diff --git a/CHANGELOG.md b/CHANGELOG.md
index be2c8117a14f..4071daaab0f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -23,6 +23,12 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 
+- Fix symlink issues when resolving `@source` directives ([#17391](https://github.com/tailwindlabs/tailwindcss/pull/17391))
+
+## [4.0.17] - 2025-03-26
+
+### Fixed
+
 - Fix an issue causing the CLI to hang when processing Ruby files ([#17383](https://github.com/tailwindlabs/tailwindcss/pull/17383))
 
 ## [4.0.16] - 2025-03-25
@@ -3582,7 +3588,8 @@ No release notes
 
 - Everything!
 
-[unreleased]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.16...HEAD
+[unreleased]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.17...HEAD
+[4.0.17]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.16...v4.0.17
 [4.0.16]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.15...v4.0.16
 [4.0.15]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.14...v4.0.15
 [4.0.14]: https://github.com/tailwindlabs/tailwindcss/compare/v4.0.13...v4.0.14
diff --git a/crates/oxide/src/scanner/mod.rs b/crates/oxide/src/scanner/mod.rs
index 445dfc98372b..416191c27ce0 100644
--- a/crates/oxide/src/scanner/mod.rs
+++ b/crates/oxide/src/scanner/mod.rs
@@ -523,6 +523,9 @@ fn create_walker(sources: Sources) -> Option<WalkBuilder> {
 
     let mut builder = WalkBuilder::new(first_root?);
 
+    // We have to follow symlinks
+    builder.follow_links(true);
+
     // Scan hidden files / directories
     builder.hidden(false);
 
diff --git a/crates/oxide/src/scanner/sources.rs b/crates/oxide/src/scanner/sources.rs
index 450fcb7c2873..ea6c115a4fc3 100644
--- a/crates/oxide/src/scanner/sources.rs
+++ b/crates/oxide/src/scanner/sources.rs
@@ -243,7 +243,9 @@ impl From<PublicSourceEntry> for SourceEntry {
                 std::path::MAIN_SEPARATOR,
                 dir,
                 std::path::MAIN_SEPARATOR
-            ))
+            )) || value
+                .base
+                .ends_with(&format!("{}{}", std::path::MAIN_SEPARATOR, dir,))
         });
 
         match (value.negated, auto, inside_ignored_content_dir) {
diff --git a/crates/oxide/tests/scanner.rs b/crates/oxide/tests/scanner.rs
index 03daee0ebafb..c5ece5d75090 100644
--- a/crates/oxide/tests/scanner.rs
+++ b/crates/oxide/tests/scanner.rs
@@ -1,6 +1,6 @@
 #[cfg(test)]
 mod scanner {
-    use std::path::PathBuf;
+    use std::path::{Path, PathBuf};
     use std::process::Command;
     use std::thread::sleep;
     use std::time::Duration;
@@ -9,6 +9,16 @@ mod scanner {
     use tailwindcss_oxide::*;
     use tempfile::tempdir;
 
+    fn symlink<P: AsRef<Path>, Q: AsRef<Path>>(original: P, link: Q) -> std::io::Result<()> {
+        #[cfg(not(windows))]
+        let result = std::os::unix::fs::symlink(original, link);
+
+        #[cfg(windows)]
+        let result = std::os::windows::fs::symlink_dir(original, link);
+
+        result
+    }
+
     fn public_source_entry_from_pattern(dir: PathBuf, pattern: &str) -> PublicSourceEntry {
         let mut parts = pattern.split_whitespace();
         let _ = parts.next().unwrap_or_default();
@@ -646,8 +656,8 @@ mod scanner {
         assert_eq!(
             candidates,
             vec![
-                "content-['project-a/index.html']".to_owned(),
-                "content-['project-b/index.html']".to_owned(),
+                "content-['project-a/index.html']",
+                "content-['project-b/index.html']"
             ]
         );
     }
@@ -702,8 +712,8 @@ mod scanner {
         assert_eq!(
             candidates,
             vec![
-                "content-['project-a/index.html']".to_owned(),
-                "content-['project-b/index.html']".to_owned(),
+                "content-['project-a/index.html']",
+                "content-['project-b/index.html']"
             ]
         );
 
@@ -726,10 +736,10 @@ mod scanner {
         assert_eq!(
             candidates,
             vec![
-                "content-['project-a/index.html']".to_owned(),
-                "content-['project-a/new.html']".to_owned(),
-                "content-['project-b/index.html']".to_owned(),
-                "content-['project-b/new.html']".to_owned(),
+                "content-['project-a/index.html']",
+                "content-['project-a/new.html']",
+                "content-['project-b/index.html']",
+                "content-['project-b/new.html']"
             ]
         );
 
@@ -758,12 +768,12 @@ mod scanner {
         assert_eq!(
             candidates,
             vec![
-                "content-['project-a/index.html']".to_owned(),
-                "content-['project-a/new.html']".to_owned(),
-                "content-['project-a/sub1/sub2/index.html']".to_owned(),
-                "content-['project-b/index.html']".to_owned(),
-                "content-['project-b/new.html']".to_owned(),
-                "content-['project-b/sub1/sub2/index.html']".to_owned(),
+                "content-['project-a/index.html']",
+                "content-['project-a/new.html']",
+                "content-['project-a/sub1/sub2/index.html']",
+                "content-['project-b/index.html']",
+                "content-['project-b/new.html']",
+                "content-['project-b/sub1/sub2/index.html']"
             ]
         );
 
@@ -792,14 +802,14 @@ mod scanner {
         assert_eq!(
             candidates,
             vec![
-                "content-['project-a/index.html']".to_owned(),
-                "content-['project-a/new.html']".to_owned(),
-                "content-['project-a/sub1/sub2/index.html']".to_owned(),
-                "content-['project-a/sub1/sub2/new.html']".to_owned(),
-                "content-['project-b/index.html']".to_owned(),
-                "content-['project-b/new.html']".to_owned(),
-                "content-['project-b/sub1/sub2/index.html']".to_owned(),
-                "content-['project-b/sub1/sub2/new.html']".to_owned(),
+                "content-['project-a/index.html']",
+                "content-['project-a/new.html']",
+                "content-['project-a/sub1/sub2/index.html']",
+                "content-['project-a/sub1/sub2/new.html']",
+                "content-['project-b/index.html']",
+                "content-['project-b/new.html']",
+                "content-['project-b/sub1/sub2/index.html']",
+                "content-['project-b/sub1/sub2/new.html']"
             ]
         );
     }
@@ -1611,4 +1621,117 @@ mod scanner {
         assert_eq!(globs, vec!["*", "src/*/*.{aspx,astro,cjs,cts,eex,erb,gjs,gts,haml,handlebars,hbs,heex,html,jade,js,jsx,liquid,md,mdx,mjs,mts,mustache,njk,nunjucks,php,pug,py,razor,rb,rhtml,rs,slim,svelte,tpl,ts,tsx,twig,vue}"]);
         assert_eq!(normalized_sources, vec!["**/*"]);
     }
+
+    #[test]
+    fn test_glob_with_symlinks() {
+        let dir = tempdir().unwrap().into_path();
+        create_files_in(
+            &dir,
+            &[
+                (".gitignore", "node_modules\ndist"),
+                (
+                    "node_modules/.pnpm/@org+my-ui-library/dist/index.ts",
+                    "content-['node_modules/.pnpm/@org+my-ui-library/dist/index.ts']",
+                ),
+                // Make sure the `@org` does exist
+                ("node_modules/@org/.gitkeep", ""),
+            ],
+        );
+        let _ = symlink(
+            dir.join("node_modules/.pnpm/@org+my-ui-library"),
+            dir.join("node_modules/@org/my-ui-library"),
+        );
+
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source 'node_modules'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(
+            candidates,
+            vec!["content-['node_modules/.pnpm/@org+my-ui-library/dist/index.ts']"]
+        );
+
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source 'node_modules/@org/my-ui-library'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(
+            candidates,
+            vec!["content-['node_modules/.pnpm/@org+my-ui-library/dist/index.ts']"]
+        );
+
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source 'node_modules/@org'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(
+            candidates,
+            vec!["content-['node_modules/.pnpm/@org+my-ui-library/dist/index.ts']"]
+        );
+    }
+
+    #[test]
+    fn test_globs_with_recursive_symlinks() {
+        let dir = tempdir().unwrap().into_path();
+        create_files_in(
+            &dir,
+            &[
+                ("b/index.html", "content-['b/index.html']"),
+                ("z/index.html", "content-['z/index.html']"),
+            ],
+        );
+
+        // Create recursive symlinks
+        let _ = symlink(dir.join("a"), dir.join("b"));
+        let _ = symlink(dir.join("b/c"), dir.join("c"));
+        let _ = symlink(dir.join("b/root"), &dir);
+        let _ = symlink(dir.join("c"), dir.join("a"));
+
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source '.'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(
+            candidates,
+            vec!["content-['b/index.html']", "content-['z/index.html']"]
+        );
+    }
+
+    #[test]
+    fn test_partial_globs_with_symlinks() {
+        let dir = tempdir().unwrap().into_path();
+        create_files_in(&dir, &[("abcd/xyz.html", "content-['abcd/xyz.html']")]);
+        let _ = symlink(dir.join("abcd"), dir.join("efgh"));
+
+        // No sources should find nothing
+        let mut scanner = Scanner::new(vec![]);
+        let candidates = scanner.scan();
+        assert!(candidates.is_empty());
+
+        // Full symlinked folder name, should find the file
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source 'efgh/*.html'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(candidates, vec!["content-['abcd/xyz.html']"]);
+
+        // Partially referencing the symlinked folder with a glob, should find the file
+        let mut scanner = Scanner::new(vec![public_source_entry_from_pattern(
+            dir.clone(),
+            "@source 'ef*/*.html'",
+        )]);
+        let candidates = scanner.scan();
+
+        assert_eq!(candidates, vec!["content-['abcd/xyz.html']"]);
+    }
 }