diff --git a/src/browser/Terminal.ts b/src/browser/Terminal.ts
index 491a209e..a8accd78 100644
--- a/src/browser/Terminal.ts
+++ b/src/browser/Terminal.ts
@@ -1358,6 +1358,7 @@ export class Terminal extends CoreTerminal implements ITerminal {
     this._setup();
     super.reset();
     this._selectionService?.reset();
+    this._decorationService.reset();
 
     // reattach
     this._customKeyEventHandler = customKeyEventHandler;
diff --git a/src/common/TestUtils.test.ts b/src/common/TestUtils.test.ts
index 1ec5a05a..10b6b5ef 100644
--- a/src/common/TestUtils.test.ts
+++ b/src/common/TestUtils.test.ts
@@ -166,6 +166,7 @@ export class MockDecorationService implements IDecorationService {
   public onDecorationRegistered = new EventEmitter<IInternalDecoration>().event;
   public onDecorationRemoved = new EventEmitter<IInternalDecoration>().event;
   public registerDecoration(decorationOptions: IDecorationOptions): IDecoration | undefined { return undefined; }
+  public reset(): void { }
   public *getDecorationsOnLine(line: number): IterableIterator<IInternalDecoration> { }
   public dispose(): void { }
 }
diff --git a/src/common/services/DecorationService.ts b/src/common/services/DecorationService.ts
index 00ea3236..3c646501 100644
--- a/src/common/services/DecorationService.ts
+++ b/src/common/services/DecorationService.ts
@@ -49,6 +49,13 @@ export class DecorationService extends Disposable implements IDecorationService
     return decoration;
   }
 
+  public reset(): void {
+    for (let i = 0; i < this._decorations.length; i++) {
+      this._decorations[0].dispose();
+    }
+    this._decorations.length = 0;
+  }
+
   public *getDecorationsOnLine(line: number): IterableIterator<IInternalDecoration> {
     // TODO: This could be made much faster if _decorations was sorted by line (and col?)
     for (const d of this.decorations) {
diff --git a/src/common/services/Services.ts b/src/common/services/Services.ts
index e086ff56..c6d47816 100644
--- a/src/common/services/Services.ts
+++ b/src/common/services/Services.ts
@@ -308,6 +308,7 @@ export interface IDecorationService extends IDisposable {
   readonly onDecorationRegistered: IEvent<IInternalDecoration>;
   readonly onDecorationRemoved: IEvent<IInternalDecoration>;
   registerDecoration(decorationOptions: IDecorationOptions): IDecoration | undefined;
+  reset(): void;
   /** Iterates over the decorations on a line (in no particular order). */
   getDecorationsOnLine(line: number): IterableIterator<IInternalDecoration>;
 }