diff --git a/README.md b/README.md
index 92ff272..213f20e 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@ Serve terminal sessions and Textual apps over the web with a simple CLI command.
 
 This is heavily based on [textual-web](https://github.com/Textualize/textual-web), but specifically focused on serving a persistent terminal session in a way that you can host behind a reverse proxy (and some form of authentication).
 
-Built on top of [textual-serve](https://github.com/Textualize/textual-serve), this package provides an easy way to expose terminal sessions and Textual applications via HTTP/WebSocket with automatic reconnection support.
+Built on [xterm.js](https://xtermjs.org/) 6.0, this package provides an easy way to expose terminal sessions and Textual applications via HTTP/WebSocket with automatic reconnection support.
 
 Coupled with [`agentbox`](https://github.com/rcarmo/agentbox), you can use it to keep track of several containerized AI coding agents:
 
@@ -18,6 +18,7 @@ Coupled with [`agentbox`](https://github.com/rcarmo/agentbox), you can use it to
 - 🐍 **Textual app support** - Serve Textual apps directly from Python modules
 - 🔄 **Session reconnection** - Refresh the page and reconnect to the same session
 - 🎨 **Full terminal emulation** - Colors, cursor, and ANSI codes work correctly
+- 📜 **Scrollback history** - Scroll back through terminal output (configurable)
 - 📐 **Auto-sizing** - Terminal automatically resizes to fit the browser window
 - 📸 **Live screenshots** - Dashboard shows real-time SVG screenshots of terminals
 - 📊 **CPU sparklines** - Dashboard displays 30-minute CPU history for Docker containers
@@ -162,14 +163,34 @@ make install-dev
 - Lint: `make lint`
 - Format: `make format`
 - Tests: `make test`
-- Coverage (fail_under=80): `make coverage`
+- Coverage (fail_under=79): `make coverage`
 - Full check (lint + coverage): `make check`
 
+### Frontend Development
+
+The terminal UI is built with [xterm.js](https://xtermjs.org/) 6.0. The pre-built bundle is committed to the repo, so users can `pip install` without needing Node.js.
+
+To rebuild the frontend after modifying `terminal.ts`:
+
+```bash
+# Requires Bun (https://bun.sh)
+bun install
+bun run build
+# Or simply:
+make bundle
+```
+
+For development with auto-rebuild:
+
+```bash
+make bundle-watch
+```
+
 ### Notes
 
-- WebSocket protocol (browser <-> server) is JSON: `["stdin", data]`, `["resize", {"width": w, "height": h}]`, `["ping", data]`.
-- Static assets are provided by `textual-serve`; this project does not add custom static files.
-- Screenshots use [pyte](https://github.com/selectel/pyte) for ANSI interpretation and [Rich](https://github.com/Textualize/rich) for SVG rendering.
+- WebSocket protocol (browser ↔ server) is JSON: `["stdin", data]`, `["resize", {"width": w, "height": h}]`, `["ping", data]`.
+- Frontend source is in `src/textual_webterm/static/js/terminal.ts`.
+- Screenshots use [pyte](https://github.com/selectel/pyte) for ANSI interpretation and custom SVG rendering.
 - CPU stats are read directly from Docker socket using asyncio (no additional dependencies).
 
 ## Requirements
@@ -184,6 +205,5 @@ MIT License - see [LICENSE](LICENSE) for details.
 ## Related Projects
 
 - [Textual](https://github.com/Textualize/textual) - TUI framework for Python
-- [textual-serve](https://github.com/Textualize/textual-serve) - Serve Textual apps on the web
-- [Rich](https://github.com/Textualize/rich) - Rich text formatting for terminals
+- [xterm.js](https://xtermjs.org/) - Terminal emulator for the web
 - [pyte](https://github.com/selectel/pyte) - PYTE terminal emulator
diff --git a/docs/ARCHITECTURE.md b/docs/ARCHITECTURE.md
index 0450fcf..2c58b13 100644
--- a/docs/ARCHITECTURE.md
+++ b/docs/ARCHITECTURE.md
@@ -186,6 +186,17 @@ JSON-encoded messages over WebSocket:
 
 ## Key Design Decisions
 
+### Why bundle xterm.js directly?
+
+We bundle xterm.js 6.0 directly rather than using textual-serve because:
+
+- **Full configuration control** - fontFamily, scrollback, theme are configurable
+- **No workarounds needed** - xterm.js uses canvas rendering which ignores CSS fonts
+- **Smaller footprint** - No unused fonts or images from textual-serve
+- **Latest features** - xterm.js 6.0 includes ligature support, synchronized output, etc.
+
+The pre-built `terminal.js` bundle is committed to the repo so users can `pip install` without needing Node.js/Bun.
+
 ### Why custom SVG exporter?
 
 Rich's `export_svg()` had alignment issues with box-drawing characters and varied font rendering across browsers. The custom exporter:
@@ -214,7 +225,7 @@ Unlike traditional web terminals, sessions survive page refreshes:
 
 ```
 src/textual_webterm/
-├── cli.py              # Typer CLI entry point
+├── cli.py              # Click CLI entry point
 ├── config.py           # Configuration parsing (YAML manifests)
 ├── local_server.py     # Main HTTP/WebSocket server
 ├── session_manager.py  # Session registry and routing
@@ -228,5 +239,11 @@ src/textual_webterm/
 ├── identity.py         # Session ID generation
 ├── slugify.py          # URL-safe slug generation
 ├── types.py            # Type aliases
-└── constants.py        # Platform constants
+├── constants.py        # Platform constants
+└── static/
+    ├── monospace.css   # Font stack CSS variables
+    ├── css/xterm.css   # xterm.js styles
+    └── js/
+        ├── terminal.ts # xterm.js client source (TypeScript)
+        └── terminal.js # Pre-built bundle (committed)
 ```