diff --git a/pkgs/development/compilers/terra/default.nix b/pkgs/development/compilers/terra/default.nix
index dea6df1b7aa4..6d87d4bbd496 100644
--- a/pkgs/development/compilers/terra/default.nix
+++ b/pkgs/development/compilers/terra/default.nix
@@ -1,29 +1,40 @@
-{ stdenv, fetchFromGitHub, fetchurl, llvmPackages, ncurses, lua }:
+{ stdenv, fetchurl, fetchFromGitHub
+, llvmPackages, ncurses, lua
+}:
 
 let
   luajitArchive = "LuaJIT-2.0.5.tar.gz";
   luajitSrc = fetchurl {
-    url = "http://luajit.org/download/${luajitArchive}";
+    url    = "http://luajit.org/download/${luajitArchive}";
     sha256 = "0yg9q4q6v028bgh85317ykc9whgxgysp76qzaqgq55y6jy11yjw7";
   };
 in
-
 stdenv.mkDerivation rec {
-  pname = "terra-git";
-  version = "1.0.0-beta1";
+  pname = "terra";
+  version = "1.0.0pre1175_${builtins.substring 0 7 src.rev}";
 
   src = fetchFromGitHub {
-    owner = "zdevito";
-    repo = "terra";
-    rev = "release-${version}";
-    sha256 = "1blv3mbmlwb6fxkck6487ck4qq67cbwq6s1zlp86hy2wckgf8q2c";
+    owner  = "zdevito";
+    repo   = "terra";
+    rev    = "ef6a75ffee15a30f3c74f4e6943851cfbc0fec3d";
+    sha256 = "0aky17vbv3d9zng34hp17p9zb00dbzwhvzsdjzrrqvk9lmyvix0s";
   };
 
+  nativeBuildInputs = [ lua ];
+  buildInputs = with llvmPackages; [ llvm clang-unwrapped ncurses ];
+
+  doCheck = true;
+  enableParallelBuilding = true;
+  hardeningDisable = [ "fortify" ];
   outputs = [ "bin" "dev" "out" "static" ];
 
+  patches = [ ./nix-cflags.patch ];
   postPatch = ''
-    substituteInPlace Makefile --replace \
-      '-lcurses' '-lncurses'
+    substituteInPlace Makefile \
+      --replace '-lcurses' '-lncurses'
+
+    substituteInPlace src/terralib.lua \
+      --subst-var-by NIX_LIBC_INCLUDE ${stdenv.cc.libc.dev}/include
   '';
 
   preBuild = ''
@@ -36,6 +47,8 @@ stdenv.mkDerivation rec {
     cp ${luajitSrc} build/${luajitArchive}
   '';
 
+  checkPhase = "(cd tests && ../terra run)";
+
   installPhase = ''
     install -Dm755 -t $bin/bin release/bin/terra
     install -Dm755 -t $out/lib release/lib/terra${stdenv.hostPlatform.extensions.sharedLibrary}
@@ -45,13 +58,11 @@ stdenv.mkDerivation rec {
     cp -rv release/include/terra $dev/include
   '';
 
-  buildInputs = with llvmPackages; [ lua llvm clang-unwrapped ncurses ];
-
   meta = with stdenv.lib; {
     description = "A low-level counterpart to Lua";
-    homepage = http://terralang.org/;
-    platforms = platforms.x86_64;
-    maintainers = with maintainers; [ jb55 ];
-    license = licenses.mit;
+    homepage    = http://terralang.org/;
+    platforms   = platforms.x86_64;
+    maintainers = with maintainers; [ jb55 thoughtpolice ];
+    license     = licenses.mit;
   };
 }
diff --git a/pkgs/development/compilers/terra/nix-cflags.patch b/pkgs/development/compilers/terra/nix-cflags.patch
new file mode 100644
index 000000000000..339ae23cef65
--- /dev/null
+++ b/pkgs/development/compilers/terra/nix-cflags.patch
@@ -0,0 +1,22 @@
+diff --git a/src/terralib.lua b/src/terralib.lua
+index 351238d..e638c90 100644
+--- a/src/terralib.lua
++++ b/src/terralib.lua
+@@ -3395,6 +3395,17 @@ function terra.includecstring(code,cargs,target)
+     	args:insert("-internal-isystem")
+     	args:insert(path)
+     end
++
++    -- NOTE(aseipp): include relevant Nix header files
++    args:insert("-isystem")
++    args:insert("@NIX_LIBC_INCLUDE@")
++
++    local nix_cflags = os.getenv('NIX_CFLAGS_COMPILE')
++    if nix_cflags ~= nil then
++        for w in nix_cflags:gmatch("%S+") do
++          args:insert(w)
++        end
++    end
+     
+     if cargs then
+         args:insertall(cargs)