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iTerm2 is an awesome replacement to the default MAC’s terminal app.
Features like split panes is very useful. You can check other features here

Well, the only problem I initially came across was the inability to move words forward/backward using the option key. By default its set to esc+b and esc+f for backward and forward work move.

After quite some googling, it was all set.
Preferences->Profiles->Default(as seen in right of the pref pane)->Keys Tab(as seen in left of the pref pane)

Set the Left option key act as +Esc.

All set. Now you can use alt+f to move forward and alt+b to move backward a word.

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