diff --git a/crates/dialects/src/base.rs b/crates/dialects/src/base.rs
index 65036956..8b64b391 100644
--- a/crates/dialects/src/base.rs
+++ b/crates/dialects/src/base.rs
@@ -18,7 +18,7 @@ use crate::lang::executor::{
 use crate::lang::{check_defs, into_exec_compiler_error, replace_sender_placeholder};
 use crate::shared::errors::{CompilerError, ExecCompilerError, FileSourceMap, ProjectSourceMap};
 use crate::shared::results::{ChainStateChanges, ResourceChange};
-use crate::shared::ProvidedAccountAddress;
+use crate::shared::{line_endings, ProvidedAccountAddress};
 
 pub trait Dialect {
     fn name(&self) -> &str;
@@ -34,9 +34,9 @@ pub trait Dialect {
         file: MoveFile,
         sender: &ProvidedAccountAddress,
     ) -> Result<(Vec<Definition>, FileSourceMap), ExecCompilerError> {
-        let (fname, mut source_text) = file;
+        let (fname, source_text) = file;
 
-        let mut file_source_map = FileSourceMap::default();
+        let (mut source_text, mut file_source_map) = line_endings::normalize(source_text);
         source_text = replace_sender_placeholder(
             source_text,
             &sender.normalized_original,
diff --git a/crates/dialects/src/shared/line_endings.rs b/crates/dialects/src/shared/line_endings.rs
new file mode 100644
index 00000000..5181cc41
--- /dev/null
+++ b/crates/dialects/src/shared/line_endings.rs
@@ -0,0 +1,62 @@
+use crate::shared::errors::FileSourceMap;
+use std::str::Chars;
+
+struct NewNormalized<'a> {
+    chars: Chars<'a>,
+    prev_was_carriage_return: bool,
+    pos: usize,
+    source_map: &'a mut FileSourceMap,
+}
+
+impl<'a> NewNormalized<'a> {
+    fn inner_next(&mut self) -> Option<char> {
+        self.pos += 1;
+        self.chars.next()
+    }
+}
+
+const PATTERN_LENGTH: usize = 2;
+
+impl Iterator for NewNormalized<'_> {
+    type Item = char;
+
+    fn next(&mut self) -> Option<char> {
+        match self.inner_next() {
+            Some('\n') if self.prev_was_carriage_return => {
+                self.source_map.insert_layer(self.pos - PATTERN_LENGTH, 1);
+
+                self.prev_was_carriage_return = false;
+                match self.inner_next() {
+                    Some('\r') => {
+                        self.prev_was_carriage_return = true;
+                        Some('\n')
+                    }
+                    any => {
+                        self.prev_was_carriage_return = false;
+                        any
+                    }
+                }
+            }
+            Some('\r') => {
+                self.prev_was_carriage_return = true;
+                Some('\n')
+            }
+            any => {
+                self.prev_was_carriage_return = false;
+                any
+            }
+        }
+    }
+}
+
+pub fn normalize(s: String) -> (String, FileSourceMap) {
+    let mut source_map = FileSourceMap::default();
+    let normalized = NewNormalized {
+        chars: s.chars(),
+        prev_was_carriage_return: false,
+        pos: 0,
+        source_map: &mut source_map,
+    };
+    let normalized_string = normalized.collect::<String>();
+    (normalized_string, source_map)
+}
diff --git a/crates/dialects/src/shared/mod.rs b/crates/dialects/src/shared/mod.rs
index ce338074..c1e3af36 100644
--- a/crates/dialects/src/shared/mod.rs
+++ b/crates/dialects/src/shared/mod.rs
@@ -4,6 +4,7 @@ use move_lang::shared::Address;
 pub mod addresses;
 pub mod bech32;
 pub mod errors;
+pub mod line_endings;
 pub mod results;
 
 #[derive(Debug, Clone)]
diff --git a/crates/integration_tests/tests/test_compilation_check.rs b/crates/integration_tests/tests/test_compilation_check.rs
index 5b72b955..258a93ad 100644
--- a/crates/integration_tests/tests/test_compilation_check.rs
+++ b/crates/integration_tests/tests/test_compilation_check.rs
@@ -644,4 +644,24 @@ module DFI {
             "Invalid \'use\'. Unbound module: \'0x0::UnknownPayments\'"
         );
     }
+
+    #[test]
+    fn test_windows_line_endings_are_allowed() {
+        let script_text = "script { fun main() {} \r\n } \r\n";
+        let errors = diagnostics(script_text);
+        assert!(errors.is_empty(), "{:#?}", errors);
+    }
+
+    #[test]
+    fn test_windows_line_endings_do_not_offset_errors() {
+        let script_text = "script {\r\n func main() {} \r\n }";
+        let errors = diagnostics(script_text);
+        assert_eq!(errors.len(), 1);
+        assert_eq!(errors[0].range, range((1, 1), (1, 5)));
+
+        let script_text = "script {\r\n\r\n\r\n func main() {} \r\n }";
+        let errors = diagnostics(script_text);
+        assert_eq!(errors.len(), 1);
+        assert_eq!(errors[0].range, range((3, 1), (3, 5)));
+    }
 }