diff --git a/package/xterm/Config.in b/package/xterm/Config.in
index e17d2c6d90..f11aafad7a 100644
--- a/package/xterm/Config.in
+++ b/package/xterm/Config.in
@@ -4,6 +4,8 @@ config BR2_PACKAGE_XTERM
 	select BR2_PACKAGE_XLIB_LIBXAW
 	depends on BR2_PACKAGE_XORG7
 	depends on BR2_USE_MMU # fork()
+	# ARC toolchain issue
+	depends on !BR2_TOOLCHAIN_EXTERNAL_SYNOPSYS_ARC
 	help
 	  xterm terminal emulator