diff --git a/app/src/app_menus.rs b/app/src/app_menus.rs
index da618eaaf..13923e730 100644
--- a/app/src/app_menus.rs
+++ b/app/src/app_menus.rs
@@ -211,16 +211,23 @@ fn make_new_app_menu(ctx: &AppContext) -> Menu {
         "Set Warp as Default Terminal",
         move |ctx| {
             DefaultTerminal::handle(ctx).update(ctx, |default_terminal, ctx| {
-                default_terminal.make_warp_default(ctx)
+                if default_terminal.is_warp_default() {
+                    default_terminal.unset_warp_default(ctx)
+                } else {
+                    default_terminal.make_warp_default(ctx)
+                }
             });
         },
         move |_props, ctx| {
             let default_terminal = DefaultTerminal::handle(ctx).as_ref(ctx);
+            let is_warp_default = default_terminal.is_warp_default();
             MenuItemPropertyChanges {
-                disabled: Some(
-                    !DefaultTerminal::can_warp_become_default()
-                        || default_terminal.is_warp_default(),
-                ),
+                name: Some(if is_warp_default {
+                    "Restore macOS Terminal as Default".to_string()
+                } else {
+                    "Set Warp as Default Terminal".to_string()
+                }),
+                disabled: Some(!DefaultTerminal::can_warp_become_default()),
                 ..Default::default()
             }
         },
diff --git a/app/src/default_terminal/mac.rs b/app/src/default_terminal/mac.rs
index db728064d..aebcaecd0 100644
--- a/app/src/default_terminal/mac.rs
+++ b/app/src/default_terminal/mac.rs
@@ -71,6 +71,12 @@ pub fn set_warp_as_default_terminal() -> Result<(), String> {
     set_default_terminal(&bundle_id)
 }
 
+pub fn unset_warp_as_default_terminal() -> Result<(), String> {
+    log::debug!("Unsetting Warp as default terminal (reverting to Terminal.app)");
+
+    set_default_terminal("com.apple.Terminal")
+}
+
 fn set_default_terminal(bundle_id: &str) -> Result<(), String> {
     log::debug!("Setting default terminal to bundle ID: {bundle_id}");
 
diff --git a/app/src/default_terminal/mod.rs b/app/src/default_terminal/mod.rs
index f5e421f54..d87589721 100644
--- a/app/src/default_terminal/mod.rs
+++ b/app/src/default_terminal/mod.rs
@@ -24,6 +24,11 @@ mod non_mac {
     pub fn set_warp_as_default_terminal() -> Result<(), String> {
         Err("Not implemented".to_string())
     }
+
+    /// Unsets Warp as the default terminal
+    pub fn unset_warp_as_default_terminal() -> Result<(), String> {
+        Err("Not implemented".to_string())
+    }
 }
 
 #[allow(unused_imports)]
@@ -90,8 +95,7 @@ impl DefaultTerminal {
         self.is_warp_default
     }
 
-    /// This is a one-way operation. Once we set the default terminal to Warp, we can't really
-    /// "unset" it unless we pick a new default terminal. Picking a new default is complicated.
+    /// Sets Warp as the default terminal.
     pub fn make_warp_default(&mut self, ctx: &mut ModelContext<Self>) {
         if let Err(e) = set_warp_as_default_terminal() {
             log::error!("Error setting Warp as default terminal: {e:#}");
@@ -99,6 +103,14 @@ impl DefaultTerminal {
             self.set_is_warp_default(true, ctx);
         }
     }
+
+    pub fn unset_warp_default(&mut self, ctx: &mut ModelContext<Self>) {
+        if let Err(e) = unset_warp_as_default_terminal() {
+            log::error!("Error unsetting Warp as default terminal: {e:#}");
+        } else {
+            self.set_is_warp_default(false, ctx);
+        }
+    }
 }
 
 pub enum DefaultTerminalEvent {
diff --git a/app/src/settings_view/features_page.rs b/app/src/settings_view/features_page.rs
index 884d02a9e..626f9e563 100644
--- a/app/src/settings_view/features_page.rs
+++ b/app/src/settings_view/features_page.rs
@@ -645,6 +645,7 @@ pub enum FeaturesPageAction {
     ToggleShowTerminalInputMessageLine,
     ToggleAgentInAppNotifications,
     MakeWarpDefaultTerminal,
+    UnsetWarpDefaultTerminal,
 }
 
 lazy_static! {
@@ -1138,6 +1139,10 @@ impl FeaturesPageAction {
                 action: "MakeWarpDefaultTerminal".to_string(),
                 value: to_string(DefaultTerminal::as_ref(ctx).is_warp_default()),
             },
+            Self::UnsetWarpDefaultTerminal => TelemetryEvent::FeaturesPageAction {
+                action: "UnsetWarpDefaultTerminal".to_string(),
+                value: to_string(DefaultTerminal::as_ref(ctx).is_warp_default()),
+            },
             Self::ToggleAutoOpenCodeReviewPane => TelemetryEvent::FeaturesPageAction {
                 action: "ToggleAutoOpenCodeReviewPane".to_string(),
                 value: to_string(
@@ -1910,6 +1915,11 @@ impl TypedActionView for FeaturesPageView {
                     default_terminal.make_warp_default(ctx);
                 });
             }
+            UnsetWarpDefaultTerminal => {
+                DefaultTerminal::handle(ctx).update(ctx, |default_terminal, ctx| {
+                    default_terminal.unset_warp_default(ctx);
+                });
+            }
         }
 
         send_telemetry_from_ctx!(action.telemetry_event(ctx), ctx);
@@ -4793,13 +4803,16 @@ impl SettingsWidget for DefaultTerminalWidget {
         let default_terminal = DefaultTerminal::as_ref(app);
         if default_terminal.is_warp_default() {
             ui_builder
-                .wrappable_text("Warp is the default terminal", true)
-                .with_style(UiComponentStyles {
-                    font_color: Some(appearance.theme().disabled_ui_text_color().into()),
-                    margin: Some(Coords::default().bottom(16.)),
-                    ..Default::default()
-                })
+                .link(
+                    "Restore macOS Terminal as the default terminal".to_string(),
+                    None,
+                    Some(Box::new(|ctx| {
+                        ctx.dispatch_typed_action(FeaturesPageAction::UnsetWarpDefaultTerminal);
+                    })),
+                    self.link_state.clone(),
+                )
                 .build()
+                .with_margin_bottom(16.)
                 .finish()
         } else {
             ui_builder