diff --git a/nixos/doc/manual/release-notes/rl-2405.section.md b/nixos/doc/manual/release-notes/rl-2405.section.md
index 2d517cdec66c..6ed47c4ba969 100644
--- a/nixos/doc/manual/release-notes/rl-2405.section.md
+++ b/nixos/doc/manual/release-notes/rl-2405.section.md
@@ -337,6 +337,8 @@ The pre-existing [services.ankisyncd](#opt-services.ankisyncd.enable) has been m
   - Similarly, please use `services.xserver.desktopManager.mate.extraCajaExtensions` option for installing Caja extensions.
   - To use the Wayland session, enable `services.xserver.desktopManager.mate.enableWaylandSession`. This is opt-in for now as it is in early stage and introduces a new set of Wayfire closure. Due to [known issues with LightDM](https://github.com/canonical/lightdm/issues/63), we suggest using SDDM for display manager.
 
+- The Budgie module installs gnome-terminal by default (instead of mate-terminal).
+
 - New `boot.loader.systemd-boot.xbootldrMountPoint` allows setting up a separate [XBOOTLDR partition](https://uapi-group.org/specifications/specs/boot_loader_specification/) to store boot files. Useful on systems with a small EFI System partition that cannot be easily repartitioned.
 
 - `boot.loader.systemd-boot` will now verify that `efiSysMountPoint` (and `xbootldrMountPoint` if configured) are mounted partitions.
diff --git a/nixos/modules/services/x11/desktop-managers/budgie.nix b/nixos/modules/services/x11/desktop-managers/budgie.nix
index bf24395a4924..466ef5c565b7 100644
--- a/nixos/modules/services/x11/desktop-managers/budgie.nix
+++ b/nixos/modules/services/x11/desktop-managers/budgie.nix
@@ -146,7 +146,6 @@ in {
           mate.atril
           mate.engrampa
           mate.mate-calc
-          mate.mate-terminal
           mate.mate-system-monitor
           vlc
 
@@ -160,6 +159,9 @@ in {
         ] config.environment.budgie.excludePackages)
       ++ cfg.sessionPath;
 
+    # Both budgie-desktop-view and nemo defaults to this emulator.
+    programs.gnome-terminal.enable = mkDefault true;
+
     # Fonts.
     fonts.packages = [
       pkgs.noto-fonts
diff --git a/nixos/tests/budgie.nix b/nixos/tests/budgie.nix
index 64a4e65fa7f6..5228e869b056 100644
--- a/nixos/tests/budgie.nix
+++ b/nixos/tests/budgie.nix
@@ -82,9 +82,9 @@ import ./make-test-python.nix ({ pkgs, lib, ... }: {
           machine.wait_until_succeeds("${su "budgie-screensaver-command -q"} | grep 'The screensaver is inactive'")
           machine.sleep(2)
 
-      with subtest("Open MATE terminal"):
-          machine.succeed("${su "mate-terminal >&2 &"}")
-          machine.wait_for_window("Terminal")
+      with subtest("Open GNOME terminal"):
+          machine.succeed("${su "gnome-terminal"}")
+          machine.wait_for_window("${user.name}@machine: ~")
 
       with subtest("Check if Budgie has ever coredumped"):
           machine.fail("coredumpctl --json=short | grep budgie")
diff --git a/pkgs/desktops/budgie/budgie-gsettings-overrides/default.nix b/pkgs/desktops/budgie/budgie-gsettings-overrides/default.nix
index bd9e1b6024ef..d853a584a7a4 100644
--- a/pkgs/desktops/budgie/budgie-gsettings-overrides/default.nix
+++ b/pkgs/desktops/budgie/budgie-gsettings-overrides/default.nix
@@ -5,7 +5,6 @@
 , glib
 , gsettings-desktop-schemas
 , gnome
-, mate
 , nixos-artwork
 , nixos-background-light ? nixos-artwork.wallpapers.nineish
 , nixos-background-dark ? nixos-artwork.wallpapers.nineish-dark-gray
@@ -54,7 +53,6 @@ let
     [org.buddiesofbudgie.budgie-desktop-view:Budgie]
     show=true
     show-active-mounts=true
-    terminal="${mate.mate-terminal}/bin/mate-terminal"
 
     ${extraGSettingsOverrides}
   '';