diff --git a/flake.lock b/flake.lock
index 2ee0580d5..062f6383e 100644
--- a/flake.lock
+++ b/flake.lock
@@ -372,11 +372,11 @@
     "iserv-proxy": {
       "flake": false,
       "locked": {
-        "lastModified": 1749176681,
-        "narHash": "sha256-RLoo84PBSeGKbqMETsU0lEJDnc/oTx0l/TYzCaWqlgc=",
+        "lastModified": 1749443511,
+        "narHash": "sha256-asfdanBoIUcJ9XQWB3a/5wQGFG/6Uq6l2s9r8OuamkY=",
         "owner": "stable-haskell",
         "repo": "iserv-proxy",
-        "rev": "6972fbc49574108cb48723bb94260e3ce17898f7",
+        "rev": "e40eddb1ca1e3e906e018c7e6b0d1e51c930ec9d",
         "type": "github"
       },
       "original": {
diff --git a/overlays/haskell.nix b/overlays/haskell.nix
index 3e6b6ac8d..7671866b7 100644
--- a/overlays/haskell.nix
+++ b/overlays/haskell.nix
@@ -1053,6 +1053,14 @@ final: prev: {
                     setupBuildFlags = final.lib.mkForce [];
                   };
                 }];
+              } // final.lib.optionalAttrs (
+                     final.stdenv.hostPlatform.isAarch64
+                  && builtins.compareVersions final.buildPackages.haskell-nix.compiler.${compiler-nix-name}.version "9.8" < 0) {
+                # The th-dlls test fails for aarch64 cross GHC 9.6.7 when the threaded rts is used
+                cabalProjectLocal = ''
+                  package iserv-proxy
+                    flags: -threaded
+                '';
               } // final.lib.optionalAttrs (__compareVersions final.buildPackages.haskell-nix.compiler.${compiler-nix-name}.version "9.10" > 0) {
                   cabalProjectLocal = ''
                     allow-newer: *:base, *:bytestring