diff --git a/package/xterm/xterm.hash b/package/xterm/xterm.hash
index 1a2ad8fea0..e0fdcfe66e 100644
--- a/package/xterm/xterm.hash
+++ b/package/xterm/xterm.hash
@@ -1,4 +1,4 @@
 # Locally calculated after checking pgp signature
-sha256  31ef870740ceae020c3c4b4a9601c7f47bfd46672c1aaf2d213a565d64cbc373  xterm-384.tgz
+sha256  1cd5763d94d9370fed10d804e831a089b2ace0e7a74b6f56ef5a16a766bde7be  xterm-389.tgz
 # Locally calculated
-sha256  98d02d0b7f7b8aabb742b05e6960caaa9ae20e26d2f0d0dc57808362f2ac79bc  COPYING
+sha256  e38de4a0780954b5a7e69b5fa6c571daa8a1bfbacb4f2c5b2f07099e1a1d7c93  COPYING
diff --git a/package/xterm/xterm.mk b/package/xterm/xterm.mk
index 2fc2f734c8..c2c97dd318 100644
--- a/package/xterm/xterm.mk
+++ b/package/xterm/xterm.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-XTERM_VERSION = 384
+XTERM_VERSION = 389
 XTERM_SOURCE = xterm-$(XTERM_VERSION).tgz
 XTERM_SITE = http://invisible-mirror.net/archives/xterm
 XTERM_DEPENDENCIES = ncurses xlib_libXaw host-pkgconf