diff --git a/index.d.ts b/index.d.ts
index 0181e17..d9ab992 100644
--- a/index.d.ts
+++ b/index.d.ts
@@ -7,7 +7,7 @@ export interface Options {
 
 	@default process.cwd()
 	*/
-	readonly cwd?: string;
+	readonly cwd?: URL | string;
 
 	/**
 	[Normalize](https://github.com/npm/normalize-package-data#what-normalization-currently-entails) the package data.
diff --git a/index.js b/index.js
index c588b85..36ee75b 100644
--- a/index.js
+++ b/index.js
@@ -1,10 +1,14 @@
 import process from 'node:process';
 import fs, {promises as fsPromises} from 'node:fs';
 import path from 'node:path';
+import {fileURLToPath} from 'node:url';
 import parseJson from 'parse-json';
 import normalizePackageData from 'normalize-package-data';
 
-export async function readPackage({cwd = process.cwd(), normalize = true} = {}) {
+const toPath = urlOrPath => urlOrPath instanceof URL ? fileURLToPath(urlOrPath) : urlOrPath;
+
+export async function readPackage({cwd, normalize = true} = {}) {
+	cwd = toPath(cwd) || process.cwd();
 	const filePath = path.resolve(cwd, 'package.json');
 	const json = parseJson(await fsPromises.readFile(filePath, 'utf8'));
 
@@ -15,7 +19,8 @@ export async function readPackage({cwd = process.cwd(), normalize = true} = {})
 	return json;
 }
 
-export function readPackageSync({cwd = process.cwd(), normalize = true} = {}) {
+export function readPackageSync({cwd, normalize = true} = {}) {
+	cwd = toPath(cwd) || process.cwd();
 	const filePath = path.resolve(cwd, 'package.json');
 	const json = parseJson(fs.readFileSync(filePath, 'utf8'));
 
diff --git a/index.test-d.ts b/index.test-d.ts
index 995a081..00940de 100644
--- a/index.test-d.ts
+++ b/index.test-d.ts
@@ -11,9 +11,11 @@ expectError<Promise<NormalizedPackageJson>>(
 	readPackage({normalize: false}),
 );
 expectType<Promise<NormalizedPackageJson>>(readPackage({cwd: '.'}));
+expectType<Promise<NormalizedPackageJson>>(readPackage({cwd: new URL('file:///path/to/cwd/')}));
 
 expectType<NormalizedPackageJson>(readPackageSync());
 expectType<NormalizedPackageJson>(readPackageSync({normalize: true}));
 expectType<PackageJson>(readPackageSync({normalize: false}));
 expectError<NormalizedPackageJson>(readPackageSync({normalize: false}));
 expectType<NormalizedPackageJson>(readPackageSync({cwd: '.'}));
+expectType<NormalizedPackageJson>(readPackageSync({cwd: new URL('file:///path/to/cwd/')}));
diff --git a/readme.md b/readme.md
index f98e933..c15dc92 100644
--- a/readme.md
+++ b/readme.md
@@ -41,7 +41,7 @@ Type: `object`
 
 ##### cwd
 
-Type: `string`\
+Type: `URL | string`\
 Default: `process.cwd()`
 
 Current working directory.
diff --git a/test/test.js b/test/test.js
index 116aa9b..1a7636b 100644
--- a/test/test.js
+++ b/test/test.js
@@ -1,4 +1,4 @@
-import {fileURLToPath} from 'url';
+import {fileURLToPath, pathToFileURL} from 'url';
 import path from 'path';
 import test from 'ava';
 import {readPackage, readPackageSync} from '../index.js';
@@ -16,6 +16,10 @@ test('async', async t => {
 test('async - cwd option', async t => {
 	const package_ = await readPackage({cwd: rootCwd});
 	t.is(package_.name, 'read-pkg');
+	t.deepEqual(
+		await readPackage({cwd: pathToFileURL(rootCwd)}),
+		package_,
+	);
 });
 
 test('sync', t => {
@@ -27,4 +31,8 @@ test('sync', t => {
 test('sync - cwd option', t => {
 	const package_ = readPackageSync({cwd: rootCwd});
 	t.is(package_.name, 'read-pkg');
+	t.deepEqual(
+		readPackageSync({cwd: pathToFileURL(rootCwd)}),
+		package_,
+	);
 });