diff --git a/pkgs/desktops/pantheon/apps/elementary-terminal/default.nix b/pkgs/desktops/pantheon/apps/elementary-terminal/default.nix
index d446dafeae0e..c3c6458927d0 100644
--- a/pkgs/desktops/pantheon/apps/elementary-terminal/default.nix
+++ b/pkgs/desktops/pantheon/apps/elementary-terminal/default.nix
@@ -2,6 +2,7 @@
   lib,
   stdenv,
   fetchFromGitHub,
+  fetchpatch,
   nix-update-script,
   pkg-config,
   meson,
@@ -21,15 +22,24 @@
 
 stdenv.mkDerivation rec {
   pname = "elementary-terminal";
-  version = "7.0.0";
+  version = "7.1.0";
 
   src = fetchFromGitHub {
     owner = "elementary";
     repo = "terminal";
     rev = version;
-    sha256 = "sha256-2Z56U6nbqwlbrSMzTYv7cSI7LT7pvDhW0w4f3wxv6ZA=";
+    sha256 = "sha256-IbN01o3rojlwp4rBt8NlIPthxIPMOm/bD1rzD5Taibw=";
   };
 
+  patches = [
+    # Fix incorrect line breaks when pasting/dropping into foreground processes
+    # https://github.com/elementary/terminal/pull/862
+    (fetchpatch {
+      url = "https://github.com/elementary/terminal/commit/8f93bc77437e45090e59266c7813436a0903d27b.patch";
+      hash = "sha256-4xUFnFVUV4EIDZFprEbL+S49j5Maof5/egHPVaJAVg4=";
+    })
+  ];
+
   nativeBuildInputs = [
     desktop-file-utils
     meson