diff --git a/pkgs/applications/editors/vscode/extensions/default.nix b/pkgs/applications/editors/vscode/extensions/default.nix
index 96b6097f14d5..76bc3fb3b13c 100644
--- a/pkgs/applications/editors/vscode/extensions/default.nix
+++ b/pkgs/applications/editors/vscode/extensions/default.nix
@@ -1944,8 +1944,8 @@ let
         mktplcRef = {
           name = "direnv";
           publisher = "mkhl";
-          version = "0.10.1";
-          sha256 = "0m89sx1qqdkwa9pfmd9b11lp8z0dqpi6jn27js5q4ymscyg41bqd";
+          version = "0.12.0";
+          sha256 = "sha256-UMGTWAiPAxSjy5ALUkijD0GE9TW37TZ3UvMmgFBNYsU=";
         };
         meta = {
           description = "direnv support for Visual Studio Code";