diff --git a/lib/internal/tty.js b/lib/internal/tty.js
index faf5df9b42e6b2..98975fa68a436f 100644
--- a/lib/internal/tty.js
+++ b/lib/internal/tty.js
@@ -173,6 +173,10 @@ function getColorDepth(env = process.env) {
       return COLORS_256;
   }
 
+  if (env.COLORTERM === 'truecolor' || env.COLORTERM === '24bit') {
+    return COLORS_16m;
+  }
+
   if (env.TERM) {
     if (/^xterm-256/.test(env.TERM))
       return COLORS_256;
@@ -188,13 +192,10 @@ function getColorDepth(env = process.env) {
       }
     }
   }
-
+  // Move 16 color COLORTERM below 16m and 256
   if (env.COLORTERM) {
-    if (env.COLORTERM === 'truecolor' || env.COLORTERM === '24bit')
-      return COLORS_16m;
     return COLORS_16;
   }
-
   return COLORS_2;
 }
 
diff --git a/test/pseudo-tty/test-tty-color-support.js b/test/pseudo-tty/test-tty-color-support.js
index b2cfc804c30281..57ed640d4d813f 100644
--- a/test/pseudo-tty/test-tty-color-support.js
+++ b/test/pseudo-tty/test-tty-color-support.js
@@ -71,6 +71,7 @@ const writeStream = new WriteStream(fd);
   [{ NO_COLOR: '', COLORTERM: '24bit' }, 1],
   [{ TMUX: '1', FORCE_COLOR: 0 }, 1],
   [{ NO_COLOR: 'true', FORCE_COLOR: 0, COLORTERM: 'truecolor' }, 1],
+  [{ TERM: 'xterm-256color', COLORTERM: 'truecolor' }, 24],
 ].forEach(([env, depth], i) => {
   const actual = writeStream.getColorDepth(env);
   assert.strictEqual(