diff --git a/pkgs/development/tools/rust/cargo-generate/default.nix b/pkgs/development/tools/rust/cargo-generate/default.nix
index 8064de4d2b3d..bc15e0f0f083 100644
--- a/pkgs/development/tools/rust/cargo-generate/default.nix
+++ b/pkgs/development/tools/rust/cargo-generate/default.nix
@@ -10,19 +10,19 @@
 
 rustPlatform.buildRustPackage rec {
   pname = "cargo-generate";
-  version = "0.16.0";
+  version = "0.17.2";
 
   src = fetchFromGitHub {
     owner = "cargo-generate";
     repo = "cargo-generate";
     rev = "v${version}";
-    sha256 = "sha256-qL5ZbLimpsi/7yuhubHF3/tAouE/5zCWRx4nZG841cU=";
+    sha256 = "sha256-so69T2mDq/nFGiug2zYIX6Z+Dhxk3riV+TkEYTpFrTg=";
   };
 
   # patch Cargo.toml to not vendor libgit2 and openssl
   cargoPatches = [ ./no-vendor.patch ];
 
-  cargoSha256 = "sha256-OB3rjJNxkUKRQPsWRvCniNPfYBgLFV4yXO7dnVvL7wo=";
+  cargoSha256 = "sha256-JRoD6SuGQPJ8HOePXrH3avIY+sW61ErZFOHLafqmxMY=";
 
   nativeBuildInputs = [ pkg-config ];
 
@@ -39,14 +39,13 @@ rustPlatform.buildRustPackage rec {
   # - favorites_default_to_git_if_not_defined: requires network access to github.com
   # - should_canonicalize: the test assumes that it will be called from the /Users/<project_dir>/ folder on darwin variant.
   checkFlags = [
-      "--skip favorites::favorites_default_to_git_if_not_defined"
-      # Probably git 2.38.1 releated failure
-      # Upstream issue https://github.com/cargo-generate/cargo-generate/issues/777
-      "--skip basics::it_loads_a_submodule"
-    ] ++ lib.optionals stdenv.isDarwin [ "--skip git::utils::should_canonicalize" ];
+    "--skip=favorites::favorites_default_to_git_if_not_defined"
+  ] ++ lib.optionals stdenv.isDarwin [
+    "--skip=git::utils::should_canonicalize"
+  ];
 
   meta = with lib; {
-    description = "cargo, make me a project";
+    description = "A tool to generaet a new Rust project by leveraging a pre-existing git repository as a template";
     homepage = "https://github.com/cargo-generate/cargo-generate";
     changelog = "https://github.com/cargo-generate/cargo-generate/blob/v${version}/CHANGELOG.md";
     license = with licenses; [ asl20 /* or */ mit ];
diff --git a/pkgs/development/tools/rust/cargo-generate/no-vendor.patch b/pkgs/development/tools/rust/cargo-generate/no-vendor.patch
index 0c3b18de211c..b7788d3d656c 100644
--- a/pkgs/development/tools/rust/cargo-generate/no-vendor.patch
+++ b/pkgs/development/tools/rust/cargo-generate/no-vendor.patch
@@ -3,9 +3,9 @@
 @@ -10,7 +10,7 @@ include = ["src/**/*", "LICENSE-*", "*.md"]
  
  [dependencies]
- clap = { version = "3.2", features = ["derive", "std"], default-features = false }
--git2 = { version = "0.14", features = ["ssh", "https", "vendored-libgit2", "vendored-openssl"], default-features = false }
-+git2 = { version = "0.14", features = ["ssh", "https"], default-features = false }
+ clap = { version = "4.0", features = ["derive", "std", "help"], default-features = false }
+-git2 = { version = "0.15", features = ["ssh", "https", "vendored-libgit2", "vendored-openssl"], default-features = false }
++git2 = { version = "0.15", features = ["ssh", "https"], default-features = false }
  console = "0.15"
  dialoguer = "0.10"
  dirs = "4.0"