diff --git a/nixos/modules/services/desktop-managers/pantheon.nix b/nixos/modules/services/desktop-managers/pantheon.nix
index 7f7cd2593393..1fe99c0f66ac 100644
--- a/nixos/modules/services/desktop-managers/pantheon.nix
+++ b/nixos/modules/services/desktop-managers/pantheon.nix
@@ -208,20 +208,11 @@ in
         "org.gnome.SettingsDaemon.XSettings.service"
       ];
 
-      # https://github.com/elementary/settings-daemon/issues/217
-      systemd.user.services.elementary-settings-daemon = {
-        description = "elementary Settings Daemon";
+      systemd.user.services."io.elementary.settings-daemon" = {
+        # https://github.com/NixOS/nixpkgs/issues/81138
         wantedBy = [ "gnome-session-initialized.target" ];
-        after = [ "gnome-session-initialized.target" ];
-
         # The daemon might launch external applications via g_app_info_launch.
         environment.PATH = lib.mkForce null;
-
-        serviceConfig = {
-          Slice = "session.slice";
-          ExecStart = "${pkgs.pantheon.elementary-settings-daemon}/bin/io.elementary.settings-daemon";
-          Restart = "on-failure";
-        };
       };
 
       # Global environment
diff --git a/pkgs/desktops/pantheon/services/elementary-settings-daemon/default.nix b/pkgs/desktops/pantheon/services/elementary-settings-daemon/default.nix
index e78685889584..a28ec005ee85 100644
--- a/pkgs/desktops/pantheon/services/elementary-settings-daemon/default.nix
+++ b/pkgs/desktops/pantheon/services/elementary-settings-daemon/default.nix
@@ -27,13 +27,13 @@
 
 stdenv.mkDerivation rec {
   pname = "elementary-settings-daemon";
-  version = "8.4.0";
+  version = "8.5.0";
 
   src = fetchFromGitHub {
     owner = "elementary";
     repo = "settings-daemon";
-    rev = version;
-    sha256 = "sha256-VdvwrkafZJ0+z2MYWT83POdo8dZrSAOL5RhAiwGEc2g=";
+    tag = version;
+    hash = "sha256-npHSj+Zq0fqWVjr5kl/C96gfziLMNOeXxCUgxFGht/s=";
   };
 
   nativeBuildInputs = [