diff --git a/package.json b/package.json
index ae860ddb5c1..bb9cb6ae938 100644
--- a/package.json
+++ b/package.json
@@ -49,7 +49,7 @@
     "vscode-nsfw": "1.0.17",
     "vscode-ripgrep": "^1.2.2",
     "vscode-textmate": "^4.0.1",
-    "vscode-xterm": "3.9.0-beta2",
+    "vscode-xterm": "3.9.0-beta3",
     "winreg": "^1.2.4",
     "yauzl": "^2.9.1",
     "yazl": "^2.4.3"
diff --git a/yarn.lock b/yarn.lock
index 757d51dd7af..0f8b03139fc 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -9351,10 +9351,10 @@ vscode-textmate@^4.0.1:
   dependencies:
     oniguruma "^7.0.0"
 
-vscode-xterm@3.9.0-beta2:
-  version "3.9.0-beta2"
-  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.9.0-beta2.tgz#36e6c6b3dee9324343d240acec0bc0af5283e8bd"
-  integrity sha512-v8uPv0UGoOxz6t22l/0uxIdcZVNOldk/5ZNp1zjVW+EBecE/zN4JCY3rAJALpgsTm4XlJZfi0f49yLVeyg3WeA==
+vscode-xterm@3.9.0-beta3:
+  version "3.9.0-beta3"
+  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.9.0-beta3.tgz#2a76fb9320971c17a0d4c2a5fe53e34692dff45d"
+  integrity sha512-CZpzmqSonz3f57XCaXE07m6lVvbkXlLq+knlDyYTmxBTrlIloY3Oe/YJszDfusJnq0F+xc8NAyuG3xisg6x7yw==
 
 vso-node-api@6.1.2-preview:
   version "6.1.2-preview"