diff --git a/init.lua b/init.lua
index d3f0c179..e5213497 100644
--- a/init.lua
+++ b/init.lua
@@ -819,5 +819,6 @@ require('lazy').setup {
   { import = 'custom.plugins' },
 }
 
+require 'custom.floating-terminal'
 -- The line beneath this is called `modeline`. See `:help modeline`
 -- vim: ts=2 sts=2 sw=2 et
diff --git a/lua/custom/floating-terminal.lua b/lua/custom/floating-terminal.lua
new file mode 100644
index 00000000..53bd004b
--- /dev/null
+++ b/lua/custom/floating-terminal.lua
@@ -0,0 +1,74 @@
+local M = {}
+
+local state = {
+  floating = {
+    buf = -1,
+    win = -1,
+    job_id = -1,
+  },
+}
+
+local function create_floating_term(opts)
+  opts = opts or {}
+
+  local width = math.floor(vim.o.columns * 0.8)
+  local height = math.floor(vim.o.lines * 0.8)
+  local row = math.floor((vim.o.lines - height) / 2)
+  local col = math.floor((vim.o.columns - width) / 2)
+
+  local buf = nil
+  if not opts.buf or not vim.api.nvim_buf_is_valid(opts.buf) then
+    buf = vim.api.nvim_create_buf(false, true)
+  else
+    buf = opts.buf
+  end
+
+  local win_config = {
+    relative = 'editor',
+    width = width,
+    height = height,
+    row = row,
+    col = col,
+    style = 'minimal',
+    border = 'rounded',
+  }
+
+  local win = vim.api.nvim_open_win(buf, true, win_config)
+  return { buf = buf, win = win }
+end
+
+-- Function for checking if a file exists, just check that you can open it for reading
+local function file_exists(filepath)
+  local f = io.open(filepath, 'r')
+  if f then
+    f:close()
+    return true
+  end
+  return false
+end
+
+M.toggle_terminal = function()
+  if state.floating.win == -1 or not vim.api.nvim_win_is_valid(state.floating.win) then
+    state.floating = create_floating_term { buf = state.floating.buf }
+    if vim.bo[state.floating.buf].buftype ~= 'terminal' then
+      state.floating.job_id = vim.fn.termopen(vim.o.shell)
+
+      if file_exists '.envrc' then
+        vim.defer_fn(function()
+          if state.floating.job_id then
+            vim.fn.chansend(state.floating.job_id, 'direnv reload\n')
+          end
+        end, 100)
+      end
+    end
+  else
+    vim.api.nvim_win_hide(state.floating.win)
+    state.floating.win = -1
+  end
+end
+
+-- Custom command for opening and closing floating terminal
+vim.api.nvim_create_user_command('FloatingTerminal', M.toggle_terminal, {})
+vim.keymap.set({ 'n', 't' }, '<leader>tt', M.toggle_terminal)
+
+return M