diff --git a/src/mod.ts b/src/mod.ts
index 5a9e527..df30c24 100644
--- a/src/mod.ts
+++ b/src/mod.ts
@@ -49,7 +49,7 @@ export interface WorkspaceOptions {
   noConfig?: boolean;
   /** Do not respect the lockfile. */
   noLock?: boolean;
-  /** Path to the config file if you do not want to do config file discovery. */
+  /** Path or file: URL to the config file if you do not want to do config file discovery. */
   configPath?: string;
   /** Node resolution conditions to use for resolving package.json exports. */
   nodeConditions?: string[];
diff --git a/src/rs_lib/lib.rs b/src/rs_lib/lib.rs
index 0326c3d..f6b6d13 100644
--- a/src/rs_lib/lib.rs
+++ b/src/rs_lib/lib.rs
@@ -6,6 +6,7 @@ use std::path::PathBuf;
 use std::rc::Rc;
 use std::sync::Arc;
 
+use anyhow::Context;
 use anyhow::bail;
 use deno_ast::ModuleKind;
 use deno_cache_dir::file_fetcher::CacheSetting;
@@ -166,7 +167,10 @@ impl DenoWorkspace {
     let config_discovery = if options.no_config.unwrap_or_default() {
       ConfigDiscoveryOption::Disabled
     } else if let Some(config_path) = options.config_path {
-      ConfigDiscoveryOption::Path(resolve_absolute_path(config_path, &cwd))
+      ConfigDiscoveryOption::Path(
+        resolve_absolute_path(config_path, &cwd)
+          .context("Failed resolving config path.")?,
+      )
     } else {
       ConfigDiscoveryOption::DiscoverCwd
     };
@@ -707,7 +711,7 @@ impl DenoLoader {
       return Ok(deno_path_util::url_from_file_path(&resolve_absolute_path(
         specifier.into_owned(),
         cwd,
-      ))?);
+      )?)?);
     }
     let referrer = deno_path_util::url_from_directory_path(cwd)?;
     Ok(self.resolver.resolve(
@@ -760,13 +764,21 @@ fn create_external_repsonse(url: &Url) -> JsValue {
   obj.into()
 }
 
-fn resolve_absolute_path(path: String, cwd: &Path) -> PathBuf {
-  let path = sys_traits::impls::wasm_string_to_path(path);
-  cwd.join(path)
+fn resolve_absolute_path(
+  path: String,
+  cwd: &Path,
+) -> Result<PathBuf, anyhow::Error> {
+  if path.starts_with("file:///") {
+    let url = Url::parse(&path)?;
+    Ok(deno_path_util::url_to_file_path(&url)?)
+  } else {
+    let path = sys_traits::impls::wasm_string_to_path(path);
+    Ok(cwd.join(path))
+  }
 }
 
 fn create_js_error(err: anyhow::Error) -> JsValue {
-  wasm_bindgen::JsError::new(&err.to_string()).into()
+  wasm_bindgen::JsError::new(&format!("{:#}", err)).into()
 }
 
 fn parse_resolution_mode(resolution_mode: u8) -> node_resolver::ResolutionMode {
diff --git a/tests/link_jsr_entrypoint/main.test.ts b/tests/link_jsr_entrypoint/main.test.ts
index d516ed8..7ff5108 100644
--- a/tests/link_jsr_entrypoint/main.test.ts
+++ b/tests/link_jsr_entrypoint/main.test.ts
@@ -8,7 +8,7 @@ import {
 Deno.test("loads linked entrypoint", async () => {
   const mainFile = import.meta.dirname + "/testdata/main/main.ts";
   const { loader } = await createLoader({
-    configPath: import.meta.dirname + "/testdata/main/deno.json",
+    configPath: import.meta.resolve("./testdata/main/deno.json"),
   }, {
     entrypoints: [mainFile],
   });