diff --git a/cmd_dump.go b/cmd_dump.go
index e6fe349b7..61dec01f9 100644
--- a/cmd_dump.go
+++ b/cmd_dump.go
@@ -1,26 +1,44 @@
 package main
 
-import "fmt"
+import (
+	"fmt"
+	"os"
+)
 
-// `direnv dump`
+// CmdDump is `direnv dump`
 var CmdDump = &Cmd{
 	Name:    "dump",
 	Desc:    "Used to export the inner bash state at the end of execution",
-	Args:    []string{"[SHELL]"},
+	Args:    []string{"[SHELL]", "[FILE]"},
 	Private: true,
 	Action: actionSimple(func(env Env, args []string) (err error) {
 		target := "gzenv"
+		w := os.Stdout
 
 		if len(args) > 1 {
 			target = args[1]
 		}
 
+		var filePath string
+		if len(args) > 2 {
+			filePath = args[2]
+		} else {
+			filePath = os.Getenv("DIRENV_DUMP_FILE_PATH")
+		}
+
+		if filePath != "" {
+			w, err = os.OpenFile(filePath, os.O_WRONLY, 0666)
+			if err != nil {
+				return err
+			}
+		}
+
 		shell := DetectShell(target)
 		if shell == nil {
 			return fmt.Errorf("unknown target shell '%s'", target)
 		}
 
-		fmt.Println(shell.Dump(env))
+		_, err = fmt.Fprintln(w, shell.Dump(env))
 
 		return
 	}),
diff --git a/stdlib.go b/stdlib.go
index 50e94f4cd..ee474ae08 100644
--- a/stdlib.go
+++ b/stdlib.go
@@ -260,18 +260,48 @@ const STDLIB = "#!/usr/bin/env bash\n" +
 	"# the results with direnv_load.\n" +
 	"#\n" +
 	"direnv_load() {\n" +
-	"  local exports\n" +
-	"  # backup and restore watches in case of nix-shell --pure\n" +
-	"  local __watches=$DIRENV_WATCHES\n" +
+	"  # Backup watches in case of `nix-shell --pure`\n" +
+	"  local prev_watches=$DIRENV_WATCHES\n" +
+	"  local prev_dump_file_path=${DIRENV_DUMP_FILE_PATH:-}\n" +
+	"\n" +
+	"  # Create pipe\n" +
+	"  DIRENV_DUMP_FILE_PATH=$(mktemp -u)\n" +
+	"  export DIRENV_DUMP_FILE_PATH\n" +
+	"  mkfifo \"$DIRENV_DUMP_FILE_PATH\"\n" +
+	"\n" +
+	"  # Run program in the background\n" +
+	"  (\"$@\")&\n" +
 	"\n" +
-	"  exports=$(\"$direnv\" apply_dump <(\"$@\"))\n" +
+	"  # Apply the output of the dump\n" +
+	"  local exports\n" +
+	"  exports=$(\"$direnv\" apply_dump \"$DIRENV_DUMP_FILE_PATH\")\n" +
 	"  local es=$?\n" +
+	"\n" +
+	"  # Regroup\n" +
+	"  rm \"$DIRENV_DUMP_FILE_PATH\"\n" +
+	"  wait # wait on the child process to exit\n" +
+	"  local es2=$?\n" +
+	"\n" +
 	"  if [[ $es -ne 0 ]]; then\n" +
 	"    return $es\n" +
 	"  fi\n" +
+	"\n" +
+	"  if [[ $es2 -ne 0 ]]; then\n" +
+	"    return $es2\n" +
+	"  fi\n" +
+	"\n" +
 	"  eval \"$exports\"\n" +
 	"\n" +
-	"  export DIRENV_WATCHES=$__watches\n" +
+	"  # Restore watches if the dump wiped them\n" +
+	"  if [[ -z \"$DIRENV_WATCHES\" ]]; then\n" +
+	"    export DIRENV_WATCHES=$prev_watches\n" +
+	"  fi\n" +
+	"  # Allow nesting\n" +
+	"  if [[ -n \"$prev_dump_file_path\" ]]; then\n" +
+	"    export DIRENV_DUMP_FILE_PATH=$prev_dump_file_path\n" +
+	"  else\n" +
+	"    unset DIRENV_DUMP_FILE_PATH\n" +
+	"  fi\n" +
 	"}\n" +
 	"\n" +
 	"# Usage: PATH_add <path> [<path> ...]\n" +
diff --git a/stdlib.sh b/stdlib.sh
index 39e2732dc..dbca16e19 100755
--- a/stdlib.sh
+++ b/stdlib.sh
@@ -258,18 +258,48 @@ source_up() {
 # the results with direnv_load.
 #
 direnv_load() {
-  local exports
-  # backup and restore watches in case of nix-shell --pure
-  local __watches=$DIRENV_WATCHES
+  # Backup watches in case of `nix-shell --pure`
+  local prev_watches=$DIRENV_WATCHES
+  local prev_dump_file_path=${DIRENV_DUMP_FILE_PATH:-}
+
+  # Create pipe
+  DIRENV_DUMP_FILE_PATH=$(mktemp -u)
+  export DIRENV_DUMP_FILE_PATH
+  mkfifo "$DIRENV_DUMP_FILE_PATH"
+
+  # Run program in the background
+  ("$@")&
 
-  exports=$("$direnv" apply_dump <("$@"))
+  # Apply the output of the dump
+  local exports
+  exports=$("$direnv" apply_dump "$DIRENV_DUMP_FILE_PATH")
   local es=$?
+
+  # Regroup
+  rm "$DIRENV_DUMP_FILE_PATH"
+  wait # wait on the child process to exit
+  local es2=$?
+
   if [[ $es -ne 0 ]]; then
     return $es
   fi
+
+  if [[ $es2 -ne 0 ]]; then
+    return $es2
+  fi
+
   eval "$exports"
 
-  export DIRENV_WATCHES=$__watches
+  # Restore watches if the dump wiped them
+  if [[ -z "$DIRENV_WATCHES" ]]; then
+    export DIRENV_WATCHES=$prev_watches
+  fi
+  # Allow nesting
+  if [[ -n "$prev_dump_file_path" ]]; then
+    export DIRENV_DUMP_FILE_PATH=$prev_dump_file_path
+  else
+    unset DIRENV_DUMP_FILE_PATH
+  fi
 }
 
 # Usage: PATH_add <path> [<path> ...]
diff --git a/test/scenarios/dump/.envrc b/test/scenarios/dump/.envrc
index 4a73d18e5..a2a92028b 100644
--- a/test/scenarios/dump/.envrc
+++ b/test/scenarios/dump/.envrc
@@ -2,5 +2,5 @@ direnv_load env \
 	LS_COLORS='*.ogg=38;5;45:*.wav=38;5;45' \
 	LESSOPEN='||/usr/bin/lesspipe.sh %s' \
 	THREE_BACKSLASHES='\\\' \
-	bash -c "direnv dump"
+	bash -c "echo to stdout && echo to stderr >&2 && direnv dump"