diff --git a/extensions/css-language-features/server/src/test/links.test.ts b/extensions/css-language-features/server/src/test/links.test.ts
index e8c5a068e10..bce7a11bc8a 100644
--- a/extensions/css-language-features/server/src/test/links.test.ts
+++ b/extensions/css-language-features/server/src/test/links.test.ts
@@ -67,13 +67,13 @@ suite('Links', () => {
 		);
 	});
 
-	// test('url links', function () {
+	test('node module resolving', function () {
 
-	// 	let testUri = getTestResource('about.css');
-	// 	let folders = [{ name: 'x', uri: getTestResource('') }];
+		let testUri = getTestResource('about.css');
+		let folders = [{ name: 'x', uri: getTestResource('') }];
 
-	// 	assertLinks('html { background-image: url("~foo/hello.html|")',
-	// 		[{ offset: 29, value: '"~foo/hello.html"', target: getTestResource('node_modules/foo/hello.html') }], testUri, folders
-	// 	);
-	// });
+		assertLinks('html { background-image: url("~foo/hello.html|")',
+			[{ offset: 29, value: '"~foo/hello.html"', target: getTestResource('node_modules/foo/hello.html') }], testUri, folders
+		);
+	});
 });
\ No newline at end of file
diff --git a/extensions/css-language-features/server/src/utils/documentContext.ts b/extensions/css-language-features/server/src/utils/documentContext.ts
index 41c29989f02..494ff395e9d 100644
--- a/extensions/css-language-features/server/src/utils/documentContext.ts
+++ b/extensions/css-language-features/server/src/utils/documentContext.ts
@@ -57,13 +57,17 @@ export function getDocumentContext(documentUri: string, workspaceFolders: Worksp
 			// and [sass-loader's](https://github.com/webpack-contrib/sass-loader#imports)
 			// convention, if an import path starts with ~ then use node module resolution
 			// *unless* it starts with "~/" as this refers to the user's home directory.
-			if (ref[0] === '~' && ref[1] !== '/' && startsWith(base, 'file://')) {
-				const moduleName = getModuleNameFromPath(ref.substring(1));
-				const modulePath = resolvePathToModule(moduleName, base);
-				if (modulePath) {
-					const pathWithinModule = ref.substring(moduleName.length + 2);
-					return url.resolve(modulePath, pathWithinModule);
+			if (ref[0] === '~' && ref[1] !== '/') {
+				ref = ref.substring(1);
+				if (startsWith(base, 'file://')) {
+					const moduleName = getModuleNameFromPath(ref);
+					const modulePath = resolvePathToModule(moduleName, base);
+					if (modulePath) {
+						const pathWithinModule = ref.substring(moduleName.length + 1);
+						return url.resolve(modulePath, pathWithinModule);
+					}
 				}
+
 			}
 			return url.resolve(base, ref);
 		},