diff --git a/src/apps/terminal/BasicTerminalBuffer.cpp b/src/apps/terminal/BasicTerminalBuffer.cpp
index f33b898a7b..8bddca35a5 100644
--- a/src/apps/terminal/BasicTerminalBuffer.cpp
+++ b/src/apps/terminal/BasicTerminalBuffer.cpp
@@ -93,7 +93,8 @@ BasicTerminalBuffer::_CursorChanged()
 BasicTerminalBuffer::BasicTerminalBuffer()
 	:
 	fScreen(NULL),
-	fHistory(NULL)
+	fHistory(NULL),
+	fTabStops(NULL)
 {
 }
 
@@ -102,12 +103,15 @@ BasicTerminalBuffer::~BasicTerminalBuffer()
 {
 	delete fHistory;
 	_FreeLines(fScreen, fHeight);
+	delete[] fTabStops;
 }
 
 
 status_t
 BasicTerminalBuffer::Init(int32 width, int32 height, int32 historySize)
 {
+	status_t error;
+
 	fWidth = width;
 	fHeight = height;
 
@@ -133,11 +137,15 @@ BasicTerminalBuffer::Init(int32 width, int32 height, int32 historySize)
 		if (fHistory == NULL)
 			return B_NO_MEMORY;
 
-		status_t error = fHistory->Init(width, historySize);
+		error = fHistory->Init(width, historySize);
 		if (error != B_OK)
 			return error;
 	}
 
+	error = _ResetTabStops(fWidth);
+	if (error != B_OK)
+		return error;
+
 	for (int32 i = 0; i < fHeight; i++)
 		fScreen[i]->Clear();
 
@@ -643,6 +651,23 @@ BasicTerminalBuffer::InsertRI()
 	}
 }
 
+void
+BasicTerminalBuffer::InsertTab()
+{
+	int32 x;
+
+	fSoftWrappedCursor = false;
+
+	for (x = fCursor.x + 1; x < fWidth && !fTabStops[x]; x++)
+		; // no body
+	x = restrict_value(x, 0, fWidth - 1);
+
+	if (x != fCursor.x) {
+		fCursor.x = x;
+		_CursorChanged();
+	}
+}
+
 void
 BasicTerminalBuffer::InsertLines(int32 numLines)
 {
@@ -846,6 +871,29 @@ BasicTerminalBuffer::RestoreOriginMode()
 	fOriginMode = fSavedOriginMode;
 }
 
+void
+BasicTerminalBuffer::SetTabStop(int32 x)
+{
+	x = restrict_value(x, 0, fWidth - 1);
+	fTabStops[x] = true;
+}
+
+
+void
+BasicTerminalBuffer::ClearTabStop(int32 x)
+{
+	x = restrict_value(x, 0, fWidth - 1);
+	fTabStops[x] = false;
+}
+
+
+void
+BasicTerminalBuffer::ClearAllTabStops()
+{
+	for (int32 i = 0; i < fWidth; i++)
+		fTabStops[i] = false;
+}
+
 
 void
 BasicTerminalBuffer::NotifyListener()
@@ -1046,6 +1094,12 @@ BasicTerminalBuffer::_ResizeSimple(int32 width, int32 height,
 	_FreeLines(fScreen, fHeight);
 	fScreen = lines;
 
+	if (fWidth != width) {
+		status_t error = _ResetTabStops(width);
+		if (error != B_OK)
+			return error;
+	}
+
 	fWidth = width;
 	fHeight = height;
 
@@ -1231,6 +1285,12 @@ BasicTerminalBuffer::_ResizeRewrap(int32 width, int32 height,
 	fScreen = screen;
 	fHistory = history;
 
+	if (fWidth != width) {
+		status_t error = _ResetTabStops(width);
+		if (error != B_OK)
+			return error;
+	}
+
 //debug_printf("  cursor: (%ld, %ld) -> (%ld, %ld)\n", fCursor.x, fCursor.y,
 //cursor.x, cursor.y);
 	fCursor.x = cursor.x;
@@ -1251,6 +1311,21 @@ BasicTerminalBuffer::_ResizeRewrap(int32 width, int32 height,
 }
 
 
+status_t
+BasicTerminalBuffer::_ResetTabStops(int32 width)
+{
+	if (fTabStops != NULL)
+		delete[] fTabStops;
+
+	fTabStops = new(std::nothrow) bool[width];
+	if (fTabStops == NULL)
+		return B_NO_MEMORY;
+
+	for (int32 i = 0; i < width; i++)
+		fTabStops[i] = (i % TAB_WIDTH) == 0;
+	return B_OK;
+}
+
 void
 BasicTerminalBuffer::_Scroll(int32 top, int32 bottom, int32 numLines)
 {
diff --git a/src/apps/terminal/BasicTerminalBuffer.h b/src/apps/terminal/BasicTerminalBuffer.h
index 08ef1d844c..0d9fe205b7 100644
--- a/src/apps/terminal/BasicTerminalBuffer.h
+++ b/src/apps/terminal/BasicTerminalBuffer.h
@@ -108,6 +108,7 @@ public:
 			void				InsertCR();
 			void				InsertLF();
 			void				InsertRI();
+			void				InsertTab();
 			void				SetInsertMode(int flag);
 			void				InsertSpace(int32 num);
 			void				InsertLines(int32 numLines);
@@ -143,6 +144,9 @@ public:
 			void				SetOriginMode(bool enabled);
 			void				SaveOriginMode();
 			void				RestoreOriginMode();
+			void				SetTabStop(int32 x);
+			void				ClearTabStop(int32 x);
+			void				ClearAllTabStops();
 
 protected:
 	virtual	void				NotifyListener();
@@ -167,6 +171,7 @@ protected:
 									int32 historyCapacity);
 			status_t			_ResizeRewrap(int32 width, int32 height,
 									int32 historyCapacity);
+			status_t			_ResetTabStops(int32 width);
 
 			void				_Scroll(int32 top, int32 bottom,
 									int32 numLines);
@@ -203,6 +208,7 @@ protected:
 			bool				fAlternateScreenActive;
 			bool				fOriginMode;
 			bool				fSavedOriginMode;
+			bool*				fTabStops;
 
 			int					fEncoding;
 
diff --git a/src/apps/terminal/TermConst.h b/src/apps/terminal/TermConst.h
index d9a62500f0..cb5bee120c 100644
--- a/src/apps/terminal/TermConst.h
+++ b/src/apps/terminal/TermConst.h
@@ -152,6 +152,8 @@ enum{
   SCRDOWN
 };
 
+#define TAB_WIDTH 8
+
 #define MIN_COLS 10
 #define MAX_COLS 256
 #define MIN_ROWS 10
diff --git a/src/apps/terminal/TermParse.cpp b/src/apps/terminal/TermParse.cpp
index 87a027619a..6c8bde0e92 100644
--- a/src/apps/terminal/TermParse.cpp
+++ b/src/apps/terminal/TermParse.cpp
@@ -301,7 +301,6 @@ TermParse::DumpState(int *groundtable, int *parsestate, uchar c)
 int32
 TermParse::EscParse()
 {
-	int tmp;
 	int top, bot;
 	int cs96 = 0;
 	uchar curess = 0;
@@ -517,9 +516,7 @@ TermParse::EscParse()
 				break;
 
 			case CASE_TAB:
-				tmp = fBuffer->Cursor().x;
-				tmp %= 8;
-				fBuffer->MoveCursorRight(8 - tmp);
+				fBuffer->InsertTab();
 				break;
 
 			case CASE_ESC:
@@ -844,7 +841,16 @@ TermParse::EscParse()
 
 				case CASE_HTS:
 					/* HTS */
-					//      TabSet(term->tabs, screen->cur_col);
+					fBuffer->SetTabStop(fBuffer->Cursor().x);
+					parsestate = groundtable;
+					break;
+
+				case CASE_TBC:
+					/* TBC */
+					if (param[0] < 1)
+						fBuffer->ClearTabStop(fBuffer->Cursor().x);
+					else if (param[0] == 3)
+						fBuffer->ClearAllTabStops();
 					parsestate = groundtable;
 					break;
 
diff --git a/src/apps/terminal/VTPrsTbl.c b/src/apps/terminal/VTPrsTbl.c
index 9816ff6c8a..6ba0a0bdf1 100644
--- a/src/apps/terminal/VTPrsTbl.c
+++ b/src/apps/terminal/VTPrsTbl.c
@@ -1140,7 +1140,7 @@ CASE_GROUND_STATE,
 CASE_VPA,
 CASE_GROUND_STATE,
 CASE_CUP,
-CASE_GROUND_STATE,
+CASE_TBC,
 /*	h		i		j		k	*/
 CASE_SET,
 CASE_GROUND_STATE,