diff --git a/pkgs/by-name/ze/zed-editor/0002-disable-livekit-darwin.patch b/pkgs/by-name/ze/zed-editor/0002-disable-livekit-darwin.patch
deleted file mode 100644
index 2c82a2d49b6882..00000000000000
--- a/pkgs/by-name/ze/zed-editor/0002-disable-livekit-darwin.patch
+++ /dev/null
@@ -1,55 +0,0 @@
-diff --git a/crates/live_kit_client/Cargo.toml b/crates/live_kit_client/Cargo.toml
-index e23c63453e..d0142b83d8 100644
---- a/crates/live_kit_client/Cargo.toml
-+++ b/crates/live_kit_client/Cargo.toml
-@@ -40,10 +40,10 @@ nanoid = { workspace = true, optional = true}
- parking_lot.workspace = true
- postage.workspace = true
- 
--[target.'cfg(target_os = "macos")'.dependencies]
-+[target.'cfg(target_os = "none")'.dependencies]
- core-foundation.workspace = true
- 
--[target.'cfg(all(not(target_os = "macos")))'.dependencies]
-+[target.'cfg(all(not(target_os = "none")))'.dependencies]
- async-trait = { workspace = true }
- collections = { workspace = true }
- gpui = { workspace = true }
-diff --git a/crates/live_kit_client/build.rs b/crates/live_kit_client/build.rs
-index 2fdfd982bf..7272614b87 100644
---- a/crates/live_kit_client/build.rs
-+++ b/crates/live_kit_client/build.rs
-@@ -36,7 +36,7 @@ const MACOS_TARGET_VERSION: &str = "10.15.7";
- 
- fn main() {
-     if cfg!(all(
--        target_os = "macos",
-+        target_os = "none",
-         not(any(test, feature = "test-support", feature = "no-webrtc")),
-     )) {
-         let swift_target = get_swift_target();
-diff --git a/crates/live_kit_client/src/live_kit_client.rs b/crates/live_kit_client/src/live_kit_client.rs
-index 4820a4eedb..6179e6c55a 100644
---- a/crates/live_kit_client/src/live_kit_client.rs
-+++ b/crates/live_kit_client/src/live_kit_client.rs
-@@ -2,16 +2,16 @@
- 
- use std::sync::Arc;
- 
--#[cfg(all(target_os = "macos", not(any(test, feature = "test-support"))))]
-+#[cfg(all(target_os = "none", not(any(test, feature = "test-support"))))]
- pub mod prod;
- 
--#[cfg(all(target_os = "macos", not(any(test, feature = "test-support"))))]
-+#[cfg(all(target_os = "none", not(any(test, feature = "test-support"))))]
- pub use prod::*;
- 
--#[cfg(any(test, feature = "test-support", not(target_os = "macos")))]
-+#[cfg(any(test, feature = "test-support", not(target_os = "none")))]
- pub mod test;
- 
--#[cfg(any(test, feature = "test-support", not(target_os = "macos")))]
-+#[cfg(any(test, feature = "test-support", not(target_os = "none")))]
- pub use test::*;
- 
- pub type Sid = String;
diff --git a/pkgs/by-name/ze/zed-editor/package.nix b/pkgs/by-name/ze/zed-editor/package.nix
index 9db12e7ea449ba..208cba15f4a5f1 100644
--- a/pkgs/by-name/ze/zed-editor/package.nix
+++ b/pkgs/by-name/ze/zed-editor/package.nix
@@ -36,6 +36,10 @@
   darwinMinVersionHook,
   makeWrapper,
   nodejs_22,
+  libGL,
+  libX11,
+  libXext,
+  livekit-libwebrtc,
 
   withGLES ? false,
 }:
@@ -90,35 +94,25 @@ let
 in
 rustPlatform.buildRustPackage rec {
   pname = "zed-editor";
-  version = "0.161.2";
+  version = "0.163.0";
 
   src = fetchFromGitHub {
     owner = "zed-industries";
     repo = "zed";
-    rev = "refs/tags/v${version}";
-    hash = "sha256-UEqlOiB7oNQcrLViPrk9ZCg4uUDYhRXjq0cHp/wclYk=";
+    rev = "ee207ab77ecd61fad41bb6191e978898dbfae2db";
+    hash = "sha256-Erm4nQbrkl5osEXDxKniyVO91DK3CTxnkhrRuews46Y=";
   };
 
-  patches =
-    [
-      # Zed uses cargo-install to install cargo-about during the script execution.
-      # We provide cargo-about ourselves and can skip this step.
-      # Until https://github.com/zed-industries/zed/issues/19971 is fixed,
-      # we also skip any crate for which the license cannot be determined.
-      ./0001-generate-licenses.patch
-    ]
-    ++ lib.optionals stdenv.hostPlatform.isDarwin [
-      # The Swift variant of livekit currently used inside Zed requires
-      # Swift 6, which is not available in nixpkgs yet:
-      #   https://github.com/NixOS/nixpkgs/issues/343210
-      # The Rust variant of livekit for Zed is still pending and there is no
-      # schedule when it will be finished:
-      #   https://github.com/zed-industries/zed/pull/13343
-      ./0002-disable-livekit-darwin.patch
-    ];
+  patches = [
+    # Zed uses cargo-install to install cargo-about during the script execution.
+    # We provide cargo-about ourselves and can skip this step.
+    # Until https://github.com/zed-industries/zed/issues/19971 is fixed,
+    # we also skip any crate for which the license cannot be determined.
+    ./0001-generate-licenses.patch
+  ];
 
   useFetchCargoVendor = true;
-  cargoHash = "sha256-J3pnVq2QhwKQOf6FLUlLQ1QHq42cDDN/eKZLv2WTSMc=";
+  cargoHash = "sha256-U6PQ0CHbRQlf3fAB/nBEZSizgpXAT5Jt373RBpyffCI=";
 
   nativeBuildInputs =
     [
@@ -153,14 +147,16 @@ rustPlatform.buildRustPackage rec {
       libxkbcommon
       wayland
       xorg.libxcb
+      # required by livekit:
+      libGL
+      libX11
+      libXext
     ]
     ++ lib.optionals stdenv.hostPlatform.isDarwin [
       apple-sdk_15
-      # This will need to be increased to 12.3 once
-      # https://github.com/zed-industries/zed/pull/13343
-      # is merged and released, as ScreenCaptureKit is only available on 12.3 and up:
+      # ScreenCaptureKit, required by livekit, is only available on 12.3 and up:
       # https://developer.apple.com/documentation/screencapturekit
-      (darwinMinVersionHook "10.15")
+      (darwinMinVersionHook "12.3")
     ];
 
   cargoBuildFlags = [
@@ -185,6 +181,7 @@ rustPlatform.buildRustPackage rec {
     ZED_UPDATE_EXPLANATION = "Zed has been installed using Nix. Auto-updates have thus been disabled.";
     # Used by `zed --version`
     RELEASE_VERSION = version;
+    LK_CUSTOM_WEBRTC = livekit-libwebrtc;
   };
 
   RUSTFLAGS = if withGLES then "--cfg gles" else "";