diff --git a/capirca/lib/juniper.py b/capirca/lib/juniper.py
index c1c29913..9a87d27d 100644
--- a/capirca/lib/juniper.py
+++ b/capirca/lib/juniper.py
@@ -269,9 +269,14 @@ def __str__(self):
         else:
           from_str.append('%s;' % opt)
 
-    # term name
-    config.Append('term %s {' % self.term.name)
+    # if the term is inactive we have to set the prefix
+    if self.term.inactive:
+      term_prefix = 'inactive:'
+    else:
+      term_prefix = ''
 
+    # term name
+    config.Append('%s term %s {' %(term_prefix, self.term.name))
     # a default action term doesn't have any from { clause
     has_match_criteria = (self.term.address or
                           self.term.dscp_except or
@@ -845,7 +850,8 @@ def _BuildTokens(self):
             '.*',  # make ArbitraryOptions work, yolo.
             'sample',
             'tcp-established',
-            'tcp-initial'}
+            'tcp-initial',
+            'inactive'}
         })
     return supported_tokens, supported_sub_tokens
 
@@ -867,6 +873,7 @@ def _TranslatePolicy(self, pol, exp_info):
       enable_dsmo = 'enable_dsmo' in filter_options[1:]
       noverbose = 'noverbose' in filter_options[1:]
 
+
       if not interface_specific:
         filter_options.remove('not-interface-specific')
       if enable_dsmo:
@@ -880,7 +887,14 @@ def _TranslatePolicy(self, pol, exp_info):
       term_names = set()
       new_terms = []
       for term in terms:
+
+        # if the inactive option is set, we should deactivate the term and remove the option
+        if 'inactive' in term.option:
+          term.inactive = True
+          term.option.remove('inactive')
+
         term.name = self.FixTermLength(term.name)
+
         if term.name in term_names:
           raise JuniperDuplicateTermError('You have multiple terms named: %s' %
                                           term.name)
diff --git a/capirca/lib/policy.py b/capirca/lib/policy.py
index 80b39df1..9db3a3f1 100644
--- a/capirca/lib/policy.py
+++ b/capirca/lib/policy.py
@@ -456,6 +456,7 @@ def __init__(self, obj):
     self.flexible_match_range = []
     self.source_prefix_except = []
     self.destination_prefix_except = []
+    self.inactive = False
     # srx specific
     self.vpn = None
     # gce specific
diff --git a/tests/lib/juniper_test.py b/tests/lib/juniper_test.py
index 4199636a..35b7a2cb 100644
--- a/tests/lib/juniper_test.py
+++ b/tests/lib/juniper_test.py
@@ -375,6 +375,15 @@
   action:: accept
 }
 """
+GOOD_TERM_36 = """
+term good-term-36 {
+  protocol:: tcp
+  destination-address:: SOME_HOST
+  destination-address:: SOME_HOST
+  option:: inactive
+  action:: accept
+}
+"""
 GOOD_TERM_COMMENT = """
 term good-term-comment {
   comment:: "This is a COMMENT"
@@ -606,6 +615,7 @@
     },
     'option': {'established',
                'first-fragment',
+               'inactive',
                'is-fragment',
                '.*',   # not actually a lex token!
                'sample',
@@ -719,6 +729,14 @@ def testIcmpCode(self):
     output = str(jcl)
     self.failUnless('icmp-code [ 3 4 ];' in output, output)
 
+  def testInactiveTerm(self):
+    self.naming.GetNetAddr.return_value = [nacaddr.IP('10.0.0.0/8')]
+    jcl = juniper.Juniper(policy.ParsePolicy(GOOD_HEADER + GOOD_TERM_36,
+                                             self.naming), EXP_INFO)
+    output = str(jcl)
+    self.failUnless('inactive: term good-term-36 {' in output, output)
+
+
   def testInet6(self):
     self.naming.GetNetAddr.return_value = [nacaddr.IP('2001::/33')]
     self.naming.GetServiceByProto.return_value = ['25']
diff --git a/tests/lib/srxlo_test.py b/tests/lib/srxlo_test.py
index 96c2f63e..a644d621 100644
--- a/tests/lib/srxlo_test.py
+++ b/tests/lib/srxlo_test.py
@@ -47,6 +47,13 @@
   action:: accept
 }
 """
+GOOD_TERM_3 = """
+term good-term-3 {
+  protocol:: icmpv6
+  action:: accept
+  option:: inactive
+}
+"""
 
 SUPPORTED_TOKENS = {
     'action',
@@ -146,6 +153,7 @@
     },
     'option': {'established',
                'first-fragment',
+               'inactive',
                'is-fragment',
                '.*',  # not actually a lex token!
                'sample',
@@ -193,6 +201,10 @@ def testBuildWarningTokens(self):
     self.assertEquals(st, SUPPORTED_TOKENS)
     self.assertEquals(sst, SUPPORTED_SUB_TOKENS)
 
+  def testInactiveTerm(self):
+      output = str(srxlo.SRXlo(policy.ParsePolicy(GOOD_HEADER_1 + GOOD_TERM_3,
+                                                  self.naming), EXP_INFO))
+      self.failUnless('inactive: term good-term-3 {' in output, output)
 
 if __name__ == '__main__':
   unittest.main()