enum=always"`
 	TermDurable             *bool    `json:"term:durable,omitempty"`
+	TermCloseOnLastTermClose bool    `json:"term:closeonlasttermclose,omitempty"`
 
 	EditorMinimapEnabled      bool    `json:"editor:minimapenabled,omitempty"`
 	EditorStickyScrollEnabled bool    `json:"editor:stickyscrollenabled,omitempty"`
diff --git a/schema/settings.json b/schema/settings.json
index 348c937dac..7a8e801213 100644
--- a/schema/settings.json
+++ b/schema/settings.json
@@ -161,6 +161,9 @@
         "term:durable": {
           "type": "boolean"
         },
+        "term:closeonlasttermclose": {
+          "type": "boolean"
+        },
         "editor:minimapenabled": {
           "type": "boolean"
         },