diff --git a/crates/terminal/src/terminal.rs b/crates/terminal/src/terminal.rs
index a07aef5f7b..0fce02a97b 100644
--- a/crates/terminal/src/terminal.rs
+++ b/crates/terminal/src/terminal.rs
@@ -364,6 +364,7 @@ impl TerminalBuilder {
         env.insert("ZED_TERM".to_string(), "true".to_string());
         env.insert("TERM_PROGRAM".to_string(), "zed".to_string());
         env.insert("TERM".to_string(), "xterm-256color".to_string());
+        env.insert("COLORTERM".to_string(), "truecolor".to_string());
         env.insert(
             "TERM_PROGRAM_VERSION".to_string(),
             release_channel::AppVersion::global(cx).to_string(),