diff --git a/src/index.spec.ts b/src/index.spec.ts
index 1ed62bd7d..69bb28487 100644
--- a/src/index.spec.ts
+++ b/src/index.spec.ts
@@ -9,6 +9,7 @@ import { unlinkSync, existsSync, lstatSync } from 'fs'
 import * as promisify from 'util.promisify'
 import { sync as rimrafSync } from 'rimraf'
 import { createRequire, createRequireFromPath } from 'module'
+import { pathToFileURL } from 'url'
 import Module = require('module')
 
 const execP = promisify(exec)
@@ -28,7 +29,7 @@ let { register, create, VERSION }: typeof tsNodeTypes = {} as any
 
 // Pack and install ts-node locally, necessary to test package "exports"
 before(async function () {
-  this.timeout(30000)
+  this.timeout(5 * 60e3)
   rimrafSync(join(TEST_DIR, 'node_modules'))
   await execP(`npm install`, { cwd: TEST_DIR })
   const packageLockPath = join(TEST_DIR, 'package-lock.json')
@@ -724,7 +725,7 @@ describe('ts-node', function () {
   describe('esm', () => {
     this.slow(1000)
 
-    const cmd = `node --loader ts-node/esm.mjs`
+    const cmd = `node --loader ts-node/esm`
 
     if (semver.gte(process.version, '13.0.0')) {
       it('should compile and execute as ESM', (done) => {
@@ -735,6 +736,19 @@ describe('ts-node', function () {
           return done()
         })
       })
+      it('should use source maps', function (done) {
+        exec(`${cmd} throw.ts`, { cwd: join(__dirname, '../tests/esm') }, function (err, stdout) {
+          expect(err).not.to.equal(null)
+          expect(err!.message).to.contain([
+            `${pathToFileURL(join(__dirname, '../tests/esm/throw.ts'))}:100`,
+            '  bar () { throw new Error(\'this is a demo\') }',
+            '                 ^',
+            'Error: this is a demo'
+          ].join('\n'))
+
+          return done()
+        })
+      })
       it('supports --experimental-specifier-resolution=node', (done) => {
         exec(`${cmd} --experimental-specifier-resolution=node index.ts`, { cwd: join(__dirname, '../tests/esm-node-resolver') }, function (err, stdout) {
           expect(err).to.equal(null)
diff --git a/src/index.ts b/src/index.ts
index 2b7513f2d..c1a6215f5 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -3,6 +3,7 @@ import sourceMapSupport = require('source-map-support')
 import * as ynModule from 'yn'
 import { BaseError } from 'make-error'
 import * as util from 'util'
+import { fileURLToPath } from 'url'
 import * as _ts from 'typescript'
 
 /**
@@ -445,8 +446,18 @@ export function create (rawOptions: CreateOptions = {}): Register {
   // Install source map support and read from memory cache.
   sourceMapSupport.install({
     environment: 'node',
-    retrieveFile (path: string) {
-      return outputCache.get(normalizeSlashes(path))?.content || ''
+    retrieveFile (pathOrUrl: string) {
+      let path = pathOrUrl
+      // If it's a file URL, convert to local path
+      // Note: fileURLToPath does not exist on early node v10
+      // I could not find a way to handle non-URLs except to swallow an error
+      if (options.experimentalEsmLoader && path.startsWith('file://')) {
+        try {
+          path = fileURLToPath(path)
+        } catch (e) {/* swallow error */}
+      }
+      path = normalizeSlashes(path)
+      return outputCache.get(path)?.content || ''
     }
   })
 
diff --git a/tests/esm/throw.ts b/tests/esm/throw.ts
new file mode 100644
index 000000000..85ba6da48
--- /dev/null
+++ b/tests/esm/throw.ts
@@ -0,0 +1,103 @@
+// intentional whitespace to prove that sourcemaps are working.  Throw should happen on line 100.
+// 100 lines is meant to be far more space than the helper functions would take.
+class Foo {
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+  constructor () { this.bar() }
+  bar () { throw new Error('this is a demo') }
+}
+new Foo()
+export {}