diff --git a/src/index.ts b/src/index.ts
index 5c285cb..20352c7 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1,3 +1,4 @@
+import * as fs from 'fs';
 import * as path from 'path';
 import * as ts_module from 'typescript/lib/tsserverlibrary';
 import { createMatchers } from './helpers/createMatchers';
@@ -79,15 +80,59 @@ function init({ typescript: ts }: { typescript: typeof ts_module }) {
         );
 
         return moduleNames.map((moduleName, index) => {
-          if (isRelativeCSS(moduleName)) {
-            return {
-              extension: ts_module.Extension.Dts,
-              isExternalLibraryImport: false,
-              resolvedFileName: path.resolve(
-                path.dirname(containingFile),
+          try {
+            if (isRelativeCSS(moduleName)) {
+              return {
+                extension: ts_module.Extension.Dts,
+                isExternalLibraryImport: false,
+                resolvedFileName: path.resolve(
+                  path.dirname(containingFile),
+                  moduleName,
+                ),
+              };
+            } else if (isCSS(moduleName)) {
+              // TODO: Move this section to a separate file and add basic tests.
+              // Attempts to locate the module using TypeScript's previous search paths. These include "baseUrl" and "paths".
+              const failedModule = info.project.getResolvedModuleWithFailedLookupLocationsFromCache(
                 moduleName,
-              ),
-            };
+                containingFile,
+              );
+              const baseUrl = info.project.getCompilerOptions().baseUrl;
+              const match = '/index.ts';
+
+              // An array of paths TypeScript searched for the module. All include .ts, .tsx, .d.ts, or .json extensions.
+              const failedLocations: string[] = (failedModule as any)
+                .failedLookupLocations;
+              // Filter to only one extension type, and remove that extension. This leaves us with the actual filename.
+              // Example: "usr/person/project/src/dir/File.module.css/index.d.ts" > "usr/person/project/src/dir/File.module.css"
+              const normalizedLocations = failedLocations.reduce(
+                (locations, location) => {
+                  if (
+                    (baseUrl ? location.includes(baseUrl) : true) &&
+                    location.endsWith(match)
+                  ) {
+                    return [...locations, location.replace(match, '')];
+                  }
+                  return locations;
+                },
+                [] as string[],
+              );
+
+              // Find the imported CSS module, if it exists.
+              const cssModulePath = normalizedLocations.find((location) =>
+                fs.existsSync(location),
+              );
+
+              if (cssModulePath) {
+                return {
+                  extension: ts_module.Extension.Dts,
+                  isExternalLibraryImport: false,
+                  resolvedFileName: path.resolve(cssModulePath),
+                };
+              }
+            }
+          } catch (e) {
+            return resolvedModules[index];
           }
           return resolvedModules[index];
         });