diff --git a/src/depcheck/reporters/terminal.py b/src/depcheck/reporters/terminal.py
new file mode 100644
index 0000000..54e0c8e
--- /dev/null
+++ b/src/depcheck/reporters/terminal.py
@@ -0,0 +1,129 @@
+"""Terminal reporter with Rich formatting."""
+
+from typing import Optional
+
+from rich import box
+from rich.console import Console
+from rich.panel import Panel
+from rich.table import Table
+from rich.text import Text
+
+from depcheck.config import Config
+from depcheck.models import ScanResult, Severity
+
+
+class TerminalReporter:
+    """Report results in terminal-friendly format using Rich."""
+
+    def __init__(self, config: Optional[Config] = None):
+        self.config = config or Config()
+        self.console = Console()
+
+    def report(self, result: ScanResult) -> None:
+        """Display the scan result."""
+        self._print_summary(result)
+        self._print_vulnerabilities(result)
+        self._print_outdated_dependencies(result)
+
+    def _print_summary(self, result: ScanResult) -> None:
+        """Print scan summary."""
+        status = "✓ All Fresh" if result.outdated_count == 0 and result.vulnerable_count == 0 else "⚠ Issues Found"
+        status_color = "green" if result.outdated_count == 0 and result.vulnerable_count == 0 else "yellow"
+
+        summary = Table(box=box.SIMPLE, show_header=False, padding=0)
+        summary.add_column()
+        summary.add_column()
+
+        summary.add_row("Status", Text(status, style=status_color))
+        summary.add_row("Dependencies Scanned", str(len(result.dependencies)))
+        summary.add_row("Outdated Packages", str(result.outdated_count))
+        summary.add_row("Vulnerabilities", str(result.vulnerable_count))
+        if result.source_file:
+            summary.add_row("Source File", result.source_file)
+
+        self.console.print(Panel(summary, title="Dependency Scan Results", expand=False))
+
+    def _print_vulnerabilities(self, result: ScanResult) -> None:
+        """Print detected vulnerabilities."""
+        if not result.vulnerabilities:
+            return
+
+        vuln_table = Table(title="Security Vulnerabilities Detected", box=box.HEAVY_EDGE)
+        vuln_table.add_column("Package", style="cyan")
+        vuln_table.add_column("Current", style="red")
+        vuln_table.add_column("CVE ID", style="yellow")
+        vuln_table.add_column("Severity", style="bold")
+        vuln_table.add_column("Description")
+
+        severity_colors = {
+            Severity.CRITICAL: "red bold",
+            Severity.HIGH: "orange1",
+            Severity.MEDIUM: "yellow",
+            Severity.LOW: "blue",
+            Severity.INFO: "white",
+        }
+
+        for dep, vuln in result.vulnerabilities:
+            severity_style = severity_colors.get(vuln.severity, "white")
+            vuln_table.add_row(
+                dep.name,
+                dep.current_version,
+                vuln.cve_id,
+                Text(vuln.severity.value.upper(), style=severity_style),
+                vuln.description,
+            )
+
+        self.console.print(Panel(vuln_table, title="⚠ Security Vulnerabilities", expand=False))
+
+    def _print_outdated_dependencies(self, result: ScanResult) -> None:
+        """Print outdated dependencies."""
+        outdated = [d for d in result.dependencies if d.is_outdated]
+        if not outdated:
+            return
+
+        outdated_table = Table(title="Outdated Packages", box=box.HEAVY_EDGE)
+        outdated_table.add_column("Package", style="cyan")
+        outdated_table.add_column("Current", style="yellow")
+        outdated_table.add_column("Latest", style="green")
+        outdated_table.add_column("Update Type", style="magenta")
+        outdated_table.add_column("Category", style="white")
+
+        for dep in outdated:
+            update_type = ""
+            if dep.latest_version:
+                parts = dep.current_version.split(".")
+                latest_parts = dep.latest_version.split(".")
+                if latest_parts[0] > parts[0]:
+                    update_type = "major"
+                elif len(latest_parts) > 1 and len(parts) > 1 and latest_parts[1] > parts[1]:
+                    update_type = "minor"
+                elif len(latest_parts) > 2 and len(parts) > 2 and latest_parts[2] > parts[2]:
+                    update_type = "patch"
+
+            outdated_table.add_row(
+                dep.name,
+                dep.current_version,
+                dep.latest_version or "unknown",
+                update_type or "-",
+                dep.category,
+            )
+
+        self.console.print(Panel(outdated_table, title="Outdated Packages", expand=False))
+
+    def print_error(self, message: str) -> None:
+        """Print error message."""
+        self.console.print(Panel(Text(message, style="red"), title="Error", expand=False))
+
+    def print_warning(self, message: str) -> None:
+        """Print warning message."""
+        self.console.print(Panel(Text(message, style="yellow"), title="Warning", expand=False))
+
+    def print_info(self, message: str) -> None:
+        """Print info message."""
+        self.console.print(Text(message, style="blue"))
+
+    def get_exit_code(self, result: ScanResult) -> int:
+        """Determine exit code based on results."""
+        from depcheck.reporters.json import JSONReporter
+
+        return JSONReporter(self.config).get_exit_code(result)