iTerm was merged from two projects, CTerminal and TerminalX, both of which were based on JTerminal project.

It supports language encodings, VT100/ANSI/XTERM emulation and many convenient GUI features.

__Highlights__

* Full screen mode for a distraction free environment.
* Transparent windows with blurring and custom background pictures
* Supports select-to-copy and mid-button paste
* Smart window placement
* xterm mouse reporting for click and scroll events
* Focus follow mouse
* Applescript support
* Bonjour support
* Works on PowerPC and Intel Macs on 10.4, 10.5 and 10.6

__VT100 Emulation__

* terminfo support with flexible custom key-mapping
* Supports a variety of additional xterm escape sequences, including xterm titling sequence and xterm mouse reporting
* ANSI 16 colors, which are also fully customizable
* Supports 256 color mode
* Setting of the COLORFGBG variable for autodetection of color scheme in apps like Vim
* Anti-idle function that avoids disconnection because of no activity

__Tabbed Terminals__

* Tabs can be drag and drop between windows.
* Tab labels can change color to indicate the session activities
* Choose among Metal, Aqua, Adium, and Unified styles
* You can send keyboard input to multiple tabs

__Bookmarks and Profiles__

* You can fully customize each session, with support of macro in bookmark commands
* Bookmarks can be specified to handle URLs such as ftp.
* Create profiles for managing bookmark settings.

__Multi-Lingual__

* User can specify a second font to display non-latin characters to achieve best look
* Supports double-width characters, as used in many eastern Asian languages
* Supports all language encodings that are available with OS X