diff --git a/nixos/modules/services/development/bloop.nix b/nixos/modules/services/development/bloop.nix
index 56904b7c40e..226718a9e80 100644
--- a/nixos/modules/services/development/bloop.nix
+++ b/nixos/modules/services/development/bloop.nix
@@ -9,6 +9,20 @@ let
 in {
 
   options.services.bloop = {
+    extraOptions = mkOption {
+      type = types.listOf types.str;
+      default = [ ];
+      example = [
+        "-J-Xmx2G"
+        "-J-XX:MaxInlineLevel=20"
+        "-J-XX:+UseParallelGC"
+      ];
+      description = ''
+        Specifies additional command line argument to pass to bloop
+        java process.
+      '';
+    };
+
     install = mkOption {
       type = types.bool;
       default = false;
@@ -25,10 +39,13 @@ in {
     systemd.user.services.bloop = {
       description = "Bloop Scala build server";
 
+      environment = {
+        PATH = mkForce "${makeBinPath [ config.programs.java.package ]}";
+      };
       serviceConfig = {
-        Type      = "simple";
-        ExecStart = ''${pkgs.bloop}/bin/blp-server'';
-        Restart   = "always";
+        Type        = "simple";
+        ExecStart   = ''${pkgs.bloop}/bin/bloop server'';
+        Restart     = "always";
       };
     };
 
diff --git a/pkgs/development/tools/build-managers/bloop/default.nix b/pkgs/development/tools/build-managers/bloop/default.nix
index c20985f31dc..ba842289dba 100644
--- a/pkgs/development/tools/build-managers/bloop/default.nix
+++ b/pkgs/development/tools/build-managers/bloop/default.nix
@@ -1,56 +1,71 @@
-{ stdenv, lib, fetchurl, coursier, jdk, jre, python, makeWrapper }:
+{ stdenv, lib, fetchurl, coursier, python, makeWrapper }:
 
 let
   baseName = "bloop";
-  version = "1.2.5";
-  deps = stdenv.mkDerivation {
-    name = "${baseName}-deps-${version}";
+  version = "1.3.2";
+  nailgunCommit = "9327a60a"; # Fetched from https://github.com/scalacenter/bloop/releases/download/v${version}/install.py
+
+  client = stdenv.mkDerivation {
+    name = "${baseName}-client-${version}";
+
+    src = fetchurl {
+      url = "https://raw.githubusercontent.com/scalacenter/nailgun/${nailgunCommit}/pynailgun/ng.py";
+      sha256 = "0z4as5ibmzkd145wsch9caiy4037bgg780gcf7pyns0cv9n955b4";
+    };
+
+    phases = [ "installPhase" ];
+
+    installPhase = ''cp $src $out'';
+  };
+
+  server = stdenv.mkDerivation {
+    name = "${baseName}-server-${version}";
     buildCommand = ''
+      mkdir -p $out/bin
+
       export COURSIER_CACHE=$(pwd)
-      ${coursier}/bin/coursier fetch ch.epfl.scala:bloop-frontend_2.12:${version} \
+      ${coursier}/bin/coursier bootstrap ch.epfl.scala:bloop-frontend_2.12:${version} \
         -r "bintray:scalameta/maven" \
         -r "bintray:scalacenter/releases" \
-        -r "https://oss.sonatype.org/content/repositories/staging" > deps
-      mkdir -p $out/share/java
-      cp $(< deps) $out/share/java/
+        -r "https://oss.sonatype.org/content/repositories/staging" \
+        --deterministic \
+        -f --main bloop.Server -o $out/bin/blp-server
     '';
     outputHashMode = "recursive";
     outputHashAlgo = "sha256";
-    outputHash     = "19373fyb0g7irrdzb1vsjmyv5xj84qwbcfb6lm076px7wfyn0w1c";
+    outputHash     = "0k9zc9q793fkfwcssbkmzb0nxmgb99rwi0pjkqhvf719vmgvhc2a";
+  };
+
+  zsh = stdenv.mkDerivation {
+    name = "${baseName}-zshcompletion-${version}";
+
+    src = fetchurl {
+      url = "https://raw.githubusercontent.com/scalacenter/bloop/v${version}/etc/zsh/_bloop";
+      sha256 = "09qq5888vaqlqan2jbs2qajz2c3ff13zj8r0x2pcxsqmvlqr02hp";
+    };
+
+    phases = [ "installPhase" ];
+
+    installPhase = ''cp $src $out'';
   };
 in
 stdenv.mkDerivation rec {
   name = "${baseName}-${version}";
 
-  # Fetched from https://github.com/scalacenter/bloop/releases/download/v${version}/install.py
-  nailgunCommit = "0c325237";
-
-  buildInputs = [ jdk makeWrapper deps ];
+  buildInputs = [ makeWrapper ];
 
   phases = [ "installPhase" ];
 
-  client = fetchurl {
-    url = "https://raw.githubusercontent.com/scalacenter/nailgun/${nailgunCommit}/pynailgun/ng.py";
-    sha256 = "0qjw4nsyb4cxg96jj1yv5c0ivcxvmscxxqfzll5w9p1pjb30bq0n";
-  };
-
-  zshCompletion = fetchurl {
-    url = "https://raw.githubusercontent.com/scalacenter/bloop/v${version}/etc/zsh/_bloop";
-    sha256 = "1id6f1fgy2rk0q5aad6ffivhbxa94fallzsc04l9n0y1s2xdhqpm";
-  };
-
   installPhase = ''
     mkdir -p $out/bin
     mkdir -p $out/share/zsh/site-functions
 
-    cp ${client} $out/bin/blp-client
-    cp ${zshCompletion} $out/share/zsh/site-functions/_bloop
-    chmod +x $out/bin/blp-client
+    ln -s ${server}/bin/blp-server $out/blp-server
+    ln -s ${zsh} $out/share/zsh/site-functions/_bloop
 
-    makeWrapper ${jre}/bin/java $out/bin/blp-server \
-      --prefix PATH : ${lib.makeBinPath [ jdk ]} \
-      --add-flags "-cp $CLASSPATH bloop.Server"
-    makeWrapper $out/bin/blp-client $out/bin/bloop \
+    cp ${client} $out/bloop
+    chmod +x $out/bloop
+    makeWrapper $out/bloop $out/bin/bloop \
       --prefix PATH : ${lib.makeBinPath [ python ]}
   '';