diff --git a/modules/programs/nushell.nix b/modules/programs/nushell.nix
index 4d6ab43a7..d413a43f5 100644
--- a/modules/programs/nushell.nix
+++ b/modules/programs/nushell.nix
@@ -8,9 +8,45 @@ let
 
   tomlFormat = pkgs.formats.toml { };
 
+  linesOrSource = name:
+    types.submodule ({ config, ... }: {
+      options = {
+        text = mkOption {
+          type = types.lines;
+          default = "";
+          description = ''
+            Text of the nushell <filename>${name}</filename> file.
+            If unset then the source option will be preferred.
+          '';
+        };
+
+        source = mkOption {
+          type = types.nullOr types.path;
+          default = pkgs.writeTextFile {
+            inherit (config) text;
+            name = hm.strings.storeFileName name;
+          };
+          defaultText = literalExpression "file containing text";
+          description = ''
+            Path of the nushell <filename>${name}</filename> file to use.
+          '';
+        };
+      };
+    });
+
 in {
   meta.maintainers = [ maintainers.Philipp-M ];
 
+  imports = [
+    (mkRemovedOptionModule [ "programs" "nushell" "settings" ] ''
+      Please use
+
+        'programs.nushell.configFile' and 'programs.nushell.envFile'
+
+      instead.
+    '')
+  ];
+
   options.programs.nushell = {
     enable = mkEnableOption "nushell";
 
@@ -21,31 +57,36 @@ in {
       description = "The package to use for nushell.";
     };
 
-    settings = mkOption {
-      type = with types;
-        let
-          prim = oneOf [ bool int str ];
-          primOrPrimAttrs = either prim (attrsOf prim);
-          entry = either prim (listOf primOrPrimAttrs);
-          entryOrAttrsOf = t: either entry (attrsOf t);
-          entries = entryOrAttrsOf (entryOrAttrsOf entry);
-        in attrsOf entries // { description = "Nushell configuration"; };
-      default = { };
+    configFile = mkOption {
+      type = linesOrSource "config.nu";
       example = literalExpression ''
-        {
-          edit_mode = "vi";
-          startup = [ "alias la [] { ls -a }" "alias e [msg] { echo $msg }" ];
-          key_timeout = 10;
-          completion_mode = "circular";
-          no_auto_pivot = true;
+        { text = '''
+            let $config = {
+              filesize_metric: false
+              table_mode: rounded
+              use_ls_colors: true
+            }
+          ''';
         }
       '';
       description = ''
-        Configuration written to
-        <filename>$XDG_CONFIG_HOME/nushell/config.toml</filename>.
-        </para><para>
-        See <link xlink:href="https://www.nushell.sh/book/configuration.html" /> for the full list
-        of options.
+        The configuration file to be used for nushell.
+        </para>
+        <para>
+        See <link xlink:href="https://www.nushell.sh/book/configuration.html#configuration" /> for more information.
+      '';
+    };
+
+    envFile = mkOption {
+      type = linesOrSource "env.nu";
+      example = ''
+        let-env FOO = 'BAR'
+      '';
+      description = ''
+        The environment variables file to be used for nushell.
+        </para>
+        <para>
+        See <link xlink:href="https://www.nushell.sh/book/configuration.html#configuration" /> for more information.
       '';
     };
   };
@@ -53,8 +94,7 @@ in {
   config = mkIf cfg.enable {
     home.packages = [ cfg.package ];
 
-    xdg.configFile."nu/config.toml" = mkIf (cfg.settings != { }) {
-      source = tomlFormat.generate "nushell-config" cfg.settings;
-    };
+    xdg.configFile."nushell/config.nu" = cfg.configFile;
+    xdg.configFile."nushell/env.nu" = cfg.envFile;
   };
 }
diff --git a/tests/modules/programs/nushell/config-expected.nu b/tests/modules/programs/nushell/config-expected.nu
new file mode 100644
index 000000000..7fa807238
--- /dev/null
+++ b/tests/modules/programs/nushell/config-expected.nu
@@ -0,0 +1,5 @@
+let $config = {
+  filesize_metric: false
+  table_mode: rounded
+  use_ls_colors: true
+}
diff --git a/tests/modules/programs/nushell/default.nix b/tests/modules/programs/nushell/default.nix
index 5b3bfa1a5..52d9b3c7b 100644
--- a/tests/modules/programs/nushell/default.nix
+++ b/tests/modules/programs/nushell/default.nix
@@ -1 +1 @@
-{ nushell-settings = ./settings.nix; }
+{ nushell-example-settings = ./example-settings.nix; }
diff --git a/tests/modules/programs/nushell/env-expected.nu b/tests/modules/programs/nushell/env-expected.nu
new file mode 100644
index 000000000..5a820ca81
--- /dev/null
+++ b/tests/modules/programs/nushell/env-expected.nu
@@ -0,0 +1 @@
+let-env FOO = 'BAR'
diff --git a/tests/modules/programs/nushell/example-settings.nix b/tests/modules/programs/nushell/example-settings.nix
new file mode 100644
index 000000000..d1eca3202
--- /dev/null
+++ b/tests/modules/programs/nushell/example-settings.nix
@@ -0,0 +1,30 @@
+{ ... }:
+
+{
+  programs.nushell = {
+    enable = true;
+
+    configFile.text = ''
+      let $config = {
+        filesize_metric: false
+        table_mode: rounded
+        use_ls_colors: true
+      }
+    '';
+
+    envFile.text = ''
+      let-env FOO = 'BAR'
+    '';
+  };
+
+  test.stubs.nushell = { };
+
+  nmt.script = ''
+    assertFileContent \
+      home-files/.config/nushell/config.nu \
+      ${./config-expected.nu}
+    assertFileContent \
+      home-files/.config/nushell/env.nu \
+      ${./env-expected.nu}
+  '';
+}
diff --git a/tests/modules/programs/nushell/settings-expected.toml b/tests/modules/programs/nushell/settings-expected.toml
deleted file mode 100644
index 87c5de250..000000000
--- a/tests/modules/programs/nushell/settings-expected.toml
+++ /dev/null
@@ -1,5 +0,0 @@
-completion_mode = "circular"
-edit_mode = "vi"
-key_timeout = 10
-no_auto_pivot = true
-startup = ["alias la [] { ls -a }", "alias e [msg] { echo $msg }"]
diff --git a/tests/modules/programs/nushell/settings.nix b/tests/modules/programs/nushell/settings.nix
deleted file mode 100644
index 7eef0909c..000000000
--- a/tests/modules/programs/nushell/settings.nix
+++ /dev/null
@@ -1,33 +0,0 @@
-{ config, lib, pkgs, ... }:
-
-with lib;
-
-{
-  config = {
-    programs.nushell = {
-      enable = true;
-
-      settings = mkMerge [
-        {
-          edit_mode = "vi";
-          startup = [ "alias la [] { ls -a }" ];
-          completion_mode = "circular";
-          key_timeout = 10;
-        }
-
-        {
-          startup = [ "alias e [msg] { echo $msg }" ];
-          no_auto_pivot = true;
-        }
-      ];
-    };
-
-    test.stubs.nushell = { };
-
-    nmt.script = ''
-      assertFileContent \
-        home-files/.config/nu/config.toml \
-        ${./settings-expected.toml}
-    '';
-  };
-}