diff --git a/pkgs/by-name/xt/xterm/package.nix b/pkgs/by-name/xt/xterm/package.nix
index 1503f24327887..bce051e71103d 100644
--- a/pkgs/by-name/xt/xterm/package.nix
+++ b/pkgs/by-name/xt/xterm/package.nix
@@ -16,14 +16,14 @@
 
 stdenv.mkDerivation rec {
   pname = "xterm";
-  version = "404";
+  version = "406";
 
   src = fetchurl {
     urls = [
       "https://invisible-island.net/archives/xterm/${pname}-${version}.tgz"
       "https://invisible-mirror.net/archives/xterm/${pname}-${version}.tgz"
     ];
-    hash = "sha256-YzMvkhwie6WeWJ+gff2tFZnBCshZ6ibHKsHdSkG1ZaQ=";
+    hash = "sha256-Bm6y1mQwiX/h2t0nFVTM2uM9d8USEmp1j8TeN7EUh5k=";
   };
 
   patches = [ ./sixel-256.support.patch ];