diff --git a/package.json b/package.json
index 75390fca3a4d..152d7201c7db 100644
--- a/package.json
+++ b/package.json
@@ -200,7 +200,7 @@
     "styled-jsx": "2.2.6",
     "stylis": "3.5.0",
     "uuid": "3.1.0",
-    "xterm": "3.4.1"
+    "xterm": "3.7.0"
   },
   "devDependencies": {
     "ava": "0.25.0",
diff --git a/yarn.lock b/yarn.lock
index 441dadb76f58..4e89debfb514 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -6693,9 +6693,9 @@ xtend@~2.1.1:
   dependencies:
     object-keys "~0.4.0"
 
-xterm@3.4.1:
-  version "3.4.1"
-  resolved "https://registry.yarnpkg.com/xterm/-/xterm-3.4.1.tgz#12452979ea2db3371f8195832d7407abba988980"
+xterm@3.7.0:
+  version "3.7.0"
+  resolved "https://registry.yarnpkg.com/xterm/-/xterm-3.7.0.tgz#b3eb1335dc04b92abe361711731d3b661e13db17"
 
 y18n@^3.2.1:
   version "3.2.1"