diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index f882a31171b6138479266d41d40b8ff07f57cdbf..4ab36ae102132352342f3658ddb8276e540f8042 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -347,7 +347,7 @@ impl TerminalBuilder {
 
         env.insert("ZED_TERM".to_string(), "true".to_string());
         env.insert("TERM_PROGRAM".to_string(), "zed".to_string());
-        env.insert("TERM".to_string(), "alacritty".to_string());
+        env.insert("TERM".to_string(), "xterm-256color".to_string());
         env.insert(
             "TERM_PROGRAM_VERSION".to_string(),
             release_channel::AppVersion::global(cx).to_string(),