diff --git a/.changeset/brown-lobsters-enjoy.md b/.changeset/brown-lobsters-enjoy.md
new file mode 100644
index 0000000000..bc6a1771d8
--- /dev/null
+++ b/.changeset/brown-lobsters-enjoy.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Adjust the Webpack `devtool` module filename template to correctly resolve via the source maps to the source files.
diff --git a/packages/cli/src/lib/bundler/config.ts b/packages/cli/src/lib/bundler/config.ts
index 4cc18f2083..7270f7b01a 100644
--- a/packages/cli/src/lib/bundler/config.ts
+++ b/packages/cli/src/lib/bundler/config.ts
@@ -197,6 +197,15 @@ export async function createConfig(
       chunkFilename: isDev
         ? '[name].chunk.js'
         : 'static/[name].[chunkhash:8].chunk.js',
+      ...(isDev
+        ? {
+            devtoolModuleFilenameTemplate: info =>
+              `file:///${resolvePath(info.absoluteResourcePath).replace(
+                /\\/g,
+                '/',
+              )}`,
+          }
+        : {}),
     },
     plugins,
   };
@@ -281,7 +290,11 @@ export async function createBackendConfig(
         : '[name].[chunkhash:8].chunk.js',
       ...(isDev
         ? {
-            devtoolModuleFilenameTemplate: 'file:///[absolute-resource-path]',
+            devtoolModuleFilenameTemplate: info =>
+              `file:///${resolvePath(info.absoluteResourcePath).replace(
+                /\\/g,
+                '/',
+              )}`,
           }
         : {}),
     },