diff --git a/cmd/wsh/cmd/wshcmd-setbg.go b/cmd/wsh/cmd/wshcmd-setbg.go
index be57b9abd8..fb5cf0fec0 100644
--- a/cmd/wsh/cmd/wshcmd-setbg.go
+++ b/cmd/wsh/cmd/wshcmd-setbg.go
@@ -90,7 +90,9 @@ func setBgRun(cmd *cobra.Command, args []string) (rtnErr error) {
 		if setBgOpacity < 0 || setBgOpacity > 1 {
 			return fmt.Errorf("opacity must be between 0.0 and 1.0")
 		}
-		if cmd.Flags().Changed("opacity") {
+		if setBgClear {
+			meta["bg:*"] = true
+		} else {
 			meta["bg:opacity"] = setBgOpacity
 		}
 	} else if len(args) > 1 {
@@ -167,7 +169,11 @@ func setBgRun(cmd *cobra.Command, args []string) (rtnErr error) {
 	}
 
 	// Resolve tab reference
-	oRef, err := resolveSimpleId("tab")
+	id := blockArg
+	if id == "" {
+		id = "tab"
+	}
+	oRef, err := resolveSimpleId(id)
 	if err != nil {
 		return err
 	}
diff --git a/frontend/app/app-bg.tsx b/frontend/app/app-bg.tsx
index 2a06f6d220..9ac70a550e 100644
--- a/frontend/app/app-bg.tsx
+++ b/frontend/app/app-bg.tsx
@@ -1,100 +1,19 @@
 // Copyright 2025, Command Line Inc.
 // SPDX-License-Identifier: Apache-2.0
 
-import { getWebServerEndpoint } from "@/util/endpoints";
-import * as util from "@/util/util";
+import { computeBgStyleFromMeta } from "@/util/waveutil";
 import useResizeObserver from "@react-hook/resize-observer";
-import { generate as generateCSS, parse as parseCSS, walk as walkCSS } from "css-tree";
 import { useAtomValue } from "jotai";
 import { CSSProperties, useCallback, useLayoutEffect, useRef } from "react";
 import { debounce } from "throttle-debounce";
 import { atoms, getApi, PLATFORM, WOS } from "./store/global";
 import { useWaveObjectValue } from "./store/wos";
 
-function encodeFileURL(file: string) {
-    const webEndpoint = getWebServerEndpoint();
-    return webEndpoint + `/wave/stream-file?path=${encodeURIComponent(file)}&no404=1`;
-}
-
-function processBackgroundUrls(cssText: string): string {
-    if (util.isBlank(cssText)) {
-        return null;
-    }
-    cssText = cssText.trim();
-    if (cssText.endsWith(";")) {
-        cssText = cssText.slice(0, -1);
-    }
-    const attrRe = /^background(-image)?\s*:\s*/i;
-    cssText = cssText.replace(attrRe, "");
-    const ast = parseCSS("background: " + cssText, {
-        context: "declaration",
-    });
-    let hasUnsafeUrl = false;
-    walkCSS(ast, {
-        visit: "Url",
-        enter(node) {
-            const originalUrl = node.value.trim();
-            if (
-                originalUrl.startsWith("http:") ||
-                originalUrl.startsWith("https:") ||
-                originalUrl.startsWith("data:")
-            ) {
-                return;
-            }
-            // allow file:/// urls (if they are absolute)
-            if (originalUrl.startsWith("file://")) {
-                const path = originalUrl.slice(7);
-                if (!path.startsWith("/")) {
-                    console.log(`Invalid background, contains a non-absolute file URL: ${originalUrl}`);
-                    hasUnsafeUrl = true;
-                    return;
-                }
-                const newUrl = encodeFileURL(path);
-                node.value = newUrl;
-                return;
-            }
-            // allow absolute paths
-            if (originalUrl.startsWith("/") || originalUrl.startsWith("~/") || /^[a-zA-Z]:(\/|\\)/.test(originalUrl)) {
-                const newUrl = encodeFileURL(originalUrl);
-                node.value = newUrl;
-                return;
-            }
-            hasUnsafeUrl = true;
-            console.log(`Invalid background, contains an unsafe URL scheme: ${originalUrl}`);
-        },
-    });
-    if (hasUnsafeUrl) {
-        return null;
-    }
-    const rtnStyle = generateCSS(ast);
-    if (rtnStyle == null) {
-        return null;
-    }
-    return rtnStyle.replace(/^background:\s*/, "");
-}
-
 export function AppBackground() {
     const bgRef = useRef<HTMLDivElement>(null);
     const tabId = useAtomValue(atoms.staticTabId);
     const [tabData] = useWaveObjectValue<Tab>(WOS.makeORef("tab", tabId));
-    const bgAttr = tabData?.meta?.bg;
-    const style: CSSProperties = {};
-    if (!util.isBlank(bgAttr)) {
-        try {
-            const processedBg = processBackgroundUrls(bgAttr);
-            if (!util.isBlank(processedBg)) {
-                const opacity = util.boundNumber(tabData?.meta?.["bg:opacity"], 0, 1) ?? 0.5;
-                style.opacity = opacity;
-                style.background = processedBg;
-                const blendMode = tabData?.meta?.["bg:blendmode"];
-                if (!util.isBlank(blendMode)) {
-                    style.backgroundBlendMode = blendMode;
-                }
-            }
-        } catch (e) {
-            console.error("error processing background", e);
-        }
-    }
+    const style: CSSProperties = computeBgStyleFromMeta(tabData?.meta, 0.5) ?? {};
     const getAvgColor = useCallback(
         debounce(30, () => {
             if (
diff --git a/frontend/app/block/blockframe.tsx b/frontend/app/block/blockframe.tsx
index 8a0b822a20..47410b19c6 100644
--- a/frontend/app/block/blockframe.tsx
+++ b/frontend/app/block/blockframe.tsx
@@ -24,6 +24,7 @@ import { MagnifyIcon } from "@/element/magnify";
 import { MenuButton } from "@/element/menubutton";
 import { NodeModel } from "@/layout/index";
 import * as util from "@/util/util";
+import { computeBgStyleFromMeta } from "@/util/waveutil";
 import clsx from "clsx";
 import * as jotai from "jotai";
 import { OverlayScrollbarsComponent } from "overlayscrollbars-react";
@@ -575,15 +576,9 @@ const BlockFrame_Default_Component = (props: BlockFrameProps) => {
     }, [manageConnection, blockData]);
 
     const viewIconElem = getViewIconElem(viewIconUnion, blockData);
-    const innerStyle: React.CSSProperties = {};
-    if (!preview && customBg?.bg != null) {
-        innerStyle.background = customBg.bg;
-        if (customBg["bg:opacity"] != null) {
-            innerStyle.opacity = customBg["bg:opacity"];
-        }
-        if (customBg["bg:blendmode"] != null) {
-            innerStyle.backgroundBlendMode = customBg["bg:blendmode"];
-        }
+    let innerStyle: React.CSSProperties = {};
+    if (!preview) {
+        innerStyle = computeBgStyleFromMeta(customBg);
     }
     const previewElem = <div className="block-frame-preview">{viewIconElem}</div>;
     const headerElem = (
diff --git a/frontend/app/view/term/term.tsx b/frontend/app/view/term/term.tsx
index 47a0362a92..4d30aa5c74 100644
--- a/frontend/app/view/term/term.tsx
+++ b/frontend/app/view/term/term.tsx
@@ -27,6 +27,7 @@ import {
 import * as services from "@/store/services";
 import * as keyutil from "@/util/keyutil";
 import { boundNumber, fireAndForget, stringToBase64, useAtomValueSafe } from "@/util/util";
+import { computeBgStyleFromMeta } from "@/util/waveutil";
 import { ISearchOptions } from "@xterm/addon-search";
 import clsx from "clsx";
 import debug from "debug";
@@ -1070,8 +1071,11 @@ const TerminalView = ({ blockId, model }: ViewComponentProps<TermViewModel>) =>
         blockId: blockId,
     };
 
+    const termBg = computeBgStyleFromMeta(blockData?.meta);
+
     return (
         <div className={clsx("view-term", "term-mode-" + termMode)} ref={viewRef}>
+            {termBg && <div className="absolute inset-0 z-0 pointer-events-none" style={termBg} />}
             <TermResyncHandler blockId={blockId} model={model} />
             <TermThemeUpdater blockId={blockId} model={model} termRef={model.termRef} />
             <TermStickers config={stickerConfig} />
diff --git a/frontend/app/view/term/termwrap.ts b/frontend/app/view/term/termwrap.ts
index 9dbacab01a..46089c4aa7 100644
--- a/frontend/app/view/term/termwrap.ts
+++ b/frontend/app/view/term/termwrap.ts
@@ -44,6 +44,95 @@ type TermWrapOptions = {
     sendDataHandler?: (data: string) => void;
 };
 
+function handleOscWaveCommand(data: string, blockId: string, loaded: boolean): boolean {
+    if (!loaded) {
+        return false;
+    }
+    if (!data || data.length === 0) {
+        console.log("Invalid Wave OSC command received (empty)");
+        return false;
+    }
+
+    // Expected formats:
+    // "setmeta;{JSONDATA}"
+    // "setmeta;[wave-id];{JSONDATA}"
+    const parts = data.split(";");
+    if (parts[0] !== "setmeta") {
+        console.log("Invalid Wave OSC command received (bad command)", data);
+        return false;
+    }
+    let jsonPayload: string;
+    let waveId: string | undefined;
+    if (parts.length === 2) {
+        jsonPayload = parts[1];
+    } else if (parts.length >= 3) {
+        waveId = parts[1];
+        jsonPayload = parts.slice(2).join(";");
+    } else {
+        console.log("Invalid Wave OSC command received (1 part)", data);
+        return false;
+    }
+
+    let meta: any;
+    try {
+        meta = JSON.parse(jsonPayload);
+    } catch (e) {
+        console.error("Invalid JSON in Wave OSC command:", e);
+        return false;
+    }
+
+    if (waveId) {
+        // Resolve the wave id to an ORef using our ResolveIdsCommand.
+        fireAndForget(() => {
+            return RpcApi.ResolveIdsCommand(TabRpcClient, { blockid: blockId, ids: [waveId] })
+                .then((response: { resolvedids: { [key: string]: any } }) => {
+                    const oref = response.resolvedids[waveId];
+                    if (!oref) {
+                        console.error("Failed to resolve wave id:", waveId);
+                        return;
+                    }
+                    services.ObjectService.UpdateObjectMeta(oref, meta);
+                })
+                .catch((err: any) => {
+                    console.error("Error resolving wave id", waveId, err);
+                });
+        });
+    } else {
+        // No wave id provided; update using the current block id.
+        fireAndForget(() => {
+            return services.ObjectService.UpdateObjectMeta(WOS.makeORef("block", blockId), meta);
+        });
+    }
+    return true;
+}
+
+function handleOsc7Command(data: string, blockId: string, loaded: boolean): boolean {
+    if (!loaded) {
+        return false;
+    }
+    if (data == null || data.length == 0) {
+        console.log("Invalid OSC 7 command received (empty)");
+        return false;
+    }
+    if (data.startsWith("file://")) {
+        data = data.substring(7);
+        const nextSlashIdx = data.indexOf("/");
+        if (nextSlashIdx == -1) {
+            console.log("Invalid OSC 7 command received (bad path)", data);
+            return false;
+        }
+        data = data.substring(nextSlashIdx);
+    }
+    setTimeout(() => {
+        fireAndForget(() =>
+            services.ObjectService.UpdateObjectMeta(WOS.makeORef("block", blockId), {
+                "cmd:cwd": data,
+            })
+        );
+    }, 0);
+    return true;
+}
+
 export class TermWrap {
     blockId: string;
     ptyOffset: number;
@@ -113,29 +202,12 @@ export class TermWrap {
                 loggedWebGL = true;
             }
         }
+        // Register OSC 9283 handler
+        this.terminal.parser.registerOscHandler(9283, (data: string) => {
+            return handleOscWaveCommand(data, this.blockId, this.loaded);
+        });
         this.terminal.parser.registerOscHandler(7, (data: string) => {
-            if (!this.loaded) {
-                return false;
-            }
-            if (data == null || data.length == 0) {
-                return false;
-            }
-            if (data.startsWith("file://")) {
-                data = data.substring(7);
-                const nextSlashIdx = data.indexOf("/");
-                if (nextSlashIdx == -1) {
-                    return false;
-                }
-                data = data.substring(nextSlashIdx);
-            }
-            setTimeout(() => {
-                fireAndForget(() =>
-                    services.ObjectService.UpdateObjectMeta(WOS.makeORef("block", this.blockId), {
-                        "cmd:cwd": data,
-                    })
-                );
-            }, 0);
-            return true;
+            return handleOsc7Command(data, this.blockId, this.loaded);
         });
         this.terminal.attachCustomKeyEventHandler(waveOptions.keydownHandler);
         this.connectElem = connectElem;
diff --git a/frontend/util/waveutil.ts b/frontend/util/waveutil.ts
new file mode 100644
index 0000000000..4b3a1e66f5
--- /dev/null
+++ b/frontend/util/waveutil.ts
@@ -0,0 +1,88 @@
+// Copyright 2025, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0s
+
+import { getWebServerEndpoint } from "@/util/endpoints";
+import { boundNumber, isBlank } from "@/util/util";
+import { generate as generateCSS, parse as parseCSS, walk as walkCSS } from "css-tree";
+
+function encodeFileURL(file: string) {
+    const webEndpoint = getWebServerEndpoint();
+    return webEndpoint + `/wave/stream-file?path=${encodeURIComponent(file)}&no404=1`;
+}
+
+export function processBackgroundUrls(cssText: string): string {
+    if (isBlank(cssText)) {
+        return null;
+    }
+    cssText = cssText.trim();
+    if (cssText.endsWith(";")) {
+        cssText = cssText.slice(0, -1);
+    }
+    const attrRe = /^background(-image)?\s*:\s*/i;
+    cssText = cssText.replace(attrRe, "");
+    const ast = parseCSS("background: " + cssText, {
+        context: "declaration",
+    });
+    let hasUnsafeUrl = false;
+    walkCSS(ast, {
+        visit: "Url",
+        enter(node) {
+            const originalUrl = node.value.trim();
+            if (
+                originalUrl.startsWith("http:") ||
+                originalUrl.startsWith("https:") ||
+                originalUrl.startsWith("data:")
+            ) {
+                return;
+            }
+            // allow file:/// urls (if they are absolute)
+            if (originalUrl.startsWith("file://")) {
+                const path = originalUrl.slice(7);
+                if (!path.startsWith("/")) {
+                    console.log(`Invalid background, contains a non-absolute file URL: ${originalUrl}`);
+                    hasUnsafeUrl = true;
+                    return;
+                }
+                const newUrl = encodeFileURL(path);
+                node.value = newUrl;
+                return;
+            }
+            // allow absolute paths
+            if (originalUrl.startsWith("/") || originalUrl.startsWith("~/") || /^[a-zA-Z]:(\/|\\)/.test(originalUrl)) {
+                const newUrl = encodeFileURL(originalUrl);
+                node.value = newUrl;
+                return;
+            }
+            hasUnsafeUrl = true;
+            console.log(`Invalid background, contains an unsafe URL scheme: ${originalUrl}`);
+        },
+    });
+    if (hasUnsafeUrl) {
+        return null;
+    }
+    const rtnStyle = generateCSS(ast);
+    if (rtnStyle == null) {
+        return null;
+    }
+    return rtnStyle.replace(/^background:\s*/, "");
+}
+
+export function computeBgStyleFromMeta(meta: MetaType, defaultOpacity: number = null): React.CSSProperties {
+    const bgAttr = meta?.["bg"];
+    if (isBlank(bgAttr)) {
+        return null;
+    }
+    try {
+        const processedBg = processBackgroundUrls(bgAttr);
+        const rtn: React.CSSProperties = {};
+        rtn.background = processedBg;
+        rtn.opacity = boundNumber(meta["bg:opacity"], 0, 1) ?? defaultOpacity;
+        if (!isBlank(meta?.["bg:blendmode"])) {
+            rtn.backgroundBlendMode = meta["bg:blendmode"];
+        }
+        return rtn;
+    } catch (e) {
+        console.error("error processing background", e);
+        return null;
+    }
+}