diff --git a/engine/src/flutter/examples/terminal/terminal.sky b/engine/src/flutter/examples/terminal/terminal.sky
index 489e46e5d3..246bdfccf6 100644
--- a/engine/src/flutter/examples/terminal/terminal.sky
+++ b/engine/src/flutter/examples/terminal/terminal.sky
@@ -4,22 +4,43 @@
 // found in the LICENSE file.
 -->
 <import src="/sky/framework/elements/sky-element.sky" />
-<import src="/sky/framework/elements/sky-scrollable.sky" />
 <sky-element>
 <template>
   <style>
-    #control {
+    #container {
       height: -webkit-fill-available;
+    }
+    #input-box {
+      position: absolute;
+      left: 0;
+      top: 0;
+      z-index: 10;
+      width: 100%;
+      height: 100%;
+      opacity: 0;
+    }
+    #output-box {
+      position: absolute;
+      left: 0;
+      top: 0;
+      z-index: 0;
+      width: 100%;
+      height: 100%;
       background-color: black;
       color: rgb(255, 191, 0);
       font-family: 'Courier', 'monospace';
       font-size: small;
     }
     .line {
+      height: 1em;
       white-space: nowrap;
     }
   </style>
-  <sky-scrollable id="control" contenteditable />
+  <div id="container">
+    <div id="input-box" contenteditable />
+    <div id="output-box" />
+  </div>
+  </div>
 </template>
 <script>
 import 'dart:async';
@@ -35,7 +56,9 @@ import 'terminal_file_impl.dart';
 // |terminal.TerminalClient| service.
 @Tagname('terminal')
 class TerminalDisplayImpl extends SkyElement implements TerminalDisplay {
-  Element _control;
+  Element _inputBox;
+  Element _outputBox;
+  int _maxLines;
 
   // Queue of unconsumed input (keystrokes), with the head at index 0.
   // Keystrokes end up here if there's no reader (i.e., |getChar()|) pending,
@@ -54,13 +77,22 @@ class TerminalDisplayImpl extends SkyElement implements TerminalDisplay {
   }
 
   void shadowRootReady() {
-    _control = shadowRoot.getElementById('control');
-    _control.addEventListener('keydown', _handleKeyDown);
-    _control.addEventListener('keypress', _handleKeyPress);
+    _inputBox = shadowRoot.getElementById('input-box');
+    _inputBox.addEventListener('keydown', _handleKeyDown);
+    _inputBox.addEventListener('keypress', _handleKeyPress);
+    _inputBox.addEventListener('wheel', _handleWheel);
+    _outputBox = shadowRoot.getElementById('output-box');
+
+    // Hack to allow |_newLine()| to work.
+    _maxLines = 100;
 
     // Initialize with the first line.
     _newLine();
 
+    // Actually compute the maximum number of lines.
+    // TODO(vtl): Recompute on resize.
+    _maxLines = _outputBox.clientHeight ~/ _outputBox.firstChild.offsetHeight;
+
     var url = getAttribute('url');
     if (url != null) {
       connect(url);
@@ -81,10 +113,16 @@ class TerminalDisplayImpl extends SkyElement implements TerminalDisplay {
   }
 
   void _handleKeyPress(KeyboardEvent event) {
-    _enqueueChar(event.charCode);
+    if (event.charCode != 0) {
+      _enqueueChar(event.charCode);
+    }
     event.preventDefault();
   }
 
+  void _handleWheel(WheelEvent event) {
+    _outputBox.dispatchEvent(event);
+  }
+
   void _enqueueChar(int charCode) {
     // TODO(vtl): Add "echo" mode; do |putChar(event.charCode);| if echo is on.
 
@@ -96,22 +134,28 @@ class TerminalDisplayImpl extends SkyElement implements TerminalDisplay {
   }
 
   void _backspace() {
-    var oldText = _control.lastChild.textContent;
+    var oldText = _outputBox.lastChild.textContent;
     if (oldText.length > 0) {
-      _control.lastChild.textContent = oldText.substring(0, oldText.length - 1);
+      _outputBox.lastChild.textContent = oldText.substring(0,
+                                                           oldText.length - 1);
     }
   }
 
   void _newLine() {
     var line = document.createElement('div');
     line.setAttribute('class', 'line');
-    _control.appendChild(line);
+    _outputBox.appendChild(line);
+
+    // Scroll if necessary.
+    var children = _outputBox.getChildNodes();
+    if (children.length > _maxLines) {
+      children = new List.from(children.skip(children.length - _maxLines));
+      _outputBox.setChildren(children);
+    }
   }
 
   void _clear() {
-    while (_control.firstChild != null) {
-      _control.firstChild.remove();
-    }
+    _outputBox.setChildren([]);
     _newLine();
   }
 
@@ -134,7 +178,7 @@ class TerminalDisplayImpl extends SkyElement implements TerminalDisplay {
   void putChar(int byte) {
     // Fast-path for printable chars.
     if (byte >= 32) {
-      _control.lastChild.textContent += new String.fromCharCode(byte);
+      _outputBox.lastChild.textContent += new String.fromCharCode(byte);
       return;
     }