diff --git a/private/installd.te b/private/installd.te
index 55e962a..50c378a 100644
--- a/private/installd.te
+++ b/private/installd.te
@@ -226,6 +226,13 @@
   allow installd storage_area_key_file:file unlink;
 ')
 
+# Allow installd to delete the terminal app's data file.
+# `virtualizationservice_data_file` was used for a while, but it needs to be
+# deleted when terminal feature is disabled.
+# TODO(b/383026786): Remove this rule once the there is no
+# `virtualizationservice_data_file` in terminal app anymore..
+allow installd virtualizationservice_data_file:file unlink;
+
 ###
 ### Neverallow rules
 ###