The present disclosure envisages a heat-absorbing-and-dissipating jacket (80) for a terminal (100) of an electrical device (1000). The jacket has a body (81) configured to at least partially contour walls of the housing (10) of the terminal (100) and the jacket is made of a heat-absorbing-and-dissipating material. The body (81) of the jacket has a lower portion (86) extending operatively below the housing (10) of the terminal (100). The body (81) of the jacket also has an upper portion (88) extending operatively above the housing (10) of the terminal (100). The jacket (80) of the present disclosure is a cost-effective means which allows maximum heat absorption and dissipation from an enclosed electrical device and can be incorporated in an existing design of an electrical device.