diff --git a/pkgs/by-name/ni/nix-direnv/package.nix b/pkgs/by-name/ni/nix-direnv/package.nix
index 42569d8e79737..ff56c097c29a5 100644
--- a/pkgs/by-name/ni/nix-direnv/package.nix
+++ b/pkgs/by-name/ni/nix-direnv/package.nix
@@ -1,23 +1,25 @@
-{ resholve, lib, coreutils, direnv, nix, fetchFromGitHub }:
+{
+  resholve,
+  lib,
+  coreutils,
+  nix,
+  fetchFromGitHub,
+  writeText,
+}:
 
 # resholve does not yet support `finalAttrs` call pattern hence `rec`
 # https://github.com/abathur/resholve/issues/107
 resholve.mkDerivation rec {
   pname = "nix-direnv";
-  version = "3.0.5";
+  version = "3.0.6";
 
   src = fetchFromGitHub {
     owner = "nix-community";
     repo = "nix-direnv";
     rev = version;
-    hash = "sha256-imUlc5v/Ow7dgjCjTyEeet+4lNHLeEwfqGQcB4dKcao=";
+    hash = "sha256-oNqhPqgQT92yxbKmcgX4F3e2yTUPyXYG7b2xQm3TvQw=";
   };
 
-  # skip min version checks which are redundant when built with nix
-  postPatch = ''
-    sed -i 1iNIX_DIRENV_SKIP_VERSION_CHECK=1 direnvrc
-  '';
-
   installPhase = ''
     runHook preInstall
     install -m400 -D direnvrc $out/share/nix-direnv/direnvrc
@@ -28,7 +30,7 @@ resholve.mkDerivation rec {
     default = {
       scripts = [ "share/nix-direnv/direnvrc" ];
       interpreter = "none";
-      inputs = [ coreutils nix ];
+      inputs = [ coreutils ];
       fake = {
         builtin = [
           "PATH_add"
@@ -43,23 +45,36 @@ resholve.mkDerivation rec {
           # cannot be reached when built with nix
           "shasum"
         ];
+        external = [
+          # We want to reference the ambient Nix when possible, and have custom logic
+          # for the fallback
+          "nix"
+        ];
       };
       keep = {
         "$cmd" = true;
         "$direnv" = true;
+
+        # Nix fallback implementation
+        "$_nix_direnv_nix" = true;
+        "$ambient_nix" = true;
+        "$NIX_DIRENV_FALLBACK_NIX" = true;
       };
-      execer = [
-        "cannot:${direnv}/bin/direnv"
-        "cannot:${nix}/bin/nix"
-      ];
+      prologue =
+        (writeText "prologue.sh" ''
+          NIX_DIRENV_FALLBACK_NIX=''${NIX_DIRENV_FALLBACK_NIX:-${lib.getExe nix}}
+        '').outPath;
     };
   };
 
   meta = {
-    description = "A fast, persistent use_nix implementation for direnv";
-    homepage    = "https://github.com/nix-community/nix-direnv";
-    license     = lib.licenses.mit;
-    platforms   = lib.platforms.unix;
-    maintainers = with lib.maintainers; [ mic92 bbenne10 ];
+    description = "Fast, persistent use_nix implementation for direnv";
+    homepage = "https://github.com/nix-community/nix-direnv";
+    license = lib.licenses.mit;
+    platforms = lib.platforms.unix;
+    maintainers = with lib.maintainers; [
+      mic92
+      bbenne10
+    ];
   };
 }