diff --git a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/SimpleTerminalController.kt b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/SimpleTerminalController.kt
index 7be360a20104..11fcf2859231 100644
--- a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/SimpleTerminalController.kt
+++ b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/SimpleTerminalController.kt
@@ -9,7 +9,6 @@ import com.intellij.openapi.editor.Document
 import com.intellij.openapi.editor.LogicalPosition
 import com.intellij.openapi.editor.ScrollType
 import com.intellij.openapi.editor.ex.EditorEx
-import com.intellij.openapi.editor.markup.EffectType
 import com.intellij.openapi.editor.markup.TextAttributes
 import com.intellij.openapi.util.Disposer
 import com.intellij.terminal.JBTerminalSystemSettingsProviderBase
@@ -17,9 +16,7 @@ import com.jediterm.terminal.StyledTextConsumer
 import com.jediterm.terminal.TextStyle
 import com.jediterm.terminal.emulator.ColorPalette
 import com.jediterm.terminal.model.CharBuffer
-import com.jediterm.terminal.ui.AwtTransformers
-import java.awt.Color
-import java.awt.Font
+import org.jetbrains.plugins.terminal.exp.TerminalUiUtils.toTextAttributes
 
 class SimpleTerminalController(
   private val settings: JBTerminalSystemSettingsProviderBase,
@@ -135,33 +132,7 @@ class SimpleTerminalController(
     caretPainter.repaint()
   }
 
-  private fun TextStyle.toTextAttributes(): TextAttributes {
-    return TextAttributes().also { attr ->
-      attr.backgroundColor = AwtTransformers.toAwtColor(palette.getBackground(terminalModel.styleState.getBackground(backgroundForRun)))
-      attr.foregroundColor = getStyleForeground(this)
-      if (hasOption(TextStyle.Option.BOLD)) {
-        attr.fontType = attr.fontType or Font.BOLD
-      }
-      if (hasOption(TextStyle.Option.ITALIC)) {
-        attr.fontType = attr.fontType or Font.ITALIC
-      }
-      if (hasOption(TextStyle.Option.UNDERLINED)) {
-        attr.withAdditionalEffect(EffectType.LINE_UNDERSCORE, attr.foregroundColor)
-      }
-    }
-  }
-
-  private fun getStyleForeground(style: TextStyle): Color {
-    val foreground = palette.getForeground(terminalModel.styleState.getForeground(style.foregroundForRun))
-    return if (style.hasOption(TextStyle.Option.DIM)) {
-      val background = palette.getBackground(terminalModel.styleState.getBackground(style.backgroundForRun))
-      Color((foreground.red + background.red) / 2,
-            (foreground.green + background.green) / 2,
-            (foreground.blue + background.blue) / 2,
-            foreground.alpha)
-    }
-    else AwtTransformers.toAwtColor(foreground)!!
-  }
+  private fun TextStyle.toTextAttributes(): TextAttributes = this.toTextAttributes(palette, terminalModel, true)
 
   override fun dispose() {
     Disposer.dispose(caretModel)
diff --git a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalOutputController.kt b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalOutputController.kt
index babbf9d4dbb8..a00b1dcb0bcc 100644
--- a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalOutputController.kt
+++ b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalOutputController.kt
@@ -9,7 +9,6 @@ import com.intellij.openapi.application.runInEdt
 import com.intellij.openapi.editor.ScrollType
 import com.intellij.openapi.editor.event.DocumentListener
 import com.intellij.openapi.editor.ex.EditorEx
-import com.intellij.openapi.editor.markup.EffectType
 import com.intellij.openapi.editor.markup.TextAttributes
 import com.intellij.openapi.util.Disposer
 import com.intellij.openapi.util.TextRange
@@ -19,9 +18,8 @@ import com.intellij.util.concurrency.annotations.RequiresEdt
 import com.jediterm.terminal.StyledTextConsumer
 import com.jediterm.terminal.TextStyle
 import com.jediterm.terminal.model.CharBuffer
-import com.jediterm.terminal.ui.AwtTransformers
 import org.jetbrains.plugins.terminal.exp.TerminalDataContextUtils.IS_OUTPUT_EDITOR_KEY
-import java.awt.Color
+import org.jetbrains.plugins.terminal.exp.TerminalUiUtils.toTextAttributes
 import java.awt.Font
 
 class TerminalOutputController(
@@ -247,37 +245,9 @@ class TerminalOutputController(
   }
 
   private fun TextStyle.toTextAttributes(): TextAttributes {
-    return TextAttributes().also { attr ->
-      val background = palette.getBackground(terminalModel.styleState.getBackground(backgroundForRun))
-      val defaultBackground = palette.defaultBackground
-      // todo: it is a hack to not set default background, because it is different from the block background.
-      //  They should match to remove this hack.
-      if (background != defaultBackground) {
-        attr.backgroundColor = AwtTransformers.toAwtColor(background)
-      }
-      attr.foregroundColor = getStyleForeground(this)
-      if (hasOption(TextStyle.Option.BOLD)) {
-        attr.fontType = attr.fontType or Font.BOLD
-      }
-      if (hasOption(TextStyle.Option.ITALIC)) {
-        attr.fontType = attr.fontType or Font.ITALIC
-      }
-      if (hasOption(TextStyle.Option.UNDERLINED)) {
-        attr.withAdditionalEffect(EffectType.LINE_UNDERSCORE, attr.foregroundColor)
-      }
-    }
-  }
-
-  private fun getStyleForeground(style: TextStyle): Color {
-    val foreground = palette.getForeground(terminalModel.styleState.getForeground(style.foregroundForRun))
-    return if (style.hasOption(TextStyle.Option.DIM)) {
-      val background = palette.getBackground(terminalModel.styleState.getBackground(style.backgroundForRun))
-      Color((foreground.red + background.red) / 2,
-            (foreground.green + background.green) / 2,
-            (foreground.blue + background.blue) / 2,
-            foreground.alpha)
-    }
-    else AwtTransformers.toAwtColor(foreground)!!
+    // Do not apply default background to [TextAttributes],
+    // because block background is painted by [TerminalBlockBackgroundRenderer] with gradient.
+    return this.toTextAttributes(palette, terminalModel, false)
   }
 
   /** It is implied that the command is not null */
diff --git a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalUiUtils.kt b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalUiUtils.kt
index f6b5f694cb2c..b1d1bbb38246 100644
--- a/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalUiUtils.kt
+++ b/plugins/terminal/src/org/jetbrains/plugins/terminal/exp/TerminalUiUtils.kt
@@ -14,6 +14,8 @@ import com.intellij.openapi.editor.event.EditorMouseEvent
 import com.intellij.openapi.editor.ex.EditorGutterFreePainterAreaState
 import com.intellij.openapi.editor.impl.ContextMenuPopupHandler
 import com.intellij.openapi.editor.impl.EditorImpl
+import com.intellij.openapi.editor.markup.EffectType
+import com.intellij.openapi.editor.markup.TextAttributes
 import com.intellij.openapi.project.Project
 import com.intellij.openapi.util.Disposer
 import com.intellij.terminal.JBTerminalSystemSettingsProviderBase
@@ -24,9 +26,11 @@ import com.intellij.util.concurrency.annotations.RequiresEdt
 import com.intellij.util.ui.JBUI
 import com.intellij.util.ui.UIUtil
 import com.jediterm.core.util.TermSize
-import java.awt.Component
-import java.awt.Cursor
-import java.awt.Dimension
+import com.jediterm.terminal.TerminalColor
+import com.jediterm.terminal.TextStyle
+import com.jediterm.terminal.emulator.ColorPalette
+import com.jediterm.terminal.ui.AwtTransformers
+import java.awt.*
 import java.awt.event.ComponentAdapter
 import java.awt.event.ComponentEvent
 import java.util.concurrent.CompletableFuture
@@ -122,6 +126,45 @@ object TerminalUiUtils {
 
   fun toFloatAndScale(value: Int): Float = JBUIScale.scale(value.toFloat())
 
+  internal fun TextStyle.toTextAttributes(palette: ColorPalette,
+                                          terminalModel: TerminalModel,
+                                          applyDefaultBackground: Boolean): TextAttributes {
+    return TextAttributes().also { attr ->
+      val background: TerminalColor? = if (applyDefaultBackground) {
+        terminalModel.styleState.getBackground(backgroundForRun)
+      }
+      else {
+        backgroundForRun
+      }
+      if (background != null) {
+        attr.backgroundColor = AwtTransformers.toAwtColor(palette.getBackground(background))
+      }
+      attr.foregroundColor = getForegroundColor(this, palette, terminalModel)
+      if (hasOption(TextStyle.Option.BOLD)) {
+        attr.fontType = attr.fontType or Font.BOLD
+      }
+      if (hasOption(TextStyle.Option.ITALIC)) {
+        attr.fontType = attr.fontType or Font.ITALIC
+      }
+      if (hasOption(TextStyle.Option.UNDERLINED)) {
+        attr.withAdditionalEffect(EffectType.LINE_UNDERSCORE, attr.foregroundColor)
+      }
+    }
+  }
+
+  private fun getForegroundColor(style: TextStyle, palette: ColorPalette, terminalModel: TerminalModel): Color {
+    val foreground = palette.getForeground(terminalModel.styleState.getForeground(style.foregroundForRun))
+    return if (style.hasOption(TextStyle.Option.DIM)) {
+      val background = palette.getBackground(terminalModel.styleState.getBackground(style.backgroundForRun))
+      @Suppress("UseJBColor")
+      Color((foreground.red + background.red) / 2,
+            (foreground.green + background.green) / 2,
+            (foreground.blue + background.blue) / 2,
+            foreground.alpha)
+    }
+    else AwtTransformers.toAwtColor(foreground)!!
+  }
+
   private val LOG = logger<TerminalUiUtils>()
   private const val TIMEOUT = 2000
 }
\ No newline at end of file