diff --git a/src/makechrootpkg.in b/src/makechrootpkg.in
index bd607f4..98cc27f 100644
--- a/src/makechrootpkg.in
+++ b/src/makechrootpkg.in
@@ -365,6 +365,7 @@ download_sources
 prepare_chroot
 
 if arch-nspawn $cache_dir "$copydir" \
+	--setenv=TERM=xterm \
 	--bind="${PWD//:/\\:}:/startdir" \
 	--bind="${SRCDEST//:/\\:}:/srcdest" \
 	"${bindmounts_ro[@]}" "${bindmounts_rw[@]}" \