diff --git a/pkgs/by-name/po/podman-desktop/package.nix b/pkgs/by-name/po/podman-desktop/package.nix
index ae7c66d7e09a..92b1651bbded 100644
--- a/pkgs/by-name/po/podman-desktop/package.nix
+++ b/pkgs/by-name/po/podman-desktop/package.nix
@@ -4,7 +4,7 @@
   fetchFromGitHub,
   makeBinaryWrapper,
   copyDesktopItems,
-  electron_39,
+  electron_41,
   nodejs,
   pnpm_10_29_2,
   fetchPnpmDeps,
@@ -21,12 +21,12 @@
 }:
 
 let
-  electron = electron_39;
+  electron = electron_41;
   appName = "Podman Desktop";
 in
 stdenv.mkDerivation (finalAttrs: {
   pname = "podman-desktop";
-  version = "1.23.1";
+  version = "1.26.2";
 
   passthru.updateScript = _experimental-update-script-combinators.sequence [
     (nix-update-script { })
@@ -59,14 +59,14 @@ stdenv.mkDerivation (finalAttrs: {
     owner = "containers";
     repo = "podman-desktop";
     tag = "v${finalAttrs.version}";
-    hash = "sha256-08boCPsuT09OileZUWhB8awXWHrlJzoER2Bx0WXeOHU=";
+    hash = "sha256-VVyKC1z7YECZlbTaFaq2OwGg0k22qBbn/HEOYiJ8fcw=";
   };
 
   pnpmDeps = fetchPnpmDeps {
     inherit (finalAttrs) pname version src;
     pnpm = pnpm_10_29_2;
     fetcherVersion = 2;
-    hash = "sha256-nBjAmXzjR0qGCM91UAonQKP0NG7+DXImueSbhbnMK/k=";
+    hash = "sha256-tCp5qLZVo93H8VIToU3mkmwNsVXOAd1IEsL6RlazPXo=";
   };
 
   patches = [
@@ -75,7 +75,10 @@ stdenv.mkDerivation (finalAttrs: {
     ./system-defaults-dir.patch
   ];
 
-  env.ELECTRON_SKIP_BINARY_DOWNLOAD = "1";
+  env = {
+    ELECTRON_SKIP_BINARY_DOWNLOAD = "1";
+    ELECTRON_OVERRIDE_DIST_PATH = electron.dist;
+  };
 
   nativeBuildInputs = [
     makeBinaryWrapper
diff --git a/pkgs/by-name/po/podman-desktop/system-defaults-dir.patch b/pkgs/by-name/po/podman-desktop/system-defaults-dir.patch
index f5d0df8d3677..0c5e8df002b1 100644
--- a/pkgs/by-name/po/podman-desktop/system-defaults-dir.patch
+++ b/pkgs/by-name/po/podman-desktop/system-defaults-dir.patch
@@ -1,10 +1,13 @@
-diff --git a/packages/main/src/plugin/managed-by-constants.ts b/packages/main/src/plugin/managed-by-constants.ts
-index 5a20d2de29e..9fea8a17165 100644
---- a/packages/main/src/plugin/managed-by-constants.ts
-+++ b/packages/main/src/plugin/managed-by-constants.ts
-@@ -29,4 +29,4 @@ export const SYSTEM_LOCKED_FILENAME = 'locked.json';
- // Folders for managed defaults on different platforms
- export const SYSTEM_DEFAULTS_FOLDER_MACOS = '/Library/Application Support/io.podman_desktop.PodmanDesktop';
- export const SYSTEM_DEFAULTS_FOLDER_WINDOWS = 'Podman Desktop';
--export const SYSTEM_DEFAULTS_FOLDER_LINUX = '/usr/share/podman-desktop';
-+export const SYSTEM_DEFAULTS_FOLDER_LINUX = '/etc/podman-desktop';
+diff --git a/product.json b/product.json
+index 74b7299ee93..a80fe7373bc 100644
+--- a/product.json
++++ b/product.json
+@@ -8,7 +8,7 @@
+     "managed": {
+       "macOS": "/Library/Application Support/io.podman_desktop.PodmanDesktop",
+       "windows": "%PROGRAMDATA%\\Podman Desktop",
+-      "linux": "/usr/share/podman-desktop",
++      "linux": "/etc/podman-desktop",
+       "flatpak": "/run/host/usr/share/podman-desktop"
+     }
+   },