diff --git a/v2/package-lock.json b/v2/package-lock.json
index 4fffde1..67511e8 100644
--- a/v2/package-lock.json
+++ b/v2/package-lock.json
@@ -1,12 +1,18 @@
 {
-  "name": "v2",
-  "version": "0.0.0",
+  "name": "bterminal-v2",
+  "version": "0.1.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
-      "name": "v2",
-      "version": "0.0.0",
+      "name": "bterminal-v2",
+      "version": "0.1.0",
+      "dependencies": {
+        "@tauri-apps/api": "^2.10.1",
+        "@xterm/addon-canvas": "^0.7.0",
+        "@xterm/addon-fit": "^0.11.0",
+        "@xterm/xterm": "^6.0.0"
+      },
       "devDependencies": {
         "@sveltejs/vite-plugin-svelte": "^6.2.1",
         "@tsconfig/svelte": "^5.0.6",
@@ -908,6 +914,16 @@
         "vite": "^6.3.0 || ^7.0.0"
       }
     },
+    "node_modules/@tauri-apps/api": {
+      "version": "2.10.1",
+      "resolved": "https://registry.npmjs.org/@tauri-apps/api/-/api-2.10.1.tgz",
+      "integrity": "sha512-hKL/jWf293UDSUN09rR69hrToyIXBb8CjGaWC7gfinvnQrBVvnLr08FeFi38gxtugAVyVcTa5/FD/Xnkb1siBw==",
+      "license": "Apache-2.0 OR MIT",
+      "funding": {
+        "type": "opencollective",
+        "url": "https://opencollective.com/tauri"
+      }
+    },
     "node_modules/@tsconfig/svelte": {
       "version": "5.0.8",
       "resolved": "https://registry.npmjs.org/@tsconfig/svelte/-/svelte-5.0.8.tgz",
@@ -939,6 +955,30 @@
       "dev": true,
       "license": "MIT"
     },
+    "node_modules/@xterm/addon-canvas": {
+      "version": "0.7.0",
+      "resolved": "https://registry.npmjs.org/@xterm/addon-canvas/-/addon-canvas-0.7.0.tgz",
+      "integrity": "sha512-LF5LYcfvefJuJ7QotNRdRSPc9YASAVDeoT5uyXS/nZshZXjYplGXRECBGiznwvhNL2I8bq1Lf5MzRwstsYQ2Iw==",
+      "license": "MIT",
+      "peerDependencies": {
+        "@xterm/xterm": "^5.0.0"
+      }
+    },
+    "node_modules/@xterm/addon-fit": {
+      "version": "0.11.0",
+      "resolved": "https://registry.npmjs.org/@xterm/addon-fit/-/addon-fit-0.11.0.tgz",
+      "integrity": "sha512-jYcgT6xtVYhnhgxh3QgYDnnNMYTcf8ElbxxFzX0IZo+vabQqSPAjC3c1wJrKB5E19VwQei89QCiZZP86DCPF7g==",
+      "license": "MIT"
+    },
+    "node_modules/@xterm/xterm": {
+      "version": "6.0.0",
+      "resolved": "https://registry.npmjs.org/@xterm/xterm/-/xterm-6.0.0.tgz",
+      "integrity": "sha512-TQwDdQGtwwDt+2cgKDLn0IRaSxYu1tSUjgKarSDkUM0ZNiSRXFpjxEsvc/Zgc5kq5omJ+V0a8/kIM2WD3sMOYg==",
+      "license": "MIT",
+      "workspaces": [
+        "addons/*"
+      ]
+    },
     "node_modules/acorn": {
       "version": "8.16.0",
       "resolved": "https://registry.npmjs.org/acorn/-/acorn-8.16.0.tgz",
diff --git a/v2/package.json b/v2/package.json
index 38b9255..c08bc5e 100644
--- a/v2/package.json
+++ b/v2/package.json
@@ -20,5 +20,11 @@
     "svelte-check": "^4.3.4",
     "typescript": "~5.9.3",
     "vite": "^7.3.1"
+  },
+  "dependencies": {
+    "@tauri-apps/api": "^2.10.1",
+    "@xterm/addon-canvas": "^0.7.0",
+    "@xterm/addon-fit": "^0.11.0",
+    "@xterm/xterm": "^6.0.0"
   }
 }
diff --git a/v2/src/lib/adapters/pty-bridge.ts b/v2/src/lib/adapters/pty-bridge.ts
index 5f64450..2888919 100644
--- a/v2/src/lib/adapters/pty-bridge.ts
+++ b/v2/src/lib/adapters/pty-bridge.ts
@@ -1,30 +1,38 @@
-// PTY Bridge — IPC wrapper for Rust PTY backend
-// Phase 2: terminal spawn, resize, input/output streaming
+import { invoke } from '@tauri-apps/api/core';
+import { listen, type UnlistenFn } from '@tauri-apps/api/event';
 
 export interface PtyOptions {
   shell?: string;
   cwd?: string;
-  env?: Record<string, string>;
+  args?: string[];
   cols?: number;
   rows?: number;
 }
 
-/**
- * Spawn a new PTY session via Tauri IPC.
- * Phase 2: implement with @tauri-apps/api invoke
- */
-export async function spawnPty(_options: PtyOptions): Promise<string> {
-  throw new Error('Not implemented — Phase 2');
+export async function spawnPty(options: PtyOptions): Promise<string> {
+  return invoke<string>('pty_spawn', { options });
 }
 
-export async function writePty(_id: string, _data: string): Promise<void> {
-  throw new Error('Not implemented — Phase 2');
+export async function writePty(id: string, data: string): Promise<void> {
+  return invoke('pty_write', { id, data });
 }
 
-export async function resizePty(_id: string, _cols: number, _rows: number): Promise<void> {
-  throw new Error('Not implemented — Phase 2');
+export async function resizePty(id: string, cols: number, rows: number): Promise<void> {
+  return invoke('pty_resize', { id, cols, rows });
 }
 
-export async function killPty(_id: string): Promise<void> {
-  throw new Error('Not implemented — Phase 2');
+export async function killPty(id: string): Promise<void> {
+  return invoke('pty_kill', { id });
+}
+
+export async function onPtyData(id: string, callback: (data: string) => void): Promise<UnlistenFn> {
+  return listen<string>(`pty-data-${id}`, (event) => {
+    callback(event.payload);
+  });
+}
+
+export async function onPtyExit(id: string, callback: () => void): Promise<UnlistenFn> {
+  return listen(`pty-exit-${id}`, () => {
+    callback();
+  });
 }
diff --git a/v2/src/lib/components/Terminal/TerminalPane.svelte b/v2/src/lib/components/Terminal/TerminalPane.svelte
new file mode 100644
index 0000000..79155ee
--- /dev/null
+++ b/v2/src/lib/components/Terminal/TerminalPane.svelte
@@ -0,0 +1,134 @@
+<script lang="ts">
+  import { onMount, onDestroy } from 'svelte';
+  import { Terminal } from '@xterm/xterm';
+  import { CanvasAddon } from '@xterm/addon-canvas';
+  import { FitAddon } from '@xterm/addon-fit';
+  import { spawnPty, writePty, resizePty, killPty, onPtyData, onPtyExit } from '../../adapters/pty-bridge';
+  import type { UnlistenFn } from '@tauri-apps/api/event';
+  import '@xterm/xterm/css/xterm.css';
+
+  interface Props {
+    shell?: string;
+    cwd?: string;
+    args?: string[];
+    onExit?: () => void;
+  }
+
+  let { shell, cwd, args, onExit }: Props = $props();
+
+  let terminalEl: HTMLDivElement;
+  let term: Terminal;
+  let fitAddon: FitAddon;
+  let ptyId: string | null = null;
+  let unlistenData: UnlistenFn | null = null;
+  let unlistenExit: UnlistenFn | null = null;
+  let resizeObserver: ResizeObserver | null = null;
+
+  // Catppuccin Mocha xterm theme
+  const catppuccinTheme = {
+    background: '#1e1e2e',
+    foreground: '#cdd6f4',
+    cursor: '#f5e0dc',
+    cursorAccent: '#1e1e2e',
+    selectionBackground: '#45475a',
+    selectionForeground: '#cdd6f4',
+    black: '#45475a',
+    red: '#f38ba8',
+    green: '#a6e3a1',
+    yellow: '#f9e2af',
+    blue: '#89b4fa',
+    magenta: '#f5c2e7',
+    cyan: '#94e2d5',
+    white: '#bac2de',
+    brightBlack: '#585b70',
+    brightRed: '#f38ba8',
+    brightGreen: '#a6e3a1',
+    brightYellow: '#f9e2af',
+    brightBlue: '#89b4fa',
+    brightMagenta: '#f5c2e7',
+    brightCyan: '#94e2d5',
+    brightWhite: '#a6adc8',
+  };
+
+  onMount(async () => {
+    term = new Terminal({
+      theme: catppuccinTheme,
+      fontFamily: "'JetBrains Mono', 'Fira Code', 'Cascadia Code', monospace",
+      fontSize: 13,
+      lineHeight: 1.2,
+      cursorBlink: true,
+      cursorStyle: 'block',
+      scrollback: 10000,
+      allowProposedApi: true,
+    });
+
+    fitAddon = new FitAddon();
+    term.loadAddon(fitAddon);
+    term.loadAddon(new CanvasAddon());
+    term.open(terminalEl);
+    fitAddon.fit();
+
+    const { cols, rows } = term;
+
+    // Spawn PTY
+    try {
+      ptyId = await spawnPty({ shell, cwd, args, cols, rows });
+
+      // Listen for PTY output
+      unlistenData = await onPtyData(ptyId, (data) => {
+        term.write(data);
+      });
+
+      unlistenExit = await onPtyExit(ptyId, () => {
+        term.write('\r\n\x1b[90m[Process exited]\x1b[0m\r\n');
+        onExit?.();
+      });
+
+      // Forward keyboard input to PTY
+      term.onData((data) => {
+        if (ptyId) writePty(ptyId, data);
+      });
+    } catch (e) {
+      term.write(`\x1b[31mFailed to spawn terminal: ${e}\x1b[0m\r\n`);
+    }
+
+    // Resize handling with debounce
+    let resizeTimer: ReturnType<typeof setTimeout>;
+    resizeObserver = new ResizeObserver(() => {
+      clearTimeout(resizeTimer);
+      resizeTimer = setTimeout(() => {
+        fitAddon.fit();
+        if (ptyId) {
+          const { cols, rows } = term;
+          resizePty(ptyId, cols, rows);
+        }
+      }, 100);
+    });
+    resizeObserver.observe(terminalEl);
+  });
+
+  onDestroy(async () => {
+    resizeObserver?.disconnect();
+    unlistenData?.();
+    unlistenExit?.();
+    if (ptyId) {
+      try { await killPty(ptyId); } catch { /* already dead */ }
+    }
+    term?.dispose();
+  });
+</script>
+
+<div class="terminal-container" bind:this={terminalEl}></div>
+
+<style>
+  .terminal-container {
+    width: 100%;
+    height: 100%;
+    overflow: hidden;
+  }
+
+  .terminal-container :global(.xterm) {
+    height: 100%;
+    padding: 4px;
+  }
+</style>