diff --git a/lib/runner/resolveFilePath.ts b/lib/runner/resolveFilePath.ts
index b381e617..e47dc5d1 100644
--- a/lib/runner/resolveFilePath.ts
+++ b/lib/runner/resolveFilePath.ts
@@ -1,7 +1,10 @@
 import { normalizeFilePath } from "./normalizeFsMap"
-import { dirname } from "lib/utils/dirname"
-import { resolveWithTsconfigPaths, type TsConfig } from "./tsconfigPaths"
 import { resolveRelativePath } from "lib/utils/resolveRelativePath"
+import {
+  resolveWithTsconfigPaths,
+  type TsConfig,
+  resolveWithBaseUrl,
+} from "./tsconfigPaths"
 
 export const resolveFilePath = (
   unknownFilePath: string,
@@ -48,13 +51,21 @@ export const resolveFilePath = (
   const tsConfig = opts.tsConfig ?? null
 
   if (!unknownFilePath.startsWith("./") && !unknownFilePath.startsWith("../")) {
-    const viaTsconfig = resolveWithTsconfigPaths({
+    const resolvedPathFromPaths = resolveWithTsconfigPaths({
       importPath: unknownFilePath,
       normalizedFilePathMap,
       extensions: extension,
       tsConfig,
     })
-    if (viaTsconfig) return viaTsconfig
+    if (resolvedPathFromPaths) return resolvedPathFromPaths
+
+    const resolvedPathFromBaseUrl = resolveWithBaseUrl({
+      importPath: unknownFilePath,
+      normalizedFilePathMap,
+      extensions: extension,
+      tsConfig,
+    })
+    if (resolvedPathFromBaseUrl) return resolvedPathFromBaseUrl
   }
 
   // Check if it's an absolute import
diff --git a/lib/runner/tsconfigPaths.ts b/lib/runner/tsconfigPaths.ts
index 3d80b4a2..5dd22e7b 100644
--- a/lib/runner/tsconfigPaths.ts
+++ b/lib/runner/tsconfigPaths.ts
@@ -90,6 +90,42 @@ export function resolveWithTsconfigPaths(opts: {
     }
   }
 
+  const resolvedPathFromBaseUrl = resolveWithBaseUrl({
+    importPath,
+    normalizedFilePathMap,
+    extensions,
+    tsConfig,
+  })
+
+  if (resolvedPathFromBaseUrl) return resolvedPathFromBaseUrl
+
+  return null
+}
+
+export function resolveWithBaseUrl(opts: {
+  importPath: string
+  normalizedFilePathMap: Map<string, string>
+  extensions: string[]
+  tsConfig: TsConfig | null
+}): string | null {
+  const { importPath, normalizedFilePathMap, extensions, tsConfig } = opts
+  const baseUrl = tsConfig?.compilerOptions?.baseUrl
+  if (!baseUrl) return null
+
+  const filePathToResolve = `${baseUrl}/${importPath}`
+  const normalizedFilePath = normalizeFilePath(filePathToResolve)
+
+  if (normalizedFilePathMap.has(normalizedFilePath)) {
+    return normalizedFilePathMap.get(normalizedFilePath)!
+  }
+
+  for (const ext of extensions) {
+    const withExt = `${normalizedFilePath}.${ext}`
+    if (normalizedFilePathMap.has(withExt)) {
+      return normalizedFilePathMap.get(withExt)!
+    }
+  }
+
   return null
 }
 
diff --git a/tests/features/tsconfig-paths-resolution.test.tsx b/tests/features/tsconfig-paths-resolution.test.tsx
index 725dc89b..a1b4a71b 100644
--- a/tests/features/tsconfig-paths-resolution.test.tsx
+++ b/tests/features/tsconfig-paths-resolution.test.tsx
@@ -63,3 +63,36 @@ test("throws error when tsconfig path alias cannot be resolved (instead of tryin
     'Import "@utils/missing" matches a tsconfig path alias but could not be resolved to an existing file',
   )
 })
+
+test("resolves imports using tsconfig baseUrl", async () => {
+  const circuitJson = await runTscircuitCode(
+    {
+      "tsconfig.json": JSON.stringify({
+        compilerOptions: {
+          baseUrl: "src",
+        },
+      }),
+      "src/utils/values.ts": `
+        export const resistorName = "RbaseUrl"
+        export const resistance = "2k"
+      `,
+      "src/component.tsx": `
+        import { resistorName, resistance } from "utils/values"
+        export default () => (<resistor name={resistorName} resistance={resistance} />)
+      `,
+      "user.tsx": `
+        import Comp from "component"
+        export default () => (<Comp />)
+      `,
+    },
+    {
+      mainComponentPath: "user",
+    },
+  )
+
+  const resistor = circuitJson.find(
+    (el) => el.type === "source_component" && el.name === "RbaseUrl",
+  ) as any
+  expect(resistor).toBeDefined()
+  expect(resistor.resistance).toBe(2000)
+})