diff --git a/packages/next/build/webpack-config.ts b/packages/next/build/webpack-config.ts
index 9a72997afdacb4206f2c33f4f233d32daf84a327..969eb4a486bfef72dbdf8bcf99985d78cae1a28a 100644
--- a/packages/next/build/webpack-config.ts
+++ b/packages/next/build/webpack-config.ts
@@ -51,6 +51,7 @@ import WebpackConformancePlugin, {
   ReactSyncScriptsConformanceCheck,
 } from './webpack/plugins/webpack-conformance-plugin'
 import { WellKnownErrorsPlugin } from './webpack/plugins/wellknown-errors-plugin'
+import { codeFrameColumns } from '@babel/code-frame'
 
 type ExcludesFalse = <T>(x: T | false) => x is T
 
@@ -65,7 +66,16 @@ const escapePathVariables = (value: any) => {
 function parseJsonFile(path: string) {
   const JSON5 = require('next/dist/compiled/json5')
   const contents = readFileSync(path)
-  return JSON5.parse(contents)
+  try {
+    return JSON5.parse(contents)
+  } catch (err) {
+    const codeFrame = codeFrameColumns(
+      String(contents),
+      { start: { line: err.lineNumber, column: err.columnNumber } },
+      { message: err.message, highlightCode: true }
+    )
+    throw new Error(`Failed to parse "${path}":\n${codeFrame}`)
+  }
 }
 
 function getOptimizedAliases(isServer: boolean): { [pkg: string]: string } {
diff --git a/packages/next/package.json b/packages/next/package.json
index bcd5bbe8aa5833ee513017346ef63b689431b97b..156fbabd95b7ce774f361b4fc74382ff930ea05e 100644
--- a/packages/next/package.json
+++ b/packages/next/package.json
@@ -59,6 +59,7 @@
   },
   "dependencies": {
     "@ampproject/toolbox-optimizer": "2.3.1",
+    "@babel/code-frame": "7.8.3",
     "@babel/core": "7.7.7",
     "@babel/plugin-proposal-class-properties": "7.8.3",
     "@babel/plugin-proposal-nullish-coalescing-operator": "7.8.3",
@@ -119,6 +120,7 @@
     "@taskr/esnext": "1.1.0",
     "@taskr/watch": "1.1.0",
     "@types/amphtml-validator": "1.0.0",
+    "@types/babel__code-frame": "7.0.1",
     "@types/babel__core": "7.1.7",
     "@types/babel__generator": "7.6.1",
     "@types/babel__template": "7.0.2",
diff --git a/test/integration/jsconfig/jsconfig.json b/test/integration/jsconfig/jsconfig.json
new file mode 100644
index 0000000000000000000000000000000000000000..0967ef424bce6791893e9a57bb952f80fd536e93
--- /dev/null
+++ b/test/integration/jsconfig/jsconfig.json
@@ -0,0 +1 @@
+{}
diff --git a/test/integration/jsconfig/pages/hello.js b/test/integration/jsconfig/pages/hello.js
new file mode 100644
index 0000000000000000000000000000000000000000..447b3a0a99096752d7809800984bcd57b4fd5514
--- /dev/null
+++ b/test/integration/jsconfig/pages/hello.js
@@ -0,0 +1 @@
+export default () => <div>hello world</div>
diff --git a/test/integration/jsconfig/test/index.test.js b/test/integration/jsconfig/test/index.test.js
new file mode 100644
index 0000000000000000000000000000000000000000..531231a100249d78d4c89a5f2d117e747cf90dd7
--- /dev/null
+++ b/test/integration/jsconfig/test/index.test.js
@@ -0,0 +1,35 @@
+/* eslint-env jest */
+
+import fs from 'fs-extra'
+import { join } from 'path'
+import { nextBuild } from 'next-test-utils'
+
+jest.setTimeout(1000 * 60 * 2)
+
+const appDir = join(__dirname, '..')
+
+describe('jsconfig.json', () => {
+  it('should build normally', async () => {
+    const res = await await nextBuild(appDir, [], { stdout: true })
+    expect(res.stdout).toMatch(/Compiled successfully\./)
+  })
+
+  it('should fail on invalid jsconfig.json', async () => {
+    const jsconfigPath = join(appDir, 'jsconfig.json')
+    const originalJsconfig = await fs.readFile(jsconfigPath, {
+      encoding: 'utf-8',
+    })
+    await fs.writeFile(jsconfigPath, '{', {
+      encoding: 'utf-8',
+    })
+    try {
+      const res = await nextBuild(appDir, [], { stderr: true })
+      expect(res.stderr).toMatch(/Error: Failed to parse "/)
+      expect(res.stderr).toMatch(/JSON5: invalid end of input at 1:2/)
+    } finally {
+      await fs.writeFile(jsconfigPath, originalJsconfig, {
+        encoding: 'utf-8',
+      })
+    }
+  })
+})
diff --git a/yarn.lock b/yarn.lock
index 30740eda0054d4f456fdaa3f00a15f2b5878a71d..da5d9c244bdc41e19f6ddb544a209c8c7f8207b0 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2689,6 +2689,11 @@
   resolved "https://registry.yarnpkg.com/@types/anymatch/-/anymatch-1.3.1.tgz#336badc1beecb9dacc38bea2cf32adf627a8421a"
   integrity sha512-/+CRPXpBDpo2RK9C68N3b2cOvO0Cf5B9aPijHsoDQTHivnGSObdOF2BRQOYjojWTDy6nQvMjmqRXIxH55VjxxA==
 
+"@types/babel__code-frame@7.0.1":
+  version "7.0.1"
+  resolved "https://registry.yarnpkg.com/@types/babel__code-frame/-/babel__code-frame-7.0.1.tgz#baf2529c4abbfb5e4008c845efcfe39a187e2f99"
+  integrity sha512-FFfbQozKxYmOnCKFYV+EQprjBI7u2yaNc2ly/K9AhzyC8MzXtCtSRqptpw+HUJxhwCOo5mLwf1ATmzyhOaVbDg==
+
 "@types/babel__core@7.1.7", "@types/babel__core@^7.1.7":
   version "7.1.7"
   resolved "https://registry.yarnpkg.com/@types/babel__core/-/babel__core-7.1.7.tgz#1dacad8840364a57c98d0dd4855c6dd3752c6b89"