diff --git a/src/Make_mvc.mak b/src/Make_mvc.mak
index d51d976..f86bb20 100644
--- a/src/Make_mvc.mak
+++ b/src/Make_mvc.mak
@@ -354,13 +354,24 @@
 !endif
 
 !if "$(TERMINAL)" == "yes"
-TERMINAL_OBJ   = $(OBJDIR)/terminal.obj
-TERMINAL_DEFS  = -DFEAT_TERMINAL
-!if $(MSVC_MAJOR) <= 11
-TERMINAL_DEFS = $(TERMINAL_DEFS) /I if_perl_msvc
-!endif
-TERMINAL_SRC   = terminal.c
-VTERM_LIB      = libvterm/vterm.lib
+TERM_OBJ = \
+	$(OBJDIR)/terminal.obj \
+	$(OBJDIR)/term_encoding.obj \
+	$(OBJDIR)/term_keyboard.obj \
+	$(OBJDIR)/term_mouse.obj \
+	$(OBJDIR)/term_parser.obj \
+	$(OBJDIR)/term_pen.obj \
+	$(OBJDIR)/term_screen.obj \
+	$(OBJDIR)/term_state.obj \
+	$(OBJDIR)/term_unicode.obj \
+	$(OBJDIR)/term_vterm.obj
+TERM_DEFS = -DFEAT_TERMINAL
+TERM_DEPS = \
+	libvterm/include/vterm.h \
+	libvterm/include/vterm_keycodes.h \
+	libvterm/src/rect.h \
+	libvterm/src/utf8.h \
+	libvterm/src/vterm_internal.h
 !endif
 
 !ifndef NETBEANS
@@ -470,10 +481,9 @@
 #VIMRUNTIMEDIR = somewhere
 
 CFLAGS = -c /W3 /nologo $(CVARS) -I. -Iproto -DHAVE_PATHDEF -DWIN32 \
-		$(CSCOPE_DEFS) $(TERMINAL_DEFS) $(NETBEANS_DEFS) $(CHANNEL_DEFS) \
+		$(CSCOPE_DEFS) $(TERM_DEFS) $(NETBEANS_DEFS) $(CHANNEL_DEFS) \
 		$(NBDEBUG_DEFS) $(XPM_DEFS) \
-		$(DEFINES) -DWINVER=$(WINVER) -D_WIN32_WINNT=$(WINVER) \
-		/Fo$(OUTDIR)/ 
+		$(DEFINES) -DWINVER=$(WINVER) -D_WIN32_WINNT=$(WINVER)
 
 #>>>>> end of choices
 ###########################################################################
@@ -1121,6 +1131,9 @@
 #
 !message
 
+# CFLAGS with /Fo$(OUTDIR)/
+CFLAGS_OUTDIR=$(CFLAGS) /Fo$(OUTDIR)/
+
 conflags = /nologo /subsystem:$(SUBSYSTEM)
 
 PATHDEF_SRC = $(OUTDIR)\pathdef.c
@@ -1136,7 +1149,7 @@
 LINKARGS1 = $(linkdebug) $(conflags)
 LINKARGS2 = $(CON_LIB) $(GUI_LIB) $(NODEFAULTLIB) $(LIBC) $(OLE_LIB) user32.lib \
 		$(LUA_LIB) $(MZSCHEME_LIB) $(PERL_LIB) $(PYTHON_LIB) $(PYTHON3_LIB) $(RUBY_LIB) \
-		$(TCL_LIB) $(NETBEANS_LIB) $(VTERM_LIB) $(XPM_LIB) $(LINK_PDB)
+		$(TCL_LIB) $(NETBEANS_LIB) $(XPM_LIB) $(LINK_PDB)
 
 # Report link time code generation progress if used. 
 !ifdef NODEBUG
@@ -1157,12 +1170,12 @@
 
 $(VIM).exe: $(OUTDIR) $(OBJ) $(GUI_OBJ) $(CUI_OBJ) $(OLE_OBJ) $(OLE_IDL) $(MZSCHEME_OBJ) \
 		$(LUA_OBJ) $(PERL_OBJ) $(PYTHON_OBJ) $(PYTHON3_OBJ) $(RUBY_OBJ) $(TCL_OBJ) \
-		$(CSCOPE_OBJ) $(TERMINAL_OBJ) $(NETBEANS_OBJ) $(CHANNEL_OBJ) $(XPM_OBJ) $(VTERM_LIB) \
+		$(CSCOPE_OBJ) $(TERM_OBJ) $(NETBEANS_OBJ) $(CHANNEL_OBJ) $(XPM_OBJ) \
 		version.c version.h
-	$(CC) $(CFLAGS) version.c
+	$(CC) $(CFLAGS_OUTDIR) version.c
 	$(link) $(LINKARGS1) -out:$(VIM).exe $(OBJ) $(GUI_OBJ) $(CUI_OBJ) $(OLE_OBJ) \
 		$(LUA_OBJ) $(MZSCHEME_OBJ) $(PERL_OBJ) $(PYTHON_OBJ) $(PYTHON3_OBJ) $(RUBY_OBJ) \
-		$(TCL_OBJ) $(CSCOPE_OBJ) $(TERMINAL_OBJ) $(NETBEANS_OBJ) $(CHANNEL_OBJ) \
+		$(TCL_OBJ) $(CSCOPE_OBJ) $(TERM_OBJ) $(NETBEANS_OBJ) $(CHANNEL_OBJ) \
 		$(XPM_OBJ) $(OUTDIR)\version.obj $(LINKARGS2)
 	if exist $(VIM).exe.manifest mt.exe -nologo -manifest $(VIM).exe.manifest -updateresource:$(VIM).exe;1
 
@@ -1256,7 +1269,7 @@
 !ELSE
 .c{$(OUTDIR)/}.obj::
 !ENDIF
-	$(CC) $(CFLAGS) $<
+	$(CC) $(CFLAGS_OUTDIR) $<
 
 # Create a default rule for transforming .cpp files to .obj files in $(OUTDIR)
 # Batch compilation is supported by nmake 1.62 (part of VS 5.0) and later)
@@ -1265,7 +1278,7 @@
 !ELSE
 .cpp{$(OUTDIR)/}.obj::
 !ENDIF
-	$(CC) $(CFLAGS) $<
+	$(CC) $(CFLAGS_OUTDIR) $<
 
 $(OUTDIR)/arabic.obj:	$(OUTDIR) arabic.c  $(INCL)
 
@@ -1324,41 +1337,41 @@
 $(OUTDIR)/if_cscope.obj: $(OUTDIR) if_cscope.c  $(INCL)
 
 $(OUTDIR)/if_lua.obj: $(OUTDIR) if_lua.c  $(INCL)
-	$(CC) $(CFLAGS) $(LUA_INC) if_lua.c
+	$(CC) $(CFLAGS_OUTDIR) $(LUA_INC) if_lua.c
 
 if_perl.c : if_perl.xs typemap
 	$(XSUBPP) -prototypes -typemap $(XSUBPP_TYPEMAP) \
 		-typemap typemap if_perl.xs > if_perl.c
 
 $(OUTDIR)/if_perl.obj: $(OUTDIR) if_perl.c  $(INCL)
-	$(CC) $(CFLAGS) $(PERL_INC) if_perl.c
+	$(CC) $(CFLAGS_OUTDIR) $(PERL_INC) if_perl.c
 
 $(OUTDIR)/if_perlsfio.obj: $(OUTDIR) if_perlsfio.c  $(INCL)
-	$(CC) $(CFLAGS) $(PERL_INC) if_perlsfio.c
+	$(CC) $(CFLAGS_OUTDIR) $(PERL_INC) if_perlsfio.c
 
 $(OUTDIR)/if_mzsch.obj: $(OUTDIR) if_mzsch.c if_mzsch.h $(INCL) $(MZSCHEME_EXTRA_DEP)
-	$(CC) $(CFLAGS) if_mzsch.c \
+	$(CC) $(CFLAGS_OUTDIR) if_mzsch.c \
 		-DMZSCHEME_COLLECTS="\"$(MZSCHEME_COLLECTS:\=\\)\""
 
 lib$(MZSCHEME_MAIN_LIB)$(MZSCHEME_VER).lib:
 	lib /DEF:"$(MZSCHEME)\lib\lib$(MZSCHEME_MAIN_LIB)$(MZSCHEME_VER).def"
 
 $(OUTDIR)/if_python.obj: $(OUTDIR) if_python.c if_py_both.h $(INCL)
-	$(CC) $(CFLAGS) $(PYTHON_INC) if_python.c
+	$(CC) $(CFLAGS_OUTDIR) $(PYTHON_INC) if_python.c
 
 $(OUTDIR)/if_python3.obj: $(OUTDIR) if_python3.c if_py_both.h $(INCL)
-	$(CC) $(CFLAGS) $(PYTHON3_INC) if_python3.c
+	$(CC) $(CFLAGS_OUTDIR) $(PYTHON3_INC) if_python3.c
 
 $(OUTDIR)/if_ole.obj: $(OUTDIR) if_ole.cpp  $(INCL) if_ole.h
 
 $(OUTDIR)/if_ruby.obj: $(OUTDIR) if_ruby.c  $(INCL)
-	$(CC) $(CFLAGS) $(RUBY_INC) if_ruby.c
+	$(CC) $(CFLAGS_OUTDIR) $(RUBY_INC) if_ruby.c
 
 $(OUTDIR)/if_tcl.obj: $(OUTDIR) if_tcl.c  $(INCL)
-	$(CC) $(CFLAGS) $(TCL_INC) if_tcl.c
+	$(CC) $(CFLAGS_OUTDIR) $(TCL_INC) if_tcl.c
 
 $(OUTDIR)/iscygpty.obj:	$(OUTDIR) iscygpty.c $(CUI_INCL)
-	$(CC) $(CFLAGS) iscygpty.c -D_WIN32_WINNT=0x0600 -DUSE_DYNFILEID -DENABLE_STUB_IMPL
+	$(CC) $(CFLAGS_OUTDIR) iscygpty.c -D_WIN32_WINNT=0x0600 -DUSE_DYNFILEID -DENABLE_STUB_IMPL
 
 $(OUTDIR)/json.obj:	$(OUTDIR) json.c  $(INCL)
 
@@ -1396,7 +1409,7 @@
 
 $(OUTDIR)/os_mswin.obj:	$(OUTDIR) os_mswin.c  $(INCL)
 
-$(OUTDIR)/terminal.obj:	$(OUTDIR) terminal.c  $(INCL)
+$(OUTDIR)/terminal.obj:	$(OUTDIR) terminal.c  $(INCL) $(TERM_DEPS)
 
 $(OUTDIR)/winclip.obj:	$(OUTDIR) winclip.c  $(INCL)
 
@@ -1405,7 +1418,7 @@
 $(OUTDIR)/os_w32exe.obj:	$(OUTDIR) os_w32exe.c  $(INCL)
 
 $(OUTDIR)/pathdef.obj:	$(OUTDIR) $(PATHDEF_SRC) $(INCL)
-	$(CC) $(CFLAGS) $(PATHDEF_SRC)
+	$(CC) $(CFLAGS_OUTDIR) $(PATHDEF_SRC)
 
 $(OUTDIR)/popupmnu.obj:	$(OUTDIR) popupmnu.c  $(INCL)
 
@@ -1438,7 +1451,7 @@
 $(OUTDIR)/window.obj:	$(OUTDIR) window.c  $(INCL)
 
 $(OUTDIR)/xpm_w32.obj: $(OUTDIR) xpm_w32.c
-	$(CC) $(CFLAGS) $(XPM_INC) xpm_w32.c
+	$(CC) $(CFLAGS_OUTDIR) $(XPM_INC) xpm_w32.c
 
 $(OUTDIR)/vim.res:	$(OUTDIR) vim.rc gvim.exe.mnf version.h tools.bmp \
 				tearoff.bmp vim.ico vim_error.ico \
@@ -1456,6 +1469,36 @@
 
 $(OUTDIR)/glbl_ime.obj:	$(OUTDIR) glbl_ime.cpp  dimm.h $(INCL)
 
+
+CCCTERM = $(CC) $(CFLAGS) -Ilibvterm/include -DINLINE="" -DVSNPRINTF=vim_vsnprintf
+$(OUTDIR)/term_encoding.obj: $(OUTDIR) libvterm/src/encoding.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/encoding.c
+
+$(OUTDIR)/term_keyboard.obj: $(OUTDIR) libvterm/src/keyboard.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/keyboard.c
+
+$(OUTDIR)/term_mouse.obj: $(OUTDIR) libvterm/src/mouse.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/mouse.c
+
+$(OUTDIR)/term_parser.obj: $(OUTDIR) libvterm/src/parser.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/parser.c
+
+$(OUTDIR)/term_pen.obj: $(OUTDIR) libvterm/src/pen.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/pen.c
+
+$(OUTDIR)/term_screen.obj: $(OUTDIR) libvterm/src/screen.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/screen.c
+
+$(OUTDIR)/term_state.obj: $(OUTDIR) libvterm/src/state.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/state.c
+
+$(OUTDIR)/term_unicode.obj: $(OUTDIR) libvterm/src/unicode.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/unicode.c
+
+$(OUTDIR)/term_vterm.obj: $(OUTDIR) libvterm/src/vterm.c $(TERM_DEPS)
+	$(CCCTERM) -Fo$@ libvterm/src/vterm.c
+
+
 # $CFLAGS may contain backslashes and double quotes, escape them both.
 E0_CFLAGS = $(CFLAGS:\=\\)
 E_CFLAGS = $(E0_CFLAGS:"=\")
@@ -1550,9 +1593,4 @@
 .c.i:
 	$(CC) $(CFLAGS) /P /C $<
 
-libvterm/vterm.lib :
-	cd libvterm
-	$(MAKE) /NOLOGO -f Makefile.msc "MSVC_MAJOR=$(MSVC_MAJOR)"
-	cd ..
-
 # vim: set noet sw=8 ts=8 sts=0 wm=0 tw=0: