diff --git a/tabby-terminal/src/components/colorSchemeSettingsTab.component.pug b/tabby-terminal/src/components/colorSchemeSettingsTab.component.pug
index ec2a034f3c..087d42e33e 100644
--- a/tabby-terminal/src/components/colorSchemeSettingsTab.component.pug
+++ b/tabby-terminal/src/components/colorSchemeSettingsTab.component.pug
@@ -42,6 +42,24 @@ h3.mb-3(translate) Color schemes
         )
             span(translate) Always light
 
+.form-line.mb-4
+    .header
+        .title(translate) Generate 256-color palette
+        .description(translate) Generate extended 256-color palette from your base 16 colors
+    toggle(
+        [(ngModel)]='config.store.terminal.paletteGenerate',
+        (ngModelChange)='config.save()'
+    )
+
+.form-line.mb-4
+    .header
+        .title(translate) Harmonious palette
+        .description(translate) Whether to invert generated light theme colors. This helps give the 256-color palette more semantic meaning.
+    toggle(
+        [(ngModel)]='config.store.terminal.paletteHarmonious',
+        (ngModelChange)='config.save()'
+    )
+
 ul.nav-tabs(ngbNav, #nav='ngbNav', [activeId]='defaultTab')
     li(ngbNavItem='dark')
         a(ngbNavLink, translate) Dark mode
diff --git a/tabby-terminal/src/config.ts b/tabby-terminal/src/config.ts
index ddbae48699..747f9aacf4 100644
--- a/tabby-terminal/src/config.ts
+++ b/tabby-terminal/src/config.ts
@@ -52,6 +52,8 @@ export class TerminalConfigProvider extends ConfigProvider {
             drawBoldTextInBrightColors: true,
             sixel: true,
             minimumContrastRatio: 4,
+            paletteGenerate: false,
+            paletteHarmonious: false,
             trimWhitespaceOnPaste: true,
         },
     }
diff --git a/tabby-terminal/src/frontends/xtermFrontend.ts b/tabby-terminal/src/frontends/xtermFrontend.ts
index a96d468388..be53493d30 100644
--- a/tabby-terminal/src/frontends/xtermFrontend.ts
+++ b/tabby-terminal/src/frontends/xtermFrontend.ts
@@ -15,6 +15,7 @@ import { ImageAddon } from '@xterm/addon-image'
 import { CanvasAddon } from '@xterm/addon-canvas'
 import { BaseTerminalProfile, TerminalColorScheme } from '../api/interfaces'
 import { getTerminalBackgroundColor } from '../helpers'
+import { generatePalette } from '../generatePalette'
 import './xterm.css'
 
 const COLOR_NAMES = [
@@ -404,6 +405,15 @@ export class XTermFrontend extends Frontend {
             theme[COLOR_NAMES[i]] = scheme.colors[i]
         }
 
+        if (this.configService.store.terminal.paletteGenerate) {
+            theme.extendedAnsi = generatePalette(
+                scheme.colors,
+                scheme.background,
+                scheme.foreground,
+                this.configService.store.terminal.paletteHarmonious,
+            )
+        }
+
         theme.scrollbarSliderBackground = theme.brightBlack
         theme.scrollbarSliderHoverBackground = theme.brightBlack
         theme.scrollbarSliderHoverBackground = theme.brightBlack
diff --git a/tabby-terminal/src/generatePalette.ts b/tabby-terminal/src/generatePalette.ts
new file mode 100644
index 0000000000..9aa1fd6c16
--- /dev/null
+++ b/tabby-terminal/src/generatePalette.ts
@@ -0,0 +1,146 @@
+interface RGB {
+    r: number
+    g: number
+    b: number
+}
+
+interface LAB {
+    l: number
+    a: number
+    b: number
+}
+
+function rgbToLab (rgb: RGB): LAB {
+    let r = rgb.r / 255.0
+    let g = rgb.g / 255.0
+    let b = rgb.b / 255.0
+
+    r = r > 0.04045 ? Math.pow((r + 0.055) / 1.055, 2.4) : r / 12.92
+    g = g > 0.04045 ? Math.pow((g + 0.055) / 1.055, 2.4) : g / 12.92
+    b = b > 0.04045 ? Math.pow((b + 0.055) / 1.055, 2.4) : b / 12.92
+
+    let x = (r * 0.4124564 + g * 0.3575761 + b * 0.1804375) / 0.95047
+    let y = r * 0.2126729 + g * 0.7151522 + b * 0.0721750
+    let z = (r * 0.0193339 + g * 0.1191920 + b * 0.9503041) / 1.08883
+
+    x = x > 0.008856 ? Math.cbrt(x) : 7.787 * x + 16.0 / 116.0
+    y = y > 0.008856 ? Math.cbrt(y) : 7.787 * y + 16.0 / 116.0
+    z = z > 0.008856 ? Math.cbrt(z) : 7.787 * z + 16.0 / 116.0
+
+    return { l: 116.0 * y - 16.0, a: 500.0 * (x - y), b: 200.0 * (y - z) }
+}
+
+function labToRgb (lab: LAB): RGB {
+    const y = (lab.l + 16.0) / 116.0
+    const x = lab.a / 500.0 + y
+    const z = y - lab.b / 200.0
+
+    const x3 = x * x * x
+    const y3 = y * y * y
+    const z3 = z * z * z
+    const xf = (x3 > 0.008856 ? x3 : (x - 16.0 / 116.0) / 7.787) * 0.95047
+    const yf = y3 > 0.008856 ? y3 : (y - 16.0 / 116.0) / 7.787
+    const zf = (z3 > 0.008856 ? z3 : (z - 16.0 / 116.0) / 7.787) * 1.08883
+
+    let r = xf * 3.2404542 - yf * 1.5371385 - zf * 0.4985314
+    let g = -xf * 0.9692660 + yf * 1.8760108 + zf * 0.0415560
+    let b = xf * 0.0556434 - yf * 0.2040259 + zf * 1.0572252
+
+    r = r > 0.0031308 ? 1.055 * Math.pow(r, 1.0 / 2.4) - 0.055 : 12.92 * r
+    g = g > 0.0031308 ? 1.055 * Math.pow(g, 1.0 / 2.4) - 0.055 : 12.92 * g
+    b = b > 0.0031308 ? 1.055 * Math.pow(b, 1.0 / 2.4) - 0.055 : 12.92 * b
+
+    return {
+        r: Math.round(Math.min(Math.max(r, 0.0), 1.0) * 255.0),
+        g: Math.round(Math.min(Math.max(g, 0.0), 1.0) * 255.0),
+        b: Math.round(Math.min(Math.max(b, 0.0), 1.0) * 255.0),
+    }
+}
+
+function lerpLab (t: number, a: LAB, b: LAB): LAB {
+    return {
+        l: a.l + t * (b.l - a.l),
+        a: a.a + t * (b.a - a.a),
+        b: a.b + t * (b.b - a.b),
+    }
+}
+
+function parseHexColor (hex: string): RGB {
+    hex = hex.replace('#', '')
+    return {
+        r: parseInt(hex.substring(0, 2), 16),
+        g: parseInt(hex.substring(2, 4), 16),
+        b: parseInt(hex.substring(4, 6), 16),
+    }
+}
+
+function rgbToHex (rgb: RGB): string {
+    const r = rgb.r.toString(16).padStart(2, '0')
+    const g = rgb.g.toString(16).padStart(2, '0')
+    const b = rgb.b.toString(16).padStart(2, '0')
+    return `#${r}${g}${b}`
+}
+
+/**
+ * Generate extended 256-color palette (indices 16-255) from base16 colors
+ * using LAB color space interpolation. User-defined colors beyond index 15
+ * in the scheme's colors array are preserved and not overwritten.
+ *
+ * @param colors - Array of hex color strings (at least 16; entries beyond 16 are user-defined extended colors)
+ * @param bg - Background color as hex string
+ * @param fg - Foreground color as hex string
+ * @param harmonious - If true, disable light-theme inversion
+ * @returns Array of 240 hex color strings for indices 16-255
+ */
+export function generatePalette (colors: string[], bg: string, fg: string, harmonious: boolean): string[] {
+    const base8Lab: LAB[] = []
+    for (let i = 0; i < 8; i++) {
+        base8Lab.push(rgbToLab(parseHexColor(colors[i])))
+    }
+    const bgLab = rgbToLab(parseHexColor(bg))
+    const fgLab = rgbToLab(parseHexColor(fg))
+
+    const isLightTheme = fgLab.l < bgLab.l
+    const invert = isLightTheme && !harmonious
+    const corner0 = invert ? fgLab : bgLab
+    const corner7 = invert ? bgLab : fgLab
+
+    const palette: string[] = []
+
+    // Color cube (indices 16-231): 6x6x6
+    let idx = 16
+    for (let ri = 0; ri < 6; ri++) {
+        const tr = ri / 5.0
+        const c0 = lerpLab(tr, corner0, base8Lab[1])
+        const c1 = lerpLab(tr, base8Lab[2], base8Lab[3])
+        const c2 = lerpLab(tr, base8Lab[4], base8Lab[5])
+        const c3 = lerpLab(tr, base8Lab[6], corner7)
+        for (let gi = 0; gi < 6; gi++) {
+            const tg = gi / 5.0
+            const c4 = lerpLab(tg, c0, c1)
+            const c5 = lerpLab(tg, c2, c3)
+            for (let bi = 0; bi < 6; bi++) {
+                if (colors[idx]) {
+                    palette.push(colors[idx])
+                } else {
+                    const c6 = lerpLab(bi / 5.0, c4, c5)
+                    palette.push(rgbToHex(labToRgb(c6)))
+                }
+                idx++
+            }
+        }
+    }
+
+    // Grayscale ramp (indices 232-255): 24 shades
+    for (let i = 0; i < 24; i++) {
+        if (colors[idx]) {
+            palette.push(colors[idx])
+        } else {
+            const t = (i + 1) / 25.0
+            palette.push(rgbToHex(labToRgb(lerpLab(t, corner0, corner7))))
+        }
+        idx++
+    }
+
+    return palette
+}