diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7195e45..63097f6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,8 @@ All notable changes to the Docker Language Server will be documented in this fil
     - improve handling of malformed image attribute values with registry prefixes ([#369](https://github.com/docker/docker-language-server/issues/369))
     - convert links properly if a WSL URI with a dollar sign is used ([#366](https://github.com/docker/docker-language-server/issues/366))
 - Bake
+  - textDocument/codeLens
+    - refactor the URI handling code so it will accept a WSL URI with a dollar sign ([#388](https://github.com/docker/docker-language-server/issues/388))
   - textDocument/documentLink
     - convert links properly if a WSL URI with a dollar sign is used ([#378](https://github.com/docker/docker-language-server/issues/378))
   - textDocument/inlineCompletion
diff --git a/internal/bake/hcl/codeLens.go b/internal/bake/hcl/codeLens.go
index 611005a..6d7e85b 100644
--- a/internal/bake/hcl/codeLens.go
+++ b/internal/bake/hcl/codeLens.go
@@ -4,8 +4,6 @@ import (
 	"context"
 	"errors"
 	"fmt"
-	"net/url"
-	"path/filepath"
 
 	"github.com/docker/docker-language-server/internal/pkg/document"
 	"github.com/docker/docker-language-server/internal/tliron/glsp/protocol"
@@ -13,44 +11,45 @@ import (
 	"github.com/hashicorp/hcl/v2/hclsyntax"
 )
 
-func CodeLens(ctx context.Context, filename string, doc document.BakeHCLDocument) ([]protocol.CodeLens, error) {
+func CodeLens(ctx context.Context, documentURI string, doc document.BakeHCLDocument) ([]protocol.CodeLens, error) {
 	body, ok := doc.File().Body.(*hclsyntax.Body)
 	if !ok {
 		return nil, errors.New("unrecognized body in HCL document")
 	}
 
-	url, err := url.Parse(filename)
+	dp, err := doc.DocumentPath()
 	if err != nil {
-		return nil, fmt.Errorf("could not parse URI (%v): %w", filename, err)
+		return nil, fmt.Errorf("could not parse URI (%v): %w", documentURI, err)
 	}
 
-	filename = url.Path
+	_, cwd := types.Concatenate(dp.Folder, ".", dp.WSLDollarSignHost)
 	result := []protocol.CodeLens{}
 	for _, block := range body.Blocks {
 		if len(block.Labels) > 0 {
-			if block.Type == "group" {
+			switch block.Type {
+			case "group":
 				rng := protocol.Range{
 					Start: protocol.Position{Line: uint32(block.Range().Start.Line - 1)},
 					End:   protocol.Position{Line: uint32(block.Range().Start.Line - 1)},
 				}
-				result = append(result, createCodeLens("Build", filename, "build", block.Labels[0], rng))
-				result = append(result, createCodeLens("Check", filename, "check", block.Labels[0], rng))
-				result = append(result, createCodeLens("Print", filename, "print", block.Labels[0], rng))
-			} else if block.Type == "target" {
+				result = append(result, createCodeLens("Build", cwd, "build", block.Labels[0], rng))
+				result = append(result, createCodeLens("Check", cwd, "check", block.Labels[0], rng))
+				result = append(result, createCodeLens("Print", cwd, "print", block.Labels[0], rng))
+			case "target":
 				rng := protocol.Range{
 					Start: protocol.Position{Line: uint32(block.Range().Start.Line - 1)},
 					End:   protocol.Position{Line: uint32(block.Range().Start.Line - 1)},
 				}
-				result = append(result, createCodeLens("Build", filename, "build", block.Labels[0], rng))
-				result = append(result, createCodeLens("Check", filename, "check", block.Labels[0], rng))
-				result = append(result, createCodeLens("Print", filename, "print", block.Labels[0], rng))
+				result = append(result, createCodeLens("Build", cwd, "build", block.Labels[0], rng))
+				result = append(result, createCodeLens("Check", cwd, "check", block.Labels[0], rng))
+				result = append(result, createCodeLens("Print", cwd, "print", block.Labels[0], rng))
 			}
 		}
 	}
 	return result, nil
 }
 
-func createCodeLens(title, filename, call, target string, rng protocol.Range) protocol.CodeLens {
+func createCodeLens(title, cwd, call, target string, rng protocol.Range) protocol.CodeLens {
 	return protocol.CodeLens{
 		Range: rng,
 		Command: &protocol.Command{
@@ -60,7 +59,7 @@ func createCodeLens(title, filename, call, target string, rng protocol.Range) pr
 				map[string]string{
 					"call":   call,
 					"target": target,
-					"cwd":    filepath.Dir(types.StripLeadingSlash(filename)),
+					"cwd":    cwd,
 				},
 			},
 		},
diff --git a/internal/bake/hcl/codeLens_test.go b/internal/bake/hcl/codeLens_test.go
index 1a13d80..8ab1358 100644
--- a/internal/bake/hcl/codeLens_test.go
+++ b/internal/bake/hcl/codeLens_test.go
@@ -18,7 +18,14 @@ func TestCodeLens(t *testing.T) {
 	testsFolder := filepath.Join(os.TempDir(), "codeLensTests")
 	bakeFilePath := filepath.Join(testsFolder, "docker-bake.hcl")
 	uriString := fmt.Sprintf("file:///%v", filepath.ToSlash(bakeFilePath))
+	testCodeLens(t, testsFolder, uriString)
+}
+
+func TestCodeLens_WSL(t *testing.T) {
+	testCodeLens(t, "\\\\wsl$\\docker-desktop\\tmp", "file://wsl%24/docker-desktop/tmp/docker-bake.hcl")
+}
 
+func testCodeLens(t *testing.T, testsFolder, uriString string) {
 	testCases := []struct {
 		name     string
 		content  string