diff --git a/elisp/eshell-setup.el b/elisp/eshell-setup.el
new file mode 100644
index 0000000..353df18
--- /dev/null
+++ b/elisp/eshell-setup.el
@@ -0,0 +1,9 @@
+;; colors in eshell
+(add-hook 'eshell-mode-hook
+          (lambda ()
+            (setenv "TERM" "xterm-256color")))
+(add-hook 'eshell-before-prompt-hook (lambda ()
+				       (setq xterm-color-preserve-properties t)))
+(add-to-list 'eshell-preoutput-filter-functions 'xterm-color-filter)
+(setq eshell-output-filter-functions
+      (remove 'eshell-handle-ansi-color eshell-output-filter-functions))
diff --git a/elisp/extras.el b/elisp/extras.el
index 05bb702..770d185 100644
--- a/elisp/extras.el
+++ b/elisp/extras.el
@@ -38,6 +38,9 @@
   (load "~/.emacs.d/elisp/openwith-setup.el"))
 
 ;; Programming environment
+;; We need colors in eshell
+(use-package xterm-color)
+
 ;; git
 (use-package magit)
 
diff --git a/elisp/settings.el b/elisp/settings.el
index bec662c..fbc97b9 100644
--- a/elisp/settings.el
+++ b/elisp/settings.el
@@ -1,3 +1,6 @@
+;; Initialize emacs in eshell, not splash screen
+(setq initial-buffer-choice (eshell))
+
 ;; Write custom set variables to different file
 (setq custom-file "~/.emacs.d/elisp/custom.el")