diff --git a/README.md b/README.md
index a9149e9..9804325 100644
--- a/README.md
+++ b/README.md
@@ -70,8 +70,8 @@ manage your shell with `programs.<your_shell>.enable = true`.
 Put the following lines in your `.envrc`:
 
 ```bash
-if ! has nix_direnv_version || ! nix_direnv_version 2.4.0; then
-  source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.4.0/direnvrc" "sha256-XQzUAvL6pysIJnRJyR7uVpmUSZfc7LSgWQwq/4mBr1U="
+if ! has nix_direnv_version || ! nix_direnv_version 2.5.0; then
+  source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.5.0/direnvrc" "sha256-XQzUAvL6pysIJnRJyR7uVpmUSZfc7LSgWQwq/4mBr1U="
 fi
 ```
 
diff --git a/direnvrc b/direnvrc
index 242bc92..b60a2ba 100644
--- a/direnvrc
+++ b/direnvrc
@@ -76,7 +76,7 @@ EOF
 #
 # Checks that the nix-direnv version is at least as old as <version_at_least>.
 nix_direnv_version() {
-  declare major='2' minor='4' patch='0' # UPDATE(nix-direnv version)
+  declare major='2' minor='5' patch='0' # UPDATE(nix-direnv version)
 
   [[ $1 =~ ^([^+-.]*)(\.?)([^+-.]*)(\.?)([^+-]*)(-?)([^+]*)(\+?)(.*)$ ]]
   declare -a ver; ver=("${BASH_REMATCH[@]:1}")
diff --git a/templates/flake/.envrc b/templates/flake/.envrc
index ba6a6b5..b85d66b 100644
--- a/templates/flake/.envrc
+++ b/templates/flake/.envrc
@@ -1,4 +1,4 @@
-if ! has nix_direnv_version || ! nix_direnv_version 2.4.0; then
-    source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.4.0/direnvrc" "sha256-XQzUAvL6pysIJnRJyR7uVpmUSZfc7LSgWQwq/4mBr1U="
+if ! has nix_direnv_version || ! nix_direnv_version 2.5.0; then
+    source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.5.0/direnvrc" "sha256-XQzUAvL6pysIJnRJyR7uVpmUSZfc7LSgWQwq/4mBr1U="
 fi
 use flake