diff --git a/bitbake/lib/bb/utils.py b/bitbake/lib/bb/utils.py
index 5f5767c1da..50032e50c2 100644
--- a/bitbake/lib/bb/utils.py
+++ b/bitbake/lib/bb/utils.py
@@ -580,7 +580,6 @@ def preserved_envvars_exported():
         'PATH',
         'PWD',
         'SHELL',
-        'TERM',
         'USER',
         'LC_ALL',
         'BBSERVER',