diff --git a/.eslintrc.json b/.eslintrc.json
index 8c47598205..acd85af60a 100644
--- a/.eslintrc.json
+++ b/.eslintrc.json
@@ -23,6 +23,8 @@
       "addons/addon-image/src/tsconfig.json",
       "addons/addon-image/test/tsconfig.json",
       "addons/addon-ligatures/src/tsconfig.json",
+      "addons/addon-progress/src/tsconfig.json",
+      "addons/addon-progress/test/tsconfig.json",
       "addons/addon-search/src/tsconfig.json",
       "addons/addon-search/test/tsconfig.json",
       "addons/addon-serialize/src/tsconfig.json",
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 559ae17a80..18d34831f0 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -44,6 +44,9 @@ jobs:
           ./addons/addon-ligatures/lib/* \
           ./addons/addon-ligatures/out/* \
           ./addons/addon-ligatures/out-*/* \
+          ./addons/addon-progress/lib/* \
+          ./addons/addon-progress/out/* \
+          ./addons/addon-progress/out-*/* \
           ./addons/addon-search/lib/* \
           ./addons/addon-search/out/* \
           ./addons/addon-search/out-*/* \
@@ -212,6 +215,8 @@ jobs:
       run: yarn test-integration-${{ matrix.browser }} --workers=50% --forbid-only --suite=addon-fit
     - name: Integration tests (addon-image)
       run: yarn test-integration-${{ matrix.browser }} --workers=50% --forbid-only --suite=addon-image
+    - name: Integration tests (addon-progress)
+      run: yarn test-integration-${{ matrix.browser }} --workers=50% --forbid-only --suite=addon-progress
     - name: Integration tests (addon-search)
       run: yarn test-integration-${{ matrix.browser }} --workers=50% --forbid-only --suite=addon-search
     - name: Integration tests (addon-serialize)
diff --git a/addons/addon-progress/.gitignore b/addons/addon-progress/.gitignore
new file mode 100644
index 0000000000..3063f07d55
--- /dev/null
+++ b/addons/addon-progress/.gitignore
@@ -0,0 +1,2 @@
+lib
+node_modules
diff --git a/addons/addon-progress/.npmignore b/addons/addon-progress/.npmignore
new file mode 100644
index 0000000000..d2fb3bdcc4
--- /dev/null
+++ b/addons/addon-progress/.npmignore
@@ -0,0 +1,32 @@
+# Blacklist - exclude everything except npm defaults such as LICENSE, etc
+*
+!*/
+
+# Whitelist - lib/
+!lib/**/*.d.ts
+
+!lib/**/*.js
+!lib/**/*.js.map
+
+!lib/**/*.mjs
+!lib/**/*.mjs.map
+
+!lib/**/*.css
+
+# Whitelist - src/
+!src/**/*.ts
+!src/**/*.d.ts
+
+!src/**/*.js
+!src/**/*.js.map
+
+!src/**/*.css
+
+# Blacklist - src/ test files
+src/**/*.test.ts
+src/**/*.test.d.ts
+src/**/*.test.js
+src/**/*.test.js.map
+
+# Whitelist - typings/
+!typings/*.d.ts
diff --git a/addons/addon-progress/LICENSE b/addons/addon-progress/LICENSE
new file mode 100644
index 0000000000..447eb79f4d
--- /dev/null
+++ b/addons/addon-progress/LICENSE
@@ -0,0 +1,19 @@
+Copyright (c) 2024, The xterm.js authors (https://github.com/xtermjs/xterm.js)
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in
+all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+THE SOFTWARE.
diff --git a/addons/addon-progress/README.md b/addons/addon-progress/README.md
new file mode 100644
index 0000000000..76ddb76c22
--- /dev/null
+++ b/addons/addon-progress/README.md
@@ -0,0 +1,69 @@
+## @xterm/addon-progress
+
+An xterm.js addon providing an interface for ConEmu's progress sequence.
+See https://conemu.github.io/en/AnsiEscapeCodes.html#ConEmu_specific_OSC for sequence details.
+
+
+### Install
+
+```bash
+npm install --save @xterm/addon-progress
+```
+
+
+### Usage
+
+```ts
+import { Terminal } from '@xterm/xterm';
+import { ProgressAddon, IProgressState } from '@xterm/addon-progress';
+
+const terminal = new Terminal();
+const progressAddon = new ProgressAddon();
+terminal.loadAddon(progressAddon);
+progressAddon.onChange({state, value}: IProgressState) => {
+  // state: 0-4 integer (see below for meaning)
+  // value: 0-100 integer (percent value)
+  
+  // do your visualisation based on state/value here
+  ...
+});
+```
+
+See the full [API](https://github.com/xtermjs/xterm.js/blob/master/addons/addon-progress/typings/addon-progress.d.ts) for more advanced usage.
+
+### Sequence
+
+The sequence to set progress information has the following format:
+
+```plain
+ESC ] 9 ; 4 ; <state> ; <progress value> BEL
+```
+
+where state is a decimal number in 0 to 4 and progress value is a decimal number in 0 to 100.
+The states have the following meaning:
+
+- 0: Remove any progress indication. Also resets progress value to 0. A given progress value will be ignored.
+- 1: Normal state to set a progress value. The value should be in 0..100, greater values are clamped to 100.
+  If the value is omitted, it will be set to 0.
+- 2: Error state with an optional progress value. An omitted value will be set to 0,
+  which has a special meaning using the last active value.
+- 3: Actual progress is "indeterminate", any progress value will be ignored. Meant to be used to indicate
+  a running task without progress information (e.g. by a spinner). A previously set progress value
+  by any other state sequence will be left untouched.
+- 4: Pause or warning state with an optional progress value. An omitted value will be set to 0,
+  which has a special meaning using the last active value.
+
+The addon resolves most of those semantic nuances and will provide these ready-to-go values:
+- For the remove state (0) any progress value wont be parsed, thus is even allowed to contain garbage.
+  It will always emit `{state: 0, value: 0}`.
+- For the set state (1) an omitted value will be set to 0 emitting `{state: 1, value: 0}`.
+  If a value was given, it must be decimal digits only, any characters outside will mark the whole sequence
+  as faulty (no sloppy integer parsing). The value will be clamped to max 100 giving
+  `{state: 1, value: parsedAndClampedValue}`.
+- For the error and pause state (2 & 4) an omitted or zero value will emit `{state: 2|4, value: lastValue}`.
+  If a value was given, it must be decimal digits only, any characters outside will mark the whole sequence
+  as faulty (no sloppy integer parsing). The value will be clamped to max 100 giving
+  `{state: 2|4, value: parsedAndClampedValue}`.
+- For the indeterminate state (3) a value notion will be ignored.
+  It still emits the value as `{state: 3, value: lastValue}`. Keep in mind not use that value while
+  that state is active, as a task might have entered that state without a proper reset at the beginning.
diff --git a/addons/addon-progress/package.json b/addons/addon-progress/package.json
new file mode 100644
index 0000000000..57a06d682b
--- /dev/null
+++ b/addons/addon-progress/package.json
@@ -0,0 +1,28 @@
+{
+  "name": "@xterm/addon-progress",
+  "version": "0.1.0",
+  "author": {
+    "name": "The xterm.js authors",
+    "url": "https://xtermjs.org/"
+  },
+  "main": "lib/addon-progress.js",
+  "module": "lib/addon-progress.mjs",
+  "types": "typings/addon-progress.d.ts",
+  "repository": "https://github.com/xtermjs/xterm.js/tree/master/addons/addon-progress",
+  "license": "MIT",
+  "keywords": [
+    "terminal",
+    "xterm",
+    "xterm.js"
+  ],
+  "scripts": {
+    "build": "../../node_modules/.bin/tsc -p .",
+    "prepackage": "npm run build",
+    "package": "../../node_modules/.bin/webpack",
+    "prepublishOnly": "npm run package",
+    "start": "node ../../demo/start"
+  },
+  "peerDependencies": {
+    "@xterm/xterm": "^5.0.0"
+  }
+}
diff --git a/addons/addon-progress/src/ProgressAddon.ts b/addons/addon-progress/src/ProgressAddon.ts
new file mode 100644
index 0000000000..24e5786068
--- /dev/null
+++ b/addons/addon-progress/src/ProgressAddon.ts
@@ -0,0 +1,101 @@
+/**
+ * Copyright (c) 2024 The xterm.js authors. All rights reserved.
+ * @license MIT
+ */
+
+import type { Terminal, ITerminalAddon, IDisposable } from '@xterm/xterm';
+import type { ProgressAddon as IProgressApi, IProgressState } from '@xterm/addon-progress';
+import type { Emitter, Event } from 'vs/base/common/event';
+
+
+const enum ProgressType {
+  REMOVE = 0,
+  SET = 1,
+  ERROR = 2,
+  INDETERMINATE = 3,
+  PAUSE = 4
+}
+
+
+/**
+ * Strict integer parsing, only decimal digits allowed.
+ */
+function toInt(s: string): number {
+  let v = 0;
+  for (let i = 0; i < s.length; ++i) {
+    const c = s.charCodeAt(i);
+    if (c < 0x30 || 0x39 < c) {
+      return -1;
+    }
+    v = v * 10 + c - 48;
+  }
+  return v;
+}
+
+
+export class ProgressAddon implements ITerminalAddon, IProgressApi {
+  private _seqHandler: IDisposable | undefined;
+  private _st: ProgressType = ProgressType.REMOVE;
+  private _pr = 0;
+  private _onChange: Emitter<IProgressState> | undefined;
+  public onChange: Event<IProgressState> | undefined;
+
+  public dispose(): void {
+    this._seqHandler?.dispose();
+    this._onChange?.dispose();
+  }
+
+  public activate(terminal: Terminal): void {
+    this._seqHandler = terminal.parser.registerOscHandler(9, data => {
+      if (!data.startsWith('4;')) {
+        return false;
+      }
+      const parts = data.split(';');
+
+      if (parts.length > 3) {
+        return true;  // faulty sequence, just exit
+      }
+      if (parts.length === 2) {
+        parts.push('');
+      }
+      const st = toInt(parts[1]);
+      const pr = toInt(parts[2]);
+
+      switch (st) {
+        case ProgressType.REMOVE:
+          this.progress = { state: st, value: 0 };
+          break;
+        case ProgressType.SET:
+          if (pr < 0) return true;  // faulty sequence, just exit
+          this.progress = { state: st, value: pr };
+          break;
+        case ProgressType.ERROR:
+        case ProgressType.PAUSE:
+          if (pr < 0) return true;  // faulty sequence, just exit
+          this.progress = { state: st, value: pr || this._pr };
+          break;
+        case ProgressType.INDETERMINATE:
+          this.progress = { state: st, value: this._pr };
+          break;
+      }
+      return true;
+    });
+    // FIXME: borrow emitter ctor from xterm, to be changed once #5283 is resolved
+    this._onChange = new (terminal as any)._core._onData.constructor();
+    this.onChange = this._onChange!.event;
+  }
+
+  public get progress(): IProgressState {
+    return { state: this._st, value: this._pr };
+  }
+
+  public set progress(progress: IProgressState) {
+    if (progress.state < 0 || progress.state > 4) {
+      console.warn(`progress state out of bounds, not applied`);
+      return;
+    }
+    this._st = progress.state;
+    this._pr = Math.min(Math.max(progress.value, 0), 100);
+    this._onChange?.fire({ state: this._st, value: this._pr });
+  }
+}
diff --git a/addons/addon-progress/src/tsconfig.json b/addons/addon-progress/src/tsconfig.json
new file mode 100644
index 0000000000..ffc7b01a58
--- /dev/null
+++ b/addons/addon-progress/src/tsconfig.json
@@ -0,0 +1,42 @@
+{
+  "compilerOptions": {
+    "module": "commonjs",
+    "target": "es2021",
+    "lib": [
+      "dom",
+      "es2015"
+    ],
+    "rootDir": ".",
+    "outDir": "../out",
+    "sourceMap": true,
+    "removeComments": true,
+    "strict": true,
+    "types": [
+      "../../../node_modules/@types/mocha",
+      "../../../src/vs/typings/thenable"
+    ],
+    "paths": {
+      "browser/*": [
+        "../../../src/browser/*"
+      ],
+      "vs/*": [
+        "../../../src/vs/*"
+      ],
+      "@xterm/addon-progress": [
+        "../typings/addon-progress.d.ts"
+      ]
+    }
+  },
+  "include": [
+    "./**/*",
+    "../../../typings/xterm.d.ts"
+  ],
+  "references": [
+    {
+      "path": "../../../src/browser"
+    },
+    {
+      "path": "../../../src/vs"
+    }
+  ]
+}
diff --git a/addons/addon-progress/test/ProgressAddon.test.ts b/addons/addon-progress/test/ProgressAddon.test.ts
new file mode 100644
index 0000000000..792c0445de
--- /dev/null
+++ b/addons/addon-progress/test/ProgressAddon.test.ts
@@ -0,0 +1,129 @@
+/**
+ * Copyright (c) 2024 The xterm.js authors. All rights reserved.
+ * @license MIT
+ */
+
+import test from '@playwright/test';
+import { deepStrictEqual } from 'assert';
+import { ITestContext, createTestContext, openTerminal } from '../../../test/playwright/TestUtils';
+
+
+let ctx: ITestContext;
+test.beforeAll(async ({ browser }) => {
+  ctx = await createTestContext(browser);
+  ctx.page.setViewportSize({ width: 1024, height: 768 });
+  await openTerminal(ctx);
+});
+test.afterAll(async () => await ctx.page.close());
+
+
+test.describe('ProgressAddon', () => {
+  test.beforeEach(async function(): Promise<any> {
+    await ctx.page.evaluate(`
+      window.progressStack = [];
+      window.term.reset();
+      window.progressAddon?.dispose();
+      window.progressAddon = new ProgressAddon();
+      window.term.loadAddon(window.progressAddon);
+      window.progressAddon.onChange(progress => window.progressStack.push(progress));
+    `);
+  });
+
+  test('initial values should be 0;0', async () => {
+    deepStrictEqual(await ctx.page.evaluate('window.progressAddon.progress'), {state: 0, value: 0});
+  });
+  test('state 0: remove', async () => {
+    // no value
+    await ctx.proxy.write('\x1b]9;4;0\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 0, value: 0}]);
+    // value ignored
+    await ctx.proxy.write('\x1b]9;4;0;12\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 0, value: 0}, {state: 0, value: 0}]);
+  });
+  test('state 1: set', async () => {
+    // set 10%
+    await ctx.proxy.write('\x1b]9;4;1;10\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 10}]);
+    // set 50%
+    await ctx.proxy.write('\x1b]9;4;1;50\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 10}, {state: 1, value: 50}]);
+    // set 23%
+    await ctx.proxy.write('\x1b]9;4;1;23\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 10}, {state: 1, value: 50}, {state: 1, value: 23}]);
+  });
+  test('state 1: set - special sequence handling', async () => {
+    // missing progress value defaults to 0
+    await ctx.proxy.write('\x1b]9;4;1\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 0}]);
+    // malformed progress value get ignored
+    await ctx.proxy.write('\x1b]9;4;1;12x\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 0}]);
+    // out of bounds gets clamped to 100
+    await ctx.proxy.write('\x1b]9;4;1;123\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), [{state: 1, value: 0}, {state: 1, value: 100}]);
+  });
+  test('state 2: error - preserve previous value on empty/0', async () => {
+    // set value to 12
+    await ctx.proxy.write('\x1b]9;4;1;12\x1b\\');
+    // omitted/empty/0 value emits previous value
+    await ctx.proxy.write('\x1b]9;4;2\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;2;\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;2;0\x1b\\');
+    deepStrictEqual(
+      await ctx.page.evaluate('window.progressStack'),
+      [{state: 1, value: 12}, {state: 2, value: 12}, {state: 2, value: 12}, {state: 2, value: 12}]
+    );
+  });
+  test('state 2: error - with new value', async () => {
+    // set value to 12
+    await ctx.proxy.write('\x1b]9;4;1;12\x1b\\');
+    // new value updates clamped
+    await ctx.proxy.write('\x1b]9;4;2;25\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;2;123\x1b\\');
+    deepStrictEqual(
+      await ctx.page.evaluate('window.progressStack'),
+      [{state: 1, value: 12}, {state: 2, value: 25}, {state: 2, value: 100}]
+    );
+  });
+  test('state 3: indeterminate - keeps value untouched', async () => {
+    // set value to 12
+    await ctx.proxy.write('\x1b]9;4;1;12\x1b\\');
+    // new value updates clamped
+    await ctx.proxy.write('\x1b]9;4;3\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;3;123\x1b\\');
+    deepStrictEqual(
+      await ctx.page.evaluate('window.progressStack'),
+      [{state: 1, value: 12}, {state: 3, value: 12}, {state: 3, value: 12}]
+    );
+  });
+  test('state 4: pause - preserve previous value on empty/0', async () => {
+    // set value to 12
+    await ctx.proxy.write('\x1b]9;4;1;12\x1b\\');
+    // omitted/empty/0 value emits previous value
+    await ctx.proxy.write('\x1b]9;4;4\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;4;\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;4;0\x1b\\');
+    deepStrictEqual(
+      await ctx.page.evaluate('window.progressStack'),
+      [{state: 1, value: 12}, {state: 4, value: 12}, {state: 4, value: 12}, {state: 4, value: 12}]
+    );
+  });
+  test('state 4: pause - with new value', async () => {
+    // set value to 12
+    await ctx.proxy.write('\x1b]9;4;1;12\x1b\\');
+    // new value updates clamped
+    await ctx.proxy.write('\x1b]9;4;4;25\x1b\\');
+    await ctx.proxy.write('\x1b]9;4;4;123\x1b\\');
+    deepStrictEqual(
+      await ctx.page.evaluate('window.progressStack'),
+      [{state: 1, value: 12}, {state: 4, value: 25}, {state: 4, value: 100}]
+    );
+  });
+  test('invalid sequences should not emit anything', async () => {
+    // illegal state
+    await ctx.proxy.write('\x1b]9;4;5;12\x1b\\');
+    // illegal chars in value
+    await ctx.proxy.write('\x1b]9;4;1; 123xxxx\x1b\\');
+    deepStrictEqual(await ctx.page.evaluate('window.progressStack'), []);
+  });
+});
diff --git a/addons/addon-progress/test/playwright.config.ts b/addons/addon-progress/test/playwright.config.ts
new file mode 100644
index 0000000000..22834be116
--- /dev/null
+++ b/addons/addon-progress/test/playwright.config.ts
@@ -0,0 +1,35 @@
+import { PlaywrightTestConfig } from '@playwright/test';
+
+const config: PlaywrightTestConfig = {
+  testDir: '.',
+  timeout: 10000,
+  projects: [
+    {
+      name: 'ChromeStable',
+      use: {
+        browserName: 'chromium',
+        channel: 'chrome'
+      }
+    },
+    {
+      name: 'FirefoxStable',
+      use: {
+        browserName: 'firefox'
+      }
+    },
+    {
+      name: 'WebKit',
+      use: {
+        browserName: 'webkit'
+      }
+    }
+  ],
+  reporter: 'list',
+  webServer: {
+    command: 'npm run start',
+    port: 3000,
+    timeout: 120000,
+    reuseExistingServer: !process.env.CI
+  }
+};
+export default config;
diff --git a/addons/addon-progress/test/tsconfig.json b/addons/addon-progress/test/tsconfig.json
new file mode 100644
index 0000000000..cff277055b
--- /dev/null
+++ b/addons/addon-progress/test/tsconfig.json
@@ -0,0 +1,41 @@
+{
+  "compilerOptions": {
+    "module": "commonjs",
+    "target": "ESNext",
+    "lib": [
+      "es2021",
+    ],
+    "rootDir": ".",
+    "outDir": "../out-test",
+    "sourceMap": true,
+    "removeComments": true,
+    "baseUrl": ".",
+    "paths": {
+      "common/*": [
+        "../../../src/common/*"
+      ],
+      "browser/*": [
+        "../../../src/browser/*"
+      ]
+    },
+    "strict": true,
+    "types": [
+      "../../../node_modules/@types/node"
+    ]
+  },
+  "include": [
+    "./**/*",
+    "../../../typings/xterm.d.ts"
+  ],
+  "references": [
+    {
+      "path": "../../../src/common"
+    },
+    {
+      "path": "../../../src/browser"
+    },
+    {
+      "path": "../../../test/playwright"
+    }
+  ]
+}
diff --git a/addons/addon-progress/tsconfig.json b/addons/addon-progress/tsconfig.json
new file mode 100644
index 0000000000..2d820dd1a6
--- /dev/null
+++ b/addons/addon-progress/tsconfig.json
@@ -0,0 +1,8 @@
+{
+  "files": [],
+  "include": [],
+  "references": [
+    { "path": "./src" },
+    { "path": "./test" }
+  ]
+}
diff --git a/addons/addon-progress/typings/addon-progress.d.ts b/addons/addon-progress/typings/addon-progress.d.ts
new file mode 100644
index 0000000000..923a2aa39b
--- /dev/null
+++ b/addons/addon-progress/typings/addon-progress.d.ts
@@ -0,0 +1,54 @@
+/**
+ * Copyright (c) 2024 The xterm.js authors. All rights reserved.
+ * @license MIT
+ */
+
+import { Terminal, ITerminalAddon, IDisposable } from '@xterm/xterm';
+import type { Event } from 'vs/base/common/event';
+
+
+declare module '@xterm/addon-progress' {
+  /**
+   * An xterm.js addon that provides an interface for ConEmu's progress
+   * sequence.
+   */
+  export class ProgressAddon implements ITerminalAddon, IDisposable {
+    
+    /**
+     * Creates a new progress addon
+     */
+    constructor();
+
+    /**
+     * Activates the addon
+     * @param terminal The terminal the addon is being loaded in.
+     */
+    public activate(terminal: Terminal): void;
+    
+    /**
+     * Disposes the addon.
+     */
+    public dispose(): void;
+
+    /**
+     * An event that fires when the tracked progress changes.
+     */
+    public readonly onChange: Event<IProgressState> | undefined;
+
+    /**
+     * Gets or sets the current progress tracked by the addon.
+     * This can also be used to reset a stuck progress indicator
+     * back to initial with `{state: 0, value: 0}`
+     * or to restore an indicator.
+     */
+    public progress: IProgressState;
+  }
+  
+  /**
+   * Progress state tracked by the addon.
+   */
+  export interface IProgressState {
+    state: 0 | 1 | 2 | 3 | 4;
+    value: number;
+  }
+}
diff --git a/addons/addon-progress/webpack.config.js b/addons/addon-progress/webpack.config.js
new file mode 100644
index 0000000000..1bf29bfd2c
--- /dev/null
+++ b/addons/addon-progress/webpack.config.js
@@ -0,0 +1,42 @@
+/**
+ * Copyright (c) 2024 The xterm.js authors. All rights reserved.
+ * @license MIT
+ */
+
+const path = require('path');
+
+const addonName = 'ProgressAddon';
+const mainFile = 'addon-progress.js';
+
+module.exports = {
+  entry: `./out/${addonName}.js`,
+  devtool: 'source-map',
+  module: {
+    rules: [
+      {
+        test: /\.js$/,
+        use: ["source-map-loader"],
+        enforce: "pre",
+        exclude: /node_modules/
+      }
+    ]
+  },
+  resolve: {
+    modules: ['./node_modules'],
+    extensions: [ '.js' ],
+    alias: {
+      common: path.resolve('../../out/common'),
+      browser: path.resolve('../../out/browser'),
+      vs: path.resolve('../../out/vs')
+    }
+  },
+  output: {
+    filename: mainFile,
+    path: path.resolve('./lib'),
+    library: addonName,
+    libraryTarget: 'umd',
+    // Force usage of globalThis instead of global / self. (This is cross-env compatible)
+    globalObject: 'globalThis',
+  },
+  mode: 'production'
+};
diff --git a/bin/esbuild.mjs b/bin/esbuild.mjs
index 9ed69edab8..1727defe54 100644
--- a/bin/esbuild.mjs
+++ b/bin/esbuild.mjs
@@ -136,6 +136,7 @@ if (config.addon) {
       "@xterm/addon-clipboard": "./addons/addon-clipboard/lib/addon-clipboard.mjs",
       "@xterm/addon-fit": "./addons/addon-fit/lib/addon-fit.mjs",
       "@xterm/addon-image": "./addons/addon-image/lib/addon-image.mjs",
+      "@xterm/addon-progress": "./addons/addon-progress/lib/addon-progress.mjs",
       "@xterm/addon-search": "./addons/addon-search/lib/addon-search.mjs",
       "@xterm/addon-serialize": "./addons/addon-serialize/lib/addon-serialize.mjs",
       "@xterm/addon-web-links": "./addons/addon-web-links/lib/addon-web-links.mjs",
diff --git a/bin/publish.js b/bin/publish.js
index 59771cd8f0..395b52bd71 100644
--- a/bin/publish.js
+++ b/bin/publish.js
@@ -46,6 +46,7 @@ const addonPackageDirs = [
   path.resolve(__dirname, '../addons/addon-fit'),
   path.resolve(__dirname, '../addons/addon-image'),
   path.resolve(__dirname, '../addons/addon-ligatures'),
+  path.resolve(__dirname, '../addons/addon-progress'),
   path.resolve(__dirname, '../addons/addon-search'),
   path.resolve(__dirname, '../addons/addon-serialize'),
   path.resolve(__dirname, '../addons/addon-unicode11'),
diff --git a/bin/test_integration.js b/bin/test_integration.js
index 00e5b57c24..68f3ffdb2e 100644
--- a/bin/test_integration.js
+++ b/bin/test_integration.js
@@ -25,6 +25,7 @@ const addons = [
   'clipboard',
   'fit',
   'image',
+  'progress',
   'search',
   'serialize',
   'unicode-graphemes',
diff --git a/demo/client.ts b/demo/client.ts
index e926eaaa97..f5903aa4d7 100644
--- a/demo/client.ts
+++ b/demo/client.ts
@@ -21,6 +21,7 @@ import { AttachAddon } from '@xterm/addon-attach';
 import { ClipboardAddon } from '@xterm/addon-clipboard';
 import { FitAddon } from '@xterm/addon-fit';
 import { LigaturesAddon } from '@xterm/addon-ligatures';
+import { ProgressAddon, IProgressState } from '@xterm/addon-progress';
 import { SearchAddon, ISearchOptions } from '@xterm/addon-search';
 import { SerializeAddon } from '@xterm/addon-serialize';
 import { WebLinksAddon } from '@xterm/addon-web-links';
@@ -35,6 +36,7 @@ export interface IWindowWithTerminal extends Window {
   ClipboardAddon?: typeof ClipboardAddon; // eslint-disable-line @typescript-eslint/naming-convention
   FitAddon?: typeof FitAddon; // eslint-disable-line @typescript-eslint/naming-convention
   ImageAddon?: typeof ImageAddon; // eslint-disable-line @typescript-eslint/naming-convention
+  ProgressAddon?: typeof ProgressAddon; // eslint-disable-line @typescript-eslint/naming-convention
   SearchAddon?: typeof SearchAddon; // eslint-disable-line @typescript-eslint/naming-convention
   SerializeAddon?: typeof SerializeAddon; // eslint-disable-line @typescript-eslint/naming-convention
   WebLinksAddon?: typeof WebLinksAddon; // eslint-disable-line @typescript-eslint/naming-convention
@@ -52,7 +54,7 @@ let socket;
 let pid;
 let autoResize: boolean = true;
 
-type AddonType = 'attach' | 'clipboard' | 'fit' | 'image' | 'search' | 'serialize' | 'unicode11' | 'unicodeGraphemes' | 'webLinks' | 'webgl' | 'ligatures';
+type AddonType = 'attach' | 'clipboard' | 'fit' | 'image' | 'progress' | 'search' | 'serialize' | 'unicode11' | 'unicodeGraphemes' | 'webLinks' | 'webgl' | 'ligatures';
 
 interface IDemoAddon<T extends AddonType> {
   name: T;
@@ -63,13 +65,14 @@ interface IDemoAddon<T extends AddonType> {
         T extends 'fit' ? typeof FitAddon :
           T extends 'image' ? typeof ImageAddonType :
             T extends 'ligatures' ? typeof LigaturesAddon :
-              T extends 'search' ? typeof SearchAddon :
-                T extends 'serialize' ? typeof SerializeAddon :
-                  T extends 'webLinks' ? typeof WebLinksAddon :
-                    T extends 'unicode11' ? typeof Unicode11Addon :
-                      T extends 'unicodeGraphemes' ? typeof UnicodeGraphemesAddon :
-                        T extends 'webgl' ? typeof WebglAddon :
-                          never
+              T extends 'progress' ? typeof ProgressAddon :
+                T extends 'search' ? typeof SearchAddon :
+                  T extends 'serialize' ? typeof SerializeAddon :
+                    T extends 'webLinks' ? typeof WebLinksAddon :
+                      T extends 'unicode11' ? typeof Unicode11Addon :
+                        T extends 'unicodeGraphemes' ? typeof UnicodeGraphemesAddon :
+                          T extends 'webgl' ? typeof WebglAddon :
+                            never
   );
   instance?: (
     T extends 'attach' ? AttachAddon :
@@ -77,13 +80,14 @@ interface IDemoAddon<T extends AddonType> {
         T extends 'fit' ? FitAddon :
           T extends 'image' ? ImageAddonType :
             T extends 'ligatures' ? LigaturesAddon :
-              T extends 'search' ? SearchAddon :
-                T extends 'serialize' ? SerializeAddon :
-                  T extends 'webLinks' ? WebLinksAddon :
-                    T extends 'unicode11' ? Unicode11Addon :
-                      T extends 'unicodeGraphemes' ? UnicodeGraphemesAddon :
-                        T extends 'webgl' ? WebglAddon :
-                          never
+              T extends 'progress' ? ProgressAddon :
+                T extends 'search' ? SearchAddon :
+                  T extends 'serialize' ? SerializeAddon :
+                    T extends 'webLinks' ? WebLinksAddon :
+                      T extends 'unicode11' ? Unicode11Addon :
+                        T extends 'unicodeGraphemes' ? UnicodeGraphemesAddon :
+                          T extends 'webgl' ? WebglAddon :
+                            never
   );
 }
 
@@ -92,6 +96,7 @@ const addons: { [T in AddonType]: IDemoAddon<T> } = {
   clipboard: { name: 'clipboard', ctor: ClipboardAddon, canChange: true },
   fit: { name: 'fit', ctor: FitAddon, canChange: false },
   image: { name: 'image', ctor: ImageAddon, canChange: true },
+  progress: { name: 'progress', ctor: ProgressAddon, canChange: true },
   search: { name: 'search', ctor: SearchAddon, canChange: true },
   serialize: { name: 'serialize', ctor: SerializeAddon, canChange: true },
   webLinks: { name: 'webLinks', ctor: WebLinksAddon, canChange: true },
@@ -213,6 +218,7 @@ if (document.location.pathname === '/test') {
   window.ClipboardAddon = ClipboardAddon;
   window.FitAddon = FitAddon;
   window.ImageAddon = ImageAddon;
+  window.ProgressAddon = ProgressAddon;
   window.SearchAddon = SearchAddon;
   window.SerializeAddon = SerializeAddon;
   window.Unicode11Addon = Unicode11Addon;
@@ -246,6 +252,7 @@ if (document.location.pathname === '/test') {
   addVtButtons();
   initImageAddonExposed();
   testEvents();
+  progressButtons();
 }
 
 function createTerminal(): void {
@@ -272,6 +279,7 @@ function createTerminal(): void {
   addons.serialize.instance = new SerializeAddon();
   addons.fit.instance = new FitAddon();
   addons.image.instance = new ImageAddon();
+  addons.progress.instance = new ProgressAddon();
   addons.unicodeGraphemes.instance = new UnicodeGraphemesAddon();
   addons.clipboard.instance = new ClipboardAddon();
   try {  // try to start with webgl renderer (might throw on older safari/webkit)
@@ -282,6 +290,7 @@ function createTerminal(): void {
   addons.webLinks.instance = new WebLinksAddon();
   typedTerm.loadAddon(addons.fit.instance);
   typedTerm.loadAddon(addons.image.instance);
+  typedTerm.loadAddon(addons.progress.instance);
   typedTerm.loadAddon(addons.search.instance);
   typedTerm.loadAddon(addons.serialize.instance);
   typedTerm.loadAddon(addons.unicodeGraphemes.instance);
@@ -1458,3 +1467,44 @@ function testEvents(): void {
   document.getElementById('event-focus').addEventListener('click', ()=> term.focus());
   document.getElementById('event-blur').addEventListener('click', ()=> term.blur());
 }
+
+
+function progressButtons(): void {
+  const STATES = { 0: 'remove', 1: 'set', 2: 'error', 3: 'indeterminate', 4: 'pause' };
+  const COLORS = { 0: '', 1: 'green', 2: 'red', 3: '', 4: 'yellow' };
+
+  function progressHandler({state, value}: IProgressState) {
+    // Simulate windows taskbar hack by windows terminal:
+    // Since the taskbar has no means to indicate error/pause state other than by coloring
+    // the current progress, we move 0 to 10% and distribute higher values in the remaining 90 %
+    // NOTE: This is most likely not what you want to do for other progress indicators,
+    //       that have a proper visual state for error/paused.
+    value = Math.min(10 + value * 0.9, 100);
+    document.getElementById('progress-percent').style.width = `${value}%`;
+    document.getElementById('progress-percent').style.backgroundColor = COLORS[state];
+    document.getElementById('progress-state').innerText = `State: ${STATES[state]}`;
+
+    document.getElementById('progress-percent').style.display = state === 3 ? 'none' : 'block';
+    document.getElementById('progress-indeterminate').style.display = state === 3 ? 'block' : 'none';
+  }
+
+  const progressAddon = addons.progress.instance;
+  progressAddon.onChange(progressHandler);
+
+  // apply initial state once to make it visible on page load
+  const initialProgress = progressAddon.progress;
+  progressHandler(initialProgress);
+
+  document.getElementById('progress-run').addEventListener('click', async () => {
+    term.write('\x1b]9;4;0\x1b\\');
+    for (let i = 0; i <= 100; i += 5) {
+      term.write(`\x1b]9;4;1;${i}\x1b\\`);
+      await new Promise(res => setTimeout(res, 200));
+    }
+  });
+  document.getElementById('progress-0').addEventListener('click', () => term.write('\x1b]9;4;0\x1b\\'));
+  document.getElementById('progress-1').addEventListener('click', () => term.write('\x1b]9;4;1;20\x1b\\'));
+  document.getElementById('progress-2').addEventListener('click', () => term.write('\x1b]9;4;2\x1b\\'));
+  document.getElementById('progress-3').addEventListener('click', () => term.write('\x1b]9;4;3\x1b\\'));
+  document.getElementById('progress-4').addEventListener('click', () => term.write('\x1b]9;4;4\x1b\\'));
+}
diff --git a/demo/index.html b/demo/index.html
index 96361a88dc..cb63b174a7 100644
--- a/demo/index.html
+++ b/demo/index.html
@@ -120,6 +120,47 @@ <h3>Test</h3>
               <dt>Events Test</dt>
               <dd><button id="event-focus">focus</button></dd>
               <dd><button id="event-blur">blur</button></dd>
+
+              <dt>Progress Addon</dt>
+              <dd><button id="progress-run">full set run</button></dd>
+              <dd><button id="progress-0">state 0: remove</button></dd>
+              <dd><button id="progress-1">state 1: set 20%</button></dd>
+              <dd><button id="progress-2">state 2: error</button></dd>
+              <dd><button id="progress-3">state 3: indeterminate</button></dd>
+              <dd><button id="progress-4">state 4: pause</button></dd>
+              <style>
+                #progress-progress {
+                  border: 1px solid black;
+                  height: 10px;
+                }
+                #progress-percent {
+                  height: 100%;
+                }
+                #progress-indeterminate {
+                  display: none;
+                  position: relative;
+                  height: 100%;
+                }
+                #progress-indeterminate:before {
+                  content: '';
+                  position: absolute;
+                  left: 0;
+                  bottom: 0px;
+                  width: 50px;
+                  height: 10px;
+                  background: blue;
+                  animation: ballbns 1s ease-in-out infinite alternate;
+                }
+                @keyframes ballbns {
+                  0% {  left: 0; transform: translateX(0%); }
+                  100% {  left: 100%; transform: translateX(-100%); }
+                }
+              </style>
+              <dd><div id="progress-progress">
+                <div id="progress-percent"></div>
+                <div id="progress-indeterminate"></div>
+              </div></dd>
+              <dd><div id="progress-state">State:</div></dd>
             </dl>
           </div>
         </div>
diff --git a/demo/tsconfig.json b/demo/tsconfig.json
index 5569bd1d46..405dbf0ff6 100644
--- a/demo/tsconfig.json
+++ b/demo/tsconfig.json
@@ -10,6 +10,7 @@
       "@xterm/addon-clipboard": ["../addons/addon-clipboard"],
       "@xterm/addon-fit": ["../addons/addon-fit"],
       "@xterm/addon-image": ["../addons/addon-image"],
+      "@xterm/addon-progress": ["../addons/addon-progress"],
       "@xterm/addon-search": ["../addons/addon-search"],
       "@xterm/addon-serialize": ["../addons/addon-serialize"],
       "@xterm/addon-web-links": ["../addons/addon-web-links"],
diff --git a/tsconfig.all.json b/tsconfig.all.json
index 7ca3b7a791..493ec6c9da 100644
--- a/tsconfig.all.json
+++ b/tsconfig.all.json
@@ -11,6 +11,7 @@
     { "path": "./addons/addon-fit" },
     { "path": "./addons/addon-image" },
     { "path": "./addons/addon-ligatures" },
+    { "path": "./addons/addon-progress" },
     { "path": "./addons/addon-search" },
     { "path": "./addons/addon-serialize" },
     { "path": "./addons/addon-unicode11" },