diff --git a/README.md b/README.md
index 9d2534423..250c8907d 100644
--- a/README.md
+++ b/README.md
@@ -7,6 +7,7 @@ Use TypeScript in your Ember 2.x and 3.x apps!
 * [Setup and Configuration](#setup-and-configuration)
   * [Ember Support](#ember-support)
   * [`tsconfig.json`](#tsconfigjson)
+  * [Sourcemaps](#sourcemaps)
 * [Using TypeScript with Ember effectively](#using-typescript-with-ember-effectively)
   * [Incremental adoption](#incremental-adoption)
   * [Install other types!](#install-other-types)
@@ -84,6 +85,20 @@ However, there are a few things worth noting if you're already familiar with Typ
 [blueprint]: https://github.com/typed-ember/ember-cli-typescript/blob/master/blueprints/ember-cli-typescript/files/tsconfig.json
 [broccoli]: http://broccolijs.com/
 
+### Sourcemaps
+
+To enable TypeScript sourcemaps, you'll need to add the corresponding configuration for Babel to your `ember-cli-build.js` file:
+
+```ts
+const app = new EmberApp(defaults, {
+  babel: {
+    sourceMaps: 'inline',
+  },
+});
+```
+
+(Note that this _will_ noticeably slow down your app rebuilds.)
+
 ## Using TypeScript with Ember effectively
 
 In addition to the points made below, you may find the [Typing Your Ember][typing-your-ember] blog series (especially the "Update" sequence) particularly helpful in knowing how to do specific things.
diff --git a/blueprints/ember-cli-typescript/files/tsconfig.json b/blueprints/ember-cli-typescript/files/tsconfig.json
index c6e46e8d7..ee6d10feb 100644
--- a/blueprints/ember-cli-typescript/files/tsconfig.json
+++ b/blueprints/ember-cli-typescript/files/tsconfig.json
@@ -7,7 +7,8 @@
     "noImplicitThis": true,
     "noEmitOnError": false,
     "noEmit": true,
-    "sourceMap": true,
+    "inlineSourceMap": true,
+    "inlineSources": true,
     "baseUrl": ".",
     "module": "es6",
     "paths": <%= pathsFor(dasherizedPackageName) %>
diff --git a/node-tests/blueprints/ember-cli-typescript-test.js b/node-tests/blueprints/ember-cli-typescript-test.js
index 7faa12021..92cf2ff3d 100644
--- a/node-tests/blueprints/ember-cli-typescript-test.js
+++ b/node-tests/blueprints/ember-cli-typescript-test.js
@@ -37,6 +37,9 @@ describe('Acceptance: ember-cli-typescript generator', function() {
           '*': ['types/*'],
         });
 
+        expect(tsconfigJson.compilerOptions.inlineSourceMap).to.equal(true);
+        expect(tsconfigJson.compilerOptions.inlineSources).to.equal(true);
+
         expect(tsconfigJson.include).to.deep.equal(['app', 'tests']);
 
         const projectTypes = file('types/my-app/index.d.ts');