diff --git a/src/activation.rs b/src/activation.rs
index 5c1bed1eb..79b37af3c 100644
--- a/src/activation.rs
+++ b/src/activation.rs
@@ -285,6 +285,9 @@ pub async fn run_activation(
 
                 // Prepending environment paths so they get found first.
                 path_modification_behavior,
+
+                // Current environment variables
+                current_env: HashMap::new(),
             },
             None,
         )
diff --git a/src/cli/shell_hook.rs b/src/cli/shell_hook.rs
index f5e5b4b91..3fb6da5f4 100644
--- a/src/cli/shell_hook.rs
+++ b/src/cli/shell_hook.rs
@@ -57,6 +57,10 @@ pub struct Args {
     #[clap(long, default_value = "false", conflicts_with = "shell")]
     json: bool,
 
+    /// Generate a deactivation script instead of an activation script
+    #[clap(long, default_value = "false", conflicts_with = "json")]
+    deactivate: bool,
+
     #[clap(flatten)]
     prompt_config: ConfigCliPrompt,
 }
@@ -79,6 +83,9 @@ async fn generate_activation_script(
             .unwrap_or_else(|| ShellEnum::from_env().unwrap_or_default())
     });
 
+    // Read current environment variables
+    let current_env = std::env::vars().collect::<HashMap<String, String>>();
+
     let activator = get_activator(environment, shell.clone()).into_diagnostic()?;
 
     let path = std::env::var("PATH")
@@ -93,6 +100,7 @@ async fn generate_activation_script(
             conda_prefix,
             path,
             path_modification_behavior: PathModificationBehavior::default(),
+            current_env,
         })
         .into_diagnostic()?;
 
@@ -117,6 +125,29 @@ async fn generate_activation_script(
     }
 }
 
+/// Generates the deactivation script.
+async fn generate_deactivation_script(
+    shell: Option<ShellEnum>,
+    environment: &Environment<'_>,
+    _project: &Workspace,
+) -> miette::Result<String> {
+    // Get shell from the arguments or from the current process or use default if
+    // all fails
+    let shell = shell.unwrap_or_else(|| {
+        ShellEnum::from_parent_process()
+            .unwrap_or_else(|| ShellEnum::from_env().unwrap_or_default())
+    });
+
+    let activator = get_activator(environment, shell.clone()).into_diagnostic()?;
+
+    // Use the deactivation method
+    let result = activator.deactivation().into_diagnostic()?;
+
+    let script = result.script.contents().into_diagnostic()?;
+
+    Ok(script.to_string())
+}
+
 /// Generates a JSON object describing the changes to the shell environment when
 /// activating the provided pixi environment.
 async fn generate_environment_json(
@@ -168,8 +199,9 @@ pub async fn execute(args: Args) -> miette::Result<()> {
     )
     .await?;
 
-    let output = match args.json {
-        true => {
+    let output = match (args.json, args.deactivate) {
+        (true, _) => {
+            // JSON mode takes precedence over deactivate (they are mutually exclusive anyway)
             generate_environment_json(
                 &environment,
                 &lock_file_data.lock_file,
@@ -178,9 +210,14 @@ pub async fn execute(args: Args) -> miette::Result<()> {
             )
             .await?
         }
-        // Skipping the activated environment caching for the script.
-        // As it can still run scripts.
-        false => generate_activation_script(args.shell, &environment, &workspace).await?,
+        (_, true) => {
+            // Deactivation script
+            generate_deactivation_script(args.shell, &environment, &workspace).await?
+        }
+        _ => {
+            // Default: activation script
+            generate_activation_script(args.shell, &environment, &workspace).await?
+        }
     };
 
     // Print the output - either a JSON object or a shell script