diff --git a/README.md b/README.md
index 52db849d..c061e21e 100644
--- a/README.md
+++ b/README.md
@@ -4,7 +4,7 @@
 [npm]: https://img.shields.io/npm/v/json-schema-to-typescript.svg?style=flat-square
 [mit]: https://img.shields.io/npm/l/json-schema-to-typescript.svg?style=flat-square
 
-> Compile json schema to typescript typings
+> Compile json/yml schema to typescript typings
 
 ## Example
 
diff --git a/package.json b/package.json
index d9673c7f..441baf33 100644
--- a/package.json
+++ b/package.json
@@ -57,6 +57,7 @@
     "glob": "^7.1.6",
     "glob-promise": "^4.2.2",
     "is-glob": "^4.0.3",
+    "js-yaml": "^4.1.0",
     "lodash": "^4.17.21",
     "minimist": "^1.2.6",
     "mkdirp": "^1.0.4",
@@ -67,6 +68,7 @@
     "@types/cli-color": "^2.0.2",
     "@types/glob": "^7.2.0",
     "@types/is-glob": "^4.0.2",
+    "@types/js-yaml": "^4.0.9",
     "@types/minimist": "^1.2.2",
     "@types/mkdirp": "^1.0.2",
     "@types/mz": "^2.7.4",
diff --git a/src/index.ts b/src/index.ts
index 20a078de..712ee182 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -15,6 +15,7 @@ import {validate} from './validator'
 import {isDeepStrictEqual} from 'util'
 import {link} from './linker'
 import {validateOptions} from './optionValidator'
+import yaml from 'js-yaml'
 
 export {EnumJSONSchema, JSONSchema, NamedEnumJSONSchema, CustomTypeJSONSchema} from './types/JSONSchema'
 
@@ -107,6 +108,10 @@ export const DEFAULT_OPTIONS: Options = {
   unknownAny: true,
 }
 
+function isYml(filename: string) {
+  return filename.split('.').pop() === 'yml'
+}
+
 export function compileFromFile(filename: string, options: Partial<Options> = DEFAULT_OPTIONS): Promise<string> {
   const contents = Try(
     () => readFileSync(filename),
@@ -114,12 +119,25 @@ export function compileFromFile(filename: string, options: Partial<Options> = DE
       throw new ReferenceError(`Unable to read file "${filename}"`)
     },
   )
-  const schema = Try<JSONSchema4>(
-    () => JSON.parse(contents.toString()),
-    () => {
-      throw new TypeError(`Error parsing JSON in file "${filename}"`)
-    },
-  )
+
+  let schema: JSONSchema4
+
+  if (isYml(filename)) {
+    schema = Try<JSONSchema4>(
+      () => JSON.parse(JSON.stringify(yaml.load(contents.toString()))),
+      () => {
+        throw new TypeError(`Error parsing YML in file "${filename}"`)
+      },
+    )
+  } else {
+    schema = Try<JSONSchema4>(
+      () => JSON.parse(contents.toString()),
+      () => {
+        throw new TypeError(`Error parsing JSON in file "${filename}"`)
+      },
+    )
+  }
+
   return compile(schema, stripExtension(filename), {cwd: dirname(filename), ...options})
 }
 
diff --git a/test/__snapshots__/test/test.ts.md b/test/__snapshots__/test/test.ts.md
index 43fcff5a..aa582aeb 100644
--- a/test/__snapshots__/test/test.ts.md
+++ b/test/__snapshots__/test/test.ts.md
@@ -449052,6 +449052,34 @@ Generated by [AVA](https://avajs.dev).
 
 ## compileFromFile should resolve refs from cwd option
 
+> Snapshot 1
+
+    `/* eslint-disable */␊
+    /**␊
+     * This file was automatically generated by json-schema-to-typescript.␊
+     * DO NOT MODIFY IT BY HAND. Instead, modify the source JSONSchema file,␊
+     * and run json-schema-to-typescript to regenerate this file.␊
+     */␊
+    ␊
+    export interface Referencing {␊
+      foo: ExampleSchema;␊
+    }␊
+    export interface ExampleSchema {␊
+      firstName: string;␊
+      lastName: string;␊
+      /**␊
+       * Age in years␊
+       */␊
+      age?: number;␊
+      height?: number;␊
+      favoriteFoods?: unknown[];␊
+      likesDogs?: boolean;␊
+      [k: string]: unknown;␊
+    }␊
+    `
+
+## compileFromFile should resolve refs from cwd option as yml
+
 > Snapshot 1
 
     `/* eslint-disable */␊
diff --git a/test/__snapshots__/test/test.ts.snap b/test/__snapshots__/test/test.ts.snap
index cae91b34..28de4e55 100644
Binary files a/test/__snapshots__/test/test.ts.snap and b/test/__snapshots__/test/test.ts.snap differ
diff --git a/test/resources/other/ReferencingType.yml b/test/resources/other/ReferencingType.yml
new file mode 100644
index 00000000..6a3ab6ec
--- /dev/null
+++ b/test/resources/other/ReferencingType.yml
@@ -0,0 +1,8 @@
+title: Referencing
+type: object
+properties:
+  foo:
+    "$ref": ReferencedType.json
+required:
+  - foo
+additionalProperties: false
diff --git a/test/testCompileFromFile.ts b/test/testCompileFromFile.ts
index 23d0b338..5a45a523 100644
--- a/test/testCompileFromFile.ts
+++ b/test/testCompileFromFile.ts
@@ -4,4 +4,7 @@ import {compileFromFile} from '../src'
 export function run() {
   test('compileFromFile should resolve refs from cwd option', async t =>
     t.snapshot(await compileFromFile('./test/resources/other/ReferencingType.json', {cwd: './test/resources'})))
+
+  test('compileFromFile should resolve refs from cwd option as yml', async t =>
+    t.snapshot(await compileFromFile('./test/resources/other/ReferencingType.yml', {cwd: './test/resources'})))
 }