diff --git a/pkg/dds/CHANGELOG.md b/pkg/dds/CHANGELOG.md
index c2ad2e38ec4..1a38b0415c4 100644
--- a/pkg/dds/CHANGELOG.md
+++ b/pkg/dds/CHANGELOG.md
@@ -8,6 +8,8 @@
   collected while execution is paused, while releasing them once execution
   resumes.
 - Updated `vm_service` constraint to ^14.3.0.
+- [DAP] Updated `dap` constraint to ^1.4.0.
+- [DAP] Set `supportsANSIStyling` to `true` in debug adapter capabilities to indicate that `Output` events might contain ansi color codes.
 
 # 4.2.7
 - Added a new constant `RpcErrorCodes.kConnectionDisposed = -32010` for requests
diff --git a/pkg/dds/lib/src/dap/adapters/dart.dart b/pkg/dds/lib/src/dap/adapters/dart.dart
index 69f5ebb1612..2fefc3ae760 100644
--- a/pkg/dds/lib/src/dap/adapters/dart.dart
+++ b/pkg/dds/lib/src/dap/adapters/dart.dart
@@ -1249,6 +1249,7 @@ abstract class DartDebugAdapter<TL extends LaunchRequestArguments,
           defaultValue: true,
         ),
       ],
+      supportsANSIStyling: true,
       supportsClipboardContext: true,
       supportsConditionalBreakpoints: true,
       supportsConfigurationDoneRequest: true,
diff --git a/pkg/dds/pubspec.yaml b/pkg/dds/pubspec.yaml
index da45485c21f..0244e4d2298 100644
--- a/pkg/dds/pubspec.yaml
+++ b/pkg/dds/pubspec.yaml
@@ -14,7 +14,7 @@ dependencies:
   browser_launcher: ^1.0.0
   collection: ^1.15.0
   dds_service_extensions: ^2.0.0
-  dap: ^1.3.0
+  dap: ^1.4.0
   extension_discovery: ^2.0.0
   devtools_shared: ^11.0.0
   http_multi_server: ^3.0.0