diff --git a/package/xterm/xterm.hash b/package/xterm/xterm.hash
index e0fdcfe66e..e86db1c06e 100644
--- a/package/xterm/xterm.hash
+++ b/package/xterm/xterm.hash
@@ -1,4 +1,4 @@
 # Locally calculated after checking pgp signature
-sha256  1cd5763d94d9370fed10d804e831a089b2ace0e7a74b6f56ef5a16a766bde7be  xterm-389.tgz
+sha256  3da2b5e64cb49b03aa13057d85e62e1f2e64f7c744719c00d338d11cd3e6ca1a  xterm-401.tgz
 # Locally calculated
-sha256  e38de4a0780954b5a7e69b5fa6c571daa8a1bfbacb4f2c5b2f07099e1a1d7c93  COPYING
+sha256  99f70364bb769635eb9de18cc286e16cb78026f3b6478276344ee8619098dff6  COPYING
diff --git a/package/xterm/xterm.mk b/package/xterm/xterm.mk
index c2c97dd318..fb6de107e9 100644
--- a/package/xterm/xterm.mk
+++ b/package/xterm/xterm.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-XTERM_VERSION = 389
+XTERM_VERSION = 401
 XTERM_SOURCE = xterm-$(XTERM_VERSION).tgz
 XTERM_SITE = http://invisible-mirror.net/archives/xterm
 XTERM_DEPENDENCIES = ncurses xlib_libXaw host-pkgconf