diff --git a/compiler/crates/schema/src/in_memory/mod.rs b/compiler/crates/schema/src/in_memory/mod.rs
index 76ed7c17ee6c0..83b76bd93d511 100644
--- a/compiler/crates/schema/src/in_memory/mod.rs
+++ b/compiler/crates/schema/src/in_memory/mod.rs
@@ -1348,7 +1348,7 @@ impl InMemorySchema {
                 .iter()
                 .map(|field_def| {
                     let arguments = self.build_arguments(&field_def.arguments)?;
-                    let type_ = self.build_type_reference(&field_def.type_)?;
+                    let type_ = self.build_type_reference(&field_def.type_, field_location_key)?;
                     let directives = self.build_directive_values(&field_def.directives);
                     let description = field_def.description.as_ref().map(|desc| desc.value);
                     Ok(self.build_field(Field {
@@ -1390,7 +1390,7 @@ impl InMemorySchema {
                 }
                 let arguments = self.build_arguments(&field_def.arguments)?;
                 let directives = self.build_directive_values(&field_def.directives);
-                let type_ = self.build_type_reference(&field_def.type_)?;
+                let type_ = self.build_type_reference(&field_def.type_, source_location_key)?;
                 let description = field_def.description.as_ref().map(|desc| desc.value);
                 field_ids.push(self.build_field(Field {
                     name: WithLocation::new(field_location, field_name),
@@ -1465,22 +1465,23 @@ impl InMemorySchema {
     fn build_type_reference(
         &mut self,
         ast_type: &TypeAnnotation,
+        source_location: SourceLocationKey,
     ) -> DiagnosticsResult<TypeReference> {
         Ok(match ast_type {
             TypeAnnotation::Named(named_type) => TypeReference::Named(
                 *self.type_map.get(&named_type.name.value).ok_or_else(|| {
                     vec![Diagnostic::error(
                         SchemaError::UndefinedType(named_type.name.value),
-                        Location::generated(),
+                        Location::new(source_location, named_type.name.span),
                     )]
                 })?,
             ),
-            TypeAnnotation::NonNull(of_type) => {
-                TypeReference::NonNull(Box::new(self.build_type_reference(&of_type.type_)?))
-            }
-            TypeAnnotation::List(of_type) => {
-                TypeReference::List(Box::new(self.build_type_reference(&of_type.type_)?))
-            }
+            TypeAnnotation::NonNull(of_type) => TypeReference::NonNull(Box::new(
+                self.build_type_reference(&of_type.type_, source_location)?,
+            )),
+            TypeAnnotation::List(of_type) => TypeReference::List(Box::new(
+                self.build_type_reference(&of_type.type_, source_location)?,
+            )),
         })
     }
 
diff --git a/compiler/crates/schema/tests/build_schema/fixtures/invalid-type-reference.expected b/compiler/crates/schema/tests/build_schema/fixtures/invalid-type-reference.expected
index a05464c2b7af9..530b19980660f 100644
--- a/compiler/crates/schema/tests/build_schema/fixtures/invalid-type-reference.expected
+++ b/compiler/crates/schema/tests/build_schema/fixtures/invalid-type-reference.expected
@@ -7,7 +7,8 @@ type User {
 ==================================== ERROR ====================================
 ✖︎ Reference to undefined type 'Email'.
 
-  <generated>:1:1
-    1 │ # expected-to-throw
-      │ ^
-    2 │
+  <generated>:4:12
+    3 │ type User {
+    4 │   emails: [Email!]!
+      │            ^^^^^
+    5 │ }