diff --git a/package.json b/package.json
index 9fc99e9a883..370f0bc132e 100644
--- a/package.json
+++ b/package.json
@@ -49,7 +49,7 @@
     "vscode-nsfw": "1.0.17",
     "vscode-ripgrep": "^0.8.1",
     "vscode-textmate": "^3.3.3",
-    "vscode-xterm": "3.4.0-beta3",
+    "vscode-xterm": "3.5.0-beta1",
     "yauzl": "^2.9.1"
   },
   "devDependencies": {
@@ -136,4 +136,4 @@
     "windows-mutex": "^0.2.0",
     "windows-process-tree": "0.2.2"
   }
-}
\ No newline at end of file
+}
diff --git a/yarn.lock b/yarn.lock
index 1561c65a684..9de31dd99a7 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5987,9 +5987,9 @@ vscode-textmate@^3.3.3:
     fast-plist "^0.1.2"
     oniguruma "^6.0.1"
 
-vscode-xterm@3.4.0-beta3:
-  version "3.4.0-beta3"
-  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.4.0-beta3.tgz#349db387bd3669ad4d6044a6ea6d699e6d649fb5"
+vscode-xterm@3.5.0-beta1:
+  version "3.5.0-beta1"
+  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.5.0-beta1.tgz#90b45c71aa188d0c6e1acbec18f587203d18dc2a"
 
 vso-node-api@^6.1.2-preview:
   version "6.1.2-preview"