diff --git a/nixos/modules/programs/wayland/dms-shell.nix b/nixos/modules/programs/wayland/dms-shell.nix
index 48d180dc50a0..233590bcf3ec 100644
--- a/nixos/modules/programs/wayland/dms-shell.nix
+++ b/nixos/modules/programs/wayland/dms-shell.nix
@@ -30,17 +30,14 @@ let
 
   optionalPackages =
     optionals cfg.enableSystemMonitoring [ pkgs.dgop ]
-    ++ optionals cfg.enableClipboard [
-      pkgs.cliphist
-      pkgs.wl-clipboard
-    ]
     ++ optionals cfg.enableVPN [
       pkgs.glib
       pkgs.networkmanager
     ]
     ++ optional cfg.enableDynamicTheming pkgs.matugen
     ++ optional cfg.enableAudioWavelength pkgs.cava
-    ++ optional cfg.enableCalendarEvents pkgs.khal;
+    ++ optional cfg.enableCalendarEvents pkgs.khal
+    ++ optional cfg.enableClipboardPaste pkgs.wtype;
 in
 {
   imports = [
@@ -49,6 +46,7 @@ in
     (lib.mkRemovedOptionModule (
       path ++ [ "enableSystemSound" ]
     ) "qtmultimedia is now included on dms-shell package.")
+    (lib.mkRemovedOptionModule (path ++ [ "enableClipboard" ]) builtInRemovedMsg)
   ];
 
   options.programs.dms-shell = {
@@ -99,17 +97,6 @@ in
       '';
     };
 
-    enableClipboard = mkOption {
-      type = types.bool;
-      default = true;
-      description = ''
-        Whether to install dependencies required for clipboard management widgets.
-        This enables clipboard history and clipboard manager functionality.
-
-        Requires: cliphist, wl-clipboard
-      '';
-    };
-
     enableVPN = mkOption {
       type = types.bool;
       default = true;
@@ -154,6 +141,17 @@ in
       '';
     };
 
+    enableClipboardPaste = mkOption {
+      type = types.bool;
+      default = true;
+      description = ''
+        Whether to install dependencies required for pasting directly from the clipboard history support.
+        This enables pressing Shift+Return for pasting entries from the clipboard history.
+
+        Requires: wtype
+      '';
+    };
+
     quickshell = {
       package = mkPackageOption pkgs "quickshell" { };
     };
diff --git a/pkgs/by-name/dm/dms-shell/package.nix b/pkgs/by-name/dm/dms-shell/package.nix
index 59bfd8905ae9..a68e81158e29 100644
--- a/pkgs/by-name/dm/dms-shell/package.nix
+++ b/pkgs/by-name/dm/dms-shell/package.nix
@@ -26,18 +26,18 @@ buildGoModule (
   in
   {
     pname = "dms-shell";
-    version = "1.0.3";
+    version = "1.2.0";
 
     src = fetchFromGitHub {
       owner = "AvengeMedia";
       repo = "DankMaterialShell";
       tag = "v${finalAttrs.version}";
-      hash = "sha256-IT21E2XX83IlO6/dW0YmUdY2JW//+ZBHLqpKPGd6tx8=";
+      hash = "sha256-LNKeqhYWpx688ytSW//H+kdaupWf0pStPhfFLxAFV8k=";
     };
 
     sourceRoot = "${finalAttrs.src.name}/core";
 
-    vendorHash = "sha256-2PCqiW4frxME8IlmwWH5ktznhd/G1bah5Ae4dp0HPTQ=";
+    vendorHash = "sha256-9CnZFtjXXWYELRiBX2UbZvWopnl9Y1ILuK+xP6YQZ9U=";
 
     ldflags = [
       "-s"