diff --git a/src/popupwin.c b/src/popupwin.c
index 56d04b5..4078378 100644
--- a/src/popupwin.c
+++ b/src/popupwin.c
@@ -2360,7 +2360,12 @@
     int		id = (int)tv_get_number(argvars);
     win_T	*wp;
 
-    if (ERROR_IF_ANY_POPUP_WINDOW)
+    if (
+# ifdef FEAT_TERMINAL
+	// if the popup contains a terminal it will become hidden
+	curbuf->b_term == NULL &&
+# endif
+	    ERROR_IF_ANY_POPUP_WINDOW)
 	return;
 
     wp = find_popup_win(id);
diff --git a/src/testdir/dumps/Test_terminal_popup_5.dump b/src/testdir/dumps/Test_terminal_popup_5.dump
new file mode 100644
index 0000000..7dbf1a6
--- /dev/null
+++ b/src/testdir/dumps/Test_terminal_popup_5.dump
@@ -0,0 +1,15 @@
+>0+0&#ffffff0| @73
+|1| @73
+|2| @73
+|3| @73
+|4| @73
+|5| @73
+|6| @73
+|7| @73
+|8| @73
+|9| @73
+|1|0| @72
+|1@1| @72
+|1|2| @72
+|1|3| @72
+|:|c|a|l@1| |C|l|o|s|e|P|o|p|u|p|(|)| @38|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_terminal_popup_6.dump b/src/testdir/dumps/Test_terminal_popup_6.dump
new file mode 100644
index 0000000..ebc6770
--- /dev/null
+++ b/src/testdir/dumps/Test_terminal_popup_6.dump
@@ -0,0 +1,15 @@
+|0+0&#ffffff0| @73
+|1| @73
+|2| @73
+|3| @12|╔+0#0000001#ffd7ff255|═@44|╗| +0#0000000#ffffff0@13
+|4| @12|║+0#0000001#ffd7ff255|s+0#0000000#ffffff0|o|m|e| |t|e|x|t| @35|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|5| @12|║+0#0000001#ffd7ff255|t+0#0000000#ffffff0|o| >e+0&#ffff4012|d|i|t| +0&#ffffff0@37|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|6| @12|║+0#0000001#ffd7ff255|i+0#0000000#ffffff0|n| |a| |p|o|p|u|p| |w|i|n|d|o|w| @27|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|7| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|8| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|9| @12|║+0#0000001#ffd7ff255|~+0#4040ff13#ffffff0| @43|║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|1|0| @11|║+0#0000001#ffd7ff255|/+0#0000000#ffffff0|e|d|i|t| @21|2|,|4| @10|A|l@1| |║+0#0000001#ffd7ff255| +0#0000000#ffffff0@13
+|1@1| @11|╚+0#0000001#ffd7ff255|═@44|╝| +0#0000000#ffffff0@13
+|1|2| @72
+|1|3| @72
+@57|1|,|1| @10|A|l@1| 
diff --git a/src/testdir/test_terminal.vim b/src/testdir/test_terminal.vim
index e0761c4..64bc7db 100644
--- a/src/testdir/test_terminal.vim
+++ b/src/testdir/test_terminal.vim
@@ -2337,8 +2337,8 @@
 	\ 'call setline(1, range(20))',
 	\ 'hi PopTerm ctermbg=grey',
 	\ 'func OpenTerm(setColor)',
-	\ "  let buf = term_start('" .. cmd .. " Xtext', #{hidden: 1, term_finish: 'close'})",
-	\ '  let s:winid = popup_create(buf, #{minwidth: 45, minheight: 7, border: [], drag: 1, resize: 1})',
+	\ "  let s:buf = term_start('" .. cmd .. " Xtext', #{hidden: 1, term_finish: 'close'})",
+	\ '  let s:winid = popup_create(s:buf, #{minwidth: 45, minheight: 7, border: [], drag: 1, resize: 1})',
 	\ '  if a:setColor',
 	\ '    call win_execute(s:winid, "set wincolor=PopTerm")',
 	\ '  endif',
@@ -2347,6 +2347,12 @@
 	\ 'func HidePopup()',
 	\ '  call popup_hide(s:winid)',
 	\ 'endfunc',
+	\ 'func ClosePopup()',
+	\ '  call popup_close(s:winid)',
+	\ 'endfunc',
+	\ 'func ReopenPopup()',
+	\ '  call popup_create(s:buf, #{minwidth: 40, minheight: 6, border: []})',
+	\ 'endfunc',
 	\ 'sleep 10m',
 	\ 'redraw',
 	\ 'echo getwinvar(s:winid, "&buftype") win_gettype(s:winid)',
@@ -2370,6 +2376,13 @@
   call term_sendkeys(buf, "\<CR>")
   call term_wait(buf, 100)
 
+  call term_sendkeys(buf, "\<C-W>:call ClosePopup()\<CR>")
+  call VerifyScreenDump(buf, 'Test_terminal_popup_5', {})
+
+  call term_sendkeys(buf, "\<C-W>:call ReopenPopup()\<CR>")
+  call VerifyScreenDump(buf, 'Test_terminal_popup_6', {})
+  call term_wait(buf, 100)
+
   call term_sendkeys(buf, ":q\<CR>")
   call term_wait(buf, 100)  " wait for terminal to vanish
 
diff --git a/src/version.c b/src/version.c
index 9dc3c6f..e17c98b 100644
--- a/src/version.c
+++ b/src/version.c
@@ -739,6 +739,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    286,
+/**/
     285,
 /**/
     284,