diff --git a/flake.lock b/flake.lock
index ab7c889aa22..1e58519c668 100644
--- a/flake.lock
+++ b/flake.lock
@@ -1,5 +1,26 @@
 {
   "nodes": {
+    "fenix": {
+      "inputs": {
+        "nixpkgs": [
+          "nixpkgs"
+        ],
+        "rust-analyzer-src": "rust-analyzer-src"
+      },
+      "locked": {
+        "lastModified": 1755585599,
+        "narHash": "sha256-tl/0cnsqB/Yt7DbaGMel2RLa7QG5elA8lkaOXli6VdY=",
+        "owner": "nix-community",
+        "repo": "fenix",
+        "rev": "6ed03ef4c8ec36d193c18e06b9ecddde78fb7e42",
+        "type": "github"
+      },
+      "original": {
+        "owner": "nix-community",
+        "repo": "fenix",
+        "type": "github"
+      }
+    },
     "flake-parts": {
       "inputs": {
         "nixpkgs-lib": "nixpkgs-lib"
@@ -98,22 +119,6 @@
         "type": "github"
       }
     },
-    "nixpkgs_3": {
-      "locked": {
-        "lastModified": 1744536153,
-        "narHash": "sha256-awS2zRgF4uTwrOKwwiJcByDzDOdo3Q1rPZbiHQg/N38=",
-        "owner": "NixOS",
-        "repo": "nixpkgs",
-        "rev": "18dd725c29603f582cf1900e0d25f9f1063dbf11",
-        "type": "github"
-      },
-      "original": {
-        "owner": "NixOS",
-        "ref": "nixpkgs-unstable",
-        "repo": "nixpkgs",
-        "type": "github"
-      }
-    },
     "process-compose-flake": {
       "locked": {
         "lastModified": 1749418557,
@@ -131,29 +136,28 @@
     },
     "root": {
       "inputs": {
+        "fenix": "fenix",
         "flake-parts": "flake-parts",
         "foundry": "foundry",
         "nixpkgs": "nixpkgs_2",
         "process-compose-flake": "process-compose-flake",
-        "rust": "rust",
         "services-flake": "services-flake"
       }
     },
-    "rust": {
-      "inputs": {
-        "nixpkgs": "nixpkgs_3"
-      },
+    "rust-analyzer-src": {
+      "flake": false,
       "locked": {
-        "lastModified": 1755743804,
-        "narHash": "sha256-M6qT02voARH5e9eTXQBzpYIE/hAp6jPgBCyxLmw5uBM=",
-        "owner": "oxalica",
-        "repo": "rust-overlay",
-        "rev": "80322e975e27d834451d6b66e63f8abae9d74bf2",
+        "lastModified": 1755504847,
+        "narHash": "sha256-VX0B9hwhJypCGqncVVLC+SmeMVd/GAYbJZ0MiiUn2Pk=",
+        "owner": "rust-lang",
+        "repo": "rust-analyzer",
+        "rev": "a905e3b21b144d77e1b304e49f3264f6f8d4db75",
         "type": "github"
       },
       "original": {
-        "owner": "oxalica",
-        "repo": "rust-overlay",
+        "owner": "rust-lang",
+        "ref": "nightly",
+        "repo": "rust-analyzer",
         "type": "github"
       }
     },
diff --git a/flake.nix b/flake.nix
index 56dc427737a..265b378caac 100644
--- a/flake.nix
+++ b/flake.nix
@@ -1,14 +1,17 @@
 {
   inputs = {
     nixpkgs.url = "github:nixos/nixpkgs/nixpkgs-unstable";
-    rust.url = "github:oxalica/rust-overlay";
     foundry.url = "github:shazow/foundry.nix/5af12b6f2b708858ef3120041546ed6b038474a5";
+    fenix = {
+      url = "github:nix-community/fenix";
+      inputs.nixpkgs.follows = "nixpkgs";
+    };
     process-compose-flake.url = "github:Platonic-Systems/process-compose-flake";
     services-flake.url = "github:juspay/services-flake";
     flake-parts.url = "github:hercules-ci/flake-parts";
   };
 
-  outputs = inputs@{ flake-parts, process-compose-flake, services-flake, nixpkgs, rust, foundry, ... }:
+  outputs = inputs@{ flake-parts, process-compose-flake, services-flake, nixpkgs, fenix, foundry, ... }:
     flake-parts.lib.mkFlake { inherit inputs; } {
       imports = [ process-compose-flake.flakeModule ];
       systems = [
@@ -21,20 +24,25 @@
       perSystem = { config, self', inputs', pkgs, system, ... }:
         let
           overlays = [
-            (import rust)
-            (self: super: {
-              rust-toolchain = super.rust-bin.stable.latest.default;
-            })
+            fenix.overlays.default
             foundry.overlay
           ];
 
-          pkgsWithOverlays = import nixpkgs { 
+          pkgs = import nixpkgs {
             inherit overlays system; 
           };
+
+          toolchain = with fenix.packages.${system}; combine [
+            (fromToolchainFile {
+              file = ./rust-toolchain.toml;
+              sha256 = "sha256-+9FmLhAOezBZCOziO0Qct1NOrfpjNsXxc/8I0c7BdKE=";
+            })
+            stable.rust-src # This is needed for rust-analyzer to find stdlib symbols. Should use the same channel as the toolchain.
+          ];
         in {
-          devShells.default = pkgsWithOverlays.mkShell {
-            packages = (with pkgsWithOverlays; [
-              rust-toolchain
+          devShells.default = pkgs.mkShell {
+            packages = (with pkgs; [
+              toolchain
               foundry-bin
               solc
               protobuf
@@ -63,7 +71,7 @@
               initialDatabases = [
                 {
                   inherit name;
-                  schemas = [ (pkgsWithOverlays.writeText "init-${name}.sql" ''
+                  schemas = [ (pkgs.writeText "init-${name}.sql" ''
                     CREATE EXTENSION IF NOT EXISTS pg_trgm;
                     CREATE EXTENSION IF NOT EXISTS btree_gist; 
                     CREATE EXTENSION IF NOT EXISTS postgres_fdw;
@@ -146,7 +154,7 @@
 
               services.anvil."anvil-integration" = {
                 enable = true;
-                package = pkgsWithOverlays.foundry-bin;
+                package = pkgs.foundry-bin;
                 port = 3021;
                 timestamp = 1743944919;
                 gasLimit = 100000000000;