diff --git a/nixos/doc/manual/from_md/release-notes/rl-2305.section.xml b/nixos/doc/manual/from_md/release-notes/rl-2305.section.xml
index 2fd0d01abefa..4ab4f6aab5d8 100644
--- a/nixos/doc/manual/from_md/release-notes/rl-2305.section.xml
+++ b/nixos/doc/manual/from_md/release-notes/rl-2305.section.xml
@@ -412,6 +412,16 @@
           attribute name.
         </para>
       </listitem>
+      <listitem>
+        <para>
+          Nebula now runs as a system user and group created for each
+          nebula network, using the <literal>CAP_NET_ADMIN</literal>
+          ambient capability on launch rather than starting as root.
+          Ensure that any files each Nebula instance needs to access are
+          owned by the correct user and group, by default
+          <literal>nebula-${networkName}</literal>.
+        </para>
+      </listitem>
       <listitem>
         <para>
           In <literal>mastodon</literal> it is now necessary to specify
@@ -794,6 +804,18 @@
           <link xlink:href="options.html#opt-system.stateVersion">system.stateVersion</link>.
         </para>
       </listitem>
+      <listitem>
+        <para>
+          Nebula now supports the
+          <literal>services.nebula.networks.&lt;name&gt;.isRelay</literal>
+          and
+          <literal>services.nebula.networks.&lt;name&gt;.relays</literal>
+          configuration options for setting up or allowing traffic
+          relaying. See the
+          <link xlink:href="https://www.defined.net/blog/announcing-relay-support-in-nebula/">announcement</link>
+          for more details about relays.
+        </para>
+      </listitem>
       <listitem>
         <para>
           <literal>hip</literal> has been separated into
diff --git a/nixos/doc/manual/release-notes/rl-2305.section.md b/nixos/doc/manual/release-notes/rl-2305.section.md
index 01e2ff01f290..e0c1671d5aca 100644
--- a/nixos/doc/manual/release-notes/rl-2305.section.md
+++ b/nixos/doc/manual/release-notes/rl-2305.section.md
@@ -99,6 +99,8 @@ In addition to numerous new and upgraded packages, this release has the followin
 
 - The [services.wordpress.sites.&lt;name&gt;.plugins](#opt-services.wordpress.sites._name_.plugins) and [services.wordpress.sites.&lt;name&gt;.themes](#opt-services.wordpress.sites._name_.themes) options have been converted from sets to attribute sets to allow for consumers to specify explicit install paths via attribute name.
 
+- Nebula now runs as a system user and group created for each nebula network, using the `CAP_NET_ADMIN` ambient capability on launch rather than starting as root. Ensure that any files each Nebula instance needs to access are owned by the correct user and group, by default `nebula-${networkName}`.
+
 - In `mastodon` it is now necessary to specify location of file with `PostgreSQL` database password. In `services.mastodon.database.passwordFile` parameter default value `/var/lib/mastodon/secrets/db-password` has been changed to `null`.
 
 - The `--target-host` and `--build-host` options of `nixos-rebuild` no longer treat the `localhost` value specially – to build on/deploy to local machine, omit the relevant flag.
@@ -197,6 +199,8 @@ In addition to numerous new and upgraded packages, this release has the followin
 
 - [Garage](https://garagehq.deuxfleurs.fr/) version is based on [system.stateVersion](options.html#opt-system.stateVersion), existing installations will keep using version 0.7. New installations will use version 0.8. In order to upgrade a Garage cluster, please follow [upstream instructions](https://garagehq.deuxfleurs.fr/documentation/cookbook/upgrading/) and force [services.garage.package](options.html#opt-services.garage.package) or upgrade accordingly [system.stateVersion](options.html#opt-system.stateVersion).
 
+- Nebula now supports the `services.nebula.networks.<name>.isRelay` and `services.nebula.networks.<name>.relays` configuration options for setting up or allowing traffic relaying. See the [announcement](https://www.defined.net/blog/announcing-relay-support-in-nebula/) for more details about relays.
+
 - `hip` has been separated into `hip`, `hip-common` and `hipcc`.
 
 - `services.nginx.recommendedProxySettings` now removes the `Connection` header preventing clients from closing backend connections.
diff --git a/nixos/modules/services/networking/nebula.nix b/nixos/modules/services/networking/nebula.nix
index 2bedafc5d9fe..c5d395b3406e 100644
--- a/nixos/modules/services/networking/nebula.nix
+++ b/nixos/modules/services/networking/nebula.nix
@@ -68,6 +68,12 @@ in
               description = lib.mdDoc "Whether this node is a lighthouse.";
             };
 
+            isRelay = mkOption {
+              type = types.bool;
+              default = false;
+              description = lib.mdDoc "Whether this node is a relay.";
+            };
+
             lighthouses = mkOption {
               type = types.listOf types.str;
               default = [];
@@ -78,6 +84,15 @@ in
               example = [ "192.168.100.1" ];
             };
 
+            relays = mkOption {
+              type = types.listOf types.str;
+              default = [];
+              description = lib.mdDoc ''
+                List of IPs of relays that this node should allow traffic from.
+              '';
+              example = [ "192.168.100.1" ];
+            };
+
             listen.host = mkOption {
               type = types.str;
               default = "0.0.0.0";
@@ -157,6 +172,10 @@ in
             am_lighthouse = netCfg.isLighthouse;
             hosts = netCfg.lighthouses;
           };
+          relay = {
+            am_relay = netCfg.isRelay;
+            relays = netCfg.relays;
+          };
           listen = {
             host = netCfg.listen.host;
             port = netCfg.listen.port;
@@ -173,25 +192,22 @@ in
         configFile = format.generate "nebula-config-${netName}.yml" settings;
         in
         {
-          # Create systemd service for Nebula.
+          # Create the systemd service for Nebula.
           "nebula@${netName}" = {
             description = "Nebula VPN service for ${netName}";
             wants = [ "basic.target" ];
             after = [ "basic.target" "network.target" ];
             before = [ "sshd.service" ];
             wantedBy = [ "multi-user.target" ];
-            serviceConfig = mkMerge [
-              {
-                Type = "simple";
-                Restart = "always";
-                ExecStart = "${netCfg.package}/bin/nebula -config ${configFile}";
-              }
-              # The service needs to launch as root to access the tun device, if it's enabled.
-              (mkIf netCfg.tun.disable {
-                User = networkId;
-                Group = networkId;
-              })
-            ];
+            serviceConfig = {
+              Type = "simple";
+              Restart = "always";
+              ExecStart = "${netCfg.package}/bin/nebula -config ${configFile}";
+              CapabilityBoundingSet = "CAP_NET_ADMIN";
+              AmbientCapabilities = "CAP_NET_ADMIN";
+              User = networkId;
+              Group = networkId;
+            };
             unitConfig.StartLimitIntervalSec = 0; # ensure Restart=always is always honoured (networks can go down for arbitrarily long)
           };
         }) enabledNetworks);
@@ -202,7 +218,7 @@ in
 
     # Create the service users and groups.
     users.users = mkMerge (mapAttrsToList (netName: netCfg:
-      mkIf netCfg.tun.disable {
+      {
         ${nameToId netName} = {
           group = nameToId netName;
           description = "Nebula service user for network ${netName}";
@@ -210,9 +226,6 @@ in
         };
       }) enabledNetworks);
 
-    users.groups = mkMerge (mapAttrsToList (netName: netCfg:
-      mkIf netCfg.tun.disable {
-        ${nameToId netName} = {};
-      }) enabledNetworks);
+    users.groups = mkMerge (mapAttrsToList (netName: netCfg: { ${nameToId netName} = {}; }) enabledNetworks);
   };
 }
diff --git a/nixos/tests/nebula.nix b/nixos/tests/nebula.nix
index 372cfebdf801..1617430b3890 100644
--- a/nixos/tests/nebula.nix
+++ b/nixos/tests/nebula.nix
@@ -123,12 +123,13 @@ in
   testScript = let
 
     setUpPrivateKey = name: ''
-    ${name}.succeed(
-        "mkdir -p /root/.ssh",
-        "chown 700 /root/.ssh",
-        "cat '${snakeOilPrivateKey}' > /root/.ssh/id_snakeoil",
-        "chown 600 /root/.ssh/id_snakeoil",
-    )
+      ${name}.start()
+      ${name}.succeed(
+          "mkdir -p /root/.ssh",
+          "chown 700 /root/.ssh",
+          "cat '${snakeOilPrivateKey}' > /root/.ssh/id_snakeoil",
+          "chown 600 /root/.ssh/id_snakeoil",
+      )
     '';
 
     # From what I can tell, StrictHostKeyChecking=no is necessary for ssh to work between machines.
@@ -154,18 +155,18 @@ in
       ${name}.succeed(
           "scp ${sshOpts} 192.168.1.1:/tmp/${name}.crt /etc/nebula/${name}.crt",
           "scp ${sshOpts} 192.168.1.1:/etc/nebula/ca.crt /etc/nebula/ca.crt",
+          '(id nebula-smoke >/dev/null && chown -R nebula-smoke:nebula-smoke /etc/nebula) || true'
       )
     '';
 
   in ''
-    start_all()
-
     # Create the certificate and sign the lighthouse's keys.
     ${setUpPrivateKey "lighthouse"}
     lighthouse.succeed(
         "mkdir -p /etc/nebula",
         'nebula-cert ca -name "Smoke Test" -out-crt /etc/nebula/ca.crt -out-key /etc/nebula/ca.key',
         'nebula-cert sign -ca-crt /etc/nebula/ca.crt -ca-key /etc/nebula/ca.key -name "lighthouse" -groups "lighthouse" -ip "10.0.100.1/24" -out-crt /etc/nebula/lighthouse.crt -out-key /etc/nebula/lighthouse.key',
+        'chown -R nebula-smoke:nebula-smoke /etc/nebula'
     )
 
     # Reboot the lighthouse and verify that the nebula service comes up on boot.