diff --git a/internal/nix/run.go b/internal/nix/run.go
index 2625cddc6f1..e51ef706b92 100644
--- a/internal/nix/run.go
+++ b/internal/nix/run.go
@@ -24,9 +24,7 @@ func RunScript(projectDir, cmdWithArgs string, env map[string]string) error {
 		envPairs = append(envPairs, fmt.Sprintf("%s=%s", k, v))
 	}
 
-	// Try to find sh in the PATH, if not, default to a well known absolute path.
-	shPath := cmdutil.GetPathOrDefault("sh", "/bin/sh")
-	cmd := exec.Command(shPath, "-c", cmdWithArgs)
+	cmd := exec.Command(scriptRunnerPath(), "-c", cmdWithArgs)
 	cmd.Env = envPairs
 	cmd.Dir = projectDir
 	cmd.Stdin = os.Stdin
@@ -37,3 +35,28 @@ func RunScript(projectDir, cmdWithArgs string, env map[string]string) error {
 	// Report error as exec error when executing scripts.
 	return usererr.NewExecError(cmd.Run())
 }
+
+// scriptRunnerPath returns the shell used to execute Devbox scripts and init
+// hooks. It prefers bash so that scripts run with `devbox run` behave the same
+// as they do inside `devbox shell`, which sources the init hooks from the
+// user's interactive shell (usually bash). Init hooks commonly rely on bash
+// features such as the `source` builtin, which POSIX sh implementations like
+// dash don't provide. We fall back to `sh` (and finally a well-known absolute
+// path) when bash isn't available.
+// See https://github.com/jetify-com/devbox/issues/2607
+func scriptRunnerPath() string {
+	// Prefer bash on PATH.
+	if bashPath := cmdutil.GetPathOrDefault("bash", ""); bashPath != "" {
+		return bashPath
+	}
+	// bash may be installed at a well-known location even when it isn't on
+	// PATH (e.g. a restricted environment where PATH doesn't include /bin or
+	// /usr/bin). Check those before giving up on bash.
+	for _, p := range []string{"/bin/bash", "/usr/bin/bash", "/usr/local/bin/bash"} {
+		if fi, err := os.Stat(p); err == nil && !fi.IsDir() {
+			return p
+		}
+	}
+	// Fall back to POSIX sh.
+	return cmdutil.GetPathOrDefault("sh", "/bin/sh")
+}
diff --git a/internal/nix/run_test.go b/internal/nix/run_test.go
new file mode 100644
index 00000000000..60555e6c0a6
--- /dev/null
+++ b/internal/nix/run_test.go
@@ -0,0 +1,46 @@
+// Copyright 2024 Jetify Inc. and contributors. All rights reserved.
+// Use of this source code is governed by the license in the LICENSE file.
+
+package nix
+
+import (
+	"os"
+	"path/filepath"
+	"strings"
+	"testing"
+
+	"go.jetify.com/devbox/internal/cmdutil"
+)
+
+// TestRunScriptUsesBashForBashisms verifies that RunScript executes scripts
+// with bash so that init hooks and scripts relying on bash features work with
+// `devbox run`, matching the behavior of `devbox shell`. `source` is a bash
+// builtin that POSIX sh implementations like dash don't provide, so it makes a
+// good proxy for "are we running under bash?".
+//
+// Regression test for https://github.com/jetify-com/devbox/issues/2607
+func TestRunScriptUsesBashForBashisms(t *testing.T) {
+	if !cmdutil.Exists("bash") {
+		t.Skip("bash is not installed; RunScript falls back to sh")
+	}
+
+	// `source` fails under dash (`source: not found`) but succeeds under bash.
+	dir := t.TempDir()
+	sourced := filepath.Join(dir, "sourced.sh")
+	if err := os.WriteFile(sourced, []byte("SOURCED=1\n"), 0o644); err != nil {
+		t.Fatal(err)
+	}
+	err := RunScript(dir, "source "+sourced, map[string]string{})
+	if err != nil {
+		t.Fatalf("RunScript should run bashisms under bash, got error: %v", err)
+	}
+}
+
+func TestScriptRunnerPathPrefersBash(t *testing.T) {
+	if !cmdutil.Exists("bash") {
+		t.Skip("bash is not installed")
+	}
+	if got := scriptRunnerPath(); !strings.HasSuffix(got, "bash") {
+		t.Errorf("scriptRunnerPath() = %q, want a path ending in \"bash\"", got)
+	}
+}
diff --git a/internal/shellgen/scripts.go b/internal/shellgen/scripts.go
index 35154ad1700..0a4f6e0075f 100644
--- a/internal/shellgen/scripts.go
+++ b/internal/shellgen/scripts.go
@@ -106,7 +106,8 @@ func WriteScriptFile(devbox devboxer, name, body string) (err error) {
 	defer script.Close() // best effort: close file
 
 	if featureflag.ScriptExitOnError.Enabled() {
-		// NOTE: Devbox scripts run using `sh` for consistency.
+		// NOTE: Devbox scripts run using bash when available (see
+		// nix.scriptRunnerPath), falling back to POSIX sh; `set -e` works in both.
 		body = fmt.Sprintf("set -e\n\n%s", body)
 	}
 	_, err = script.WriteString(body)
diff --git a/internal/shellgen/tmpl/script-wrapper.tmpl b/internal/shellgen/tmpl/script-wrapper.tmpl
index de191c431be..7b3a3a4e687 100644
--- a/internal/shellgen/tmpl/script-wrapper.tmpl
+++ b/internal/shellgen/tmpl/script-wrapper.tmpl
@@ -3,8 +3,10 @@
     hooks once, even if the init hook calls devbox run again. This will also
     protect against using devbox service in the init hook.
 
-    Scripts always use sh to run, so POSIX is OK. We don't (yet) support fish
-    scripts. (though users can run a fish script within their script)
+    Scripts run with bash when it's available (falling back to POSIX sh), so
+    that they behave the same as init hooks do inside `devbox shell`. We don't
+    (yet) support fish scripts. (though users can run a fish script within their
+    script)
 */ -}}
 
 if [ -z "${{ .SkipInitHookHash }}" ]; then
diff --git a/testscripts/run/init_hook_source.test.txt b/testscripts/run/init_hook_source.test.txt
new file mode 100644
index 00000000000..a940f0a03fc
--- /dev/null
+++ b/testscripts/run/init_hook_source.test.txt
@@ -0,0 +1,28 @@
+# An init hook that uses the bash `source` builtin should work with
+# `devbox run`, just like it does inside `devbox shell`. Previously this
+# failed with "source: not found" on systems where /bin/sh is a POSIX shell
+# such as dash, because scripts were run with sh instead of bash.
+# Regression test for https://github.com/jetify-com/devbox/issues/2607
+
+# A script that relies on state set up by a sourced init hook should run.
+exec devbox run print_sourced
+stdout 'sourced-value'
+
+# Running the `source` builtin directly should also work.
+exec devbox run source_directly
+stdout 'ran source ok'
+
+-- devbox.json --
+{
+  "packages": [],
+  "shell": {
+    "init_hook": "source ./configure.sh",
+    "scripts": {
+      "print_sourced": "echo $SOURCED_VAR",
+      "source_directly": "source ./configure.sh && echo \"ran source ok\""
+    }
+  }
+}
+
+-- configure.sh --
+export SOURCED_VAR=sourced-value