diff --git a/src/makechrootpkg.in b/src/makechrootpkg.in
index e68199d..deab4a8 100644
--- a/src/makechrootpkg.in
+++ b/src/makechrootpkg.in
@@ -366,6 +366,7 @@ download_sources
 prepare_chroot
 
 if arch-nspawn $cache_dir "$copydir" \
+	--setenv=TERM=xterm \
 	--bind="${PWD//:/\\:}:/startdir" \
 	--bind="${SRCDEST//:/\\:}:/srcdest" \
 	--tmpfs="/tmp:${tmp_opts}" \