diff --git a/wasm/demo/package.json b/wasm/demo/package.json
index 321bef0902..2184c6db84 100644
--- a/wasm/demo/package.json
+++ b/wasm/demo/package.json
@@ -4,7 +4,8 @@
     "description": "Bindings to the RustPython library for WebAssembly",
     "main": "index.js",
     "dependencies": {
-        "codemirror": "^5.42.0"
+        "codemirror": "^5.42.0",
+        "xterm": "^3.8.0"
     },
     "devDependencies": {
         "@wasm-tool/wasm-pack-plugin": "0.2.0",
diff --git a/wasm/demo/src/index.ejs b/wasm/demo/src/index.ejs
index 0cb2def1d5..a2a02d214b 100644
--- a/wasm/demo/src/index.ejs
+++ b/wasm/demo/src/index.ejs
@@ -30,6 +30,9 @@
         <h3>Standard Output</h3>
         <textarea id="console" readonly>Loading...</textarea>
 
+        <h3>Interactive shell</h3>
+         <div id="terminal"></div>
+
         <p>Here's some info regarding the <code>rp.pyEval()</code> function</p>
         <ul>
             <li>
diff --git a/wasm/demo/src/index.js b/wasm/demo/src/index.js
index bf5257df2a..9b58afe398 100644
--- a/wasm/demo/src/index.js
+++ b/wasm/demo/src/index.js
@@ -1,5 +1,6 @@
 import './style.css';
 import 'codemirror/lib/codemirror.css';
+import 'xterm/dist/xterm.css';
 
 // A dependency graph that contains any wasm must all be imported
 // asynchronously. This `index.js` file does the single async import, so
diff --git a/wasm/demo/src/main.js b/wasm/demo/src/main.js
index 0735f8d227..2f6de563d1 100644
--- a/wasm/demo/src/main.js
+++ b/wasm/demo/src/main.js
@@ -2,6 +2,7 @@ import * as rp from '../../lib/pkg';
 import CodeMirror from 'codemirror';
 import 'codemirror/mode/python/python';
 import 'codemirror/addon/comment/comment';
+import { Terminal } from 'xterm';
 
 // so people can play around with it
 window.rp = rp;
@@ -72,3 +73,58 @@ snippets.addEventListener('change', updateSnippet);
 // Run once for demo (updateSnippet b/c the browser might try to keep the same
 // option selected for the `select`, but the textarea won't be updated)
 updateSnippet();
+
+const prompt = ">>>>> ";
+
+const term = new Terminal();
+term.open(document.getElementById('terminal'));
+term.write(prompt);
+
+function removeNonAscii(str) {
+    if ((str===null) || (str===''))
+        return false;
+    else
+        str = str.toString();
+
+    return str.replace(/[^\x20-\x7E]/g, '');
+}
+
+function printToConsole(data) {
+    term.write(removeNonAscii(data) + "\r\n");
+}
+
+const terminalVM = rp.vmStore.init("term_vm");
+terminalVM.setStdout(printToConsole);
+
+var input = "";
+term.on("data", (data) => {
+  const code = data.charCodeAt(0);
+  if (code == 13) { // CR
+    if (input[input.length - 1] == ':') {
+        input += data
+        term.write("\r\n.....");
+    } else {
+        term.write("\r\n");
+        try {
+            terminalVM.exec(input);
+        } catch (err) {
+            if (err instanceof WebAssembly.RuntimeError) {
+                err = window.__RUSTPYTHON_ERROR || err;
+            }
+            printToConsole(err);
+        }
+        term.write(prompt);
+        input = "";
+    }
+  } else if (code == 127) {
+    if (input.length > 0) {
+        term.write("\b \b");
+        input = input.slice(0, -1);
+    }
+  } else if (code < 32 || code == 127) { // Control
+    return;
+  } else { // Visible
+    term.write(data);
+    input += data;
+  }
+});