diff --git a/pkgs/development/tools/ocaml/merlin/default.nix b/pkgs/development/tools/ocaml/merlin/default.nix
index 4ad1bfb3234..d74b480c9c5 100644
--- a/pkgs/development/tools/ocaml/merlin/default.nix
+++ b/pkgs/development/tools/ocaml/merlin/default.nix
@@ -1,10 +1,9 @@
-{ stdenv, fetchzip, ocaml, findlib, yojson
-, withEmacsMode ? false, emacs }:
+{ stdenv, fetchzip, ocaml, findlib, dune, yojson }:
 
 assert stdenv.lib.versionAtLeast ocaml.version "4.02";
 
 let
-  version = "3.1.0";
+  version = "3.2.1";
 in
 
 stdenv.mkDerivation {
@@ -13,15 +12,12 @@ stdenv.mkDerivation {
 
   src = fetchzip {
     url = "https://github.com/ocaml/merlin/archive/v${version}.tar.gz";
-    sha256 = "1vf0c2mmflp94r8hshb44lsvnfdy03ld6mld2n79cdxr3zl24ci2";
+    sha256 = "1szv2b7d12ll5n6pvnhlv3a6vnlyrkpya4l9fiyyiwyvgd4xzxwf";
   };
 
-  buildInputs = [ ocaml findlib yojson ]
-    ++ stdenv.lib.optional withEmacsMode emacs;
+  buildInputs = [ ocaml findlib dune yojson ];
 
-  preConfigure = "mkdir -p $out/bin";
-  prefixKey = "--prefix ";
-  configureFlags = stdenv.lib.optional withEmacsMode "--enable-compiled-emacs-mode";
+  inherit (dune) installPhase;
 
   meta = with stdenv.lib; {
     description = "An editor-independent tool to ease the development of programs in OCaml";