diff --git a/cli/fs.rs b/cli/fs.rs
index 83dec49139..2aedf1e34b 100644
--- a/cli/fs.rs
+++ b/cli/fs.rs
@@ -46,6 +46,8 @@ pub fn write_file_2<T: AsRef<[u8]>>(
   file.write_all(data.as_ref())
 }
 
+/// IMPORTANT: This method is duplicated in core/module_specifier.rs
+///
 /// Normalize all itermediate components of the path (ie. remove "./" and "../" components).
 /// Similar to `fs::canonicalize()` but doesn't resolve symlinks.
 ///
diff --git a/cli/main.rs b/cli/main.rs
index 088d65ecd1..cf25ed3246 100644
--- a/cli/main.rs
+++ b/cli/main.rs
@@ -440,16 +440,7 @@ async fn bundle_command(
   source_file: String,
   out_file: Option<PathBuf>,
 ) -> Result<(), ErrBox> {
-  let mut module_specifier =
-    ModuleSpecifier::resolve_url_or_path(&source_file)?;
-  let url = module_specifier.as_url();
-
-  // TODO(bartlomieju): fix this hack in ModuleSpecifier
-  if url.scheme() == "file" {
-    let a = deno_fs::normalize_path(&url.to_file_path().unwrap());
-    let u = Url::from_file_path(a).unwrap();
-    module_specifier = ModuleSpecifier::from(u)
-  }
+  let module_specifier = ModuleSpecifier::resolve_url_or_path(&source_file)?;
 
   debug!(">>>>> bundle START");
   let global_state = GlobalState::new(flags)?;
diff --git a/core/module_specifier.rs b/core/module_specifier.rs
index 9cf4493023..1ad4bcc93e 100644
--- a/core/module_specifier.rs
+++ b/core/module_specifier.rs
@@ -1,6 +1,8 @@
 use std::env::current_dir;
 use std::error::Error;
 use std::fmt;
+use std::path::Component;
+use std::path::Path;
 use std::path::PathBuf;
 use url::ParseError;
 use url::Url;
@@ -150,6 +152,7 @@ impl ModuleSpecifier {
     path_str: &str,
   ) -> Result<ModuleSpecifier, ModuleResolutionError> {
     let path = current_dir().unwrap().join(path_str);
+    let path = normalize_path(&path);
     Url::from_file_path(path.clone())
       .map(ModuleSpecifier)
       .map_err(|()| ModuleResolutionError::InvalidPath(path))
@@ -203,6 +206,39 @@ impl PartialEq<String> for ModuleSpecifier {
   }
 }
 
+/// Normalize all itermediate components of the path (ie. remove "./" and "../" components).
+/// Similar to `fs::canonicalize()` but doesn't resolve symlinks.
+///
+/// Taken from Cargo
+/// https://github.com/rust-lang/cargo/blob/af307a38c20a753ec60f0ad18be5abed3db3c9ac/src/cargo/util/paths.rs#L60-L85
+pub fn normalize_path(path: &Path) -> PathBuf {
+  let mut components = path.components().peekable();
+  let mut ret =
+    if let Some(c @ Component::Prefix(..)) = components.peek().cloned() {
+      components.next();
+      PathBuf::from(c.as_os_str())
+    } else {
+      PathBuf::new()
+    };
+
+  for component in components {
+    match component {
+      Component::Prefix(..) => unreachable!(),
+      Component::RootDir => {
+        ret.push(component.as_os_str());
+      }
+      Component::CurDir => {}
+      Component::ParentDir => {
+        ret.pop();
+      }
+      Component::Normal(c) => {
+        ret.push(c);
+      }
+    }
+  }
+  ret
+}
+
 #[cfg(test)]
 mod tests {
   use super::*;
@@ -415,7 +451,12 @@ mod tests {
       );
       tests.extend(vec![
         (r"/deno/tests/006_url_imports.ts", expected_url.to_string()),
-        (r"\deno\tests\006_url_imports.ts", expected_url),
+        (r"\deno\tests\006_url_imports.ts", expected_url.to_string()),
+        (
+          r"\deno\..\deno\tests\006_url_imports.ts",
+          expected_url.to_string(),
+        ),
+        (r"\deno\.\tests\006_url_imports.ts", expected_url),
       ]);
 
       // Relative local path.
@@ -450,7 +491,12 @@ mod tests {
       let expected_url = format!("file://{}/tests/006_url_imports.ts", cwd_str);
       tests.extend(vec![
         ("tests/006_url_imports.ts", expected_url.to_string()),
-        ("./tests/006_url_imports.ts", expected_url),
+        ("./tests/006_url_imports.ts", expected_url.to_string()),
+        (
+          "tests/../tests/006_url_imports.ts",
+          expected_url.to_string(),
+        ),
+        ("tests/./006_url_imports.ts", expected_url),
       ]);
     }
 
@@ -511,4 +557,21 @@ mod tests {
       assert_eq!(result, expected);
     }
   }
+
+  #[test]
+  fn test_normalize_path() {
+    assert_eq!(normalize_path(Path::new("a/../b")), PathBuf::from("b"));
+    assert_eq!(normalize_path(Path::new("a/./b/")), PathBuf::from("a/b/"));
+    assert_eq!(
+      normalize_path(Path::new("a/./b/../c")),
+      PathBuf::from("a/c")
+    );
+
+    if cfg!(windows) {
+      assert_eq!(
+        normalize_path(Path::new("C:\\a\\.\\b\\..\\c")),
+        PathBuf::from("C:\\a\\c")
+      );
+    }
+  }
 }