diff --git a/pkgs/development/tools/rust/racer/default.nix b/pkgs/development/tools/rust/racer/default.nix
index 41e0ec53d6a..7c441b373af 100644
--- a/pkgs/development/tools/rust/racer/default.nix
+++ b/pkgs/development/tools/rust/racer/default.nix
@@ -1,19 +1,23 @@
-{stdenv, fetchgit, rustc, makeWrapper }:
+{stdenv, fetchgit, rustc, cargo, makeWrapper }:
 
 stdenv.mkDerivation rec {
   #TODO add emacs support
-  name = "racer-git-2015-01-07";
+  name = "racer-git-2015-01-20";
   src = fetchgit {
     url = https://github.com/phildawes/racer;
-    rev = "bf73c05ac719cd3b0f8d8f9e0ecb066ede6aa9d9";
-    sha256 = "1159fsfca2kqvlajp8sawrskip7hc0rppk8vhwxa2vw8zznp56w0";
+    rev = "599aa524ea949ec5f9f0be0375dbb1df9cb852ae";
+    sha256 = "1kasm7vffn176wr072m1dmqg1rb3wqai9yisxf8mia62548pdx88";
   };
 
-  buildInputs = [ rustc makeWrapper ];
+  buildInputs = [ rustc cargo makeWrapper ];
+
+  buildPhase = ''
+    cargo build --release
+  '';
 
   installPhase = ''
     mkdir -p $out/bin
-    cp -p bin/racer $out/bin/
+    cp -p target/release/racer $out/bin/
     wrapProgram $out/bin/racer --set RUST_SRC_PATH "${rustc.src}/src"
   '';
 
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index 444fcd870e1..e2cdbf6b060 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -4819,7 +4819,10 @@ let
 
   premake = premake4;
 
-  racerRust = callPackage ../development/tools/rust/racer { rustc = rustcMaster; };
+  racerRust = callPackage ../development/tools/rust/racer {
+    rustc = rustcMaster;
+    cargo = cargoSnapshot;
+  };
 
   radare = callPackage ../development/tools/analysis/radare {
     inherit (gnome) vte;