diff --git a/lua/kitty-scrollback/configs/example.lua b/lua/kitty-scrollback/configs/example.lua
index 2a4fb7af..dae9bef2 100644
--- a/lua/kitty-scrollback/configs/example.lua
+++ b/lua/kitty-scrollback/configs/example.lua
@@ -143,6 +143,9 @@ return {
       }
     end,
     [prefix .. 'highlight_overrides'] = function()
+      for i = 0, 15 do
+        vim.g['terminal_color_' .. i] = 'Cyan'
+      end
       return {
         highlight_overrides = {
           KittyScrollbackNvimNormal = {
diff --git a/lua/kitty-scrollback/highlights.lua b/lua/kitty-scrollback/highlights.lua
index 0f7e4704..e7ea5295 100644
--- a/lua/kitty-scrollback/highlights.lua
+++ b/lua/kitty-scrollback/highlights.lua
@@ -147,8 +147,9 @@ M.get_highlights_as_env = function()
   return env
 end
 
----Set nvim default highlights
+---Set nvim default highlights and terminal colors
 M.set_highlights = function()
+  -- set highlight groups
   local overrides = opts.highlight_overrides or {}
   for name, definition in pairs(highlight_definitions()) do
     vim.api.nvim_set_hl(0, name, definition)
@@ -157,6 +158,10 @@ M.set_highlights = function()
       vim.api.nvim_set_hl(0, name, override)
     end
   end
+  -- set terminal colors (see :help terminal-config)
+  for i = 0, 15 do
+    vim.b['terminal_color_' .. i] = p.kitty_colors['color' .. i]
+  end
 end
 
 return M