diff --git a/pkgs/applications/editors/neovim/default.nix b/pkgs/applications/editors/neovim/default.nix
index 7d558dfb8937..6808d7115c57 100644
--- a/pkgs/applications/editors/neovim/default.nix
+++ b/pkgs/applications/editors/neovim/default.nix
@@ -13,7 +13,7 @@ with stdenv.lib;
 
 let
   neovimLuaEnv = lua.withPackages(ps:
-    (with ps; [ mpack lpeg luabitop ]
+    (with ps; [ lpeg luabitop mpack ]
     ++ optionals doCheck [
         nvim-client luv coxpcall busted luafilesystem penlight inspect
       ]
@@ -21,13 +21,13 @@ let
 in
   stdenv.mkDerivation rec {
     pname = "neovim-unwrapped";
-    version = "0.3.8";
+    version = "0.4.2";
 
     src = fetchFromGitHub {
       owner = "neovim";
       repo = "neovim";
       rev = "v${version}";
-      sha256 = "15flii3p4g9f65xy9jpkb8liajrvhm5ck4j39z6d6b1nkxr6ghwb";
+      sha256 = "13w446plvgl219lhj29jyimhiqvs1y1byrz4qpdmxgyddmx9xqss";
     };
 
     patches = [
@@ -41,14 +41,15 @@ in
     enableParallelBuilding = true;
 
     buildInputs = [
+      gperf
       libtermkey
       libuv
+      libvterm-neovim
+      lua.pkgs.luv.libluv
       msgpack
       ncurses
-      libvterm-neovim
-      unibilium
-      gperf
       neovimLuaEnv
+      unibilium
     ] ++ optional withJemalloc jemalloc
       ++ optional stdenv.isDarwin libiconv
       ++ optionals doCheck [ glibcLocales procps ]
@@ -77,8 +78,9 @@ in
     disallowedReferences = [ stdenv.cc ];
 
     cmakeFlags = [
-      "-DLUA_PRG=${neovimLuaEnv.interpreter}"
       "-DGPERF_PRG=${gperf}/bin/gperf"
+      "-DLIBLUV_LIBRARY=${lua.pkgs.luv}/lib/lua/${lua.luaversion}/luv.so"
+      "-DLUA_PRG=${neovimLuaEnv.interpreter}"
     ]
     ++ optional doCheck "-DBUSTED_PRG=${neovimLuaEnv}/bin/busted"
     ++ optional (!lua.pkgs.isLuaJIT) "-DPREFER_LUA=ON"
diff --git a/pkgs/development/libraries/libvterm-neovim/default.nix b/pkgs/development/libraries/libvterm-neovim/default.nix
index 48dbc5f395c8..231b426e6a7d 100644
--- a/pkgs/development/libraries/libvterm-neovim/default.nix
+++ b/pkgs/development/libraries/libvterm-neovim/default.nix
@@ -6,13 +6,13 @@
 
 stdenv.mkDerivation {
   pname = "libvterm-neovim";
-  version = "2018-11-26";
+  version = "2019-08-28";
 
   src = fetchFromGitHub {
     owner = "neovim";
     repo = "libvterm";
-    rev = "f600f523545b7d4018ebf320e3273795dbe43c8a";
-    sha256 = "08lxd8xs9cg4axgq6bkb7afjxg3s29s1a3niqqm4wjb7iyi2jx5b";
+    rev = "1aa95e24d8f07a396aa80b7cd52f93e2b5bcca79";
+    sha256 = "0vjd397lqrfv4kc79i5izva4bynbymx3gllkg281fnk0b15vxfif";
   };
 
   buildInputs = [ perl ];
@@ -27,7 +27,7 @@ stdenv.mkDerivation {
     description = "VT220/xterm/ECMA-48 terminal emulator library";
     homepage = http://www.leonerd.org.uk/code/libvterm/;
     license = licenses.mit;
-    maintainers = with maintainers; [ ];
+    maintainers = with maintainers; [ rvolosatovs ];
     platforms = platforms.unix;
   };
 }
diff --git a/pkgs/development/lua-modules/overrides.nix b/pkgs/development/lua-modules/overrides.nix
index 233503c2eca8..9f57fbb5fa9e 100644
--- a/pkgs/development/lua-modules/overrides.nix
+++ b/pkgs/development/lua-modules/overrides.nix
@@ -276,8 +276,19 @@ with super;
     propagatedBuildInputs = [
       pkgs.libuv
     ];
+
+    passthru = {
+      libluv = self.luv.override({
+        preBuild = self.luv.preBuild + ''
+         sed -i 's,\(option(BUILD_MODULE.*\)ON,\1OFF,' CMakeLists.txt
+         sed -i 's,\(option(BUILD_SHARED_LIBS.*\)OFF,\1ON,' CMakeLists.txt
+         sed -i 's,${"\${INSTALL_INC_DIR}"},${placeholder "out"}/include/luv,' CMakeLists.txt
+        '';
+      });
+    };
   });
 
+
   rapidjson = super.rapidjson.override({
     preBuild = ''
       sed -i '/set(CMAKE_CXX_FLAGS/d' CMakeLists.txt