diff --git a/nixos/modules/services/networking/prosody.nix b/nixos/modules/services/networking/prosody.nix
index 42596ccfefd9..7920e4b26345 100644
--- a/nixos/modules/services/networking/prosody.nix
+++ b/nixos/modules/services/networking/prosody.nix
@@ -820,6 +820,7 @@ in
         '') cfg.muc}
 
       ${ lib.optionalString (cfg.uploadHttp != null) ''
+        -- TODO: think about migrating this to mod-http_file_share instead.
         Component ${toLua cfg.uploadHttp.domain} "http_upload"
             http_upload_file_size_limit = ${cfg.uploadHttp.uploadFileSizeLimit}
             http_upload_expire_after = ${cfg.uploadHttp.uploadExpireAfter}
diff --git a/pkgs/servers/xmpp/prosody/default.nix b/pkgs/servers/xmpp/prosody/default.nix
index 6b70c4cc9874..0d00e48f48ad 100644
--- a/pkgs/servers/xmpp/prosody/default.nix
+++ b/pkgs/servers/xmpp/prosody/default.nix
@@ -1,4 +1,5 @@
 { stdenv, fetchurl, lib, libidn, openssl, makeWrapper, fetchhg
+, icu
 , lua
 , nixosTests
 , withLibevent ? true
@@ -13,7 +14,7 @@ with lib;
 
 let
   luaEnv = lua.withPackages(p: with p; [
-      luasocket luasec luaexpat luafilesystem luabitop luadbi-sqlite3
+      luasocket luasec luaexpat luafilesystem luabitop luadbi-sqlite3 luaunbound
     ]
     ++ lib.optional withLibevent p.luaevent
     ++ lib.optional withDBI p.luadbi
@@ -21,21 +22,19 @@ let
   );
 in
 stdenv.mkDerivation rec {
-  version = "0.11.13"; # also update communityModules
+  version = "0.12.0"; # also update communityModules
   pname = "prosody";
   # The following community modules are necessary for the nixos module
   # prosody module to comply with XEP-0423 and provide a working
   # default setup.
   nixosModuleDeps = [
-    "bookmarks"
     "cloud_notify"
     "vcard_muc"
-    "smacks"
     "http_upload"
   ];
   src = fetchurl {
     url = "https://prosody.im/downloads/source/${pname}-${version}.tar.gz";
-    sha256 = "sha256-OcYbNGoJtRJbYEy5aeFCBsu8uGyBFW/8a6LWJSfPBDI=";
+    sha256 = "sha256-dS/zIBXaxWX8NBfCGWryaJccNY7gZuUfXZEkE1gNiJo=";
   };
 
   # A note to all those merging automated updates: Please also update this
@@ -43,13 +42,13 @@ stdenv.mkDerivation rec {
   # version.
   communityModules = fetchhg {
     url = "https://hg.prosody.im/prosody-modules";
-    rev = "54fa2116bbf3";
-    sha256 = "sha256-OKZ7tD75q8/GMXruUQ+r9l0BxzdbPHNf41fZ3fHVQVw=";
+    rev = "65438e4ba563";
+    sha256 = "sha256-zHOrMzcgHOdBl7nObM+OauifbcmKEOfAuj81MDSoLMk=";
   };
 
   nativeBuildInputs = [ makeWrapper ];
   buildInputs = [
-    luaEnv libidn openssl
+    luaEnv libidn openssl icu
   ]
   ++ withExtraLibs;
 
@@ -63,26 +62,14 @@ stdenv.mkDerivation rec {
     make -C tools/migration
   '';
 
-  luaEnvPath = lua.pkgs.lib.genLuaPathAbsStr luaEnv;
-  luaEnvCPath = lua.pkgs.lib.genLuaCPathAbsStr luaEnv;
-
   # the wrapping should go away once lua hook is fixed
   postInstall = ''
       ${concatMapStringsSep "\n" (module: ''
         cp -r $communityModules/mod_${module} $out/lib/prosody/modules/
       '') (lib.lists.unique(nixosModuleDeps ++ withCommunityModules ++ withOnlyInstalledCommunityModules))}
-      wrapProgram $out/bin/prosody \
-        --prefix LUA_PATH ';' "$luaEnvPath" \
-        --prefix LUA_CPATH ';' "$luaEnvCPath"
       wrapProgram $out/bin/prosodyctl \
-        --add-flags '--config "/etc/prosody/prosody.cfg.lua"' \
-        --prefix LUA_PATH ';' "$luaEnvPath" \
-        --prefix LUA_CPATH ';' "$luaEnvCPath"
-
+        --add-flags '--config "/etc/prosody/prosody.cfg.lua"'
       make -C tools/migration install
-      wrapProgram $out/bin/prosody-migrator \
-        --prefix LUA_PATH ';' "$luaEnvPath" \
-        --prefix LUA_CPATH ';' "$luaEnvCPath"
     '';
 
   passthru = {