diff --git a/pkgs/by-name/lm/lmstudio/darwin.nix b/pkgs/by-name/lm/lmstudio/darwin.nix
index f18a880feabe..2c8b21418e68 100644
--- a/pkgs/by-name/lm/lmstudio/darwin.nix
+++ b/pkgs/by-name/lm/lmstudio/darwin.nix
@@ -2,6 +2,7 @@
   stdenv,
   fetchurl,
   undmg,
+  darwin,
   meta,
   pname,
   version,
@@ -16,7 +17,10 @@ stdenv.mkDerivation {
     inherit url hash;
   };
 
-  nativeBuildInputs = [ undmg ];
+  nativeBuildInputs = [
+    undmg
+    darwin.sigtool
+  ];
 
   sourceRoot = ".";
 
@@ -24,6 +28,19 @@ stdenv.mkDerivation {
     runHook preInstall
     mkdir -p $out/Applications
     cp -r *.app $out/Applications
+
+    # Bypass the /Applications path check in the main index.js
+    # LM Studio verifies the app is running from /Applications and shows an
+    # error dialog + refuses to auto-update if not. Replace the '/Applications'
+    # string literal with '/' so that any absolute path (e.g. /nix/store/...)
+    # passes the startsWith check. This works across obfuscated versions because
+    # the literal string '/Applications' is stable even when variable names change.
+    local indexJs="$out/Applications/LM Studio.app/Contents/Resources/app/.webpack/main/index.js"
+    substituteInPlace "$indexJs" --replace-quiet "'/Applications'" "'/'"
+
+    # Re-sign the app bundle after patching, otherwise macOS reports it as damaged
+    codesign --force --deep --sign - "$out/Applications/LM Studio.app"
+
     runHook postInstall
   '';
 
diff --git a/pkgs/by-name/lm/lmstudio/package.nix b/pkgs/by-name/lm/lmstudio/package.nix
index 5ece8f0b4355..eeed9c1ac5fa 100644
--- a/pkgs/by-name/lm/lmstudio/package.nix
+++ b/pkgs/by-name/lm/lmstudio/package.nix
@@ -23,7 +23,6 @@ let
       "aarch64-darwin"
     ];
     sourceProvenance = with lib.sourceTypes; [ binaryNativeCode ];
-    broken = stdenv.hostPlatform.isDarwin; # Upstream issue: https://github.com/lmstudio-ai/lmstudio-bug-tracker/issues/347
   };
 in
 if stdenv.hostPlatform.isDarwin then