diff --git a/examples/rust/.test.sh b/examples/rust/.test.sh
index 36f2e9e9f..49f154c89 100755
--- a/examples/rust/.test.sh
+++ b/examples/rust/.test.sh
@@ -9,5 +9,8 @@ if [[ "$(uname)" == "Darwin" ]]; then
   echo "$CFLAGS" | grep -- "-iframework $DEVENV_PROFILE/Library/Frameworks"
 fi
 
+[[ "$CARGO_INSTALL_ROOT" == "$DEVENV_STATE/cargo-install" ]]
+echo "$PATH" | grep -- "$CARGO_INSTALL_ROOT/bin"
+
 cd app
 cargo run
diff --git a/src/modules/languages/rust.nix b/src/modules/languages/rust.nix
index e8d03c52a..d778e534d 100644
--- a/src/modules/languages/rust.nix
+++ b/src/modules/languages/rust.nix
@@ -67,6 +67,18 @@ in
         mkOverrideTools = lib.mkOverride (lib.modules.defaultOverridePriority - 1);
       in
       {
+        # Set $CARGO_INSTALL_ROOT so that executables installed by `cargo install` can be found from $PATH
+        enterShell = ''
+          export CARGO_INSTALL_ROOT=$(${
+            lib.strings.escapeShellArgs [
+              "${pkgs.coreutils}/bin/realpath"
+              "--no-symlinks"
+              "${config.devenv.state}/cargo-install"
+            ]
+          })
+          export PATH="$PATH:$CARGO_INSTALL_ROOT/bin"
+        '';
+
         packages = (builtins.map (c: cfg.toolchain.${c} or (throw (error "toolchain.${c}"))) cfg.components)
           ++ lib.optional pkgs.stdenv.isDarwin pkgs.libiconv;