diff --git a/e2e/2.x/sass-importer/entry/babel-transformer.js b/e2e/2.x/sass-importer/entry/babel-transformer.js
new file mode 100644
index 00000000..193503e5
--- /dev/null
+++ b/e2e/2.x/sass-importer/entry/babel-transformer.js
@@ -0,0 +1,4 @@
+const { createTransformer } = require('babel-jest').default
+module.exports = createTransformer({
+  presets: ['@babel/preset-env']
+})
diff --git a/e2e/2.x/sass-importer/entry/components/Entry.vue b/e2e/2.x/sass-importer/entry/components/Entry.vue
new file mode 100644
index 00000000..63adb0ce
--- /dev/null
+++ b/e2e/2.x/sass-importer/entry/components/Entry.vue
@@ -0,0 +1,24 @@
+<template>
+  <div>
+    <h1 class="entry">Entry</h1>
+    <lib-component />
+  </div>
+</template>
+
+<script>
+import LibComponent from 'vue2-sass-importer-lib/index.vue'
+
+export default {
+  components: {
+    LibComponent
+  }
+}
+</script>
+
+<style lang="scss" module>
+@import '~vue2-sass-importer-sass-lib/index.scss';
+
+.entry {
+  @include my-v2-mixin;
+}
+</style>
diff --git a/e2e/2.x/sass-importer/entry/package.json b/e2e/2.x/sass-importer/entry/package.json
new file mode 100644
index 00000000..fae72c75
--- /dev/null
+++ b/e2e/2.x/sass-importer/entry/package.json
@@ -0,0 +1,49 @@
+{
+  "name": "vue2-sass-importer-entry",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "scripts": {
+    "test": "jest --no-cache --coverage test.js"
+  },
+  "dependencies": {
+    "vue": "^2.5.21",
+    "vue-template-compiler": "^2.5.21",
+    "vue2-sass-importer-lib": "file:../lib",
+    "vue2-sass-importer-sass-lib": "file:../sass-lib-v2"
+  },
+  "devDependencies": {
+    "@babel/core": "^7.9.0",
+    "@babel/preset-env": "^7.9.0",
+    "@vue/test-utils": "^1.1.0",
+    "babel-jest": "^28.0.2",
+    "jest": "28.x",
+    "jest-environment-jsdom": "28.0.2",
+    "postcss": "^7.0.13",
+    "postcss-color-function": "^4.0.1",
+    "sass": "^1.23.7",
+    "@vue/vue2-jest": "^28.0.0"
+  },
+  "jest": {
+    "testEnvironment": "jsdom",
+    "moduleFileExtensions": [
+      "js",
+      "json",
+      "vue"
+    ],
+    "transformIgnorePatterns": [
+      "/node_modules/.*(?<!.vue)$"
+    ],
+    "transform": {
+      "^.+\\.js$": "./babel-transformer.js",
+      "^.+\\.vue$": "@vue/vue2-jest"
+    },
+    "globals": {
+      "vue-jest": {
+        "transform": {
+          "^js$": "./babel-transformer.js"
+        }
+      }
+    }
+  }
+}
diff --git a/e2e/2.x/sass-importer/entry/test.js b/e2e/2.x/sass-importer/entry/test.js
new file mode 100644
index 00000000..0d05426e
--- /dev/null
+++ b/e2e/2.x/sass-importer/entry/test.js
@@ -0,0 +1,7 @@
+import { mount } from '@vue/test-utils'
+import Entry from './components/Entry.vue'
+
+test('processes sass imports relative to current file', () => {
+  const wrapper = mount(Entry)
+  expect(wrapper).toBeDefined()
+})
diff --git a/e2e/2.x/sass-importer/lib/index.vue b/e2e/2.x/sass-importer/lib/index.vue
new file mode 100644
index 00000000..50d3742c
--- /dev/null
+++ b/e2e/2.x/sass-importer/lib/index.vue
@@ -0,0 +1,11 @@
+<template>
+  <div class="lib-class">Lib Component</div>
+</template>
+
+<style lang="scss" module>
+@import '~vue2-sass-importer-sass-lib/index.scss';
+
+.lib-class {
+  @include my-v1-mixin;
+}
+</style>
diff --git a/e2e/2.x/sass-importer/lib/package.json b/e2e/2.x/sass-importer/lib/package.json
new file mode 100644
index 00000000..330adfab
--- /dev/null
+++ b/e2e/2.x/sass-importer/lib/package.json
@@ -0,0 +1,19 @@
+{
+  "name": "vue2-sass-importer-lib",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "main": "index.vue",
+  "files": [
+    "index.vue"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  },
+  "dependencies": {
+    "vue2-sass-importer-sass-lib": "file:../sass-lib-v1"
+  },
+  "peerDependencies": {
+    "vue": "^2.5.21"
+  }
+}
diff --git a/e2e/2.x/sass-importer/sass-lib-v1/index.scss b/e2e/2.x/sass-importer/sass-lib-v1/index.scss
new file mode 100644
index 00000000..05795e0f
--- /dev/null
+++ b/e2e/2.x/sass-importer/sass-lib-v1/index.scss
@@ -0,0 +1,3 @@
+@mixin my-v1-mixin {
+  color: blue;
+}
diff --git a/e2e/2.x/sass-importer/sass-lib-v1/package.json b/e2e/2.x/sass-importer/sass-lib-v1/package.json
new file mode 100644
index 00000000..cc5fc32c
--- /dev/null
+++ b/e2e/2.x/sass-importer/sass-lib-v1/package.json
@@ -0,0 +1,12 @@
+{
+  "name": "vue2-sass-importer-sass-lib",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "files": [
+    "index.scss"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  }
+}
diff --git a/e2e/2.x/sass-importer/sass-lib-v2/index.scss b/e2e/2.x/sass-importer/sass-lib-v2/index.scss
new file mode 100644
index 00000000..8f5e144d
--- /dev/null
+++ b/e2e/2.x/sass-importer/sass-lib-v2/index.scss
@@ -0,0 +1,3 @@
+@mixin my-v2-mixin {
+  color: red;
+}
diff --git a/e2e/2.x/sass-importer/sass-lib-v2/package.json b/e2e/2.x/sass-importer/sass-lib-v2/package.json
new file mode 100644
index 00000000..b9b40960
--- /dev/null
+++ b/e2e/2.x/sass-importer/sass-lib-v2/package.json
@@ -0,0 +1,12 @@
+{
+  "name": "vue2-sass-importer-sass-lib",
+  "version": "2.0.0",
+  "license": "MIT",
+  "private": true,
+  "files": [
+    "index.scss"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  }
+}
diff --git a/e2e/3.x/sass-importer/entry/babel-transformer.js b/e2e/3.x/sass-importer/entry/babel-transformer.js
new file mode 100644
index 00000000..193503e5
--- /dev/null
+++ b/e2e/3.x/sass-importer/entry/babel-transformer.js
@@ -0,0 +1,4 @@
+const { createTransformer } = require('babel-jest').default
+module.exports = createTransformer({
+  presets: ['@babel/preset-env']
+})
diff --git a/e2e/3.x/sass-importer/entry/components/Entry.vue b/e2e/3.x/sass-importer/entry/components/Entry.vue
new file mode 100644
index 00000000..367e3f6b
--- /dev/null
+++ b/e2e/3.x/sass-importer/entry/components/Entry.vue
@@ -0,0 +1,24 @@
+<template>
+  <div>
+    <h1 class="entry">Entry</h1>
+    <lib-component />
+  </div>
+</template>
+
+<script>
+import LibComponent from 'vue3-sass-importer-lib/index.vue'
+
+export default {
+  components: {
+    LibComponent
+  }
+}
+</script>
+
+<style lang="scss" module>
+@import '~vue3-sass-importer-sass-lib/index.scss';
+
+.entry {
+  @include my-v2-mixin;
+}
+</style>
diff --git a/e2e/3.x/sass-importer/entry/package.json b/e2e/3.x/sass-importer/entry/package.json
new file mode 100644
index 00000000..d81dc43d
--- /dev/null
+++ b/e2e/3.x/sass-importer/entry/package.json
@@ -0,0 +1,48 @@
+{
+  "name": "vue3-sass-importer-entry",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "scripts": {
+    "test": "jest --no-cache --coverage test.js"
+  },
+  "dependencies": {
+    "vue": "^3.2.22",
+    "vue3-sass-importer-lib": "file:../lib",
+    "vue3-sass-importer-sass-lib": "file:../sass-lib-v2"
+  },
+  "devDependencies": {
+    "@babel/core": "^7.9.0",
+    "@babel/preset-env": "^7.9.0",
+    "@vue/test-utils": "^2.0.0-rc.10",
+    "babel-jest": "^28.0.2",
+    "jest": "28.x",
+    "jest-environment-jsdom": "28.0.2",
+    "postcss": "^7.0.13",
+    "postcss-color-function": "^4.0.1",
+    "sass": "^1.23.7",
+    "@vue/vue3-jest": "^28.0.0"
+  },
+  "jest": {
+    "testEnvironment": "jsdom",
+    "moduleFileExtensions": [
+      "js",
+      "json",
+      "vue"
+    ],
+    "transformIgnorePatterns": [
+      "/node_modules/.*(?<!.vue)$"
+    ],
+    "transform": {
+      "^.+\\.js$": "./babel-transformer.js",
+      "^.+\\.vue$": "@vue/vue3-jest"
+    },
+    "globals": {
+      "vue-jest": {
+        "transform": {
+          "^js$": "./babel-transformer.js"
+        }
+      }
+    }
+  }
+}
diff --git a/e2e/3.x/sass-importer/entry/test.js b/e2e/3.x/sass-importer/entry/test.js
new file mode 100644
index 00000000..0d05426e
--- /dev/null
+++ b/e2e/3.x/sass-importer/entry/test.js
@@ -0,0 +1,7 @@
+import { mount } from '@vue/test-utils'
+import Entry from './components/Entry.vue'
+
+test('processes sass imports relative to current file', () => {
+  const wrapper = mount(Entry)
+  expect(wrapper).toBeDefined()
+})
diff --git a/e2e/3.x/sass-importer/lib/index.vue b/e2e/3.x/sass-importer/lib/index.vue
new file mode 100644
index 00000000..fc3c0231
--- /dev/null
+++ b/e2e/3.x/sass-importer/lib/index.vue
@@ -0,0 +1,11 @@
+<template>
+  <div class="lib-class">Lib Component</div>
+</template>
+
+<style lang="scss" module>
+@import '~vue3-sass-importer-sass-lib/index.scss';
+
+.lib-class {
+  @include my-v1-mixin;
+}
+</style>
diff --git a/e2e/3.x/sass-importer/lib/package.json b/e2e/3.x/sass-importer/lib/package.json
new file mode 100644
index 00000000..6f19b178
--- /dev/null
+++ b/e2e/3.x/sass-importer/lib/package.json
@@ -0,0 +1,19 @@
+{
+  "name": "vue3-sass-importer-lib",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "main": "index.vue",
+  "files": [
+    "index.vue"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  },
+  "dependencies": {
+    "vue3-sass-importer-sass-lib": "file:../sass-lib-v1"
+  },
+  "peerDependencies": {
+    "vue": "^3.2.22"
+  }
+}
diff --git a/e2e/3.x/sass-importer/sass-lib-v1/index.scss b/e2e/3.x/sass-importer/sass-lib-v1/index.scss
new file mode 100644
index 00000000..05795e0f
--- /dev/null
+++ b/e2e/3.x/sass-importer/sass-lib-v1/index.scss
@@ -0,0 +1,3 @@
+@mixin my-v1-mixin {
+  color: blue;
+}
diff --git a/e2e/3.x/sass-importer/sass-lib-v1/package.json b/e2e/3.x/sass-importer/sass-lib-v1/package.json
new file mode 100644
index 00000000..5717428c
--- /dev/null
+++ b/e2e/3.x/sass-importer/sass-lib-v1/package.json
@@ -0,0 +1,12 @@
+{
+  "name": "vue3-sass-importer-sass-lib",
+  "version": "1.0.0",
+  "license": "MIT",
+  "private": true,
+  "files": [
+    "index.scss"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  }
+}
diff --git a/e2e/3.x/sass-importer/sass-lib-v2/index.scss b/e2e/3.x/sass-importer/sass-lib-v2/index.scss
new file mode 100644
index 00000000..8f5e144d
--- /dev/null
+++ b/e2e/3.x/sass-importer/sass-lib-v2/index.scss
@@ -0,0 +1,3 @@
+@mixin my-v2-mixin {
+  color: red;
+}
diff --git a/e2e/3.x/sass-importer/sass-lib-v2/package.json b/e2e/3.x/sass-importer/sass-lib-v2/package.json
new file mode 100644
index 00000000..d06a853a
--- /dev/null
+++ b/e2e/3.x/sass-importer/sass-lib-v2/package.json
@@ -0,0 +1,12 @@
+{
+  "name": "vue3-sass-importer-sass-lib",
+  "version": "2.0.0",
+  "license": "MIT",
+  "private": true,
+  "files": [
+    "index.scss"
+  ],
+  "scripts": {
+    "test": "echo 'No tests found.'"
+  }
+}
diff --git a/package.json b/package.json
index 9a6e0e26..6522ba8f 100644
--- a/package.json
+++ b/package.json
@@ -8,10 +8,14 @@
   "workspaces": {
     "packages": [
       "packages/*",
-      "e2e/**"
+      "e2e/2.x/*",
+      "e2e/2.x/**/entry",
+      "e2e/3.x/*",
+      "e2e/3.x/**/entry"
     ],
     "nohoist": [
-      "**/vue"
+      "**/vue",
+      "**/vue2-sass-importer-sass-lib"
     ]
   },
   "scripts": {
diff --git a/packages/vue2-jest/lib/module-name-mapper-helper.js b/packages/vue2-jest/lib/module-name-mapper-helper.js
index eaaba904..994d0421 100644
--- a/packages/vue2-jest/lib/module-name-mapper-helper.js
+++ b/packages/vue2-jest/lib/module-name-mapper-helper.js
@@ -31,7 +31,7 @@ function resolveSass(to, importPath, fileType) {
 
     for (const filename of filenames) {
       try {
-        return require.resolve(path.join(dirname, filename))
+        return require.resolve(path.join(dirname, filename), { paths: [to] })
       } catch (_) {}
     }
   }
diff --git a/packages/vue3-jest/lib/module-name-mapper-helper.js b/packages/vue3-jest/lib/module-name-mapper-helper.js
index 85ed1c23..8bad03a3 100644
--- a/packages/vue3-jest/lib/module-name-mapper-helper.js
+++ b/packages/vue3-jest/lib/module-name-mapper-helper.js
@@ -14,7 +14,9 @@ function resolve(to, importPath, fileType) {
   if (path.isAbsolute(importPath)) {
     return importPath
   } else if (matchModuleImport.test(importPath)) {
-    return require.resolve(importPath.replace(matchModuleImport, ''))
+    return require.resolve(importPath.replace(matchModuleImport, ''), {
+      paths: [to]
+    })
   }
   return path.join(path.dirname(to), importPath)
 }
diff --git a/yarn.lock b/yarn.lock
index 9200e3c1..755a6220 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -10865,6 +10865,28 @@ vue-template-es2015-compiler@^1.9.0:
   resolved "https://registry.yarnpkg.com/vue-template-es2015-compiler/-/vue-template-es2015-compiler-1.9.1.tgz#1ee3bc9a16ecbf5118be334bb15f9c46f82f5825"
   integrity sha512-4gDntzrifFnCEvyoO8PqyJDmguXgVPxKiIxrBKjIowvL9l+N66196+72XVYR8BBf1Uv1Fgt3bGevJ+sEmxfZzw==
 
+"vue2-sass-importer-lib@file:e2e/2.x/sass-importer/lib":
+  version "1.0.0"
+  dependencies:
+    vue2-sass-importer-sass-lib "file:../../.cache/yarn/v6/npm-vue2-sass-importer-lib-1.0.0-1087f856-8699-4ac6-a0fa-2288988256c2-1656107462461/node_modules/sass-lib-v1"
+
+"vue2-sass-importer-sass-lib@file:e2e/2.x/sass-importer/sass-lib-v1":
+  version "1.0.0"
+
+"vue2-sass-importer-sass-lib@file:e2e/2.x/sass-importer/sass-lib-v2":
+  version "2.0.0"
+
+"vue3-sass-importer-lib@file:e2e/3.x/sass-importer/lib":
+  version "1.0.0"
+  dependencies:
+    vue3-sass-importer-sass-lib "file:../../.cache/yarn/v6/npm-vue3-sass-importer-lib-1.0.0-c866bb73-f527-47b9-932d-498dea4cf3d0-1656107462461/node_modules/sass-lib-v1"
+
+"vue3-sass-importer-sass-lib@file:e2e/3.x/sass-importer/sass-lib-v1":
+  version "1.0.0"
+
+"vue3-sass-importer-sass-lib@file:e2e/3.x/sass-importer/sass-lib-v2":
+  version "2.0.0"
+
 vue@^2.4.2, vue@^2.5.21:
   version "2.6.14"
   resolved "https://registry.yarnpkg.com/vue/-/vue-2.6.14.tgz#e51aa5250250d569a3fbad3a8a5a687d6036e235"