diff --git a/README.md b/README.md
index 8d77f87e..448f6646 100644
--- a/README.md
+++ b/README.md
@@ -62,6 +62,9 @@ Renderer options:
   -l, --lightcolor  Light RGBA hex color
   -d, --darkcolor   Dark RGBA hex color
 
+Terminal options:
+  --small  Output smaller QR code to terminal                          [boolean]
+
 Options:
   -o, --output  Output file
   -h, --help    Show help                                              [boolean]
@@ -725,6 +728,12 @@ See [Options](#options).
 
   Scale factor. A value of `1` means 1px per modules (black dots).
 
+##### `small`
+  Type: `Boolean`<br>
+  Default: `false`
+
+  Relevant only for terminal renderer. Outputs smaller QR code.
+
 ##### `width`
   Type: `Number`<br>
 
diff --git a/bin/qrcode b/bin/qrcode
index 7f1bca11..388a2a16 100755
--- a/bin/qrcode
+++ b/bin/qrcode
@@ -30,6 +30,8 @@ function parseOptions (args) {
     version: args.qversion,
     errorCorrectionLevel: args.error,
     type: args.type,
+    small: !!args.small,
+    inverse: !!args.inverse,
     maskPattern: args.mask,
     margin: args.qzone,
     width: args.width,
@@ -82,6 +84,18 @@ var argv = yargs
     implies: 'output',
     group: 'Renderer options:'
   })
+  .option('small', {
+    type: 'boolean',
+    description: 'Output smaller QR code to terminal',
+    conflicts: 'type',
+    group: 'Renderer options:'
+  })
+  .option('i', {
+    alias: 'inverse',
+    type: 'boolean',
+    description: 'Invert colors',
+    group: 'Renderer options:'
+  })
   .option('w', {
     alias: 'width',
     description: 'Image width (px)',
diff --git a/lib/renderer/terminal.js b/lib/renderer/terminal.js
index f15610b5..36ddfde7 100644
--- a/lib/renderer/terminal.js
+++ b/lib/renderer/terminal.js
@@ -1,49 +1,9 @@
-// let Utils = require('./utils')
+const big = require('./terminal/terminal')
+const small = require('./terminal/terminal-small')
 
 exports.render = function (qrData, options, cb) {
-  const size = qrData.modules.size
-  const data = qrData.modules.data
-
-  // let opts = Utils.getOptions(options)
-
-  // use same scheme as https://github.com/gtanner/qrcode-terminal because it actually works! =)
-  const black = '\x1b[40m  \x1b[0m'
-  const white = '\x1b[47m  \x1b[0m'
-
-  let output = ''
-  const hMargin = Array(size + 3).join(white)
-  const vMargin = Array(2).join(white)
-
-  output += hMargin + '\n'
-  for (let i = 0; i < size; ++i) {
-    output += white
-    for (let j = 0; j < size; j++) {
-      // let topModule = data[i * size + j]
-      // let bottomModule = data[(i + 1) * size + j]
-
-      output += data[i * size + j] ? black : white// getBlockChar(topModule, bottomModule)
-    }
-    // output += white+'\n'
-    output += vMargin + '\n'
-  }
-
-  output += hMargin + '\n'
-
-  if (typeof cb === 'function') {
-    cb(null, output)
-  }
-
-  return output
-}
-/*
-exports.renderToFile = function renderToFile (path, qrData, options, cb) {
-  if (typeof cb === 'undefined') {
-    cb = options
-    options = undefined
+  if (options && options.small) {
+    return small.render(qrData, options, cb)
   }
-
-  let fs = require('fs')
-  let utf8 = exports.render(qrData, options)
-  fs.writeFile(path, utf8, cb)
+  return big.render(qrData, options, cb)
 }
-*/
diff --git a/lib/renderer/terminal/terminal-small.js b/lib/renderer/terminal/terminal-small.js
new file mode 100644
index 00000000..9810d4e1
--- /dev/null
+++ b/lib/renderer/terminal/terminal-small.js
@@ -0,0 +1,85 @@
+const backgroundWhite = '\x1b[47m'
+const backgroundBlack = '\x1b[40m'
+const foregroundWhite = '\x1b[37m'
+const foregroundBlack = '\x1b[30m'
+const reset = '\x1b[0m'
+const lineSetupNormal = backgroundWhite + foregroundBlack // setup colors
+const lineSetupInverse = backgroundBlack + foregroundWhite // setup colors
+
+const createPalette = function (lineSetup, foregroundWhite, foregroundBlack) {
+  return {
+    // 1 ... white, 2 ... black, 0 ... transparent (default)
+
+    '00': reset + ' ' + lineSetup,
+    '01': reset + foregroundWhite + '▄' + lineSetup,
+    '02': reset + foregroundBlack + '▄' + lineSetup,
+    10: reset + foregroundWhite + '▀' + lineSetup,
+    11: ' ',
+    12: '▄',
+    20: reset + foregroundBlack + '▀' + lineSetup,
+    21: '▀',
+    22: '█'
+  }
+}
+
+/**
+ * Returns code for QR pixel
+ * @param {boolean[][]} modules
+ * @param {number} size
+ * @param {number} x
+ * @param {number} y
+ * @return {'0' | '1' | '2'}
+ */
+const mkCodePixel = function (modules, size, x, y) {
+  const sizePlus = size + 1
+  if ((x >= sizePlus) || (y >= sizePlus) || (y < -1) || (x < -1)) return '0'
+  if ((x >= size) || (y >= size) || (y < 0) || (x < 0)) return '1'
+  const idx = (y * size) + x
+  return modules[idx] ? '2' : '1'
+}
+
+/**
+ * Returns code for four QR pixels. Suitable as key in palette.
+ * @param {boolean[][]} modules
+ * @param {number} size
+ * @param {number} x
+ * @param {number} y
+ * @return {keyof palette}
+ */
+const mkCode = function (modules, size, x, y) {
+  return (
+    mkCodePixel(modules, size, x, y) +
+    mkCodePixel(modules, size, x, y + 1)
+  )
+}
+
+exports.render = function (qrData, options, cb) {
+  const size = qrData.modules.size
+  const data = qrData.modules.data
+
+  const inverse = !!(options && options.inverse)
+  const lineSetup = options && options.inverse ? lineSetupInverse : lineSetupNormal
+  const white = inverse ? foregroundBlack : foregroundWhite
+  const black = inverse ? foregroundWhite : foregroundBlack
+
+  const palette = createPalette(lineSetup, white, black)
+  const newLine = reset + '\n' + lineSetup
+
+  let output = lineSetup // setup colors
+
+  for (let y = -1; y < size + 1; y += 2) {
+    for (let x = -1; x < size; x++) {
+      output += palette[mkCode(data, size, x, y)]
+    }
+
+    output += palette[mkCode(data, size, size, y)] + newLine
+  }
+
+  output += reset
+
+  if (typeof cb === 'function') {
+    cb(null, output)
+  }
+
+  return output
+}
diff --git a/lib/renderer/terminal/terminal.js b/lib/renderer/terminal/terminal.js
new file mode 100644
index 00000000..f15610b5
--- /dev/null
+++ b/lib/renderer/terminal/terminal.js
@@ -0,0 +1,49 @@
+// let Utils = require('./utils')
+
+exports.render = function (qrData, options, cb) {
+  const size = qrData.modules.size
+  const data = qrData.modules.data
+
+  // let opts = Utils.getOptions(options)
+
+  // use same scheme as https://github.com/gtanner/qrcode-terminal because it actually works! =)
+  const black = '\x1b[40m  \x1b[0m'
+  const white = '\x1b[47m  \x1b[0m'
+
+  let output = ''
+  const hMargin = Array(size + 3).join(white)
+  const vMargin = Array(2).join(white)
+
+  output += hMargin + '\n'
+  for (let i = 0; i < size; ++i) {
+    output += white
+    for (let j = 0; j < size; j++) {
+      // let topModule = data[i * size + j]
+      // let bottomModule = data[(i + 1) * size + j]
+
+      output += data[i * size + j] ? black : white// getBlockChar(topModule, bottomModule)
+    }
+    // output += white+'\n'
+    output += vMargin + '\n'
+  }
+
+  output += hMargin + '\n'
+
+  if (typeof cb === 'function') {
+    cb(null, output)
+  }
+
+  return output
+}
+/*
+exports.renderToFile = function renderToFile (path, qrData, options, cb) {
+  if (typeof cb === 'undefined') {
+    cb = options
+    options = undefined
+  }
+
+  let fs = require('fs')
+  let utf8 = exports.render(qrData, options)
+  fs.writeFile(path, utf8, cb)
+}
+*/
diff --git a/test/unit/renderer/terminal.test.js b/test/unit/renderer/terminal.test.js
index b0ada4d0..a1a23caa 100644
--- a/test/unit/renderer/terminal.test.js
+++ b/test/unit/renderer/terminal.test.js
@@ -9,7 +9,7 @@ test('TerminalRenderer interface', function (t) {
   t.end()
 })
 
-test('TerminalRenderer render', function (t) {
+test('TerminalRenderer render big', function (t) {
   const sampleQrData = QRCode.create('sample text', { version: 2 })
   let str
 
@@ -35,3 +35,45 @@ test('TerminalRenderer render', function (t) {
 
   t.end()
 })
+
+test('TerminalRenderer render small', function (t) {
+  const sampleQrData = QRCode.create('sample text', { version: 2 })
+  let str
+  let calledCallback = false
+  const callback = function () { calledCallback = true }
+
+  t.notThrow(function () { str = TerminalRenderer.render(sampleQrData) },
+    'Should not throw with only qrData param')
+
+  t.notThrow(function () {
+    str = TerminalRenderer.render(sampleQrData, {
+      margin: 10,
+      scale: 1,
+      small: true
+    })
+  }, 'Should not throw with options param and without callback')
+
+  t.notThrow(function () {
+    str = TerminalRenderer.render(sampleQrData, {
+      margin: 10,
+      scale: 1,
+      small: true
+    },
+    callback)
+  }, 'Should not throw with options param and callback')
+
+  t.type(str, 'string',
+    'Should return a string')
+
+  t.equal(calledCallback, true, 'string',
+    'Should call a callback')
+
+  t.notThrow(function () {
+    str = TerminalRenderer.render(sampleQrData, { small: true, inverse: true })
+  }, 'Should not throw with inverse options')
+
+  t.type(str, 'string',
+    'Should return a string if inverse option is set')
+
+  t.end()
+})