diff --git a/README.md b/README.md
index 6705a9d7..3961f215 100644
--- a/README.md
+++ b/README.md
@@ -178,6 +178,8 @@ Upgrade:
     nix-channel --update
     nix-env -iA nixpkgs-unstable.babashka
 
+You can find more documentation on how to use babashka with nix [here](./doc/nix.md).
+
 ### Arch (Linux)
 
 `babashka` is [available](https://aur.archlinux.org/packages/babashka-bin/) in the [Arch User Repository](https://aur.archlinux.org). It can be installed using your favorite [AUR](https://aur.archlinux.org) helper such as
diff --git a/doc/nix.md b/doc/nix.md
new file mode 100644
index 00000000..68b26178
--- /dev/null
+++ b/doc/nix.md
@@ -0,0 +1,119 @@
+# Using Babashka with Nix
+
+Babashka is [packaged](https://search.nixos.org/packages?type=packages&query=babashka) in nixpkgs and can be easily used from the Nix package manager.
+
+The following assumes a recent installation of nix and uses the unstable [nix cli](https://nixos.org/manual/nix/stable/command-ref/new-cli/nix.html) and [Flakes](https://nixos.org/manual/nix/stable/command-ref/new-cli/nix3-flake.html).
+
+To enable the unstable cli and flakes add the following to `/etc/nix/nix.conf`:
+
+```
+extra-experimental-features flakes nix-command
+```
+
+## Imperative install on Nix
+
+To imperatively install nix for the current user, run `nix profile install babashka`.
+
+## Declarative global install on NixOS
+
+To install babashka for all users on a NixOS system, place it in `environment.systemPackages` in your `configuration.nix`:
+
+```nix
+{ pkgs, ... }:
+{
+    environment.systemPackages = with pkgs; [
+        babashka
+    ];
+}
+```
+
+Then run `nixos-rebuild switch`, to activate the new configuration.
+
+## Declarative per-user install with home-manager
+
+You can install babashka for a specific user using [home-manager](https://github.com/nix-community/home-manager). Add the following to your `~/.config/nixpkgs/home.nix`:
+
+```nix
+{ pkgs, ... }:
+{
+    home.packages = with pkgs; [
+        babashka
+    ];
+}
+```
+
+Then run `home-manager switch`, to activate the new configuration.
+
+## Per project install with direnv
+
+To make babashka available on a per-project basis, you can use [direnv](https://direnv.net/).
+
+Create a file `.envrc` in the project directory with the following contents:
+
+```
+use flake
+```
+
+Create a file `flake.nix` in the project directory with the following contents:
+
+```nix
+{
+  outputs = {nixpkgs, ...}: let
+    supportedSystems = ["x86_64-linux" "x86_64-darwin"];
+    forAllSystems = nixpkgs.lib.genAttrs supportedSystems;
+    nixpkgsFor = system: import nixpkgs {inherit system;};
+  in {
+    devShell = forAllSystems (system: let
+      pkgs = nixpkgsFor system;
+    in
+      pkgs.mkShell {
+        packages = with pkgs; [
+          babashka
+        ];
+      });
+  };
+}
+```
+
+After running `direnv allow`, babashka should be available on the `$PATH`, when you are inside the project directory.
+
+## Write Babashka Application
+
+You can write babashka scripts with native dependencies using [WriteBabashkaApplication](https://github.com/sohalt/write-babashka-application).
+
+Here is an example `flake.nix` using `cowsay` as an external dependency:
+
+```nix
+{
+  inputs.wbba.url = "github:sohalt/write-babashka-application";
+  inputs.flake-utils.url = "github:numtide/flake-utils";
+  outputs = { nixpkgs, flake-utils, wbba, ... }:
+    flake-utils.lib.eachDefaultSystem (system:
+      let
+        pkgs = import nixpkgs {
+          inherit system;
+          overlays = [ wbba.overlay ];
+        };
+        hello-babashka = pkgs.writeBabashkaApplication {
+          name = "hello";
+          runtimeInputs = with pkgs;[
+            cowsay # add your dependencies here
+          ];
+          text = ''
+            (ns hello
+              (:require [babashka.process :refer [sh]]))
+
+            (-> (sh ["cowsay" "hello from babashka"])
+                 :out
+                 print)
+          '';
+        };
+      in
+      {
+        defaultApp = hello-babashka;
+        defaultPackage = hello-babashka;
+      });
+}
+```
+
+You can then build the application using `nix build` or run it using `nix run`.