diff --git a/src/ptvsd/wrapper.py b/src/ptvsd/wrapper.py
index a526f477..49f95b69 100644
--- a/src/ptvsd/wrapper.py
+++ b/src/ptvsd/wrapper.py
@@ -1820,6 +1820,8 @@ class VSCodeMessageProcessor(VSCLifecycleMsgProcessor):
             reason = 'exception'
         elif reason == pydevd_comm.CMD_SET_BREAK:
             reason = 'breakpoint'
+        elif reason == pydevd_comm.CMD_SET_NEXT_STATEMENT:
+            reason = 'goto'
         else:
             reason = 'pause'
 
diff --git a/tests/func/test_step.py b/tests/func/test_step.py
index 54ce2cee..00340743 100644
--- a/tests/func/test_step.py
+++ b/tests/func/test_step.py
@@ -80,7 +80,7 @@ def test_set_next_statement(pyfile, run_as, start_method):
 
         session.wait_for_next(Event('continued'))
 
-        stop = session.wait_for_thread_stopped()
+        stop = session.wait_for_thread_stopped(reason='goto')
         frames = stop.stacktrace.body['stackFrames']
         line = frames[0]['line']
         assert line == line_numbers['inner2']