If you haven’t heard of iTerm, it’s a popular open source alternative to Mac OS X Terminal. Give it a try, download and install it from http://www.iterm2.com.
Launch iTerm, open iTerm > Preferences or just Cmd + ,.
Under Profiles tab, go to General subtab, set Working Directory to “Reuse previous session’s directory”.
To enable Meta key for Bash readline editing e.g. Alt + b to move to previous word, under Profiles tab, go to Keys subtab, set Left option key acts as: to “+Esc”.
Under Keys tab, in Hotkey section, enable “Show/hide iTerm2 with a system-wide hotkey” and input your hotkey combination, e.g. I use Ctrl + Shift + L.
Under Pointer, in Miscellaneous Settings section, enable “Focus follows mouse”.
Here’s a set of shortcut keys I commonly use. You can always look for other shortcut keys in the iTerm menu.
open new tab Cmd + t
next tab Cmd + Shift + ]
previous tab Cmd + Shift + [
split pane left-right Cmd + d
split pane top-bottom Cmd + Shift + d
next pane Cmd + ]
previous pane Cmd + [
open search bar Cmd + f
find next Cmd + g
input to all panes in current tab Cmd + Alt + i
clear buffer Cmd + k
clear lines (Bash command) Ctrl + l
toggle maximize window Cmd + Alt + =
toggle full screen Cmd + Enter
make font larger Cmd + +
make font smaller Cmd + -
Reference: http://teohm.com/blog/working-effectively-with-iterm2/