diff --git a/pkgs/applications/video/handbrake/default.nix b/pkgs/applications/video/handbrake/default.nix
index abd4973bbdf..07474c5e52c 100644
--- a/pkgs/applications/video/handbrake/default.nix
+++ b/pkgs/applications/video/handbrake/default.nix
@@ -1,72 +1,64 @@
 # Upstream distributes HandBrake with bundle of according versions of libraries and patches to them.
 #
-# Derivation patches HandBrake to use our closure.
+# Derivation patches HandBrake to use Nix closure dependencies.
 #
 
-{ stdenv, lib, fetchurl,
-  python2, pkgconfig, yasm, zlib,
-  autoconf, automake, libtool, m4, jansson,
-  libass, libiconv, libsamplerate, fribidi, libxml2, bzip2,
-  libogg, libopus, libtheora, libvorbis, libdvdcss, a52dec,
-  lame, libdvdread, libdvdnav, libbluray,
-  mp4v2, mpeg2dec, x264, x265, libmkv,
-  fontconfig, freetype, hicolor-icon-theme,
-  glib, gtk3, intltool, libnotify,
-  gst_all_1, dbus-glib, udev, libgudev, libvpx,
-  useGtk ? true, wrapGAppsHook ? null, libappindicator-gtk3 ? null,
-  useFfmpeg ? false, libav_12 ? null, ffmpeg ? null,
+{ stdenv, lib, fetchurl, callPackage,
+  # Main build tools
+  python2, pkgconfig, autoconf, automake, cmake, nasm, libtool, m4,
+  # Processing, video codecs, containers
+  ffmpeg-full, nv-codec-headers, libogg, x264, x265, libvpx, libtheora,
+  # Codecs, audio
+  libopus, lame, libvorbis, a52dec, speex, libsamplerate,
+  # Text processing
+  libiconv, fribidi, fontconfig, freetype, libass, jansson, libxml2,
+  # Optical media
+  libdvdread, libdvdnav, libdvdcss, libbluray,
+  useGtk ? true, wrapGAppsHook ? null,
+                 intltool ? null,
+                 glib ? null,
+                 gtk3 ? null,
+                 libappindicator-gtk3 ? null,
+                 libnotify ? null,
+                 gst_all_1 ? null,
+                 dbus-glib ? null,
+                 udev ? null,
+                 libgudev ? null,
+                 hicolor-icon-theme ? null,
   useFdk ? false, fdk_aac ? null
 }:
 
 stdenv.mkDerivation rec {
-  # TODO: Release 1.2.0 would switch LibAV to FFmpeg.
-  version = "1.1.2";
+  version = "1.2.0";
   name = "handbrake-${version}";
 
   src = fetchurl {
     url = ''https://download2.handbrake.fr/${version}/HandBrake-${version}-source.tar.bz2'';
-    sha256 = "0bny0hwlr55g2c69rsamv0xvwmfh1s4a582b9vq20xv5ly84m6ms";
+    sha256 = "03clkknaq3mz84p85cvr21gsy9b8vv2g4vvyfz44hz8la253jfqi";
   };
 
-  patched_libav_12 = libav_12.overrideAttrs (super: {
-    patches = (super.patches or []) ++ [(
-      # NOTE: 2018-04-26: HandBrake compilation (1.1.0) requires
-      # a patch of LibAV (12.3) from HandBrake team. This patch
-      # not went LibAV upstream.
-      fetchurl {
-        url = ''https://raw.githubusercontent.com/HandBrake/HandBrake/9e1f245708a157231c427c0ef9b91729d59a30e1/contrib/ffmpeg/A21-mp4-sdtp.patch'';
-        sha256 = "14grzyvb1qbb90k31ibabnwmwnrc48ml6h2z0rjamdv83q45jq4g";
-      })
-      # NOTE: 2018-11-11: Transcoding to MP4 can fail with:
-      #
-      # Tag avc1/0x31637661 incompatible with output codec id '28'
-      # muxavformat: avformat_write_header failed!
-      #
-      # Fix using Handbrake patch that is not upstream in libav.
-      (
-      fetchurl {
-        url = ''https://raw.githubusercontent.com/HandBrake/HandBrake/df6c26fa261423237ee2bec0bf784c32cbfda3fa/contrib/ffmpeg/A20-avc3-hvc1-override.patch'';
-        sha256 = "1vijd7bmkzp3sb6zhpcpdni8fz4h13wgglnml6cz9f44j41w2c3v";
-      })
-    ];
-  });
-
   nativeBuildInputs = [
-    python2 pkgconfig yasm autoconf automake libtool m4
+    python2 pkgconfig autoconf automake cmake nasm libtool m4
   ] ++ lib.optionals useGtk [ intltool wrapGAppsHook ];
 
   buildInputs = [
-    fribidi fontconfig freetype jansson zlib
-    libass libiconv libsamplerate libxml2 bzip2
-    libogg libopus libtheora libvorbis libdvdcss a52dec libmkv
-    lame libdvdread libdvdnav libbluray mp4v2 mpeg2dec x264 x265 libvpx
+    ffmpeg-full libogg libtheora x264 x265 libvpx
+    libopus lame libvorbis a52dec speex libsamplerate
+    libiconv fribidi fontconfig freetype libass jansson libxml2
+    libdvdread libdvdnav libdvdcss libbluray
   ] ++ lib.optionals useGtk [
     glib gtk3 libappindicator-gtk3 libnotify
     gst_all_1.gstreamer gst_all_1.gst-plugins-base dbus-glib udev
     libgudev hicolor-icon-theme
-  ] ++ (if useFfmpeg then [ ffmpeg ] else [ patched_libav_12 ])
-  ++ lib.optional useFdk fdk_aac;
+  ] ++ lib.optional useFdk fdk_aac
+  # NOTE: 2018-12-27: Handbrake supports nv-codec-headers for Linux only,
+  # look at ./make/configure.py search "enable_nvenc"
+    ++ lib.optional stdenv.isLinux nv-codec-headers;
 
+  # NOTE: 2018-12-25: v1.2.0 now requires cmake dep
+  # (default distribution bundles&builds 3rd party libs),
+  # don't trigger cmake build
+  dontUseCmakeConfigure = true;
   enableParallelBuilding = true;
 
   preConfigure = ''
@@ -87,6 +79,7 @@ stdenv.mkDerivation rec {
     (if useFdk then "--enable-fdk-aac"            else "")
   ];
 
+  # NOTE: 2018-12-27: Check NixOS HandBrake test if changing
   NIX_LDFLAGS = [
     "-lx265"
   ];
diff --git a/pkgs/development/libraries/ffmpeg-full/default.nix b/pkgs/development/libraries/ffmpeg-full/default.nix
index 4c1ad34f6da..2cfa4b1d3cd 100644
--- a/pkgs/development/libraries/ffmpeg-full/default.nix
+++ b/pkgs/development/libraries/ffmpeg-full/default.nix
@@ -96,7 +96,7 @@
 , libxcbshapeExtlib ? true # X11 grabbing shape rendering
 , libXv ? null # Xlib support
 , lzma ? null # xz-utils
-, nvenc ? false, nvidia-video-sdk ? null # NVIDIA NVENC support
+, nvenc ? false, nvidia-video-sdk ? null, nv-codec-headers ? null # NVIDIA NVENC support
 , callPackage # needed for NVENC to access external ffmpeg nvidia headers
 , openal ? null # OpenAL 1.1 capture support
 #, opencl ? null # OpenCL code
@@ -176,8 +176,6 @@
 let
   inherit (stdenv) isCygwin isFreeBSD isLinux;
   inherit (stdenv.lib) optional optionals optionalString enableFeature;
-
-  nv-codec-headers = callPackage ./nv-codec-headers.nix { };
 in
 
 /*
diff --git a/pkgs/development/libraries/ffmpeg-full/nv-codec-headers.nix b/pkgs/development/libraries/nv-codec-headers/default.nix
similarity index 70%
rename from pkgs/development/libraries/ffmpeg-full/nv-codec-headers.nix
rename to pkgs/development/libraries/nv-codec-headers/default.nix
index 03599c91bf0..07ec502cd12 100644
--- a/pkgs/development/libraries/ffmpeg-full/nv-codec-headers.nix
+++ b/pkgs/development/libraries/nv-codec-headers/default.nix
@@ -2,18 +2,18 @@
 
 stdenv.mkDerivation rec {
   name = "nv-codec-headers-${version}";
-  version = "n8.1.24.2";
+  version = "8.2.15.6";
 
   src = fetchgit {
     url = "https://git.videolan.org/git/ffmpeg/nv-codec-headers.git";
-    rev = "${version}";
-    sha256 = "122i3f6whiz5yp44dhk73ifr1973z8vvfbg4216vb782bl8b5bam";
+    rev = "n${version}";
+    sha256 = "0216ww8byjxz639kagyw0mr9vxxwj89xdnj448d579vjr54jychv";
   };
 
   makeFlags = [ "PREFIX=$(out)" ];
 
   meta = {
-    description = "ffmpeg nvidia headers for NVENC";
+    description = "FFmpeg version of headers for NVENC";
     homepage = http://ffmpeg.org/;
     license = stdenv.lib.licenses.gpl3Plus;
     maintainers = [ stdenv.lib.maintainers.MP2E ];
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index b15f3ac79f5..1027c62e477 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -11817,6 +11817,8 @@ in
 
   ntrack = callPackage ../development/libraries/ntrack { };
 
+  nv-codec-headers = callPackage ../development/libraries/nv-codec-headers { };
+
   nvidia-texture-tools = callPackage ../development/libraries/nvidia-texture-tools { };
 
   nvidia-video-sdk = callPackage ../development/libraries/nvidia-video-sdk { };