diff --git a/apps/nxls-e2e/src/generators/generator-options-windows-file-uri.test.ts b/apps/nxls-e2e/src/generators/generator-options-windows-file-uri.test.ts
new file mode 100644
index 0000000000..32ebd124fd
--- /dev/null
+++ b/apps/nxls-e2e/src/generators/generator-options-windows-file-uri.test.ts
@@ -0,0 +1,168 @@
+import { join } from 'path';
+import { NxlsWrapper } from '../nxls-wrapper';
+import {
+  defaultVersion,
+  e2eCwd,
+  newWorkspace,
+  uniq,
+} from '@nx-console/shared-e2e-utils';
+import {
+  NxGeneratorOptionsRequest,
+  NxGeneratorOptionsRequestOptions,
+} from '@nx-console/language-server-types';
+
+let nxlsWrapper: NxlsWrapper;
+const workspaceName = uniq('workspace');
+
+describe('generator options - Windows file URI handling', () => {
+  beforeAll(async () => {
+    // Create a new workspace with basic React setup
+    newWorkspace({
+      name: workspaceName,
+      options: {
+        preset: 'react-monorepo',
+        bundler: 'vite',
+        e2eTestRunner: 'cypress',
+        style: 'css',
+      },
+      version: defaultVersion,
+    });
+
+    // Start the language server
+    nxlsWrapper = new NxlsWrapper();
+    await nxlsWrapper.startNxls(join(e2eCwd, workspaceName));
+  });
+
+  it('should handle Windows file URIs with file:// prefix correctly', async () => {
+    const schemaPath = join(
+      e2eCwd,
+      workspaceName,
+      'node_modules',
+      '@nx/js/src/generators/library/schema.json',
+    );
+
+    // Test with Windows-style file URI (simulating what happens on Windows)
+    const windowsFileUri = `file:///${schemaPath.replace(/\\/g, '/')}`;
+
+    const generatorOptions = await nxlsWrapper.sendRequest({
+      ...NxGeneratorOptionsRequest,
+      params: {
+        options: {
+          collection: '@nx/js',
+          name: 'library',
+          path: windowsFileUri,
+        } satisfies NxGeneratorOptionsRequestOptions,
+      },
+    });
+
+    // Verify the result is successful and contains expected options
+    expect(generatorOptions.result).toBeDefined();
+    expect(generatorOptions.error).toBeUndefined();
+
+    const options = generatorOptions.result as any[];
+    expect(options.length).toBeGreaterThan(0);
+
+    // Check for some expected options to ensure the schema was loaded correctly
+    const optionNames = options.map((o) => o.name);
+    expect(optionNames).toContain('name');
+    expect(optionNames).toContain('directory');
+    expect(optionNames).toContain('bundler');
+  });
+
+  it('should handle Windows file URIs with /c:/ pattern', async () => {
+    // Only run this test on Windows or in CI
+    if (process.platform !== 'win32' && !process.env.CI) {
+      console.log(
+        'Skipping Windows-specific path test on non-Windows platform',
+      );
+      return;
+    }
+
+    const schemaPath = join(
+      e2eCwd,
+      workspaceName,
+      'node_modules',
+      '@nx/js/src/generators/library/schema.json',
+    );
+
+    // Create a Windows-style path with /c:/ pattern
+    // This simulates the exact issue that was fixed
+    const windowsDriveLetter = schemaPath.match(/^([a-zA-Z]):/)?.[1] || 'c';
+    const pathWithoutDrive = schemaPath.replace(/^[a-zA-Z]:/, '');
+    const problematicWindowsUri = `file:///${windowsDriveLetter}:${pathWithoutDrive.replace(/\\/g, '/')}`;
+
+    const generatorOptions = await nxlsWrapper.sendRequest({
+      ...NxGeneratorOptionsRequest,
+      params: {
+        options: {
+          collection: '@nx/js',
+          name: 'library',
+          path: problematicWindowsUri,
+        } satisfies NxGeneratorOptionsRequestOptions,
+      },
+    });
+
+    // The fix should handle this correctly
+    expect(generatorOptions.result).toBeDefined();
+    expect(generatorOptions.error).toBeUndefined();
+
+    const options = generatorOptions.result as any[];
+    expect(options.length).toBeGreaterThan(0);
+  });
+
+  it('should handle regular file paths without file:// prefix', async () => {
+    const schemaPath = join(
+      e2eCwd,
+      workspaceName,
+      'node_modules',
+      '@nx/js/src/generators/library/schema.json',
+    );
+
+    const generatorOptions = await nxlsWrapper.sendRequest({
+      ...NxGeneratorOptionsRequest,
+      params: {
+        options: {
+          collection: '@nx/js',
+          name: 'library',
+          path: schemaPath,
+        } satisfies NxGeneratorOptionsRequestOptions,
+      },
+    });
+
+    // Should work with regular paths too
+    expect(generatorOptions.result).toBeDefined();
+    expect(generatorOptions.error).toBeUndefined();
+
+    const options = generatorOptions.result as any[];
+    expect(options.length).toBeGreaterThan(0);
+  });
+
+  it('should return error for non-existent schema file with file:// URI', async () => {
+    const nonExistentPath = join(
+      e2eCwd,
+      workspaceName,
+      'node_modules',
+      '@nx/js/src/generators/non-existent/schema.json',
+    );
+
+    const windowsFileUri = `file:///${nonExistentPath.replace(/\\/g, '/')}`;
+
+    const generatorOptions = await nxlsWrapper.sendRequest({
+      ...NxGeneratorOptionsRequest,
+      params: {
+        options: {
+          collection: '@nx/js',
+          name: 'non-existent',
+          path: windowsFileUri,
+        } satisfies NxGeneratorOptionsRequestOptions,
+      },
+    });
+
+    // Should handle errors gracefully
+    expect(generatorOptions.error).toBeDefined();
+  });
+
+  afterAll(async () => {
+    return await nxlsWrapper.stopNxls();
+  });
+});