diff --git a/tests/tools/test_terminal_requirements.py b/tests/tools/test_terminal_requirements.py
index 00dc6ba5a..dfba91247 100644
--- a/tests/tools/test_terminal_requirements.py
+++ b/tests/tools/test_terminal_requirements.py
@@ -1,15 +1,77 @@
+import importlib
 import logging
 
-from tools.terminal_tool import check_terminal_requirements
+terminal_tool_module = importlib.import_module("tools.terminal_tool")
+
+
+def _clear_terminal_env(monkeypatch):
+    """Remove terminal env vars that could affect requirements checks."""
+    keys = [
+        "TERMINAL_ENV",
+        "TERMINAL_SSH_HOST",
+        "TERMINAL_SSH_USER",
+        "MODAL_TOKEN_ID",
+        "HOME",
+        "USERPROFILE",
+    ]
+    for key in keys:
+        monkeypatch.delenv(key, raising=False)
 
 
 def test_local_terminal_requirements_do_not_depend_on_minisweagent(monkeypatch, caplog):
     """Local backend uses Hermes' own LocalEnvironment wrapper and should not
     be marked unavailable just because `minisweagent` isn't importable."""
+    _clear_terminal_env(monkeypatch)
     monkeypatch.setenv("TERMINAL_ENV", "local")
 
     with caplog.at_level(logging.ERROR):
-        ok = check_terminal_requirements()
+        ok = terminal_tool_module.check_terminal_requirements()
 
     assert ok is True
     assert "Terminal requirements check failed" not in caplog.text
+
+
+def test_unknown_terminal_env_logs_error_and_returns_false(monkeypatch, caplog):
+    _clear_terminal_env(monkeypatch)
+    monkeypatch.setenv("TERMINAL_ENV", "unknown-backend")
+
+    with caplog.at_level(logging.ERROR):
+        ok = terminal_tool_module.check_terminal_requirements()
+
+    assert ok is False
+    assert any(
+        "Unknown TERMINAL_ENV 'unknown-backend'" in record.getMessage()
+        for record in caplog.records
+    )
+
+
+def test_ssh_backend_without_host_or_user_logs_and_returns_false(monkeypatch, caplog):
+    _clear_terminal_env(monkeypatch)
+    monkeypatch.setenv("TERMINAL_ENV", "ssh")
+
+    with caplog.at_level(logging.ERROR):
+        ok = terminal_tool_module.check_terminal_requirements()
+
+    assert ok is False
+    assert any(
+        "SSH backend selected but TERMINAL_SSH_HOST and TERMINAL_SSH_USER" in record.getMessage()
+        for record in caplog.records
+    )
+
+
+def test_modal_backend_without_token_or_config_logs_specific_error(monkeypatch, caplog, tmp_path):
+    _clear_terminal_env(monkeypatch)
+    monkeypatch.setenv("TERMINAL_ENV", "modal")
+    monkeypatch.setenv("HOME", str(tmp_path))
+    monkeypatch.setenv("USERPROFILE", str(tmp_path))
+    monkeypatch.setattr(terminal_tool_module, "ensure_minisweagent_on_path", lambda *_args, **_kwargs: None)
+    monkeypatch.setattr(terminal_tool_module.importlib.util, "find_spec", lambda _name: object())
+
+    with caplog.at_level(logging.ERROR):
+        ok = terminal_tool_module.check_terminal_requirements()
+
+    assert ok is False
+    assert any(
+        "Modal backend selected but no MODAL_TOKEN_ID environment variable" in record.getMessage()
+        for record in caplog.records
+    )
diff --git a/tools/terminal_tool.py b/tools/terminal_tool.py
index 890f720db..bf1d2b6b3 100644
--- a/tools/terminal_tool.py
+++ b/tools/terminal_tool.py
@@ -1171,7 +1171,13 @@ def check_terminal_requirements() -> bool:
 
         elif env_type == "ssh":
             # Check that host and user are configured
-            return bool(config.get("ssh_host")) and bool(config.get("ssh_user"))
+            if not config.get("ssh_host") or not config.get("ssh_user"):
+                logger.error(
+                    "SSH backend selected but TERMINAL_SSH_HOST and TERMINAL_SSH_USER "
+                    "are not both set. Configure both or switch TERMINAL_ENV to 'local'."
+                )
+                return False
+            return True
 
         elif env_type == "modal":
             ensure_minisweagent_on_path(Path(__file__).resolve().parent.parent)
@@ -1179,16 +1185,30 @@ def check_terminal_requirements() -> bool:
                 logger.error("mini-swe-agent is required for modal terminal backend but is not importable")
                 return False
             # Check for modal token
-            return os.getenv("MODAL_TOKEN_ID") is not None or Path.home().joinpath(".modal.toml").exists()
+            has_token = os.getenv("MODAL_TOKEN_ID") is not None
+            has_config = Path.home().joinpath(".modal.toml").exists()
+            if not (has_token or has_config):
+                logger.error(
+                    "Modal backend selected but no MODAL_TOKEN_ID environment variable "
+                    "or ~/.modal.toml config file was found. Configure Modal or choose "
+                    "a different TERMINAL_ENV."
+                )
+                return False
+            return True
 
         elif env_type == "daytona":
             from daytona import Daytona
             return os.getenv("DAYTONA_API_KEY") is not None
 
         else:
+            logger.error(
+                "Unknown TERMINAL_ENV '%s'. Use one of: local, docker, singularity, "
+                "modal, daytona, ssh.",
+                env_type,
+            )
             return False
     except Exception as e:
-        logger.error("Terminal requirements check failed: %s", e)
+        logger.error("Terminal requirements check failed: %s", e, exc_info=True)
         return False