diff --git a/Cargo.toml b/Cargo.toml
index b2afe43f4e9..2aa30a04931 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -8,7 +8,7 @@ rust-version = "1.80"
 name = "cosmic"
 
 [features]
-default = ["multi-window", "a11y"]
+default = ["multi-window", "a11y", "dep:shlex"]
 # Accessibility support
 a11y = ["iced/a11y", "iced_accessibility"]
 # Enable about widget
@@ -43,6 +43,7 @@ desktop = [
     "dep:freedesktop-desktop-entry",
     "dep:mime",
     "dep:shlex",
+    "dep:xdg",
     "tokio?/io-util",
     "tokio?/net",
 ]
@@ -95,11 +96,14 @@ cosmic-config = { path = "cosmic-config" }
 cosmic-settings-daemon = { git = "https://github.com/pop-os/dbus-settings-bindings", optional = true }
 css-color = "0.2.5"
 derive_setters = "0.1.5"
+icu_collator = "1.5"
 image = { version = "0.25.1", optional = true }
 lazy_static = "1.4.0"
 libc = { version = "0.2.155", optional = true }
 license = { version = "3.5.1", optional = true }
 mime = { version = "0.3.17", optional = true }
+mime_guess = "2"
+once_cell = "1.19"
 palette = "0.7.3"
 rfd = { version = "0.14.0", optional = true }
 rustix = { version = "0.38.34", features = [
@@ -114,11 +118,13 @@ tokio = { version = "1.24.2", optional = true }
 tracing = "0.1.41"
 unicode-segmentation = "1.6"
 url = "2.4.0"
+xdg = { version = "2.5.2", optional = true }
 zbus = { version = "4.2.1", default-features = false, optional = true }
 
 [target.'cfg(unix)'.dependencies]
 freedesktop-icons = { package = "cosmic-freedesktop-icons", git = "https://github.com/pop-os/freedesktop-icons" }
 freedesktop-desktop-entry = { version = "0.5.1", optional = true }
+freedesktop_entry_parser = "1.3"
 shlex = { version = "1.3.0", optional = true }
 
 [dependencies.cosmic-theme]
diff --git a/iced b/iced
index 2cc6865c908..256863574ba 160000
--- a/iced
+++ b/iced
@@ -1 +1 @@
-Subproject commit 2cc6865c908d025e43d7fc937f6b67defd51ea18
+Subproject commit 256863574bacfb1d2797c2a48cba7a3388cbeb59
diff --git a/src/desktop.rs b/src/desktop.rs
index c8a7ab9e9d7..1669f0eb09d 100644
--- a/src/desktop.rs
+++ b/src/desktop.rs
@@ -6,6 +6,9 @@ use std::path::{Path, PathBuf};
 #[cfg(not(windows))]
 use std::{borrow::Cow, ffi::OsStr};
 
+#[cfg(not(windows))]
+use crate::mime_app::{exec_term_to_command, exec_to_command};
+
 #[derive(Debug, Clone, PartialEq, Eq)]
 pub enum IconSource {
     Name(String),
@@ -62,6 +65,7 @@ pub struct DesktopEntryData {
     pub desktop_actions: Vec<DesktopAction>,
     pub mime_types: Vec<Mime>,
     pub prefers_dgpu: bool,
+    pub terminal: bool,
 }
 
 #[cfg(not(windows))]
@@ -233,13 +237,18 @@ impl DesktopEntryData {
                 })
                 .unwrap_or_default(),
             prefers_dgpu: de.prefers_non_default_gpu(),
+            terminal: de.terminal(),
         }
     }
 }
 
 #[cfg(not(windows))]
-pub async fn spawn_desktop_exec<S, I, K, V>(exec: S, env_vars: I, app_id: Option<&str>)
-where
+pub async fn spawn_desktop_exec<S, I, K, V>(
+    exec: S,
+    env_vars: I,
+    app_id: Option<&str>,
+    terminal: bool,
+) where
     S: AsRef<str>,
     I: IntoIterator<Item = (K, V)>,
     K: AsRef<OsStr>,
@@ -252,14 +261,13 @@ where
         _ => return,
     };
 
-    let mut cmd = std::process::Command::new(&executable);
+    let cmd = if terminal {
+        exec_term_to_command(&executable, None)
+    } else {
+        exec_to_command(&executable, None)
+    };
 
-    for arg in exec {
-        // TODO handle "%" args here if necessary?
-        if !arg.starts_with('%') {
-            cmd.arg(arg);
-        }
-    }
+    let Some(mut cmd) = cmd else { return };
 
     cmd.envs(env_vars);
 
diff --git a/src/lib.rs b/src/lib.rs
index 3e583d131fa..fdbac18be57 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -75,6 +75,9 @@ pub mod keyboard_nav;
 
 #[cfg(feature = "desktop")]
 pub mod desktop;
+
+pub mod mime_app;
+
 #[cfg(all(feature = "process", not(windows)))]
 pub mod process;
 
diff --git a/src/mime_app.rs b/src/mime_app.rs
new file mode 100644
index 00000000000..5737e57ab82
--- /dev/null
+++ b/src/mime_app.rs
@@ -0,0 +1,341 @@
+// Copyright 2023 System76 <info@system76.com>
+// SPDX-License-Identifier: GPL-3.0-only
+
+#[cfg(feature = "desktop")]
+use crate::desktop;
+use crate::widget;
+use icu_collator::Collator;
+pub use mime_guess::Mime;
+use once_cell::sync::Lazy;
+use palette::cast::ArraysInto;
+use std::{
+    cmp::Ordering, collections::HashMap, env, path::PathBuf, process, sync::Mutex, time::Instant,
+};
+
+pub fn exec_to_command(exec: &str, path_opt: Option<PathBuf>) -> Option<process::Command> {
+    let args_vec: Vec<String> = shlex::split(exec)?;
+    let mut args = args_vec.iter();
+    let mut command = process::Command::new(args.next()?);
+    for arg in args {
+        if arg.starts_with('%') {
+            match arg.as_str() {
+                "%f" | "%F" | "%u" | "%U" => {
+                    if let Some(path) = &path_opt {
+                        command.arg(path);
+                    }
+                }
+                _ => {
+                    tracing::warn!("unsupported Exec code {:?} in {:?}", arg, exec);
+                    return None;
+                }
+            }
+        } else {
+            command.arg(arg);
+        }
+    }
+    Some(command)
+}
+
+pub fn exec_term_to_command(exec: &str, path_opt: Option<PathBuf>) -> Option<process::Command> {
+    let Some(mut term_cmd) = terminal()
+        .and_then(|term| term.exec)
+        .and_then(|exec| exec_to_command(&exec, None))
+    else {
+        tracing::warn!("No terminal was found to run {:?}", exec);
+        return None;
+    };
+
+    let exec_cmd = exec_to_command(exec, path_opt)?;
+    term_cmd.arg("-e");
+    term_cmd.arg(exec_cmd.get_program());
+    term_cmd.args(exec_cmd.get_args());
+    Some(term_cmd)
+}
+
+#[derive(Clone, Debug)]
+pub struct MimeApp {
+    pub id: String,
+    pub path: Option<PathBuf>,
+    pub name: String,
+    pub exec: Option<String>,
+    pub icon: widget::icon::Handle,
+    pub is_default: bool,
+    pub terminal: bool,
+}
+
+impl MimeApp {
+    //TODO: support multiple files
+    pub fn command(&self, path_opt: Option<PathBuf>) -> Option<process::Command> {
+        if self.terminal {
+            exec_term_to_command(self.exec.as_deref()?, path_opt)
+        } else {
+            exec_to_command(self.exec.as_deref()?, path_opt)
+        }
+    }
+}
+
+#[cfg(feature = "desktop")]
+impl From<&desktop::DesktopEntryData> for MimeApp {
+    fn from(app: &desktop::DesktopEntryData) -> Self {
+        Self {
+            id: app.id.clone(),
+            path: app.path.clone(),
+            name: app.name.clone(),
+            exec: app.exec.clone(),
+            icon: match &app.icon {
+                desktop::IconSource::Name(name) => widget::icon::from_name(name.as_str()).handle(),
+                desktop::IconSource::Path(path) => widget::icon::from_path(path.clone()),
+            },
+            is_default: false,
+            terminal: app.terminal,
+        }
+    }
+}
+
+#[cfg(feature = "desktop")]
+fn filename_eq(path_opt: &Option<PathBuf>, filename: &str) -> bool {
+    path_opt
+        .as_ref()
+        .and_then(|path| path.file_name())
+        .map(|x| x == filename)
+        .unwrap_or(false)
+}
+
+pub struct MimeAppCache {
+    cache: HashMap<Mime, Vec<MimeApp>>,
+    terminals: Vec<MimeApp>,
+}
+
+impl MimeAppCache {
+    pub fn new() -> Self {
+        let mut mime_app_cache = Self {
+            cache: HashMap::new(),
+            terminals: Vec::new(),
+        };
+        mime_app_cache.reload(None);
+        mime_app_cache
+    }
+
+    #[cfg(not(feature = "desktop"))]
+    pub fn reload(&mut self, language_sorter: Option<&Lazy<Collator>>) {}
+
+    // Only available when using desktop feature of libcosmic, which only works on Unix-likes
+    #[cfg(feature = "desktop")]
+    pub fn reload(&mut self, language_sorter: Option<&Lazy<Collator>>) {
+        let start = Instant::now();
+
+        self.cache.clear();
+        self.terminals.clear();
+
+        //TODO: get proper locale?
+        let locale = None;
+
+        // Load desktop applications by supported mime types
+        //TODO: hashmap for all apps by id?
+        let all_apps = desktop::load_applications(locale, false);
+        for app in all_apps.iter() {
+            for mime in app.mime_types.iter() {
+                let apps = self
+                    .cache
+                    .entry(mime.clone())
+                    .or_insert_with(|| Vec::with_capacity(1));
+                if apps.iter().find(|x| x.id == app.id).is_none() {
+                    apps.push(MimeApp::from(app));
+                }
+            }
+            for category in app.categories.iter() {
+                if category == "TerminalEmulator" {
+                    self.terminals.push(MimeApp::from(app));
+                    break;
+                }
+            }
+        }
+
+        let desktops: Vec<String> = env::var("XDG_CURRENT_DESKTOP")
+            .unwrap_or_default()
+            .split(':')
+            .map(|x| x.to_ascii_lowercase())
+            .collect();
+
+        // Load mimeapps.list files
+        // https://specifications.freedesktop.org/mime-apps-spec/mime-apps-spec-latest.html
+        //TODO: ensure correct lookup order
+        let mut mimeapps_paths = Vec::new();
+        match xdg::BaseDirectories::new() {
+            Ok(xdg_dirs) => {
+                for path in xdg_dirs.find_data_files("applications/mimeapps.list") {
+                    mimeapps_paths.push(path);
+                }
+                for desktop in desktops.iter().rev() {
+                    for path in
+                        xdg_dirs.find_data_files(format!("applications/{desktop}-mimeapps.list"))
+                    {
+                        mimeapps_paths.push(path);
+                    }
+                }
+                for path in xdg_dirs.find_config_files("mimeapps.list") {
+                    mimeapps_paths.push(path);
+                }
+                for desktop in desktops.iter().rev() {
+                    for path in xdg_dirs.find_config_files(format!("{desktop}-mimeapps.list")) {
+                        mimeapps_paths.push(path);
+                    }
+                }
+            }
+            Err(err) => {
+                tracing::warn!("failed to get xdg base directories: {}", err);
+            }
+        }
+
+        //TODO: handle directory specific behavior
+        for path in mimeapps_paths {
+            let entry = match freedesktop_entry_parser::parse_entry(&path) {
+                Ok(ok) => ok,
+                Err(err) => {
+                    tracing::warn!("failed to parse {:?}: {}", path, err);
+                    continue;
+                }
+            };
+
+            for attr in entry
+                .section("Added Associations")
+                .attrs()
+                .chain(entry.section("Default Applications").attrs())
+            {
+                if let Ok(mime) = attr.name.parse::<Mime>() {
+                    if let Some(filenames) = attr.value {
+                        for filename in filenames.split_terminator(';') {
+                            tracing::trace!("add {}={}", mime, filename);
+                            let apps = self
+                                .cache
+                                .entry(mime.clone())
+                                .or_insert_with(|| Vec::with_capacity(1));
+                            if apps
+                                .iter()
+                                .find(|x| filename_eq(&x.path, filename))
+                                .is_none()
+                            {
+                                if let Some(app) =
+                                    all_apps.iter().find(|x| filename_eq(&x.path, filename))
+                                {
+                                    apps.push(MimeApp::from(app));
+                                } else {
+                                    tracing::debug!("failed to add association for {:?}: application {:?} not found", mime, filename);
+                                }
+                            }
+                        }
+                    }
+                }
+            }
+
+            for attr in entry.section("Removed Associations").attrs() {
+                if let Ok(mime) = attr.name.parse::<Mime>() {
+                    if let Some(filenames) = attr.value {
+                        for filename in filenames.split_terminator(';') {
+                            tracing::trace!("remove {}={}", mime, filename);
+                            if let Some(apps) = self.cache.get_mut(&mime) {
+                                apps.retain(|x| !filename_eq(&x.path, filename));
+                            }
+                        }
+                    }
+                }
+            }
+
+            for attr in entry.section("Default Applications").attrs() {
+                if let Ok(mime) = attr.name.parse::<Mime>() {
+                    if let Some(filenames) = attr.value {
+                        for filename in filenames.split_terminator(';') {
+                            tracing::trace!("default {}={}", mime, filename);
+                            if let Some(apps) = self.cache.get_mut(&mime) {
+                                let mut found = false;
+                                for app in apps.iter_mut() {
+                                    if filename_eq(&app.path, filename) {
+                                        app.is_default = true;
+                                        found = true;
+                                    } else {
+                                        app.is_default = false;
+                                    }
+                                }
+                                if found {
+                                    break;
+                                } else {
+                                    tracing::debug!("failed to set default for {:?}: application {:?} not found", mime, filename);
+                                }
+                            }
+                        }
+                    }
+                }
+            }
+        }
+
+        // Sort apps by name
+        for apps in self.cache.values_mut() {
+            apps.sort_by(|a, b| match (a.is_default, b.is_default) {
+                (true, false) => Ordering::Less,
+                (false, true) => Ordering::Greater,
+                _ => language_sorter
+                    .as_ref()
+                    .map_or(Ordering::Equal, |ls| ls.compare(&a.name, &b.name)),
+            });
+        }
+
+        let elapsed = start.elapsed();
+        tracing::info!("loaded mime app cache in {:?}", elapsed);
+    }
+
+    pub fn get(&self, key: &Mime) -> Vec<MimeApp> {
+        self.cache
+            .get(&key)
+            .map_or_else(|| Vec::new(), |x| x.clone())
+    }
+
+    #[cfg(feature = "desktop")]
+    pub fn terminal(&self) -> Option<MimeApp> {
+        //TODO: consider rules in https://github.com/Vladimir-csp/xdg-terminal-exec
+
+        // Look for and return preferred terminals
+        //TODO: fallback order beyond cosmic-term?
+        for id in &["com.system76.CosmicTerm"] {
+            for terminal in self.terminals.iter() {
+                if &terminal.id == id {
+                    return Some(terminal.clone());
+                }
+            }
+        }
+
+        // Return whatever was the first terminal found
+        self.terminals.first().map(|x| x.clone())
+    }
+}
+
+static MIME_APP_CACHE: Lazy<Mutex<MimeAppCache>> = Lazy::new(|| Mutex::new(MimeAppCache::new()));
+
+pub fn mime_apps(mime: &Mime) -> Vec<MimeApp> {
+    let mime_app_cache = MIME_APP_CACHE.lock().unwrap();
+    mime_app_cache.get(mime)
+}
+
+pub fn terminal() -> Option<MimeApp> {
+    let mime_app_cache = MIME_APP_CACHE.lock().unwrap();
+
+    //TODO: consider rules in https://github.com/Vladimir-csp/xdg-terminal-exec
+
+    // Look for and return preferred terminals
+    //TODO: fallback order beyond cosmic-term?
+    for id in &["com.system76.CosmicTerm"] {
+        for terminal in mime_app_cache.terminals.iter() {
+            if &terminal.id == id {
+                return Some(terminal.clone());
+            }
+        }
+    }
+
+    // Return whatever was the first terminal found
+    mime_app_cache.terminals.first().map(|x| x.clone())
+}
+
+pub fn reload(language_sorter: Option<&Lazy<Collator>>) {
+    let mut mime_app_cache = MIME_APP_CACHE.lock().unwrap();
+
+    mime_app_cache.reload(language_sorter);
+}