diff --git a/lib/emit.generated.js b/lib/emit.generated.js
index a9a510c..335129b 100644
--- a/lib/emit.generated.js
+++ b/lib/emit.generated.js
@@ -202,7 +202,7 @@ function makeMutClosure(arg0, arg1, dtor, f) {
 }
 function __wbg_adapter_16(arg0, arg1, arg2) {
   wasm
-    ._dyn_core__ops__function__FnMut__A____Output___R_as_wasm_bindgen__closure__WasmClosure___describe__invoke__hc399077d245373c2(
+    ._dyn_core__ops__function__FnMut__A____Output___R_as_wasm_bindgen__closure__WasmClosure___describe__invoke__h2eb231fdb129de9b(
       arg0,
       arg1,
       addHeapObject(arg2),
@@ -283,7 +283,7 @@ function handleError(f, args) {
   }
 }
 function __wbg_adapter_25(arg0, arg1, arg2, arg3) {
-  wasm.wasm_bindgen__convert__closures__invoke2_mut__h3cf9829b75bbfd88(
+  wasm.wasm_bindgen__convert__closures__invoke2_mut__h0edd3e8b1a7686ec(
     arg0,
     arg1,
     addHeapObject(arg2),
@@ -389,8 +389,8 @@ const imports = {
     __wbindgen_throw: function (arg0, arg1) {
       throw new Error(getStringFromWasm0(arg0, arg1));
     },
-    __wbindgen_closure_wrapper422: function (arg0, arg1, arg2) {
-      const ret = makeMutClosure(arg0, arg1, 144, __wbg_adapter_16);
+    __wbindgen_closure_wrapper423: function (arg0, arg1, arg2) {
+      const ret = makeMutClosure(arg0, arg1, 138, __wbg_adapter_16);
       return addHeapObject(ret);
     },
   },
diff --git a/lib/emit_bg.wasm b/lib/emit_bg.wasm
index 59982a1..3a3b1d2 100644
Binary files a/lib/emit_bg.wasm and b/lib/emit_bg.wasm differ
diff --git a/mod.ts b/mod.ts
index 225718a..ff2ac13 100644
--- a/mod.ts
+++ b/mod.ts
@@ -146,6 +146,8 @@ export async function bundle(
     cacheSetting,
     cacheRoot,
     allowRemote,
+    type,
+    compilerOptions,
   } = options;
   let bundleLoad = load;
   if (!bundleLoad) {
@@ -154,13 +156,17 @@ export async function bundle(
   }
   root = root instanceof URL ? root : toFileUrl(resolve(root));
   const { bundle: jsBundle } = await instantiate();
-  return jsBundle(
+  const result = await jsBundle(
     root.toString(),
     bundleLoad,
-    JSON.stringify(imports),
-    undefined,
-    undefined,
+    type,
+    imports,
+    compilerOptions,
   );
+  return {
+    code: result.code,
+    map: result.maybe_map ?? undefined,
+  };
 }
 
 /** Transpile TypeScript (or JavaScript) into JavaScript, returning a promise
diff --git a/tests/__snapshots__/bundle/inline_source_maps_are_enabled_by_default.js b/tests/__snapshots__/bundle/inline_source_maps_are_enabled_by_default.js
new file mode 100644
index 0000000..2f81635
--- /dev/null
+++ b/tests/__snapshots__/bundle/inline_source_maps_are_enabled_by_default.js
@@ -0,0 +1,5 @@
+function hello() {
+    return "Hello there!";
+}
+export { hello as default };
+//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJzb3VyY2VzIjpbImZpbGU6Ly8vdGVzdGRhdGEvbW9kLnRzIl0sInNvdXJjZXNDb250ZW50IjpbImV4cG9ydCBkZWZhdWx0IGZ1bmN0aW9uIGhlbGxvKCk6IHN0cmluZyB7XG4gIHJldHVybiBcIkhlbGxvIHRoZXJlIVwiO1xufVxuIl0sIm5hbWVzIjpbXSwibWFwcGluZ3MiOiJBQUFlLFNBQVMsUUFBZ0I7SUFDdEMsT0FBTztBQUNUO0FBRkEsNEJBRUMifQ==
diff --git a/tests/__snapshots__/bundle/setting_inlinesourcemap_does_not_produce_any_source_maps.js b/tests/__snapshots__/bundle/setting_inlinesourcemap_does_not_produce_any_source_maps.js
new file mode 100644
index 0000000..5266bfa
--- /dev/null
+++ b/tests/__snapshots__/bundle/setting_inlinesourcemap_does_not_produce_any_source_maps.js
@@ -0,0 +1,4 @@
+function hello() {
+    return "Hello there!";
+}
+export { hello as default };
diff --git a/tests/__snapshots__/bundle/setting_inlinesourcemap_to_true_produces_inline_source_maps.js b/tests/__snapshots__/bundle/setting_inlinesourcemap_to_true_produces_inline_source_maps.js
new file mode 100644
index 0000000..2f81635
--- /dev/null
+++ b/tests/__snapshots__/bundle/setting_inlinesourcemap_to_true_produces_inline_source_maps.js
@@ -0,0 +1,5 @@
+function hello() {
+    return "Hello there!";
+}
+export { hello as default };
+//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJzb3VyY2VzIjpbImZpbGU6Ly8vdGVzdGRhdGEvbW9kLnRzIl0sInNvdXJjZXNDb250ZW50IjpbImV4cG9ydCBkZWZhdWx0IGZ1bmN0aW9uIGhlbGxvKCk6IHN0cmluZyB7XG4gIHJldHVybiBcIkhlbGxvIHRoZXJlIVwiO1xufVxuIl0sIm5hbWVzIjpbXSwibWFwcGluZ3MiOiJBQUFlLFNBQVMsUUFBZ0I7SUFDdEMsT0FBTztBQUNUO0FBRkEsNEJBRUMifQ==
diff --git a/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js b/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js
new file mode 100644
index 0000000..5266bfa
--- /dev/null
+++ b/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js
@@ -0,0 +1,4 @@
+function hello() {
+    return "Hello there!";
+}
+export { hello as default };
diff --git a/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js.map b/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js.map
new file mode 100644
index 0000000..9833742
--- /dev/null
+++ b/tests/__snapshots__/bundle/setting_sourcemap_to_true_and_inlinesourcemap_to_false_produces_external_source_maps.js.map
@@ -0,0 +1 @@
+{"version":3,"sources":["file:///testdata/mod.ts"],"sourcesContent":["export default function hello(): string {\n  return \"Hello there!\";\n}\n"],"names":[],"mappings":"AAAe,SAAS,QAAgB;IACtC,OAAO;AACT;AAFA,4BAEC"}
\ No newline at end of file
diff --git a/tests/__snapshots__/bundle/setting_sourcemap_to_true_is_not_enough_to_produce_external_source_maps_as_inline_takes_precedence.js b/tests/__snapshots__/bundle/setting_sourcemap_to_true_is_not_enough_to_produce_external_source_maps_as_inline_takes_precedence.js
new file mode 100644
index 0000000..5266bfa
--- /dev/null
+++ b/tests/__snapshots__/bundle/setting_sourcemap_to_true_is_not_enough_to_produce_external_source_maps_as_inline_takes_precedence.js
@@ -0,0 +1,4 @@
+function hello() {
+    return "Hello there!";
+}
+export { hello as default };
diff --git a/tests/bundle_test.ts b/tests/bundle_test.ts
index 00b2c38..051b906 100644
--- a/tests/bundle_test.ts
+++ b/tests/bundle_test.ts
@@ -1,5 +1,10 @@
 // Copyright 2018-2022 the Deno authors. All rights reserved. MIT license.
-import { assertStringIncludes } from "https://deno.land/std@0.182.0/testing/asserts.ts";
+import {
+  assert,
+  assertEquals,
+  assertExists,
+  assertStringIncludes,
+} from "https://deno.land/std@0.182.0/testing/asserts.ts";
 import { resolveFixture, testBundle } from "./utils.ts";
 
 // FIXME: This repeats the test below. Consider supporting URLs without wrapping
@@ -53,3 +58,82 @@ Deno.test({
     );
   }),
 });
+
+Deno.test({
+  name: "inline source maps are enabled by default",
+  fn: testBundle(resolveFixture("mod.ts"), undefined, ({ result }) => {
+    assertEquals(result.map, undefined);
+    assert(
+      result.code.split("\n").at(-2)?.startsWith(
+        "//# sourceMappingURL=data:application/json;base64,",
+      ),
+    );
+  }),
+});
+
+Deno.test({
+  name: "setting inlineSourceMap to true produces inline source maps",
+  fn: testBundle(resolveFixture("mod.ts"), {
+    compilerOptions: {
+      inlineSourceMap: true,
+    },
+  }, ({ result }) => {
+    assertEquals(result.map, undefined);
+    assert(
+      result.code.split("\n").at(-2)?.startsWith(
+        "//# sourceMappingURL=data:application/json;base64,",
+      ),
+    );
+  }),
+});
+
+Deno.test({
+  name: "setting inlineSourceMap does not produce any source maps",
+  fn: testBundle(resolveFixture("mod.ts"), {
+    compilerOptions: {
+      inlineSourceMap: false,
+    },
+  }, ({ result }) => {
+    assertEquals(result.map, undefined);
+    assert(
+      !result.code.includes(
+        "//# sourceMappingURL=data:application/json;base64,",
+      ),
+    );
+  }),
+});
+
+Deno.test({
+  name:
+    "setting sourceMap to true is not enough to produce external source maps as inline takes precedence",
+  fn: testBundle(resolveFixture("mod.ts"), {
+    compilerOptions: {
+      inlineSourceMap: false,
+    },
+  }, ({ result }) => {
+    assertEquals(result.map, undefined);
+    assert(
+      !result.code.includes(
+        "//# sourceMappingURL=data:application/json;base64,",
+      ),
+    );
+  }),
+});
+
+Deno.test({
+  name:
+    "setting sourceMap to true and inlineSourceMap to false produces external source maps",
+  fn: testBundle(resolveFixture("mod.ts"), {
+    compilerOptions: {
+      sourceMap: true,
+      inlineSourceMap: false,
+    },
+  }, ({ result }) => {
+    assertExists(result.map);
+    assert(
+      !result.code.includes(
+        "//# sourceMappingURL=data:application/json;base64,",
+      ),
+    );
+  }),
+});