diff --git a/pkgs/build-support/cc-wrapper/default.nix b/pkgs/build-support/cc-wrapper/default.nix
index 9bb07456e8f2..808fe5db2780 100644
--- a/pkgs/build-support/cc-wrapper/default.nix
+++ b/pkgs/build-support/cc-wrapper/default.nix
@@ -603,7 +603,7 @@ stdenvNoCC.mkDerivation {
       installPhase =
         if targetPlatform.isCygwin then
           ''
-            echo addToSearchPath "LINK_DLL_FOLDERS" "${cc_bin}/lib" >> $out
+            echo addToSearchPath "_linkDeps_inputPath" "${cc_solib}/bin" >> $out
             # Work around build failure caused by the gnulib workaround for
             # https://gcc.gnu.org/bugzilla/show_bug.cgi?id=114870. remove after
             # gnulib is updated in core packages (e.g. iconv, gnupatch, gnugrep)
diff --git a/pkgs/build-support/setup-hooks/cygwin-dll-link.sh b/pkgs/build-support/setup-hooks/cygwin-dll-link.sh
deleted file mode 100644
index a9309925e658..000000000000
--- a/pkgs/build-support/setup-hooks/cygwin-dll-link.sh
+++ /dev/null
@@ -1,77 +0,0 @@
-# shellcheck shell=bash
-
-addLinkDLLPaths() {
-  addToSearchPath "LINK_DLL_FOLDERS" "$1/lib"
-  addToSearchPath "LINK_DLL_FOLDERS" "$1/bin"
-}
-
-# shellcheck disable=SC2154
-addEnvHooks "$targetOffset" addLinkDLLPaths
-
-addOutputDLLPaths() {
-  for output in $(getAllOutputNames); do
-    addToSearchPath "LINK_DLL_FOLDERS" "${!output}/lib"
-    addToSearchPath "LINK_DLL_FOLDERS" "${!output}/bin"
-  done
-}
-
-postInstallHooks+=(addOutputDLLPaths)
-
-_dllDeps() {
-  "$OBJDUMP" -p "$1" \
-    | sed -n 's/.*DLL Name: \(.*\)/\1/p' \
-    | sort -u
-}
-
-_linkDeps() {
-  local target="$1" dir="$2" check="$3"
-  echo 'target:' "$target"
-  local dll
-  _dllDeps "$target" | while read -r dll; do
-    echo '  dll:' "$dll"
-    if [[ -e "$dir/$dll" ]]; then continue; fi
-    # Locate the DLL - it should be an *executable* file on $LINK_DLL_FOLDERS.
-    local dllPath
-    if ! dllPath="$(PATH="$(dirname "$target"):$LINK_DLL_FOLDERS" type -P "$dll")"; then
-      if [[ -z "$check" || -n "${allowedImpureDLLsMap[$dll]}" ]]; then
-        continue
-      fi
-      echo unable to find "$dll" in "$LINK_DLL_FOLDERS" >&2
-      exit 1
-    fi
-    echo '    linking to:' "$dllPath"
-    CYGWIN+=\ winsymlinks:nativestrict ln -sr "$dllPath" "$dir"
-    # That DLL might have its own (transitive) dependencies,
-    # so add also all DLLs from its directory to be sure.
-    _linkDeps "$dllPath" "$dir" ""
-  done
-}
-
-linkDLLs() {
-  # shellcheck disable=SC2154
-  if [ ! -d "$prefix" ]; then return; fi
-  (
-    set -e
-    shopt -s globstar nullglob
-
-    local -a allowedImpureDLLsArray
-    concatTo allowedImpureDLLsArray allowedImpureDLLs
-
-    local -A allowedImpureDLLsMap;
-
-    for dll in "${allowedImpureDLLsArray[@]}"; do
-      allowedImpureDLLsMap[$dll]=1
-    done
-
-    cd "$prefix"
-
-    # Iterate over any DLL that we depend on.
-    local target
-    for target in {bin,libexec}/**/*.{exe,dll}; do
-      [[ ! -f "$target" || ! -x "$target" ]] ||
-        _linkDeps "$target" "$(dirname "$target")" "1"
-    done
-  )
-}
-
-fixupOutputHooks+=(linkDLLs)
diff --git a/pkgs/development/compilers/gcc/common/builder.nix b/pkgs/development/compilers/gcc/common/builder.nix
index b1b5daeb00f1..1e90828a6643 100644
--- a/pkgs/development/compilers/gcc/common/builder.nix
+++ b/pkgs/development/compilers/gcc/common/builder.nix
@@ -363,6 +363,13 @@ originalAttrs:
           fi
       done
     ''
+    + lib.optionalString stdenv.targetPlatform.isCygwin ''
+      targetBinDir="''${targetConfig+$targetConfig/}bin"
+      for i in "''${!outputBin}/$targetLibDir"/cyg*.dll; do
+        mkdir -p "''${!outputLib}/$targetBinDir"
+        mv "$i" "''${!outputLib}/$targetBinDir"/
+      done
+    ''
     # if cross-compiling, link from $lib/lib to $lib/${targetConfig}.
     # since native-compiles have $lib/lib as a directory (not a
     # symlink), this ensures that in every case we can assume that
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/cygwin-dll-link.sh b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/cygwin-dll-link.sh
new file mode 100644
index 000000000000..95e63b5458ab
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/cygwin-dll-link.sh
@@ -0,0 +1,142 @@
+# shellcheck shell=bash
+
+_moveDLLsToLib() {
+  if [[ "${dontMoveDLLsToLib-}" ]]; then return; fi
+  # shellcheck disable=SC2154
+  moveToOutput "bin/*.dll" "${!outputLib}"
+}
+
+preFixupHooks+=(_moveDLLsToLib)
+
+declare _linkDeps_inputPath _linkDeps_outputPath
+
+_addOutputDLLPaths() {
+  for output in $(getAllOutputNames); do
+    addToSearchPath _linkDeps_outputPath "${!output}/bin"
+  done
+}
+
+preFixupHooks+=(_addOutputDLLPaths)
+
+_dllDeps() {
+  @objdump@ -p "$1" \
+    | sed -n 's/.*DLL Name: \(.*\)/\1/p' \
+    | sort -u
+}
+
+declare -Ag _linkDeps_visited
+
+_linkDeps() {
+  local target="$1" dir="$2"
+
+  # canonicalise these for the dictionary
+  target=$(realpath -s "$target")
+  dir=$(realpath -s "$dir")
+
+  if [[ -v _linkDeps_visited[$target] ]]; then
+    echo "_linkDeps: $target was already linked." 1>&2
+    return
+  fi
+  if [[ ! -f $target || ! -x $target ]]; then
+    echo "_linkDeps: $target is not an executable file, skipping." 1>&2
+    return
+  fi
+
+  local output inOutput
+  for output in $outputs ; do
+    if [[ $target == "${!output}"* && ! -L $target ]]; then
+      echo "_linkDeps: $target is in $output (${!output})." 1>&2
+      inOutput=1
+      break
+    fi
+  done
+
+  echo 'target:' "$target"
+  local dll
+  while read -r dll; do
+    echo '  dll:' "$dll"
+    local dllPath=$dir/$dll
+    if [[ -v _linkDeps_visited[$dllPath] ]]; then
+      echo "_linkDeps: $dll was already linked into $dir." 1>&2
+      continue
+    fi
+    if [[ -L $dllPath ]]; then
+      echo '    already linked'
+      dllPath=$(realpath -s "$(readlink "$dllPath")")
+      _linkDeps "$dllPath" "$dir"
+    elif [[ -e $dllPath ]]; then
+      echo '    already exits'
+      _linkDeps "$dllPath" "$dir"
+    else
+      if [[ $dll = cygwin1.dll ]]; then
+        dllPath=/bin/cygwin1.dll
+      else
+        # This intentionally doesn't use $dir because we want to prefer
+        # dependencies that are already linked next to the target.
+        local searchPath realTarget
+        searchPath=$_linkDeps_outputPath:$_linkDeps_inputPath:$HOST_PATH
+        if [[ -L $target ]]; then
+          searchPath=$searchPath:$(dirname "$(readlink "$target")")
+        fi
+        searchPath=$(dirname "$target"):$searchPath
+        if ! dllPath=$(PATH="$searchPath" type -P "$dll"); then
+          if [[ -z $inOutput || -n ${allowedImpureDLLsMap[$dll]} ]]; then
+            continue
+          fi
+          echo unable to find "$dll" in "$searchPath" >&2
+          exit 1
+        fi
+      fi
+      echo '    linking to:' "$dllPath"
+      CYGWIN+=' winsymlinks:nativestrict' ln -sr "$dllPath" "$dir"
+      _linkDeps "$dllPath" "$dir"
+    fi
+    _linkDeps_visited[$dir/$dll]=1
+  done < <(_dllDeps "$target")
+  wait $!
+}
+
+# linkDLLsDir can be used to override the destination path for links.  This is
+# useful if you're trying to link dependencies of libraries into the directory
+# containing an executable.
+#
+# Arguments can be a file or directory path. Directories are searched
+# recursively.
+linkDLLs() {
+  # shellcheck disable=SC2154
+  (
+    set -e
+    shopt -s globstar nullglob dotglob
+
+    local -a allowedImpureDLLsArray
+    concatTo allowedImpureDLLsArray allowedImpureDLLs
+
+    local -A allowedImpureDLLsMap;
+
+    for dll in "${allowedImpureDLLsArray[@]}"; do
+      allowedImpureDLLsMap[$dll]=1
+    done
+
+    local target file
+    for target in "$@"; do
+      # Iterate over any DLL that we depend on.
+      if [[ -f "$target" ]]; then
+        _linkDeps "$target" "${linkDLLsDir-$(dirname "$target")}"
+      elif [[ -d "$target" ]]; then
+        for file in "${target%/}"/**/*.{exe,dll}; do
+          _linkDeps "$file" "${linkDLLsDir-$(dirname "$file")}"
+        done
+      else
+        echo "linkDLLs: $target is not a file or directory, skipping." 1>&2
+      fi
+    done
+  )
+}
+
+_linkDLLs() {
+  # shellcheck disable=SC2154
+  if [[ ! -d $prefix || ${dontLinkDLLs-} ]]; then return; fi
+  linkDLLs "$prefix"/{bin,lib,libexec}/
+}
+
+fixupOutputHooks+=(_linkDLLs)
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/default.nix b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/default.nix
new file mode 100644
index 000000000000..ff9eed6bdeef
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/default.nix
@@ -0,0 +1,15 @@
+{
+  lib,
+  makeSetupHook,
+  binutils-unwrapped,
+  stdenv,
+  callPackage,
+}:
+makeSetupHook {
+  name = "cygwin-dll-link-hook";
+  substitutions = {
+    objdump = "${lib.getBin binutils-unwrapped}/${stdenv.targetPlatform.config}/bin/objdump";
+  };
+
+  passthru.tests = callPackage ./tests { };
+} ./cygwin-dll-link.sh
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/default.nix b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/default.nix
new file mode 100644
index 000000000000..a8744001dc2d
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/default.nix
@@ -0,0 +1,130 @@
+{
+  dieHook,
+  lib,
+  stdenv,
+  testers,
+  runCommand,
+}:
+
+rec {
+  dll = stdenv.mkDerivation {
+    name = "dll";
+    src = ./dll;
+    outputs = [
+      "out"
+      "dev"
+    ];
+    buildInputs = [ dll2 ];
+    strictDeps = true;
+  };
+
+  dll2 = stdenv.mkDerivation {
+    name = "dll2";
+    src = ./dll2;
+    outputs = [
+      "out"
+      "dev"
+    ];
+  };
+
+  exe = stdenv.mkDerivation {
+    name = "exe";
+    src = ./exe;
+    buildInputs = [ dll ];
+    nativeBuildInputs = [ dieHook ];
+    strictDeps = true;
+    doCheck = true;
+    postFixup = ''[[ -e "$out"/bin/cyghello2.dll ]] || die missing indirect dependency'';
+  };
+
+  link-dll = exe.overrideAttrs {
+    name = "link-dll";
+    preFixup = ''
+      ln -s ${lib.getLib dll}/bin/cyghello.dll "$out"/bin/
+    '';
+  };
+
+  user32 = stdenv.mkDerivation {
+    name = "user32";
+    src = ./user32;
+    allowedImpureDLLs = [ "USER32.dll" ];
+  };
+
+  impure-dll = testers.testBuildFailure (
+    user32.overrideAttrs {
+      name = "impure-dll";
+      allowedImpureDLLs = [ ];
+    }
+  );
+
+  user32-dll = stdenv.mkDerivation {
+    name = "user32-dll";
+    src = ./user32-dll;
+    outputs = [
+      "out"
+      "dev"
+    ];
+    allowedImpureDLLs = [ "USER32.dll" ];
+  };
+
+  user32-exe = stdenv.mkDerivation {
+    name = "user32-exe";
+    src = ./user32-exe;
+    buildInputs = [ user32-dll ];
+    strictDeps = true;
+    doCheck = true;
+  };
+
+  link-dir-dll = exe.overrideAttrs {
+    name = "link-dir-dll";
+    preFixup = ''
+      mkdir "$out"/libexec
+      ln -s ${lib.getLib user32-dll}/bin/cygpeek.dll "$out"/libexec/
+      linkDLLsDir="$out"/bin linkDLLs "$out"/libexec/cygpeek.dll
+    '';
+  };
+
+  link-dir-exe = exe.overrideAttrs {
+    name = "link-dir-exe";
+    preFixup = ''
+      mkdir "$out"/libexec
+      ln -s ${lib.getLib user32-exe}/bin/{peek.exe,cygpeek.dll} "$out"/libexec/
+      linkDLLsDir="$out"/bin linkDLLs "$out"/libexec/peek.exe
+    '';
+  };
+
+  link-user32-dll = exe.overrideAttrs {
+    name = "link-user32-dll";
+    preFixup = ''
+      ln -s ${lib.getLib user32-dll}/bin/cygpeek.dll "$out"/bin/
+    '';
+  };
+
+  copy-dll-impure = testers.testBuildFailure (
+    user32-exe.overrideAttrs {
+      name = "copy-dll-impure";
+      preFixup = ''
+        cp ${lib.getLib user32-dll}/bin/cygpeek.dll "$out"/bin/
+      '';
+    }
+  );
+
+  copy-dll = user32-exe.overrideAttrs {
+    name = "copy-dll";
+    preFixup = ''
+      cp ${lib.getLib user32-dll}/bin/cygpeek.dll "$out"/bin/
+      linkDLLs "$out"/bin/cygpeek.dll
+    '';
+    allowedImpureDLLs = [ "USER32.dll" ];
+  };
+
+  double-link = user32-exe.overrideAttrs {
+    name = "double-link";
+    preFixup = ''linkDLLs "$out"'';
+  };
+
+  utf8-glob = runCommand "utf8-glob" { } ''
+    touch NetLock_Arany_=Class_Gold=_Főtanstvny:49412ce40010.crt
+    ls -l NetLock* > "$out"
+  '';
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/Makefile
new file mode 100644
index 000000000000..25e1e53c38e4
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/Makefile
@@ -0,0 +1,16 @@
+.PHONY: all install
+all: cyghello.dll
+
+install: $(out)/bin/cyghello.dll $(out)/lib/libhello.dll.a $(out)/include/hello.h
+
+cyghello.dll libhello.dll.a: hello.c
+	$(CC) -o $@ $^ -shared -Wl,--out-implib,libhello.dll.a -Wl,--export-all-symbols -lhello2
+
+$(out)/bin/cyghello.dll: cyghello.dll
+	install -m755 -D $< $@
+
+$(out)/lib/libhello.dll.a: libhello.dll.a
+	install -m644 -D $< $@
+
+$(out)/include/hello.h: hello.h
+	install -m644 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.c
new file mode 100644
index 000000000000..db1a301c91a4
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.c
@@ -0,0 +1,7 @@
+#include "hello.h"
+#include <stdio.h>
+#include <hello2.h>
+
+void hello() {
+				hello2();
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.h b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.h
new file mode 100644
index 000000000000..a4a0b54c6052
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll/hello.h
@@ -0,0 +1,2 @@
+#pragma once
+void hello();
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/Makefile
new file mode 100644
index 000000000000..87c5c1a9b9cc
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/Makefile
@@ -0,0 +1,16 @@
+.PHONY: all install
+all: cyghello2.dll
+
+install: $(out)/bin/cyghello2.dll $(out)/lib/libhello2.dll.a $(out)/include/hello2.h
+
+cyghello2.dll libhello2.dll.a: hello2.c
+	$(CC) -o $@ $^ -shared -Wl,--out-implib,libhello2.dll.a -Wl,--export-all-symbols
+
+$(out)/bin/cyghello2.dll: cyghello2.dll
+	install -m755 -D $< $@
+
+$(out)/lib/libhello2.dll.a: libhello2.dll.a
+	install -m644 -D $< $@
+
+$(out)/include/hello2.h: hello2.h
+	install -m644 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.c
new file mode 100644
index 000000000000..d23050fbb776
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.c
@@ -0,0 +1,6 @@
+#include <stdio.h>
+#include "hello2.h"
+
+void hello2() {
+				printf("Hello, World!\n");
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.h b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.h
new file mode 100644
index 000000000000..34e200a07e95
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/dll2/hello2.h
@@ -0,0 +1,2 @@
+#pragma once
+void hello2();
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/Makefile
new file mode 100644
index 000000000000..da16b5d08c79
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/Makefile
@@ -0,0 +1,13 @@
+.PHONY: all check install
+all: hello.exe
+
+install: $(out)/bin/hello.exe
+
+hello.exe: main.c
+	$(CC) -o $@ $^ -lhello
+
+check: hello.exe
+	./hello.exe
+
+$(out)/bin/hello.exe: hello.exe
+	install -m755 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/main.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/main.c
new file mode 100644
index 000000000000..9dbc882ea430
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/exe/main.c
@@ -0,0 +1,6 @@
+#include <hello.h>
+
+int main() {
+				hello();
+				return 0;
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/Makefile
new file mode 100644
index 000000000000..483ad8854a06
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/Makefile
@@ -0,0 +1,16 @@
+.PHONY: all install
+all: cygpeek.dll
+
+install: $(out)/bin/cygpeek.dll $(out)/lib/libpeek.dll.a $(out)/include/peek.h
+
+cygpeek.dll libpeek.dll.a: peek.c
+	$(CC) -o $@ $^ -shared -Wl,--out-implib,libpeek.dll.a -Wl,--export-all-symbols
+
+$(out)/bin/cygpeek.dll: cygpeek.dll
+	install -m755 -D $< $@
+
+$(out)/lib/libpeek.dll.a: libpeek.dll.a
+	install -m644 -D $< $@
+
+$(out)/include/peek.h: peek.h
+	install -m644 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.c
new file mode 100644
index 000000000000..715adb003c15
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.c
@@ -0,0 +1,7 @@
+#include <windows.h>
+
+int peek()
+{
+				MSG msg;
+				PeekMessage(&msg, NULL, 0, 0, PM_NOREMOVE);
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.h b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.h
new file mode 100644
index 000000000000..800f23f77da5
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-dll/peek.h
@@ -0,0 +1,2 @@
+#pragma once
+void peek();
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/Makefile
new file mode 100644
index 000000000000..231601818914
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/Makefile
@@ -0,0 +1,13 @@
+.PHONY: all check install
+all: peek.exe
+
+install: $(out)/bin/peek.exe
+
+peek.exe: main.c
+	$(CC) -o $@ $^ -lpeek
+
+check: peek.exe
+	./peek.exe
+
+$(out)/bin/peek.exe: peek.exe
+	install -m755 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/main.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/main.c
new file mode 100644
index 000000000000..cddc78c91cab
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32-exe/main.c
@@ -0,0 +1,6 @@
+#include <peek.h>
+
+int main() {
+				peek();
+				return 0;
+}
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/Makefile b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/Makefile
new file mode 100644
index 000000000000..6c696a2e8cd0
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/Makefile
@@ -0,0 +1,13 @@
+.PHONY: all check install
+all: hello.exe
+
+install: $(out)/bin/hello.exe
+
+hello.exe: main.c
+	$(CC) -o $@ $^
+
+check: hello.exe
+	./hello.exe
+
+$(out)/bin/hello.exe: hello.exe
+	install -m755 -D $< $@
diff --git a/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/main.c b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/main.c
new file mode 100644
index 000000000000..9cc135770d21
--- /dev/null
+++ b/pkgs/os-specific/cygwin/cygwin-dll-link-hook/tests/user32/main.c
@@ -0,0 +1,7 @@
+#include <windows.h>
+
+int main()
+{
+				MSG msg;
+				PeekMessage(&msg, NULL, 0, 0, PM_NOREMOVE);
+}
diff --git a/pkgs/os-specific/cygwin/default.nix b/pkgs/os-specific/cygwin/default.nix
index 09f69ff9f9b2..d1217f7880c1 100644
--- a/pkgs/os-specific/cygwin/default.nix
+++ b/pkgs/os-specific/cygwin/default.nix
@@ -21,5 +21,7 @@ makeScopeWithSplicing' {
       # this is here to avoid symlinks being made to cygwin1.dll in /nix/store
       newlib-cygwin-nobin = callPackage ./newlib-cygwin/nobin.nix { };
       newlib-cygwin-headers = callPackage ./newlib-cygwin { headersOnly = true; };
+
+      cygwinDllLinkHook = callPackage ./cygwin-dll-link-hook { };
     };
 }
diff --git a/pkgs/stdenv/cross/default.nix b/pkgs/stdenv/cross/default.nix
index cc53957eee0d..b194c780a319 100644
--- a/pkgs/stdenv/cross/default.nix
+++ b/pkgs/stdenv/cross/default.nix
@@ -83,7 +83,10 @@ lib.init bootStages
                   || p.isGenode;
               in
               f hostPlatform && !(f buildPlatform)
-            ) buildPackages.updateAutotoolsGnuConfigScriptsHook;
+            ) buildPackages.updateAutotoolsGnuConfigScriptsHook
+            ++ lib.optional (
+              hostPlatform.isCygwin && !buildPlatform.isCygwin
+            ) buildPackages.cygwin.cygwinDllLinkHook;
         })
       );
     in
diff --git a/pkgs/stdenv/generic/make-derivation.nix b/pkgs/stdenv/generic/make-derivation.nix
index 0a512f703b49..5177b2245f1b 100644
--- a/pkgs/stdenv/generic/make-derivation.nix
+++ b/pkgs/stdenv/generic/make-derivation.nix
@@ -476,7 +476,6 @@ let
           nativeBuildInputs
           ++ optional separateDebugInfo' ../../build-support/setup-hooks/separate-debug-info.sh
           ++ optional isWindows ../../build-support/setup-hooks/win-dll-link.sh
-          ++ optional isCygwin ../../build-support/setup-hooks/cygwin-dll-link.sh
           ++ optionals doCheck nativeCheckInputs
           ++ optionals doInstallCheck nativeInstallCheckInputs;
 
@@ -706,7 +705,6 @@ let
               allowedImpureDLLs
               ++ lib.optionals isCygwin [
                 "KERNEL32.dll"
-                "cygwin1.dll"
               ];
           }
           // (