diff --git a/package.json b/package.json
index c25c90837b2b4ce7caeb278f28ab50c573c2646e..f759e647ec515e99fff38aa753a3a540b1459ce3 100644
--- a/package.json
+++ b/package.json
@@ -45,7 +45,7 @@
     "vscode-debugprotocol": "1.25.0",
     "vscode-ripgrep": "^0.7.1-patch.0",
     "vscode-textmate": "^3.2.0",
-    "vscode-xterm": "3.0.0-beta8",
+    "vscode-xterm": "3.1.0-beta1",
     "yauzl": "2.8.0"
   },
   "devDependencies": {
diff --git a/yarn.lock b/yarn.lock
index 42e334c53da71c45ba023c7048f98507fc5d1b80..37988f804e0054239048bbf802c1eabe3509659c 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5808,9 +5808,9 @@ vscode-textmate@^3.2.0:
     fast-plist "^0.1.2"
     oniguruma "^6.0.1"
 
-vscode-xterm@3.0.0-beta8:
-  version "3.0.0-beta8"
-  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.0.0-beta8.tgz#7e7d5f399d76992e07e5099aea9a1732ad40f7c1"
+vscode-xterm@3.1.0-beta1:
+  version "3.1.0-beta1"
+  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.1.0-beta1.tgz#fe7d83687583444ec1726488e986e1828543c20c"
 
 vso-node-api@^6.1.2-preview:
   version "6.1.2-preview"