diff --git a/package.json b/package.json
index aa3663cadbeba..7f329bd4ddaa3 100644
--- a/package.json
+++ b/package.json
@@ -52,7 +52,7 @@
     "vscode-ripgrep": "^1.2.5",
     "vscode-sqlite3": "4.0.7",
     "vscode-textmate": "^4.0.1",
-    "vscode-xterm": "3.14.0-beta2",
+    "vscode-xterm": "3.14.0-beta3",
     "yauzl": "^2.9.1",
     "yazl": "^2.4.3"
   },
diff --git a/yarn.lock b/yarn.lock
index f43c0cca03cea..0da78b568d347 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -9665,10 +9665,10 @@ vscode-windows-registry@1.0.1:
   dependencies:
     nan "^2.12.1"
 
-vscode-xterm@3.14.0-beta2:
-  version "3.14.0-beta2"
-  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.14.0-beta2.tgz#5c9e0b9ef72de80f8ba4c9a89cec78cac73bbc1b"
-  integrity sha512-J/aXupjdOQmHE19tsO8Jrtdv5zMHhluVHBkLdEo2SIZtkkjkhviuwR6vtLotRJX8rcgwcC3z8LbVx0Phi+pvKg==
+vscode-xterm@3.14.0-beta3:
+  version "3.14.0-beta3"
+  resolved "https://registry.yarnpkg.com/vscode-xterm/-/vscode-xterm-3.14.0-beta3.tgz#e2624e231f7b940edd0675eb569a10b3af75e29d"
+  integrity sha512-80Bbq6R4q0xABJl7COwE1DSNoJp3H2LyfKDHSbh1PwUY+6wofpW8/V9xSYELizeg3lVAd7mcEKW+rG+sY1hpqA==
 
 vso-node-api@6.1.2-preview:
   version "6.1.2-preview"