diff --git a/src/vs/workbench/contrib/terminal/browser/terminalView.ts b/src/vs/workbench/contrib/terminal/browser/terminalView.ts
index a3434eb83542f..8ef6151f92a4b 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalView.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalView.ts
@@ -453,7 +453,7 @@ class SingleTerminalTabActionViewItem extends MenuEntryActionViewItem {
 
 	override updateLabel(e?: ITerminalInstance): void {
 		// Only update if it's the active instance
-		if (e && e === this._terminalGroupService.activeInstance) {
+		if (e && e !== this._terminalGroupService.activeInstance) {
 			return;
 		}