diff --git a/pkgs/development/php-packages/datadog_trace/default.nix b/pkgs/development/php-packages/datadog_trace/default.nix
index a08d01603e36..72cff19d2bec 100644
--- a/pkgs/development/php-packages/datadog_trace/default.nix
+++ b/pkgs/development/php-packages/datadog_trace/default.nix
@@ -9,28 +9,34 @@
   curl,
   pcre2,
   libiconv,
-  php,
 }:
 
 buildPecl rec {
   pname = "ddtrace";
-  version = "0.97.0";
+  version = "1.16.0";
 
   src = fetchFromGitHub {
     owner = "DataDog";
     repo = "dd-trace-php";
     rev = version;
     fetchSubmodules = true;
-    hash = "sha256-Kx2HaWvRT+mFIs0LAAptx6nm9DQ83QEuyHNcEPEr7A4=";
+    hash = "sha256-o9g0PT/EbBlB9h2FGyYJsKoNUcJIhGR0hv3owztcvcw=";
   };
 
   cargoDeps = rustPlatform.fetchCargoVendor {
     inherit src;
-    hash = "sha256-cwhE6M8r8QnrIiNgEekI25GcKTByySrZsigPd9/Fq7o=";
+    hash = "sha256-vcM+iLpJiIxMqw/Xgq4E3hbY77+H1T1UkdJpUOO6dmo=";
   };
 
   env.NIX_CFLAGS_COMPILE = "-O2";
 
+  # Fix double slashes in Makefile paths to prevent impure path errors during
+  # linking. The Makefile has /$(builddir)/components-rs/... but builddir is
+  # already absolute (/build/source), creating //build/source/... paths.
+  postConfigure = ''
+    substituteInPlace Makefile --replace-fail '/$(builddir)/components-rs' '$(builddir)/components-rs'
+  '';
+
   nativeBuildInputs = [
     cargo
     rustc
@@ -55,6 +61,5 @@ buildPecl rec {
       bsd3
     ];
     teams = [ lib.teams.php ];
-    broken = lib.versionAtLeast php.version "8.4";
   };
 }