iTerm2 is a replacement for Terminal and the successor to iTerm. It works on Macs with Leopard, Snow Leopard, or Lion. Its focus is on performance, internationalization, and supporting innovative features that make your life better.
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iTerm2 has interesting customization options, such as hot keys, multi panels or profiles.
Pro Command-Click to open paths and URLs
Command-Click on a path to open it in your editor. This feature currently supports Sublime (2 & 3) MacVim, Textmate, BBEdit.
Command-Click on a URL to open it in your Browser.
In version 3 of iTerm2 this functionally got even better: it recognizes paths even if they are followed by parens or line numbers.
Pro Ability to set up hotkeys
Using the Preferences Menu you can set up hotkeys to help you achieve easily some of the most common actions.
Pro Works well with powerline fonts
Pro Fine tuning for fonts
It's possible to choose a monospaced font and adjust vertical and horizontal spacing.
Pro Autocomplete built-in
iTerm has autocomplete features built in. It remembers your past commands and when you are writing something on the terminal, simply pressing
Control-; it will show you a drop down menu of suggestions from which to choose.
Pro Supported by many applications as a terminal app selection
If an application has terminal integration, there is high probability it allows iTerm2 to be selected.
Pro Zsh integration
Pro Mouse support built in
This is useful for e.g. tmux.
Pro Well maintained repo
Issues resolved fast by quality contributors.
Pro Quake style show/hide feature
Can be configured to work as a drop down terminal like Quake.
Pro Works well with tmux
Con Lack of support for ligatures
Now some monospace typefaces (such as Hasklig and Fira Code) have support for ligatures, but it's not supported by iTerm2.
Con May sometimes segfault
There have been reports where sometimes iTerm2 may raise a segmentation fault. This does not happen to everyone and is highly dependent on the hardware it's running on.
Con Sometimes updates break basic functionality
A release a few months back didn't respect the system umask which left people scratching their heads when things quit working. Terminal.app may not have as many bells and whistles, but that is a good thing.