diff --git a/src/builtin_set_color.cpp b/src/builtin_set_color.cpp
index a4a5d12fc..b6d9e12bd 100644
--- a/src/builtin_set_color.cpp
+++ b/src/builtin_set_color.cpp
@@ -61,11 +61,32 @@ static const struct woption long_options[] = {{L"background", required_argument,
                                               {L"print-colors", no_argument, NULL, 'c'},
                                               {NULL, 0, NULL, 0}};
 
+#if __APPLE__
+char sitm_esc[] = "\e[3m";
+char ritm_esc[] = "\e[23m";
+char dim_esc[] = "\e[2m";
+#endif
+
 /// set_color builtin.
 int builtin_set_color(parser_t &parser, io_streams_t &streams, wchar_t **argv) {
     // By the time this is called we should have initialized the curses subsystem.
     assert(curses_initialized);
 
+    // Hack in missing italics and dim capabilities omitted from MacOS xterm-256color terminfo
+    // Helps Terminal.app/iTerm
+    #if __APPLE__
+    const auto term_prog = env_get(L"TERM_PROGRAM");
+    if (!term_prog.missing_or_empty() && (term_prog->as_string() == L"Apple_Terminal"
+        || term_prog->as_string() == L"iTerm.app")) {
+        const auto term = env_get(L"TERM");
+        if (!term.missing_or_empty() && (term->as_string() == L"xterm-256color")) {
+            enter_italics_mode = sitm_esc;
+            exit_italics_mode = ritm_esc;
+            enter_dim_mode = dim_esc;
+        }
+    }
+    #endif
+
     // Variables used for parsing the argument list.
     wchar_t *cmd = argv[0];
     int argc = builtin_count_args(argv);