diff --git a/AUTHORS b/AUTHORS
index 439c363b55..5cb2531244 100644
--- a/AUTHORS
+++ b/AUTHORS
@@ -32,6 +32,7 @@ Mohammad Rajabifard <mo.rajbi@gmail.com>
 OJ Kwon <kwon.ohjoong@gmail.com>
 Oliver Joseph Ash <oliverjash@gmail.com>
 Orta Therox <orta.therox+gh@gmail.com>
+Patrick Housley <patrick.f.housley@gmail.com>
 Tom Crockett <tomcrockett@tuplehealth.com>
 Umidbek Karimov <uma.karimov@gmail.com>
 
diff --git a/package.json b/package.json
index 17b814772c..851dbd0d1a 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "ts-jest",
-  "version": "20.0.9",
+  "version": "20.0.10",
   "main": "index.js",
   "types": "./dist/index.d.ts",
   "description": "A preprocessor with sourcemap support to help use Typescript with Jest",
diff --git a/src/preprocessor.ts b/src/preprocessor.ts
index f1463bd7c7..99c9d3c959 100644
--- a/src/preprocessor.ts
+++ b/src/preprocessor.ts
@@ -21,8 +21,6 @@ export function process(
   );
   const tsJestConfig = getTSJestConfig(config.globals);
 
-  const root = pkgDir.sync();
-
   const isTsFile = path.endsWith('.ts') || path.endsWith('.tsx');
   const isJsFile = path.endsWith('.js') || path.endsWith('.jsx');
   const isHtmlFile = path.endsWith('.html');
@@ -49,18 +47,12 @@ export function process(
       transformOptions,
     );
 
-    // strip root part from path
-    // this results in a shorter filename which will also make the encoded base64 filename for the cache shorter
-    // long file names could be problematic in some OS
-    // see https://github.com/kulshekhar/ts-jest/issues/158
-    path = path.startsWith(root) ? path.substr(root.length) : path;
-
     // store transpiled code contains source map into cache, except test cases
     if (!config.testRegex || !path.match(config.testRegex)) {
       const outputFilePath = nodepath.join(
         config.cacheDirectory,
         '/ts-jest/',
-        new Buffer(path).toString('base64'),
+        crypto.createHash('md5').update(path).digest('hex'),
       );
 
       fs.outputFileSync(outputFilePath, outputText);
diff --git a/tests/__tests__/long-path.spec.ts b/tests/__tests__/long-path.spec.ts
new file mode 100644
index 0000000000..9737afc65f
--- /dev/null
+++ b/tests/__tests__/long-path.spec.ts
@@ -0,0 +1,12 @@
+import runJest from '../__helpers__/runJest';
+
+describe('Long path', () => {
+  it('should work as expected', () => {
+    const result = runJest('../simple-long-path/', [
+      '--no-cache',
+      '--coverage',
+    ]);
+
+    expect(result.status).toBe(0);
+  });
+});
diff --git a/tests/simple-long-path/__tests__/Hello.test.ts b/tests/simple-long-path/__tests__/Hello.test.ts
new file mode 100644
index 0000000000..12b5063601
--- /dev/null
+++ b/tests/simple-long-path/__tests__/Hello.test.ts
@@ -0,0 +1,7 @@
+import { Hello } from '../long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/Hello';
+
+describe('Hello test in long path', () => {
+  it('should work', () => {
+    expect(new Hello().name).toEqual('John Doe');
+  });
+});
diff --git a/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/Hello.ts b/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/Hello.ts
new file mode 100644
index 0000000000..9c4322b72b
--- /dev/null
+++ b/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/Hello.ts
@@ -0,0 +1,3 @@
+export class Hello {
+  name: string = 'John Doe';
+}
diff --git a/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/NullCoverage.js b/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/NullCoverage.js
new file mode 100644
index 0000000000..c59dbbdef3
--- /dev/null
+++ b/tests/simple-long-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/long-src-path/NullCoverage.js
@@ -0,0 +1,6 @@
+function nullCoverageFunction(value) {
+  if (value) {
+    return value;
+  }
+  return null;
+}
diff --git a/tests/simple-long-path/package.json b/tests/simple-long-path/package.json
new file mode 100644
index 0000000000..d033ac811a
--- /dev/null
+++ b/tests/simple-long-path/package.json
@@ -0,0 +1,20 @@
+{
+  "jest": {
+    "transform": {
+      ".(ts|tsx)": "../../preprocessor.js"
+    },
+    "testRegex": "(/__tests__/.*|\\.(test|spec))\\.(ts|tsx|js)$",
+    "coverageReporters": [
+      "json"
+    ],
+    "collectCoverageFrom": [
+      "long-src-path/**/*.ts",
+      "long-src-path/**/*.js"
+    ],
+    "moduleFileExtensions": [
+      "ts",
+      "tsx",
+      "js"
+    ]
+  }
+}
diff --git a/tests/simple-long-path/tsconfig.json b/tests/simple-long-path/tsconfig.json
new file mode 100644
index 0000000000..55f8667f97
--- /dev/null
+++ b/tests/simple-long-path/tsconfig.json
@@ -0,0 +1,10 @@
+{
+  "compilerOptions": {
+    "target": "ES5",
+    "module": "commonjs",
+    "moduleResolution": "node",
+    "noEmitOnError": false,
+    "jsx": "react",
+    "allowJs": true
+  }
+}