diff --git a/examples/srcs_targets/BUILD.bazel b/examples/srcs_targets/BUILD.bazel
new file mode 100644
index 00000000..31991bc1
--- /dev/null
+++ b/examples/srcs_targets/BUILD.bazel
@@ -0,0 +1,51 @@
+"""Shows different ways to pass source files into ts_project"""
+
+load("@aspect_rules_ts//ts:defs.bzl", "ts_project")
+load("@bazel_skylib//rules:build_test.bzl", "build_test")
+load("@bazel_skylib//rules:write_file.bzl", "write_file")
+
+[
+    write_file(
+        name = "gen-%s-ts" % n,
+        out = "%s.ts" % n,
+        content = [
+            "export const %s = 42" % n,
+        ],
+    )
+    for n in [
+        "a",
+        "b",
+        "c",
+        "d",
+        "e",
+    ]
+]
+
+# Various ways of declaring sources
+ts_project(
+    name = "out-refs",
+    srcs = [
+        # Labels of various syntaxes to files
+        "a.ts",
+        ":b.ts",
+        "//%s:c.ts" % package_name(),
+        "@//%s:d.ts" % package_name(),
+        "@aspect_rules_ts//%s:e.ts" % package_name(),
+
+        # Label to some rules
+        ":gen-a-ts",
+    ],
+    out_dir = "out",
+)
+
+build_test(
+    name = "test",
+    targets = [
+        "out-refs",
+        "out/a.js",
+        "out/b.js",
+        "out/c.js",
+        "out/d.js",
+        "out/e.js",
+    ],
+)
diff --git a/examples/srcs_targets/tsconfig.json b/examples/srcs_targets/tsconfig.json
new file mode 100644
index 00000000..0967ef42
--- /dev/null
+++ b/examples/srcs_targets/tsconfig.json
@@ -0,0 +1 @@
+{}
diff --git a/ts/private/ts_lib.bzl b/ts/private/ts_lib.bzl
index 8cfcabea..326666b3 100644
--- a/ts/private/ts_lib.bzl
+++ b/ts/private/ts_lib.bzl
@@ -201,6 +201,7 @@ def _replace_ext(f, ext_map):
     return None
 
 def _to_out_path(f, out_dir, root_dir):
+    f = f[f.find(":") + 1:]
     if root_dir:
         f = f.removeprefix(root_dir + "/")
     if out_dir: