diff --git a/doc/languages-frameworks/neovim.section.md b/doc/languages-frameworks/neovim.section.md
index 71bc52b541dc..b8a7e259a2bb 100644
--- a/doc/languages-frameworks/neovim.section.md
+++ b/doc/languages-frameworks/neovim.section.md
@@ -59,7 +59,7 @@ For instance, `sqlite-lua` needs `g:sqlite_clib_path` to be set to work. Nixpkgs
 - `neovimRcContent`: Extra vimL code sourced by the generated `init.lua`.
 - `wrapperArgs`: Extra arguments forwarded to the `makeWrapper` call.
 - `wrapRc`: Nix, not being able to write in your `$HOME`, loads the
-  generated Neovim configuration via its  `-u` argument, i.e. : `-u /nix/store/...generatedInit.lua`. This has side effects like preventing Neovim from reading your config in `$XDG_CONFIG_HOME` (see bullet 7 of [`:help startup`](https://neovim.io/doc/user/starting.html#_initialization) in Neovim). Disable it if you want to generate your own wrapper. You can still reuse while reusing the logic of the nixpkgs wrapper and access the generated config via `neovim.passthru.initRc`.
+  generated Neovim configuration via the `$VIMINIT` environment variable, i.e. : `export VIMINIT='lua dofile("/nix/store/…-init.lua")'`. This has side effects like preventing Neovim from sourcing your `init.lua` in `$XDG_CONFIG_HOME/nvim` (see bullet 7 of [`:help startup`](https://neovim.io/doc/user/starting.html#startup) in Neovim). Disable it if you want to generate your own wrapper. You can still reuse the generated vimscript init code via `neovim.passthru.initRc`.
 - `plugins`: A list of plugins to add to the wrapper.
 
 ```
diff --git a/doc/release-notes/rl-2511.section.md b/doc/release-notes/rl-2511.section.md
index 33a2138756b7..dc12ad11a466 100644
--- a/doc/release-notes/rl-2511.section.md
+++ b/doc/release-notes/rl-2511.section.md
@@ -37,4 +37,6 @@
 
 ### Additions and Improvements {#sec-nixpkgs-release-25.11-lib-additions-improvements}
 
-- Create the first release note entry in this section!
+- `neovim`: Added support for the `vim.o.exrc` option, the `VIMINIT` environment variable, and sourcing of `sysinit.vim`.
+
+  See the neovim help page [`:help startup`](https://neovim.io/doc/user/starting.html#startup) for more information, as well as [the nixpkgs neovim wrapper documentation](#neovim-custom-configuration).
diff --git a/pkgs/applications/editors/neovim/wrapper.nix b/pkgs/applications/editors/neovim/wrapper.nix
index 1ba4130cf7b9..97c7409404b6 100644
--- a/pkgs/applications/editors/neovim/wrapper.nix
+++ b/pkgs/applications/editors/neovim/wrapper.nix
@@ -48,7 +48,7 @@ let
       viAlias ? false,
 
       # additional argument not generated by makeNeovimConfig
-      # it will append "-u <customRc>" to the wrapped arguments
+      # it sets the VIMINIT environment variable to "lua dofile('${customRc}')"
       # set to false if you want to control where to save the generated config
       # (e.g., in ~/.config/init.vim or project/.nvimrc)
       wrapRc ? true,
@@ -193,8 +193,9 @@ let
             "${placeholder "out"}/rplugin.vim"
           ]
           ++ lib.optionals finalAttrs.wrapRc [
-            "--add-flags"
-            "-u ${writeText "init.lua" rcContent}"
+            "--set-default"
+            "VIMINIT"
+            "lua dofile('${writeText "init.lua" rcContent}')"
           ]
           ++ finalAttrs.generatedWrapperArgs;