diff --git a/pkgs/development/python-modules/magic-wormhole-transit-relay/default.nix b/pkgs/development/python-modules/magic-wormhole-transit-relay/default.nix
index bf8b990fe0d9d..89366bc43f1da 100644
--- a/pkgs/development/python-modules/magic-wormhole-transit-relay/default.nix
+++ b/pkgs/development/python-modules/magic-wormhole-transit-relay/default.nix
@@ -6,21 +6,27 @@
   autobahn,
   mock,
   twisted,
-  pythonOlder,
-  pythonAtLeast,
+  python,
   pytestCheckHook,
 }:
 
 buildPythonPackage rec {
   pname = "magic-wormhole-transit-relay";
-  version = "0.2.1";
+  version = "0.3.1";
   pyproject = true;
 
   src = fetchPypi {
     inherit pname version;
-    hash = "sha256-y0gBtGiQ6v+XKG4OP+xi0dUv/jF9FACDtjNqH7To+l4=";
+    hash = "sha256-LvLvvk008OYkhw+EIln9czuncVLtMQr0NJd0piiEkA4=";
   };
 
+  postPatch = ''
+    # Passing the environment to twistd is necessary to preserve Python's site path.
+    substituteInPlace src/wormhole_transit_relay/test/test_backpressure.py --replace-fail \
+      'reactor.spawnProcess(proto, exe, args)' \
+      'reactor.spawnProcess(proto, exe, args, None)'
+  '';
+
   build-system = [ setuptools ];
 
   dependencies = [
@@ -39,13 +45,16 @@ buildPythonPackage rec {
 
   __darwinAllowLocalNetworking = true;
 
+  postCheck = ''
+    # Avoid collision with twisted's plugin cache (#164775).
+    rm "$out/${python.sitePackages}/twisted/plugins/dropin.cache"
+  '';
+
   meta = {
     description = "Transit Relay server for Magic-Wormhole";
     homepage = "https://github.com/magic-wormhole/magic-wormhole-transit-relay";
     changelog = "https://github.com/magic-wormhole/magic-wormhole-transit-relay/blob/${version}/NEWS.md";
     license = lib.licenses.mit;
     maintainers = [ lib.maintainers.mjoerg ];
-    # Python 3.12 support: https://github.com/magic-wormhole/magic-wormhole-transit-relay/issues/35
-    broken = pythonOlder "3.7" || pythonAtLeast "3.12";
   };
 }
diff --git a/pkgs/development/python-modules/magic-wormhole/default.nix b/pkgs/development/python-modules/magic-wormhole/default.nix
index 5abdff45c6d16..87404ab5b21e2 100644
--- a/pkgs/development/python-modules/magic-wormhole/default.nix
+++ b/pkgs/development/python-modules/magic-wormhole/default.nix
@@ -2,7 +2,7 @@
   lib,
   stdenv,
   buildPythonPackage,
-  fetchPypi,
+  fetchFromGitHub,
 
   # build-system
   setuptools,
@@ -36,12 +36,14 @@
 
 buildPythonPackage rec {
   pname = "magic-wormhole";
-  version = "0.16.0";
+  version = "0.17.0";
   pyproject = true;
 
-  src = fetchPypi {
-    inherit pname version;
-    hash = "sha256-FObBRomNvaem0ZAmJiOmlBmVU2Pn5DTWSq0tIz1tlMk=";
+  src = fetchFromGitHub {
+    owner = "magic-wormhole";
+    repo = "magic-wormhole";
+    rev = "refs/tags/${version}";
+    hash = "sha256-BxPF4iQ91wLBagdvQ/Y89VIZBkMxFiEHnK+BU55Bwr4=";
   };
 
   postPatch =
@@ -81,8 +83,12 @@ buildPythonPackage rec {
   nativeCheckInputs =
     # For Python 3.12, remove magic-wormhole-mailbox-server and magic-wormhole-transit-relay from test dependencies,
     # which are not yet supported with this version.
-    lib.optionals (!magic-wormhole-mailbox-server.meta.broken) [ magic-wormhole-mailbox-server ]
-    ++ lib.optionals (!magic-wormhole-transit-relay.meta.broken) [ magic-wormhole-transit-relay ]
+    lib.optionals
+      (!magic-wormhole-mailbox-server.meta.broken && !magic-wormhole-transit-relay.meta.broken)
+      [
+        magic-wormhole-mailbox-server
+        magic-wormhole-transit-relay
+      ]
     ++ [
       mock
       pytestCheckHook
@@ -101,10 +107,10 @@ buildPythonPackage rec {
         "src/wormhole/test/dilate/test_full.py"
         "src/wormhole/test/test_args.py"
         "src/wormhole/test/test_cli.py"
+        "src/wormhole/test/test_transit.py"
         "src/wormhole/test/test_wormhole.py"
         "src/wormhole/test/test_xfer_util.py"
-      ]
-    ++ lib.optionals magic-wormhole-transit-relay.meta.broken [ "src/wormhole/test/test_transit.py" ];
+      ];
 
   postInstall = ''
     install -Dm644 docs/wormhole.1 $out/share/man/man1/wormhole.1