diff --git a/src/bundler.rs b/src/bundler.rs
index 2226404d..557200cb 100644
--- a/src/bundler.rs
+++ b/src/bundler.rs
@@ -79,6 +79,7 @@ enum AtRuleParserValue<'a, T> {
 
 struct BundleStyleSheet<'i, T> {
   stylesheet: Option<StyleSheet<'i, T>>,
+  source_map_source_index: Option<u32>,
   dependencies: Vec<Dependency>,
   css_modules_deps: Vec<u32>,
   parent_source_index: u32,
@@ -316,6 +317,16 @@ where
 
     let mut stylesheet = StyleSheet::new(sources, CssRuleList(rules), self.options.clone());
 
+    if self.source_map.is_some() {
+      stylesheet.source_map_source_indices = self
+        .stylesheets
+        .get_mut()
+        .unwrap()
+        .iter()
+        .map(|s| s.source_map_source_index)
+        .collect();
+    }
+
     stylesheet.source_map_urls = self
       .stylesheets
       .get_mut()
@@ -415,6 +426,7 @@ where
 
         stylesheets.push(BundleStyleSheet {
           stylesheet: None,
+          source_map_source_index: None,
           layer: rule.layer.clone(),
           media: rule.media.clone(),
           supports: rule.supports.clone(),
@@ -455,14 +467,15 @@ where
       StyleSheet::<T::AtRule>::parse_with(code, opts, at_rule_parser)?
     };
 
+    let mut source_map_source_index = None;
     if let Some(source_map) = &self.source_map {
-      // Only add source if we don't have an input source map.
-      // If we do, this will be handled by the printer when remapping locations.
-      let sm = stylesheet.source_map_url(0);
-      if sm.is_none() || !sm.unwrap().starts_with("data") {
+      // Only omit the CSS source when the input source map can actually be read.
+      // Otherwise, the printer needs this index as a fallback for generated mappings.
+      if stylesheet.source_map(0).is_none() {
         let mut source_map = source_map.lock().unwrap();
         let source_index = source_map.add_source(filename);
         let _ = source_map.set_source_content(source_index as usize, code);
+        source_map_source_index = Some(source_index);
       }
     }
 
@@ -606,6 +619,7 @@ where
 
     let entry = &mut self.stylesheets.lock().unwrap()[source_index as usize];
     entry.stylesheet = Some(stylesheet);
+    entry.source_map_source_index = source_map_source_index;
     entry.dependencies = dependencies?;
     entry.css_modules_deps = css_modules_deps?;
 
diff --git a/src/printer.rs b/src/printer.rs
index 9086b9f4..917875c3 100644
--- a/src/printer.rs
+++ b/src/printer.rs
@@ -72,6 +72,8 @@ pub struct Printer<'a, 'c, W> {
   #[cfg(feature = "sourcemap")]
   #[cfg_attr(docsrs, doc(cfg(feature = "sourcemap")))]
   pub(crate) source_maps: Vec<Option<SourceMap>>,
+  #[cfg(feature = "sourcemap")]
+  pub(crate) source_map_source_indices: &'c [Option<u32>],
   pub(crate) loc: Location,
   indent: u8,
   line: u32,
@@ -99,6 +101,8 @@ impl<'a, 'c, W: std::fmt::Write + Sized> Printer<'a, 'c, W> {
       source_map: options.source_map,
       #[cfg(feature = "sourcemap")]
       source_maps: Vec::new(),
+      #[cfg(feature = "sourcemap")]
+      source_map_source_indices: &[],
       loc: Location {
         source_index: 0,
         line: 0,
@@ -249,7 +253,12 @@ impl<'a, 'c, W: std::fmt::Write + Sized> Printer<'a, 'c, W> {
       let mut original = OriginalLocation {
         original_line: loc.line,
         original_column: loc.column - 1,
-        source: loc.source_index,
+        source: self
+          .source_map_source_indices
+          .get(loc.source_index as usize)
+          .copied()
+          .flatten()
+          .unwrap_or(loc.source_index),
         name: None,
       };
 
diff --git a/src/stylesheet.rs b/src/stylesheet.rs
index 56dbdc2e..c6d974ee 100644
--- a/src/stylesheet.rs
+++ b/src/stylesheet.rs
@@ -80,6 +80,10 @@ pub struct StyleSheet<'i, T = DefaultAtRule> {
   pub sources: Vec<String>,
   /// The source map URL extracted from the original style sheet.
   pub source_map_urls: Vec<Option<String>>,
+  /// Output source map indices corresponding to the bundler's source indices.
+  #[cfg(feature = "sourcemap")]
+  #[cfg_attr(feature = "serde", serde(skip))]
+  pub(crate) source_map_source_indices: Vec<Option<u32>>,
   /// The license comments that appeared at the start of the file.
   pub license_comments: Vec<CowArcStr<'i>>,
   /// A list of content hashes for all source files included within the style sheet.
@@ -135,6 +139,8 @@ where
     StyleSheet {
       sources,
       source_map_urls: Vec::new(),
+      #[cfg(feature = "sourcemap")]
+      source_map_source_indices: Vec::new(),
       license_comments: Vec::new(),
       content_hashes: None,
       rules,
@@ -202,6 +208,8 @@ where
     Ok(StyleSheet {
       sources: vec![options.filename.clone()],
       source_map_urls: vec![parser.current_source_map_url().map(|s| s.to_owned())],
+      #[cfg(feature = "sourcemap")]
+      source_map_source_indices: Vec::new(),
       content_hashes,
       rules,
       license_comments,
@@ -280,6 +288,7 @@ where
     #[cfg(feature = "sourcemap")]
     if printer.source_map.is_some() {
       printer.source_maps = self.sources.iter().enumerate().map(|(i, _)| self.source_map(i)).collect();
+      printer.source_map_source_indices = &self.source_map_source_indices;
     }
 
     for comment in &self.license_comments {
diff --git a/tests/test_parcel_bundler_source_map.rs b/tests/test_parcel_bundler_source_map.rs
new file mode 100644
index 00000000..198a2db1
--- /dev/null
+++ b/tests/test_parcel_bundler_source_map.rs
@@ -0,0 +1,58 @@
+#![cfg(all(feature = "bundler", feature = "sourcemap"))]
+
+use parcel_sourcemap::SourceMap;
+use rspack_lightningcss::{
+  bundler::{Bundler, ResolveResult, SourceProvider},
+  stylesheet::{ParserOptions, PrinterOptions},
+};
+use std::{io, path::Path};
+
+struct SingleFile(&'static str);
+
+impl SourceProvider for SingleFile {
+  type Error = io::Error;
+
+  fn read<'a>(&'a self, file: &Path) -> Result<&'a str, Self::Error> {
+    if file == Path::new("/entry.css") {
+      Ok(self.0)
+    } else {
+      Err(io::ErrorKind::NotFound.into())
+    }
+  }
+
+  fn resolve(&self, _: &str, _: &Path) -> Result<ResolveResult, Self::Error> {
+    Err(io::ErrorKind::NotFound.into())
+  }
+}
+
+fn assert_bundled_source(css: &'static str) {
+  let fs = SingleFile(css);
+  let mut map = SourceMap::new("/");
+  let existing_index = map.add_source("/existing.css");
+  map.set_source_content(existing_index as usize, ".existing {}").unwrap();
+
+  let mut bundler = Bundler::new(&fs, Some(&mut map), ParserOptions::default());
+  let stylesheet = bundler.bundle(Path::new("/entry.css")).unwrap();
+  stylesheet
+    .to_css(PrinterOptions {
+      source_map: Some(&mut map),
+      ..PrinterOptions::default()
+    })
+    .unwrap();
+
+  let source_index = map.find_closest_mapping(0, 0).unwrap().original.unwrap().source;
+  assert_ne!(source_index, existing_index);
+  assert_eq!(map.get_source(source_index).unwrap(), "entry.css");
+  assert_eq!(map.get_source_content(source_index).unwrap(), css);
+  assert_eq!(map.get_source_content(existing_index).unwrap(), ".existing {}");
+}
+
+#[test]
+fn uses_the_output_maps_source_index() {
+  assert_bundled_source(".entry { color: red }");
+}
+
+#[test]
+fn registers_css_when_the_inline_map_is_unreadable() {
+  assert_bundled_source(".entry { color: red }\n/*# sourceMappingURL=data:application/json,not-a-map */");
+}