diff --git a/cli/vm/compile.ts b/cli/vm/compile.ts
index e42a83aaa..f5e8cfc1e 100644
--- a/cli/vm/compile.ts
+++ b/cli/vm/compile.ts
@@ -48,7 +48,7 @@ export function compile(compileConfig: dataform.ICompileConfig) {
       resolve: (moduleName, parentDirName) =>
         path.join(parentDirName, path.relative(parentDirName, compileConfig.projectDir), moduleName)
     },
-    sourceExtensions: ["js", "sql", "sqlx", "yaml"],
+    sourceExtensions: ["js", "sql", "sqlx", "yaml", "yml"],
     compiler
   });
 
diff --git a/core/BUILD b/core/BUILD
index 3655099e1..b46881a57 100644
--- a/core/BUILD
+++ b/core/BUILD
@@ -65,6 +65,7 @@ ts_test_suite(
     srcs = [
         "main_test.ts",
         "utils_test.ts",
+        "compilers_test.ts",
         "actions/assertion_test.ts",
         "actions/data_preparation_test.ts",
         "actions/declaration_test.ts",
diff --git a/core/compilers.ts b/core/compilers.ts
index 69c8f7704..a760153ff 100644
--- a/core/compilers.ts
+++ b/core/compilers.ts
@@ -28,7 +28,7 @@ export function compile(code: string, path: string): string {
   if (Path.fileExtension(path) === "sqlx") {
     return compileSqlx(SyntaxTreeNode.create(code), path);
   }
-  if (Path.fileExtension(path) === "yaml") {
+  if (Path.fileExtension(path) === "yaml" || Path.fileExtension(path) === "yml") {
     try {
       const yamlAsJson = loadYaml(code);
       return `exports.asJson = ${JSON.stringify(yamlAsJson)}`;
diff --git a/core/compilers_test.ts b/core/compilers_test.ts
new file mode 100644
index 000000000..f5410e557
--- /dev/null
+++ b/core/compilers_test.ts
@@ -0,0 +1,96 @@
+import { expect } from "chai";
+
+import { compile } from "df/core/compilers";
+import { suite, test } from "df/testing";
+
+suite("core/compilers", () => {
+    suite("compile", () => {
+        test("compiles sqlx to js", () => {
+            const code = `config { type: "table" } select 1`;
+            const path = "definitions/foo.sqlx";
+            const result = compile(code, path);
+            expect(result).to.include("dataform.sqlxAction");
+            expect(result).to.include("name: \"foo\"");
+            expect(result).to.include("{ type: \"table\" }");
+            // The sqlx compiler will format the query.
+            expect(result).to.include("select 1");
+        });
+
+        test("compiles yml to js", () => {
+            const code = "foo: bar";
+            const path = "definitions/foo.yml";
+            const result = compile(code, path);
+            expect(result).to.equal(`exports.asJson = {"foo":"bar"}`);
+        });
+
+        test("compiles yaml to js", () => {
+            const code = `
+- item1
+- item2`;
+            const path = "definitions/foo.yaml";
+            const result = compile(code, path);
+            expect(result).to.equal(`exports.asJson = ["item1","item2"]`);
+        });
+
+        test("throws error for invalid yaml", () => {
+            const code = "foo: : bar";
+            const path = "definitions/foo.yaml";
+            expect(() => compile(code, path)).to.throw(`${path} is not a valid YAML file: YAMLException: bad indentation of a mapping entry (1:6)`);
+        });
+
+        test("compiles ipynb to js", () => {
+            const code = '{"cells": []}';
+            const path = "definitions/foo.ipynb";
+            const result = compile(code, path);
+            expect(result).to.equal('exports.asJson = {"cells":[]}');
+        });
+
+        test("throws error for invalid ipynb json", () => {
+            const code = '{"cells": [}';
+            const path = "definitions/foo.ipynb";
+            expect(() => compile(code, path)).to.throw(`Error parsing ${path} as JSON:`);
+        });
+
+        test("compiles sql to js", () => {
+            const code = "select 1";
+            const path = "definitions/foo.sql";
+            const result = compile(code, path);
+            expect(result).to.equal("exports.query = `select 1`;");
+        });
+
+        test("escapes backticks in sql", () => {
+            const code = "select `a` from `b`";
+            const path = "definitions/foo.sql";
+            const result = compile(code, path);
+            expect(result).to.equal("exports.query = `select \\`a\\` from \\`b\\``;");
+        });
+
+        test("escapes backslashes in sql", () => {
+            const code = "select ''";
+            const path = "definitions/foo.sql";
+            const result = compile(code, path);
+            expect(result).to.equal("exports.query = `select ''`;");
+        });
+
+        test("escapes template literals in sql", () => {
+            const code = "select ${foo}";
+            const path = "definitions/foo.sql";
+            const result = compile(code, path);
+            expect(result).to.equal("exports.query = `select \\${foo}`;");
+        });
+
+        test("returns raw code for other file types", () => {
+            const code = "const a = 1;";
+            const path = "definitions/foo.js";
+            const result = compile(code, path);
+            expect(result).to.equal(code);
+        });
+
+        test("returns raw code for files with no extension", () => {
+            const code = "const a = 1;";
+            const path = "definitions/foo";
+            const result = compile(code, path);
+            expect(result).to.equal(code);
+        });
+    });
+});