diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5c9bdc93..7ccd611a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,13 @@
 
 [#260]: https://github.com/sass/dart-sass/issues/260
 
+### Node API
+
+* Allow both the `data` and `file` options to be passed to `render()` and
+  `renderSync()` at once. The `data` option will be used as the contents of the
+  stylesheet, and the `file` option will be used as the path for error reporting
+  and relative imports. This matches Node Sass's behavior.
+
 ## 1.0.0-rc.1
 
 * Add support for importing an `_index.scss` or `_index.sass` file when
diff --git a/lib/src/node.dart b/lib/src/node.dart
index 0e61bf50..bb91cddc 100644
--- a/lib/src/node.dart
+++ b/lib/src/node.dart
@@ -89,11 +89,6 @@ Future<RenderResult> _renderAsync(RenderOptions options) async {
   var start = new DateTime.now();
   CompileResult result;
   if (options.data != null) {
-    if (options.file != null) {
-      throw new ArgumentError(
-          "options.data and options.file may not both be set.");
-    }
-
     result = await compileStringAsync(options.data,
         nodeImporter: _parseImporter(options, start),
         functions: _parseFunctions(options, asynch: true),
@@ -102,7 +97,7 @@ Future<RenderResult> _renderAsync(RenderOptions options) async {
         useSpaces: options.indentType != 'tab',
         indentWidth: _parseIndentWidth(options.indentWidth),
         lineFeed: _parseLineFeed(options.linefeed),
-        url: 'stdin');
+        url: options.file == null ? 'stdin' : p.toUri(options.file).toString());
   } else if (options.file != null) {
     result = await compileAsync(options.file,
         nodeImporter: _parseImporter(options, start),
@@ -136,11 +131,6 @@ RenderResult _renderSync(RenderOptions options) {
     var start = new DateTime.now();
     CompileResult result;
     if (options.data != null) {
-      if (options.file != null) {
-        throw new ArgumentError(
-            "options.data and options.file may not both be set.");
-      }
-
       result = compileString(options.data,
           nodeImporter: _parseImporter(options, start),
           functions: DelegatingList.typed(_parseFunctions(options)),
@@ -149,7 +139,9 @@ RenderResult _renderSync(RenderOptions options) {
           useSpaces: options.indentType != 'tab',
           indentWidth: _parseIndentWidth(options.indentWidth),
           lineFeed: _parseLineFeed(options.linefeed),
-          url: 'stdin');
+          url: options.file == null
+              ? 'stdin'
+              : p.toUri(options.file).toString());
     } else if (options.file != null) {
       result = compile(options.file,
           nodeImporter: _parseImporter(options, start),
diff --git a/test/node_api_test.dart b/test/node_api_test.dart
index 2aa34852..8f1cefd6 100644
--- a/test/node_api_test.dart
+++ b/test/node_api_test.dart
@@ -69,13 +69,6 @@ a {
 }'''));
     });
 
-    test("data and file may not both be set", () {
-      var error =
-          renderSyncError(new RenderOptions(data: "x {y: z}", file: sassPath));
-      expect(error.toString(),
-          contains('options.data and options.file may not both be set.'));
-    });
-
     test("one of data and file must be set", () {
       var error = renderSyncError(new RenderOptions());
       expect(error.toString(),
@@ -186,6 +179,37 @@ a {
       });
     });
 
+    group("with both data and file", () {
+      test("uses the data parameter as the source", () {
+        expect(renderSync(new RenderOptions(data: "x {y: z}", file: sassPath)),
+            equalsIgnoringWhitespace('x { y: z; }'));
+      });
+
+      test("doesn't require the file path to exist", () {
+        expect(
+            renderSync(new RenderOptions(
+                data: "x {y: z}", file: p.join(sandbox, 'non-existent.scss'))),
+            equalsIgnoringWhitespace('x { y: z; }'));
+      });
+
+      test("imports relative to the file path", () async {
+        await writeTextFile(p.join(sandbox, 'importee.scss'), 'x {y: z}');
+        expect(
+            renderSync(
+                new RenderOptions(data: "@import 'importee'", file: sassPath)),
+            equalsIgnoringWhitespace('x { y: z; }'));
+      });
+
+      test("reports errors from the file path", () {
+        var error =
+            renderSyncError(new RenderOptions(data: "x {y: }", file: sassPath));
+        expect(
+            error.toString(),
+            equals("Error: Expected expression.\n"
+                "  $sassPath 1:7  root stylesheet"));
+      });
+    });
+
     group("the result object", () {
       test("includes the filename", () {
         var result = sass.renderSync(new RenderOptions(file: sassPath));