diff --git a/CHANGELOG.md b/CHANGELOG.md
index 752397a0..7da09275 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [0.6.0] - 07-Feb-2019
 
+### Changed
+
+- Termbox is now initialized in 256 color mode by default.
+
 ### Added
 
 - The SegmentDisplay widget.
diff --git a/terminal/termbox/termbox.go b/terminal/termbox/termbox.go
index 70d232c8..2953c055 100644
--- a/terminal/termbox/termbox.go
+++ b/terminal/termbox/termbox.go
@@ -39,7 +39,11 @@ func (o option) set(t *Terminal) {
 	o(t)
 }
 
+// DefaultColorMode is the default value for the ColorMode option.
+const DefaultColorMode = terminalapi.ColorMode256
+
 // ColorMode sets the terminal color mode.
+// Defaults to DefaultColorMode.
 func ColorMode(cm terminalapi.ColorMode) Option {
 	return option(func(t *Terminal) {
 		t.colorMode = cm
@@ -60,6 +64,19 @@ type Terminal struct {
 	colorMode terminalapi.ColorMode
 }
 
+// newTerminal creates the terminal and applies the options.
+func newTerminal(opts ...Option) *Terminal {
+	t := &Terminal{
+		events:    eventqueue.New(),
+		done:      make(chan struct{}),
+		colorMode: DefaultColorMode,
+	}
+	for _, opt := range opts {
+		opt.set(t)
+	}
+	return t
+}
+
 // New returns a new termbox based Terminal.
 // Call Close() when the terminal isn't required anymore.
 func New(opts ...Option) (*Terminal, error) {
@@ -68,14 +85,7 @@ func New(opts ...Option) (*Terminal, error) {
 	}
 	tbx.SetInputMode(tbx.InputEsc | tbx.InputMouse)
 
-	t := &Terminal{
-		events: eventqueue.New(),
-		done:   make(chan struct{}),
-	}
-	for _, opt := range opts {
-		opt.set(t)
-	}
-
+	t := newTerminal(opts...)
 	om, err := colorMode(t.colorMode)
 	if err != nil {
 		return nil, err
diff --git a/terminal/termbox/termbox_test.go b/terminal/termbox/termbox_test.go
new file mode 100644
index 00000000..355ddad6
--- /dev/null
+++ b/terminal/termbox/termbox_test.go
@@ -0,0 +1,60 @@
+// Copyright 2019 Google Inc.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//      http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package termbox
+
+import (
+	"testing"
+
+	"github.com/kylelemons/godebug/pretty"
+	"github.com/mum4k/termdash/terminalapi"
+)
+
+func TestNewTerminal(t *testing.T) {
+	tests := []struct {
+		desc string
+		opts []Option
+		want *Terminal
+	}{
+		{
+			desc: "default options",
+			want: &Terminal{
+				colorMode: terminalapi.ColorMode256,
+			},
+		},
+		{
+			desc: "sets color mode",
+			opts: []Option{
+				ColorMode(terminalapi.ColorModeNormal),
+			},
+			want: &Terminal{
+				colorMode: terminalapi.ColorModeNormal,
+			},
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.desc, func(t *testing.T) {
+			got := newTerminal(tc.opts...)
+
+			// Ignore these fields.
+			got.events = nil
+			got.done = nil
+
+			if diff := pretty.Compare(tc.want, got); diff != "" {
+				t.Errorf("newTerminal => unexpected diff (-want, +got):\n%s", diff)
+			}
+		})
+	}
+}