diff --git a/pkgs/os-specific/linux/squashfs/default.nix b/pkgs/os-specific/linux/squashfs/default.nix
index 8fdf288d7dd5..8d86e3ab9cd8 100644
--- a/pkgs/os-specific/linux/squashfs/default.nix
+++ b/pkgs/os-specific/linux/squashfs/default.nix
@@ -1,11 +1,11 @@
 {stdenv, fetchurl, zlib}:
 
-stdenv.mkDerivation {
-  name = "squashfs-3.3";
+stdenv.mkDerivation rec {
+  name = "squashfs-4.0";
 
   src = fetchurl {
-    url = mirror://sourceforge/squashfs/squashfs3.3.tgz;
-    sha256 = "1j55m26nyvlbld4yxad0r6s1f4rdw9yg89y2gv93ihkx3rx048w4";
+    url = mirror://sourceforge/squashfs/squashfs4.0.tar.gz;
+    sha256 = "089fw543fx2d3dadszjv5swf8hr6jvxrpagf0x1jrb3bw3dqx50q";
   };
   
   buildInputs = [zlib];
@@ -14,9 +14,10 @@ stdenv.mkDerivation {
     cd squashfs-tools
   '';
 
-  installPhase = ''
-    ensureDir $out/sbin
-    cp mksquashfs $out/sbin
-    cp unsquashfs $out/sbin
-  '';
+  installFlags = "INSTALL_DIR=\${out}/bin";
+
+  meta = {
+    homepage = http://squashfs.sourceforge.net/;
+    description = "Tool for creating and unpacking squashfs filesystems";
+  };
 }