diff --git a/packages/bruno-app/src/components/ManageWorkspace/index.js b/packages/bruno-app/src/components/ManageWorkspace/index.js
index 8b5c2d92fd2..e0084b154d3 100644
--- a/packages/bruno-app/src/components/ManageWorkspace/index.js
+++ b/packages/bruno-app/src/components/ManageWorkspace/index.js
@@ -16,6 +16,7 @@ import StyledWrapper from './StyledWrapper';
 import MenuDropdown from 'ui/MenuDropdown/index';
 import Button from 'ui/Button';
 import { getRevealInFolderLabel } from 'utils/common/platform';
+import { openDevtoolsAndSwitchToTerminal } from 'utils/terminal';
 
 const ManageWorkspace = () => {
   const dispatch = useDispatch();
@@ -157,6 +158,7 @@ const ManageWorkspace = () => {
                     <MenuDropdown
                       placement="bottom-end"
                       items={[
+                        { id: 'open-in-terminal', label: 'Open in Terminal', onClick: () => openDevtoolsAndSwitchToTerminal(dispatch, workspace.pathname) },
                         { id: 'rename', label: 'Rename', onClick: () => handleRenameClick(workspace) },
                         { id: 'remove', label: 'Remove', onClick: () => handleCloseClick(workspace) }
                       ]}
diff --git a/tests/workspace/manage-workspace/manage-workspace.spec.ts b/tests/workspace/manage-workspace/manage-workspace.spec.ts
new file mode 100644
index 00000000000..782938bb335
--- /dev/null
+++ b/tests/workspace/manage-workspace/manage-workspace.spec.ts
@@ -0,0 +1,68 @@
+import path from 'path';
+import fs from 'fs';
+import { test, expect, closeElectronApp } from '../../../playwright';
+
+const initUserDataPath = path.join(__dirname, '../create-workspace/init-user-data');
+
+function findCreatedWorkspaceDirs(location: string): string[] {
+  return fs.readdirSync(location).filter((e) => {
+    const fullPath = path.join(location, e);
+    return (
+      fs.statSync(fullPath).isDirectory()
+      && e !== 'default-workspace'
+      && fs.existsSync(path.join(fullPath, 'workspace.yml'))
+    );
+  });
+}
+
+test.describe('Manage Workspace', () => {
+  test('should open terminal from the workspace actions menu', async ({ launchElectronApp, createTmpDir }) => {
+    const wsLocation = await createTmpDir('ws-location-terminal');
+
+    const app = await launchElectronApp({ initUserDataPath, templateVars: { wsLocation } });
+    const page = await app.firstWindow();
+
+    try {
+      await page.locator('[data-app-state="loaded"]').waitFor({ timeout: 30000 });
+
+      await test.step('Create a workspace', async () => {
+        await page.locator('.workspace-name-container').click();
+        await page.locator('.dropdown-item').filter({ hasText: 'Create workspace' }).click();
+        const renameInput = page.locator('.workspace-name-input');
+        await expect(renameInput).toBeVisible({ timeout: 5000 });
+        await renameInput.fill('Terminal Workspace');
+        await renameInput.press('Enter');
+        await expect(page.getByText('Workspace created!')).toBeVisible({ timeout: 10000 });
+      });
+
+      const wsDirs = findCreatedWorkspaceDirs(wsLocation);
+      expect(wsDirs).toHaveLength(1);
+
+      await test.step('Open Manage Workspaces', async () => {
+        await page.locator('.workspace-name-container').click();
+        await page.locator('.dropdown-item').filter({ hasText: 'Manage workspaces' }).click();
+        await expect(page.getByText('Manage Workspace')).toBeVisible({ timeout: 5000 });
+      });
+
+      await test.step('Verify default workspace has no actions menu', async () => {
+        const defaultWorkspaceItem = page.locator('.workspace-item').filter({ hasText: 'My Workspace' });
+        await expect(defaultWorkspaceItem.locator('.more-actions-btn')).toHaveCount(0);
+      });
+
+      await test.step('Open terminal from workspace actions', async () => {
+        const workspaceItem = page.locator('.workspace-item').filter({ hasText: 'Terminal Workspace' });
+        await expect(workspaceItem).toBeVisible({ timeout: 5000 });
+        await workspaceItem.locator('.more-actions-btn').click();
+        await page.locator('.dropdown-item').filter({ hasText: 'Open in Terminal' }).click();
+      });
+
+      await test.step('Verify terminal session opens at the workspace folder', async () => {
+        const terminalSession = page.getByTestId('session-list-0');
+        await expect(terminalSession).toBeVisible({ timeout: 5000 });
+        await expect(terminalSession).toContainText(wsDirs[0]);
+      });
+    } finally {
+      await closeElectronApp(app);
+    }
+  });
+});