diff --git a/pkgs/desktops/gnome-3/core/mutter/default.nix b/pkgs/desktops/gnome-3/core/mutter/default.nix
index 79cbbb9f5a8..28e8608db4f 100644
--- a/pkgs/desktops/gnome-3/core/mutter/default.nix
+++ b/pkgs/desktops/gnome-3/core/mutter/default.nix
@@ -42,13 +42,13 @@
 
 let self = stdenv.mkDerivation rec {
   pname = "mutter";
-  version = "3.36.5";
+  version = "3.38.0";
 
   outputs = [ "out" "dev" "man" ];
 
   src = fetchurl {
     url = "mirror://gnome/sources/mutter/${stdenv.lib.versions.majorMinor version}/${pname}-${version}.tar.xz";
-    sha256 = "1py7sqrpvg2qvswxclshysx7hd9jk65i6cwqsagd6rg6rnjhblp0";
+    sha256 = "1aqfv7f3vsjghjy5bk50ck1pi92hc3368mgsnvlx719020yx33h5";
   };
 
   patches = [
diff --git a/pkgs/desktops/gnome-3/core/mutter/drop-inheritable.patch b/pkgs/desktops/gnome-3/core/mutter/drop-inheritable.patch
index 1600db1e705..7374e1b8693 100644
--- a/pkgs/desktops/gnome-3/core/mutter/drop-inheritable.patch
+++ b/pkgs/desktops/gnome-3/core/mutter/drop-inheritable.patch
@@ -102,18 +102,18 @@ index 7f4f666d2..b27968f13 100644
  #if defined(HAVE_NATIVE_BACKEND) && defined(HAVE_WAYLAND)
  #include <systemd/sd-login.h>
  #endif /* HAVE_WAYLAND && HAVE_NATIVE_BACKEND */
-@@ -673,6 +677,12 @@ meta_run (void)
-   if (!meta_display_open ())
-     meta_exit (META_EXIT_ERROR);
- 
+@@ -670,5 +674,12 @@ int
+ meta_run (void)
+ {
+   meta_start ();
++
 +#ifdef HAVE_LIBCAPNG
 +  capng_clear(CAPNG_SELECT_BOTH);
 +  capng_update(CAPNG_ADD, CAPNG_EFFECTIVE|CAPNG_PERMITTED, CAP_SYS_NICE);
 +  capng_apply(CAPNG_SELECT_BOTH);
 +#endif
 +
-   g_main_loop_run (meta_main_loop);
- 
+   meta_run_main_loop ();
    meta_finalize ();
 diff --git a/src/meson.build b/src/meson.build
 index 90d80734f..a9fffa2c2 100644