diff --git a/src/plugins/terminal/terminalpane.cpp b/src/plugins/terminal/terminalpane.cpp
index 7295216e162..247f8d8f16c 100644
--- a/src/plugins/terminal/terminalpane.cpp
+++ b/src/plugins/terminal/terminalpane.cpp
@@ -5,11 +5,13 @@
 
 #include "shellmodel.h"
 #include "terminalcommands.h"
+#include "terminalsettings.h"
 #include "terminaltr.h"
 #include "terminalwidget.h"
 
 #include <coreplugin/actionmanager/actionmanager.h>
 #include <coreplugin/icontext.h>
+#include <coreplugin/icore.h>
 
 #include <projectexplorer/project.h>
 #include <projectexplorer/projectmanager.h>
@@ -127,6 +129,30 @@ TerminalPane::TerminalPane(QObject *parent)
     connect(m_openSettingsButton, &QToolButton::clicked, m_openSettingsButton, []() {
         TerminalCommands::openSettingsAction()->trigger();
     });
+
+    auto updateEscButton = [this] {
+        m_escSettingButton->setChecked(TerminalSettings::instance().sendEscapeToTerminal.value());
+        if (TerminalSettings::instance().sendEscapeToTerminal.value()) {
+            m_escSettingButton->setText("⎋");
+            m_escSettingButton->setToolTip(Tr::tr("Sending ESC to terminal instead of Qt Creator"));
+        } else {
+            m_escSettingButton->setText("⇧+⎋");
+            m_escSettingButton->setToolTip(Tr::tr("Press ⇧+⎋ to send ESC to terminal"));
+        }
+    };
+
+    m_escSettingButton = new QToolButton();
+    m_escSettingButton->setCheckable(true);
+
+    updateEscButton();
+
+    connect(m_escSettingButton, &QToolButton::toggled, this, [this] {
+        TerminalSettings::instance().sendEscapeToTerminal.setValue(m_escSettingButton->isChecked());
+        TerminalSettings::instance().apply();
+        TerminalSettings::instance().writeSettings(Core::ICore::settings());
+    });
+
+    connect(&TerminalSettings::instance(), &TerminalSettings::applied, this, updateEscButton);
 }
 
 TerminalPane::~TerminalPane()
@@ -252,15 +278,15 @@ void TerminalPane::setupTerminalWidget(TerminalWidget *terminal)
             m_tabWidget->setTabText(index, exe + " - " + cwd.fileName());
     };
 
-    connect(terminal, &TerminalWidget::started, [setTabText, terminal](qint64 /*pid*/) {
+    connect(terminal, &TerminalWidget::started, this, [setTabText, terminal](qint64 /*pid*/) {
         setTabText(terminal);
     });
 
-    connect(terminal, &TerminalWidget::cwdChanged, [setTabText, terminal]() {
+    connect(terminal, &TerminalWidget::cwdChanged, this, [setTabText, terminal]() {
         setTabText(terminal);
     });
 
-    connect(terminal, &TerminalWidget::commandChanged, [setTabText, terminal]() {
+    connect(terminal, &TerminalWidget::commandChanged, this, [setTabText, terminal]() {
         setTabText(terminal);
     });
 
@@ -274,7 +300,7 @@ QList<QWidget *> TerminalPane::toolBarWidgets() const
     widgets.prepend(m_newTerminalButton);
     widgets.prepend(m_closeTerminalButton);
 
-    return widgets << m_openSettingsButton;
+    return widgets << m_openSettingsButton << m_escSettingButton;
 }
 
 QString TerminalPane::displayName() const
diff --git a/src/plugins/terminal/terminalpane.h b/src/plugins/terminal/terminalpane.h
index 952f863e27c..5d93dcb4d9a 100644
--- a/src/plugins/terminal/terminalpane.h
+++ b/src/plugins/terminal/terminalpane.h
@@ -53,6 +53,7 @@ private:
     QToolButton *m_newTerminalButton{nullptr};
     QToolButton *m_closeTerminalButton{nullptr};
     QToolButton *m_openSettingsButton{nullptr};
+    QToolButton *m_escSettingButton{nullptr};
 
     bool m_widgetInitialized{false};
 };
diff --git a/src/plugins/terminal/terminalsettings.cpp b/src/plugins/terminal/terminalsettings.cpp
index b813ee246c6..86e88fc72fc 100644
--- a/src/plugins/terminal/terminalsettings.cpp
+++ b/src/plugins/terminal/terminalsettings.cpp
@@ -97,6 +97,20 @@ TerminalSettings::TerminalSettings()
     shell.setToolTip(Tr::tr("The shell executable to be started as terminal"));
     shell.setDefaultValue(defaultShell());
 
+    sendEscapeToTerminal.setSettingsKey("SendEscapeToTerminal");
+    sendEscapeToTerminal.setLabelText(Tr::tr("Send escape key to terminal"));
+    sendEscapeToTerminal.setToolTip(
+        Tr::tr("If enabled, pressing the escape key will send it to the terminal "
+               "instead of closing the terminal."));
+    sendEscapeToTerminal.setDefaultValue(false);
+
+    registerAspect(&font);
+    registerAspect(&fontSize);
+    registerAspect(&shell);
+    registerAspect(&allowBlinkingCursor);
+    registerAspect(&enableTerminal);
+    registerAspect(&sendEscapeToTerminal);
+
     setupColor(this,
                foregroundColor,
                "Foreground",
@@ -138,12 +152,6 @@ TerminalSettings::TerminalSettings()
 
     setupColor(this, colors[7], "7", Utils::creatorTheme()->color(Theme::TerminalAnsi7));
     setupColor(this, colors[15], "15", Utils::creatorTheme()->color(Theme::TerminalAnsi15));
-
-    registerAspect(&font);
-    registerAspect(&fontSize);
-    registerAspect(&shell);
-    registerAspect(&allowBlinkingCursor);
-    registerAspect(&enableTerminal);
 }
 
 } // namespace Terminal
diff --git a/src/plugins/terminal/terminalsettings.h b/src/plugins/terminal/terminalsettings.h
index 35f40031737..d57c411c233 100644
--- a/src/plugins/terminal/terminalsettings.h
+++ b/src/plugins/terminal/terminalsettings.h
@@ -27,6 +27,8 @@ public:
     Utils::ColorAspect colors[16];
 
     Utils::BoolAspect allowBlinkingCursor;
+
+    Utils::BoolAspect sendEscapeToTerminal;
 };
 
 } // namespace Terminal
diff --git a/src/plugins/terminal/terminalsettingspage.cpp b/src/plugins/terminal/terminalsettingspage.cpp
index 86fb2edda38..12ca9f26d86 100644
--- a/src/plugins/terminal/terminalsettingspage.cpp
+++ b/src/plugins/terminal/terminalsettingspage.cpp
@@ -376,8 +376,12 @@ QWidget *TerminalSettingsPage::widget()
 
     // clang-format off
     Column {
-        Row {
-            settings.enableTerminal, st,
+        Group {
+            title(Tr::tr("General")),
+            Row {
+                settings.enableTerminal, st,
+                settings.sendEscapeToTerminal, st
+            },
         },
         Group {
             title(Tr::tr("Font")),
diff --git a/src/plugins/terminal/terminalwidget.cpp b/src/plugins/terminal/terminalwidget.cpp
index bb2f5e210ac..cc1b3b9f269 100644
--- a/src/plugins/terminal/terminalwidget.cpp
+++ b/src/plugins/terminal/terminalwidget.cpp
@@ -808,6 +808,7 @@ bool TerminalWidget::paintFindMatches(QPainter &p,
         }
         break;
     }
+
     if (it == m_search->hits().constEnd())
         return false;
 
@@ -821,13 +822,11 @@ bool TerminalWidget::paintSelection(QPainter &p, const QRectF &cellRect, const Q
     bool isInSelection = false;
     const int pos = m_surface->gridToPos(gridPos);
 
-    if (m_selection) {
+    if (m_selection)
         isInSelection = pos >= m_selection->start && pos < m_selection->end;
-    }
 
-    if (isInSelection) {
+    if (isInSelection)
         p.fillRect(cellRect, m_currentColors[ColorIndex::Selection]);
-    }
 
     return isInSelection;
 }
@@ -1049,6 +1048,19 @@ void TerminalWidget::keyPressEvent(QKeyEvent *event)
     }
 
     if (event->key() == Qt::Key_Escape) {
+        bool sendToTerminal = TerminalSettings::instance().sendEscapeToTerminal.value();
+        bool send = false;
+        if (sendToTerminal && event->modifiers() == Qt::NoModifier)
+            send = true;
+        else if (!sendToTerminal && event->modifiers() == Qt::ShiftModifier)
+            send = true;
+
+        if (send) {
+            event->setModifiers(Qt::NoModifier);
+            m_surface->sendKey(event);
+            return;
+        }
+
         if (m_selection)
             TerminalCommands::widgetActions().clearSelection.trigger();
         else {