diff --git a/src/terminal.c b/src/terminal.c
index 22b90c8..427e027 100644
--- a/src/terminal.c
+++ b/src/terminal.c
@@ -529,6 +529,8 @@
 
     set_string_option_direct((char_u *)"buftype", -1,
 				  (char_u *)"terminal", OPT_FREE|OPT_LOCAL, 0);
+    // Avoid that 'buftype' is reset when this buffer is entered.
+    curbuf->b_p_initialized = TRUE;
 
     /* Mark the buffer as not modifiable. It can only be made modifiable after
      * the job finished. */
diff --git a/src/testdir/test_terminal.vim b/src/testdir/test_terminal.vim
index 7ab0cf8..9126324 100644
--- a/src/testdir/test_terminal.vim
+++ b/src/testdir/test_terminal.vim
@@ -1605,3 +1605,19 @@
   set guioptions&
   call delete(filename)
 endfunc
+
+func Test_terminal_hidden()
+  if !has('unix')
+    return
+  endif
+  term ++hidden cat
+  let bnr = bufnr('$')
+  call assert_equal('terminal', getbufvar(bnr, '&buftype'))
+  exe 'sbuf ' . bnr
+  call assert_equal('terminal', &buftype)
+  call term_sendkeys(bnr, "asdf\<CR>")
+  call WaitForAssert({-> assert_match('asdf', term_getline(bnr, 2))})
+  call term_sendkeys(bnr, "\<C-D>")
+  call WaitForAssert({-> assert_equal('finished', term_getstatus(bnr))})
+  bwipe!
+endfunc
diff --git a/src/version.c b/src/version.c
index de3a32e..c5f1812 100644
--- a/src/version.c
+++ b/src/version.c
@@ -795,6 +795,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    238,
+/**/
     237,
 /**/
     236,