Can I get transparency in full screen mode in iTerm?

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No, if you change transparency in a full-screen iTerm window, it only takes affect when you leave full screen. The idea of the full screen mode is to let you focus on the work at hand in a single terminal.

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On Tiger, when I have iTerm open full screen and I open a new tab, the new tab is transparent--so it's possible. It reverts back to opaque if you minimize and re-full screen it, though. However, I agree with jtimberman; I find it annoying to have a full-screen transparent window.

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There's a solution but it's a bit of a hack :

  • Try using Afloat to setup the transparency of the window.
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This is coming before long. Star this bug to know when it's fixed: http://code.google.com/p/iterm2/issues/detail?id=276

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