diff --git a/package.json b/package.json
index f4918a501997a04a49b0b1049449a26e1e61242d..c5d26848408128d7a540b09244b572bfa1c2f400 100644
--- a/package.json
+++ b/package.json
@@ -45,7 +45,7 @@
     "vscode-debugprotocol": "1.25.0",
     "vscode-ripgrep": "^0.6.0-patch.0.5",
     "vscode-textmate": "^3.2.0",
-    "vscode-xterm": "3.0.0-beta2",
+    "vscode-xterm": "3.0.0-beta3",
     "yauzl": "2.8.0"
   },
   "devDependencies": {
diff --git a/yarn.lock b/yarn.lock
index 33cc897f2e8656f39e5076144ad3365334fd4d0c..aa8a233c1788ee2d35e82891c43568e45ec6ecdc 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-beta2:
-  version "3.0.0-beta2"
-  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.0.0-beta2.tgz#2014264409ea560efd1856de546bab04e2c5324e"
+vscode-xterm@3.0.0-beta3:
+  version "3.0.0-beta3"
+  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.0.0-beta3.tgz#b3b87ba80d63ea4ee93f826580d9bf35eec8b4eb"
 
 vso-node-api@^6.1.2-preview:
   version "6.1.2-preview"