diff --git a/cmd/docs.go b/cmd/docs.go
index ba014f546..547cd018a 100644
--- a/cmd/docs.go
+++ b/cmd/docs.go
@@ -8,7 +8,9 @@ import (
 	"runtime"
 
 	"github.com/charmbracelet/glamour"
+	"github.com/charmbracelet/lipgloss"
 	"github.com/spf13/cobra"
+	"golang.org/x/term"
 
 	cfg "github.com/cloudposse/atmos/pkg/config"
 	"github.com/cloudposse/atmos/pkg/schema"
@@ -37,18 +39,33 @@ var docsCmd = &cobra.Command{
 				u.LogErrorAndExit(schema.CliConfiguration{}, err)
 			}
 
+			// Detect terminal width if not specified in `atmos.yaml`
+			// The default screen width is 120 characters, but uses maxWidth if set and greater than zero
+			maxWidth := cliConfig.Settings.Docs.MaxWidth
+			defaultWidth := 120
+			screenWidth := defaultWidth
+
+			// Detect terminal width and use it by default if available
+			if term.IsTerminal(int(os.Stdout.Fd())) {
+				termWidth, _, err := term.GetSize(int(os.Stdout.Fd()))
+				if err == nil && termWidth > 0 {
+					// Adjusted for subtle padding effect at the terminal boundaries
+					screenWidth = termWidth - 2
+				}
+			}
+
+			if maxWidth > 0 {
+				screenWidth = min(maxWidth, screenWidth)
+			}
+
 			// Construct the full path to the Terraform component by combining the Atmos base path, Terraform base path, and component name
 			componentPath := path.Join(cliConfig.BasePath, cliConfig.Components.Terraform.BasePath, info.Component)
-
 			componentPathExists, err := u.IsDirectory(componentPath)
 			if err != nil {
 				u.LogErrorAndExit(schema.CliConfiguration{}, err)
 			}
 			if !componentPathExists {
-				u.LogErrorAndExit(schema.CliConfiguration{}, fmt.Errorf("Component '%s' not found in path: '%s'",
-					info.Component,
-					componentPath,
-				))
+				u.LogErrorAndExit(schema.CliConfiguration{}, fmt.Errorf("Component '%s' not found in path: '%s'", info.Component, componentPath))
 			}
 
 			readmePath := path.Join(componentPath, "README.md")
@@ -56,7 +73,7 @@ var docsCmd = &cobra.Command{
 				if os.IsNotExist(err) {
 					u.LogErrorAndExit(schema.CliConfiguration{}, fmt.Errorf("No README found for component: %s", info.Component))
 				} else {
-					u.LogErrorAndExit(schema.CliConfiguration{}, err)
+					u.LogErrorAndExit(schema.CliConfiguration{}, fmt.Errorf("Component %s not found", info.Component))
 				}
 			}
 
@@ -65,7 +82,17 @@ var docsCmd = &cobra.Command{
 				u.LogErrorAndExit(schema.CliConfiguration{}, err)
 			}
 
-			componentDocs, err := glamour.Render(string(readmeContent), "dark")
+			r, err := glamour.NewTermRenderer(
+				glamour.WithColorProfile(lipgloss.ColorProfile()),
+				glamour.WithAutoStyle(),
+				glamour.WithPreservedNewLines(),
+				glamour.WithWordWrap(screenWidth),
+			)
+			if err != nil {
+				u.LogErrorAndExit(schema.CliConfiguration{}, fmt.Errorf("failed to initialize markdown renderer: %w", err))
+			}
+
+			componentDocs, err := r.Render(string(readmeContent))
 			if err != nil {
 				u.LogErrorAndExit(schema.CliConfiguration{}, err)
 			}
diff --git a/internal/exec/shell_utils.go b/internal/exec/shell_utils.go
index 9ddb12db7..c142c75cd 100644
--- a/internal/exec/shell_utils.go
+++ b/internal/exec/shell_utils.go
@@ -7,6 +7,7 @@ import (
 	"io"
 	"os"
 	"os/exec"
+	"path/filepath"
 	"runtime"
 	"strings"
 
@@ -154,6 +155,7 @@ func execTerraformShellCommand(
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_import=-var-file=%s", varFile))
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_destroy=-var-file=%s", varFile))
 	componentEnvList = append(componentEnvList, fmt.Sprintf("TF_CLI_ARGS_console=-var-file=%s", varFile))
+	componentEnvList = append(componentEnvList, fmt.Sprintf("PS1=atmos:%s/%s> ", stack, component))
 
 	u.LogDebug(cliConfig, "\nStarting a new interactive shell where you can execute all native Terraform commands (type 'exit' to go back)")
 	u.LogDebug(cliConfig, fmt.Sprintf("Component: %s\n", component))
@@ -183,11 +185,21 @@ func execTerraformShellCommand(
 		if len(shellCommand) == 0 {
 			bashPath, err := exec.LookPath("bash")
 			if err != nil {
-				return err
+				// Try fallback to sh if bash is not available
+				shPath, shErr := exec.LookPath("sh")
+				if shErr != nil {
+					return fmt.Errorf("no suitable shell found: %v", shErr)
+				}
+				shellCommand = shPath
+			} else {
+				shellCommand = bashPath
 			}
-			shellCommand = bashPath
 		}
-		shellCommand = shellCommand + " -l"
+
+		shellName := filepath.Base(shellCommand)
+		if shellName == "zsh" {
+			shellCommand = shellCommand + " -d -f -i"
+		}
 	}
 
 	u.LogDebug(cliConfig, fmt.Sprintf("Starting process: %s\n", shellCommand))
diff --git a/pkg/schema/schema.go b/pkg/schema/schema.go
index 41b677970..d9fefef3f 100644
--- a/pkg/schema/schema.go
+++ b/pkg/schema/schema.go
@@ -29,6 +29,11 @@ type CliConfiguration struct {
 
 type CliSettings struct {
 	ListMergeStrategy string `yaml:"list_merge_strategy" json:"list_merge_strategy" mapstructure:"list_merge_strategy"`
+	Docs              Docs   `yaml:"docs,omitempty" json:"docs,omitempty" mapstructure:"docs"`
+}
+
+type Docs struct {
+	MaxWidth int `yaml:"max-width" json:"max_width" mapstructure:"max-width"`
 }
 
 type Templates struct {