diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4ad3f48d3a..02fc0fae9d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,7 @@
 
 #### :bug: Bug Fix
 - Fix implementation of directives https://github.com/rescript-lang/rescript-compiler/pull/6052
+- Fix issue if the `lib` dir is included in the sources of bsconfig.json https://github.com/rescript-lang/rescript-compiler/pull/6055
 
 #### :rocket: New Feature
 - Add support for toplevel `await` https://github.com/rescript-lang/rescript-compiler/pull/6054
diff --git a/jscomp/bsb/bsb_parse_sources.ml b/jscomp/bsb/bsb_parse_sources.ml
index c10aef4e8f..e9969e957d 100644
--- a/jscomp/bsb/bsb_parse_sources.ml
+++ b/jscomp/bsb/bsb_parse_sources.ml
@@ -298,6 +298,9 @@ and parsing_single_source ({ package_kind; is_dev; cwd } as cxt)
           let dir =
             match map.?(Bsb_build_schemas.dir) with
             | Some (Str { str }) ->
+                if str = Literals.library_file then
+                    Bsb_exception.config_error x (Printf.sprintf "dir field should be different from `%s`" Literals.library_file)
+                else
                 Ext_path.simple_convert_node_path_to_os_path str
             | Some x ->
                 Bsb_exception.config_error x "dir expected to be a string"
diff --git a/lib/4.06.1/rescript.ml b/lib/4.06.1/rescript.ml
index 304ee174aa..629e4e6b4f 100644
--- a/lib/4.06.1/rescript.ml
+++ b/lib/4.06.1/rescript.ml
@@ -10333,6 +10333,9 @@ and parsing_single_source ({ package_kind; is_dev; cwd } as cxt)
           let dir =
             match map.?(Bsb_build_schemas.dir) with
             | Some (Str { str }) ->
+                if str = Literals.library_file then
+                    Bsb_exception.config_error x (Printf.sprintf "dir field should be different from `%s`" Literals.library_file)
+                else
                 Ext_path.simple_convert_node_path_to_os_path str
             | Some x ->
                 Bsb_exception.config_error x "dir expected to be a string"