diff --git a/applications/Alacritty.desktop b/applications/Alacritty.desktop
new file mode 100644
index 00000000..f53c813e
--- /dev/null
+++ b/applications/Alacritty.desktop
@@ -0,0 +1,21 @@
+[Desktop Entry]
+Type=Application
+TryExec=alacritty
+Exec=alacritty
+Icon=Alacritty
+Terminal=false
+Categories=System;TerminalEmulator;
+Name=Alacritty
+GenericName=Terminal
+Comment=A fast, cross-platform, OpenGL terminal emulator
+StartupNotify=true
+StartupWMClass=Alacritty
+Actions=New;
+X-TerminalArgExec=-e
+X-TerminalArgAppId=--class=
+X-TerminalArgTitle=--title=
+X-TerminalArgDir=--working-directory=
+
+[Desktop Action New]
+Name=New Terminal
+Exec=alacritty
diff --git a/bin/omarchy-install-terminal b/bin/omarchy-install-terminal
index 804ccb7a..0cea1a4c 100755
--- a/bin/omarchy-install-terminal
+++ b/bin/omarchy-install-terminal
@@ -7,15 +7,41 @@ fi
 
 package="$1"
 
+# Map package name to desktop entry ID
+case "$package" in
+  alacritty)
+    desktop_id="Alacritty.desktop"
+    ;;
+  ghostty)
+    desktop_id="com.mitchellh.ghostty.desktop"
+    ;;
+  kitty)
+    desktop_id="kitty.desktop"
+    ;;
+  *)
+    echo "Unknown terminal: $package"
+    exit 1
+    ;;
+esac
+
 # Install package
 if omarchy-pkg-add $package; then
   # Set as default terminal
   echo "Setting $package as new default terminal..."
   sed -i "/export TERMINAL=/ c\export TERMINAL=$package" ~/.config/uwsm/default
 
-  # Restart is needed for new default to take effect
-  echo
-  gum confirm "Restart to use new terminal?" && systemctl reboot --no-wall
+  # Copy custom desktop entry for alacritty with X-TerminalArg* keys
+  if [ "$package" = "alacritty" ]; then
+    mkdir -p ~/.local/share/applications
+    cp "$OMARCHY_PATH/applications/Alacritty.desktop" ~/.local/share/applications/
+  fi
+
+  # Update xdg-terminals.list to prioritize the proper terminal
+  cat > ~/.config/xdg-terminals.list << EOF
+# Terminal emulator preference order for xdg-terminal-exec
+# The first found and valid terminal will be used
+$desktop_id
+EOF
 else
   echo "Failed to install $package"
 fi
diff --git a/bin/omarchy-launch-about b/bin/omarchy-launch-about
index 797e340f..8505ff0e 100755
--- a/bin/omarchy-launch-about
+++ b/bin/omarchy-launch-about
@@ -1,3 +1,3 @@
 #!/bin/bash
 
-exec setsid uwsm-app -- alacritty --class=Omarchy -o font.size=9 -e bash -c 'fastfetch; read -n 1 -s'
+exec setsid uwsm-app -- xdg-terminal-exec --app-id=com.omarchy.Omarchy -e bash -c 'fastfetch; read -n 1 -s'
diff --git a/bin/omarchy-launch-editor b/bin/omarchy-launch-editor
index 81879626..f120001e 100755
--- a/bin/omarchy-launch-editor
+++ b/bin/omarchy-launch-editor
@@ -4,7 +4,7 @@ omarchy-cmd-present "$EDITOR" || EDITOR=nvim
 
 case "$EDITOR" in
 nvim | vim | nano | micro | hx | helix)
-  exec setsid uwsm-app -- "$TERMINAL" -e "$EDITOR" "$@"
+  exec setsid uwsm-app -- xdg-terminal-exec "$EDITOR" "$@"
   ;;
 *)
   exec setsid uwsm-app -- "$EDITOR" "$@"
diff --git a/bin/omarchy-launch-floating-terminal-with-presentation b/bin/omarchy-launch-floating-terminal-with-presentation
index b6121705..c074cbf6 100755
--- a/bin/omarchy-launch-floating-terminal-with-presentation
+++ b/bin/omarchy-launch-floating-terminal-with-presentation
@@ -1,4 +1,4 @@
 #!/bin/bash
 
 cmd="$*"
-exec setsid uwsm-app -- alacritty -o font.size=9 --class=Omarchy --title=Omarchy -e bash -c "omarchy-show-logo; $cmd; omarchy-show-done"
\ No newline at end of file
+exec setsid uwsm-app -- xdg-terminal-exec --app-id=com.omarchy.Omarchy --title=Omarchy -e bash -c "omarchy-show-logo; $cmd; omarchy-show-done"
diff --git a/bin/omarchy-launch-terminal b/bin/omarchy-launch-terminal
deleted file mode 100755
index 9cf4addf..00000000
--- a/bin/omarchy-launch-terminal
+++ /dev/null
@@ -1,3 +0,0 @@
-#!/bin/bash
-
-exec setsid uwsm-app -- "${TERMINAL:-alacritty}" -e "$@"
diff --git a/bin/omarchy-launch-wifi b/bin/omarchy-launch-wifi
index c9a9b18b..b73cbadc 100755
--- a/bin/omarchy-launch-wifi
+++ b/bin/omarchy-launch-wifi
@@ -1,3 +1,3 @@
 #!/bin/bash
 
-exec setsid uwsm-app -- "$TERMINAL" --class=Impala -e impala "$@"
+exec setsid uwsm-app -- xdg-terminal-exec --app-id=com.omarchy.Impala -e impala "$@"
diff --git a/bin/omarchy-menu b/bin/omarchy-menu
index 1327a8f6..b9f8501c 100755
--- a/bin/omarchy-menu
+++ b/bin/omarchy-menu
@@ -37,7 +37,7 @@ menu() {
 }
 
 terminal() {
-  alacritty --class=Omarchy -e "$@"
+  xdg-terminal-exec --app-id=com.omarchy.Omarchy "$@"
 }
 
 present_terminal() {
@@ -178,7 +178,7 @@ show_setup_menu() {
   options="$options\n  Defaults\n󰱔  DNS\n  Security\n  Config"
 
   case $(menu "Setup" "$options") in
-  *Audio*) $TERMINAL --class=Wiremix -e wiremix ;;
+  *Audio*) xdg-terminal-exec --app-id=com.omarchy.Wiremix -e wiremix ;;
   *Wifi*)
     rfkill unblock wifi
     omarchy-launch-wifi
diff --git a/config/hypr/bindings.conf b/config/hypr/bindings.conf
index 1f60098a..09c2b376 100644
--- a/config/hypr/bindings.conf
+++ b/config/hypr/bindings.conf
@@ -1,5 +1,5 @@
 # Application bindings
-$terminal = uwsm-app -- $TERMINAL
+$terminal = uwsm-app -- xdg-terminal-exec
 $browser = omarchy-launch-browser
 
 bindd = SUPER, RETURN, Terminal, exec, $terminal --working-directory="$(omarchy-cmd-terminal-cwd)"
diff --git a/config/uwsm/default b/config/uwsm/default
index 72868eb7..946fbe5f 100644
--- a/config/uwsm/default
+++ b/config/uwsm/default
@@ -1,7 +1,7 @@
 # Changes require a restart to take effect.
 
 # Install other terminals via Install > Terminal
-export TERMINAL=alacritty
+export TERMINAL=xdg-terminal-exec
 
 # Use code for VSCode
 export EDITOR=nvim
diff --git a/config/waybar/config.jsonc b/config/waybar/config.jsonc
index ed064953..6bd34ee4 100644
--- a/config/waybar/config.jsonc
+++ b/config/waybar/config.jsonc
@@ -41,7 +41,7 @@
   "custom/omarchy": {
     "format": "<span font='omarchy'>\ue900</span>",
     "on-click": "omarchy-menu",
-    "on-click-right": "omarchy-launch-terminal",
+    "on-click-right": "xdg-terminal-exec",
     "tooltip-format": "Omarchy Menu\n\nSuper + Alt + Space"
   },
   "custom/update": {
@@ -56,7 +56,7 @@
   "cpu": {
     "interval": 5,
     "format": "󰍛",
-    "on-click": "$TERMINAL -e btop"
+    "on-click": "xdg-terminal-exec btop"
   },
   "clock": {
     "format": "{:L%A %H:%M}",
@@ -105,7 +105,7 @@
   },
   "pulseaudio": {
     "format": "{icon}",
-    "on-click": "$TERMINAL --class=Wiremix -e wiremix",
+    "on-click": "xdg-terminal-exec --app-id=com.omarchy.Wiremix -e wiremix",
     "on-click-right": "pamixer -t",
     "tooltip-format": "Playing at {volume}%",
     "scroll-step": 5,
diff --git a/default/hypr/apps/system.conf b/default/hypr/apps/system.conf
index 754ed0ca..da2bacfa 100644
--- a/default/hypr/apps/system.conf
+++ b/default/hypr/apps/system.conf
@@ -1,9 +1,9 @@
 # Floating windows
 windowrule = float, tag:floating-window
 windowrule = center, tag:floating-window
-windowrule = size 800 600, tag:floating-window
+windowrule = size 875 600, tag:floating-window
 
-windowrule = tag +floating-window, class:(blueberry.py|Impala|Wiremix|org.gnome.NautilusPreviewer|com.gabm.satty|Omarchy|About|TUI.float)
+windowrule = tag +floating-window, class:(blueberry.py|com.omarchy.Impala|com.omarchy.Wiremix|com.omarchy.Omarchy|org.gnome.NautilusPreviewer|com.gabm.satty|Omarchy|About|TUI.float)
 windowrule = tag +floating-window, class:(xdg-desktop-portal-gtk|sublime_text|DesktopEditors|org.gnome.Nautilus), title:^(Open.*Files?|Open [F|f]older.*|Save.*Files?|Save.*As|Save|All Files|.*wants to [open|save].*|[C|c]hoose.*)
 windowrule = float, class:org.gnome.Calculator
 
diff --git a/install/config/xdg-terminal-exec.sh b/install/config/xdg-terminal-exec.sh
deleted file mode 100644
index edc751be..00000000
--- a/install/config/xdg-terminal-exec.sh
+++ /dev/null
@@ -1,3 +0,0 @@
-# Solve for hardcoded glib terminals
-# https://github.com/basecamp/omarchy/issues/1852
-sudo ln -s $OMARCHY_PATH/bin/omarchy-launch-terminal /usr/local/bin/xdg-terminal-exec
diff --git a/install/omarchy-base.packages b/install/omarchy-base.packages
index f9d53bc8..b1765095 100644
--- a/install/omarchy-base.packages
+++ b/install/omarchy-base.packages
@@ -143,6 +143,7 @@ wl-clipboard
 woff2-font-awesome
 xdg-desktop-portal-gtk
 xdg-desktop-portal-hyprland
+xdg-terminal-exec
 xmlstarlet
 xournalpp
 yaru-icon-theme
diff --git a/migrations/1762121827.sh b/migrations/1762121827.sh
deleted file mode 100644
index 69fa748b..00000000
--- a/migrations/1762121827.sh
+++ /dev/null
@@ -1,4 +0,0 @@
-echo "Setting up xdg-terminal-exec for gtk-launch terminal support"
-# Solve for hardcoded glib terminals
-# https://github.com/basecamp/omarchy/issues/1852
-sudo ln -s $OMARCHY_PATH/bin/omarchy-launch-terminal /usr/local/bin/xdg-terminal-exec
diff --git a/migrations/1762121828.sh b/migrations/1762121828.sh
new file mode 100644
index 00000000..308dad36
--- /dev/null
+++ b/migrations/1762121828.sh
@@ -0,0 +1,64 @@
+echo "Setting up xdg-terminal-exec for gtk-launch terminal support"
+# Solve for hardcoded glib terminals
+# https://github.com/basecamp/omarchy/issues/1852
+
+# Remove old symlink if it exists -- if someone ran the previous migration early
+if [ -L /usr/local/bin/xdg-terminal-exec ]; then
+  sudo rm /usr/local/bin/xdg-terminal-exec
+fi
+
+omarchy-pkg-add xdg-terminal-exec
+
+# Set up xdg-terminals.list based on current $TERMINAL
+if [ -n "$TERMINAL" ]; then
+  case "$TERMINAL" in
+    alacritty)
+      desktop_id="Alacritty.desktop"
+      ;;
+    ghostty)
+      desktop_id="com.mitchellh.ghostty.desktop"
+      ;;
+    kitty)
+      desktop_id="kitty.desktop"
+      ;;
+  esac
+
+  if [ -n "$desktop_id" ]; then
+    mkdir -p ~/.config
+    cat > ~/.config/xdg-terminals.list << EOF
+# Terminal emulator preference order for xdg-terminal-exec
+# The first found and valid terminal will be used
+$desktop_id
+EOF
+  fi
+fi
+
+# Copy custom desktop entries with proper X-TerminalArg* keys
+if command -v alacritty > /dev/null 2>&1; then
+  cp "$OMARCHY_PATH/applications/Alacritty.desktop" ~/.local/share/applications/
+fi
+
+# Update hyprland bindings to use xdg-terminal-exec
+sed -i 's/\$terminal = uwsm-app -- \$TERMINAL/$terminal = uwsm-app -- xdg-terminal-exec/' ~/.config/hypr/bindings.conf
+# Update --working-directory to --dir for xdg-terminal-exec
+sed -i 's/--working-directory=/--dir=/g' ~/.config/hypr/bindings.conf
+
+# Update TERMINAL variable in uwsm config
+sed -i 's/export TERMINAL=.*/export TERMINAL=xdg-terminal-exec/' ~/.config/uwsm/default
+
+# Update waybar config to use xdg-terminal-exec
+waybar_config=~/.config/waybar/config.jsonc
+if [ -f "$waybar_config" ]; then
+  sed -i 's|"on-click-right": "omarchy-launch-terminal"|"on-click-right": "xdg-terminal-exec"|' "$waybar_config"
+  sed -i 's|"on-click": "\$TERMINAL -e btop"|"on-click": "xdg-terminal-exec btop"|' "$waybar_config"
+  sed -i 's|"on-click": "\$TERMINAL --class=Wiremix -e wiremix"|"on-click": "xdg-terminal-exec --app-id=com.omarchy.Wiremix -e wiremix"|' "$waybar_config"
+  omarchy-state set restart-waybar-required
+fi
+
+# Update hyprland window rules to use DNS-format class names
+system_conf=~/.config/hypr/apps/system.conf
+if [ -f "$system_conf" ]; then
+  if grep -q 'class:(.*|Impala|' "$system_conf" || grep -q 'class:(.*|Wiremix|' "$system_conf" || grep -q '|Omarchy|' "$system_conf"; then
+    sed -i 's/\bImpala\b/com.omarchy.Impala/g; s/\bWiremix\b/com.omarchy.Wiremix/g; s/|Omarchy|/|com.omarchy.Omarchy|/g' "$system_conf"
+  fi
+fi