diff --git a/nixos/modules/services/audio/icecast.nix b/nixos/modules/services/audio/icecast.nix
index 930b6af004a2..feb78ca8fc5c 100644
--- a/nixos/modules/services/audio/icecast.nix
+++ b/nixos/modules/services/audio/icecast.nix
@@ -5,8 +5,14 @@
   ...
 }:
 let
+  inherit (lib)
+    mkRemovedOptionModule
+    mkRenamedOptionModule
+    ;
+
   cfg = config.services.icecast;
   configFile = pkgs.writeText "icecast.xml" ''
+    <?xml version="1.0"?>
     <icecast>
       <hostname>${cfg.hostname}</hostname>
 
@@ -16,7 +22,7 @@ let
       </authentication>
 
       <paths>
-        <logdir>${cfg.logDir}</logdir>
+        <logdir>/var/log/icecast</logdir>
         <adminroot>${pkgs.icecast}/share/icecast/admin</adminroot>
         <webroot>${pkgs.icecast}/share/icecast/web</webroot>
         <alias source="/" dest="/status.xsl"/>
@@ -29,18 +35,27 @@ let
 
       <security>
         <chroot>0</chroot>
-        <changeowner>
-            <user>${cfg.user}</user>
-            <group>${cfg.group}</group>
-        </changeowner>
       </security>
 
-      ${cfg.extraConf}
+      ${cfg.extraConfig}
     </icecast>
   '';
 in
 {
 
+  imports = [
+    (mkRemovedOptionModule [ "services" "icecast" "logDir" ] ''
+      The log directory is now managed by systemd's LogsDirectory= directive.
+    '')
+    (mkRemovedOptionModule [ "services" "icecast" "user" ] ''
+      The service now runs under the dynamically allocated `icecast` user.
+    '')
+    (mkRemovedOptionModule [ "services" "icecast" "group" ] ''
+      The service now runs under the dynamically allocated `icecast` group.
+    '')
+    (mkRenamedOptionModule [ "services" "icecast" "extraConf" ] [ "services" "icecast" "extraConfig" ])
+  ];
+
   ###### interface
 
   options = {
@@ -69,12 +84,6 @@ in
         };
       };
 
-      logDir = lib.mkOption {
-        type = lib.types.path;
-        description = "Base directory used for logging.";
-        default = "/var/log/icecast";
-      };
-
       listen = {
         port = lib.mkOption {
           type = lib.types.port;
@@ -89,22 +98,12 @@ in
         };
       };
 
-      user = lib.mkOption {
-        type = lib.types.str;
-        description = "User privileges for the server.";
-        default = "nobody";
-      };
-
-      group = lib.mkOption {
-        type = lib.types.str;
-        description = "Group privileges for the server.";
-        default = "nogroup";
-      };
-
-      extraConf = lib.mkOption {
+      extraConfig = lib.mkOption {
         type = lib.types.lines;
-        description = "icecast.xml content.";
         default = "";
+        description = ''
+          Extra configuration added to {file}`icecast.xml` inside the `<icecast>` element.
+        '';
       };
 
     };
@@ -120,11 +119,20 @@ in
       description = "Icecast Network Audio Streaming Server";
       wantedBy = [ "multi-user.target" ];
 
-      preStart = "mkdir -p ${cfg.logDir} && chown ${cfg.user}:${cfg.group} ${cfg.logDir}";
       serviceConfig = {
         Type = "simple";
-        ExecStart = "${pkgs.icecast}/bin/icecast -c ${configFile}";
-        ExecReload = "${pkgs.coreutils}/bin/kill -HUP $MAINPID";
+        DynamicUser = true;
+        ExecStart = toString [
+          (lib.getExe pkgs.icecast)
+          "-c"
+          configFile
+        ];
+        ExecReload = toString [
+          (lib.getExe' pkgs.coreutils "kill")
+          "-HUP"
+          "$MAINPID"
+        ];
+        LogsDirectory = "icecast";
       };
     };
 
diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index 4edc8777cf16..be7df9027bb4 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -748,6 +748,7 @@ in
   hydra = runTest ./hydra;
   i18n = runTest ./i18n.nix;
   i3wm = runTest ./i3wm.nix;
+  icecast = runTest ./icecast.nix;
   icingaweb2 = runTest ./icingaweb2.nix;
   ifm = runTest ./ifm.nix;
   ifstate = import ./ifstate { inherit runTest; };
diff --git a/nixos/tests/icecast.nix b/nixos/tests/icecast.nix
new file mode 100644
index 000000000000..bb6652e8ecf8
--- /dev/null
+++ b/nixos/tests/icecast.nix
@@ -0,0 +1,25 @@
+{
+  pkgs,
+  ...
+}:
+
+{
+  name = "icecast";
+  meta = {
+    inherit (pkgs.icecast.meta) maintainers;
+  };
+
+  nodes.machine = {
+    services.icecast = {
+      enable = true;
+      hostname = "nixos.test";
+      admin.password = "test";
+    };
+  };
+
+  testScript = ''
+    machine.wait_for_unit("icecast.service")
+    machine.wait_for_open_port(8000)
+    machine.succeed("curl -fail http://localhost:8000 | grep -q 'DO NOT ATTEMPT TO PARSE ICECAST HTML OUTPUT'")
+  '';
+}
diff --git a/pkgs/by-name/ic/icecast/package.nix b/pkgs/by-name/ic/icecast/package.nix
index 7200b2e25c90..770ce90b5f8c 100644
--- a/pkgs/by-name/ic/icecast/package.nix
+++ b/pkgs/by-name/ic/icecast/package.nix
@@ -2,36 +2,48 @@
   lib,
   stdenv,
   fetchurl,
-  libxml2,
-  libxslt,
+  pkg-config,
   curl,
-  libvorbis,
-  libtheora,
-  speex,
+  libigloo,
   libkate,
   libopus,
+  libtheora,
+  libvorbis,
+  libxml2,
+  libxslt,
+  rhash,
+  speex,
+  nixosTests,
 }:
 
-stdenv.mkDerivation rec {
+stdenv.mkDerivation (finalAttrs: {
   pname = "icecast";
-  version = "2.4.4";
+  version = "2.5.0";
 
   src = fetchurl {
-    url = "http://downloads.xiph.org/releases/icecast/icecast-${version}.tar.gz";
-    sha256 = "0i2d9rhav0x6js2qhjf5iy6j2a7f0d11ail0lfv40hb1kygrgda9";
+    url = "http://downloads.xiph.org/releases/icecast/icecast-${finalAttrs.version}.tar.gz";
+    hash = "sha256-2aoHx0Ka7BnZUP9v1CXDcfdxWM00/yIPwZGywYbGfHo=";
   };
 
+  nativeBuildInputs = [ pkg-config ];
+
   buildInputs = [
-    libxml2
-    libxslt
     curl
-    libvorbis
-    libtheora
-    speex
+    libigloo
     libkate
     libopus
+    libtheora
+    libvorbis
+    libxml2
+    libxslt
+    rhash
+    speex
   ];
 
+  passthru.tests = {
+    inherit (nixosTests) icecast;
+  };
+
   meta = {
     description = "Server software for streaming multimedia";
     mainProgram = "icecast";
@@ -50,4 +62,4 @@ stdenv.mkDerivation rec {
     maintainers = with lib.maintainers; [ jcumming ];
     platforms = with lib.platforms; unix;
   };
-}
+})
diff --git a/pkgs/by-name/li/libigloo/package.nix b/pkgs/by-name/li/libigloo/package.nix
new file mode 100644
index 000000000000..89dc3a318127
--- /dev/null
+++ b/pkgs/by-name/li/libigloo/package.nix
@@ -0,0 +1,27 @@
+{
+  lib,
+  stdenv,
+  fetchurl,
+  rhash,
+  icecast,
+}:
+
+stdenv.mkDerivation (finalAttrs: {
+  pname = "libigloo";
+  version = "0.9.5";
+
+  src = fetchurl {
+    url = "https://downloads.xiph.org/releases/igloo/libigloo-${finalAttrs.version}.tar.gz";
+    hash = "sha256-6iLpEZ96IYiBD5kQDFFVxnYtRZWuITuawp5ptPC4cok=";
+  };
+
+  buildInputs = [ rhash ];
+
+  doCheck = true;
+
+  meta = {
+    description = "Generic C framework used and developed by the Icecast project";
+    license = lib.licenses.gpl2Only;
+    inherit (icecast.meta) maintainers;
+  };
+})