diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index c8db9d9e6539cecc94d1ae027ec5029c5eb06899..0dcbfecb5af682698d7a3af2824e9fb6f8cc0811 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -1181,6 +1181,7 @@ impl Terminal {
                         self.process_hyperlink(hyperlink, *open, cx);
                     }
                     None => {
+                        self.last_content.last_hovered_word = None;
                         cx.emit(Event::NewNavigationTarget(None));
                     }
                 }