diff --git a/makechrootpkg.in b/makechrootpkg.in
index 85fa313..b80f557 100644
--- a/makechrootpkg.in
+++ b/makechrootpkg.in
@@ -364,6 +364,7 @@ download_sources
 prepare_chroot
 
 if arch-nspawn $cache_dir "$copydir" \
+	--setenv=TERM=xterm \
 	--bind="${PWD//:/\\:}:/startdir" \
 	--bind="${SRCDEST//:/\\:}:/srcdest" \
 	"${bindmounts_ro[@]}" "${bindmounts_rw[@]}" \