diff --git a/python-ecosys/debugpy/debugpy/server/debug_session.py b/python-ecosys/debugpy/debugpy/server/debug_session.py
index 62446752..3a1a5135 100644
--- a/python-ecosys/debugpy/debugpy/server/debug_session.py
+++ b/python-ecosys/debugpy/debugpy/server/debug_session.py
@@ -263,6 +263,9 @@ class DebugSession:
         filename = source.get("path", "<unknown>")
         breakpoints = args.get("breakpoints", [])
         
+        # Debug log the source information
+        self._debug_print(f"[DAP] setBreakpoints source info: {source}")
+        
         # Set breakpoints in pdb adapter
         actual_breakpoints = self.pdb.set_breakpoints(filename, breakpoints)
         
diff --git a/python-ecosys/debugpy/debugpy/server/pdb_adapter.py b/python-ecosys/debugpy/debugpy/server/pdb_adapter.py
index a33cf665..20486207 100644
--- a/python-ecosys/debugpy/debugpy/server/pdb_adapter.py
+++ b/python-ecosys/debugpy/debugpy/server/pdb_adapter.py
@@ -2,6 +2,7 @@
 
 import sys
 import time
+import os
 from ..common.constants import (
     TRACE_CALL, TRACE_LINE, TRACE_RETURN, TRACE_EXCEPTION,
     SCOPE_LOCALS, SCOPE_GLOBALS
@@ -21,11 +22,27 @@ class PdbAdapter:
         self.continue_event = False
         self.variables_cache = {}  # frameId -> variables
         self.frame_id_counter = 1
+        self.path_mapping = {}  # runtime_path -> vscode_path mapping
         
     def _debug_print(self, message):
         """Print debug message only if debug logging is enabled."""
         if hasattr(self, '_debug_session') and self._debug_session.debug_logging:
             print(message)
+    
+    def _normalize_path(self, path):
+        """Normalize a file path for consistent comparisons."""
+        # Convert to absolute path if possible
+        try:
+            if hasattr(os.path, 'abspath'):
+                path = os.path.abspath(path)
+            elif hasattr(os.path, 'realpath'):
+                path = os.path.realpath(path)
+        except:
+            pass
+        
+        # Ensure consistent separators
+        path = path.replace('\\', '/')
+        return path
         
     def set_trace_function(self, trace_func):
         """Install the trace function."""
@@ -39,6 +56,9 @@ class PdbAdapter:
         self.breakpoints[filename] = {}
         actual_breakpoints = []
         
+        # Debug log the breakpoint path
+        self._debug_print(f"[PDB] Setting breakpoints for file: {filename}")
+        
         for bp in breakpoints:
             line = bp.get("line")
             if line:
@@ -73,12 +93,23 @@ class PdbAdapter:
         if filename in self.breakpoints:
             if lineno in self.breakpoints[filename]:
                 self._debug_print(f"[PDB] HIT BREAKPOINT (exact match) at {filename}:{lineno}")
+                # Record the path mapping (in this case, they're already the same)
+                self.path_mapping[filename] = filename
                 self.hit_breakpoint = True
                 return True
         
         # Also try checking by basename for path mismatches
         def basename(path):
             return path.split('/')[-1] if '/' in path else path
+        
+        # Check if this might be a relative path match
+        def ends_with_path(full_path, relative_path):
+            """Check if full_path ends with relative_path components."""
+            full_parts = full_path.replace('\\', '/').split('/')
+            rel_parts = relative_path.replace('\\', '/').split('/')
+            if len(rel_parts) > len(full_parts):
+                return False
+            return full_parts[-len(rel_parts):] == rel_parts
 
         file_basename = basename(filename)
         self._debug_print(f"[PDB] Fallback basename match: '{file_basename}' vs available files")
@@ -89,6 +120,18 @@ class PdbAdapter:
                 self._debug_print(f"[PDB]   Basename match found! Checking line {lineno} in {list(self.breakpoints[bp_file].keys())}")
                 if lineno in self.breakpoints[bp_file]:
                     self._debug_print(f"[PDB] HIT BREAKPOINT (fallback basename match) at {filename}:{lineno} -> {bp_file}")
+                    # Record the path mapping so we can report the correct path in stack traces
+                    self.path_mapping[filename] = bp_file
+                    self.hit_breakpoint = True
+                    return True
+            
+            # Also check if the runtime path might be relative and the breakpoint path absolute
+            if ends_with_path(bp_file, filename):
+                self._debug_print(f"[PDB]   Relative path match: {bp_file} ends with {filename}")
+                if lineno in self.breakpoints[bp_file]:
+                    self._debug_print(f"[PDB] HIT BREAKPOINT (relative path match) at {filename}:{lineno} -> {bp_file}")
+                    # Record the path mapping so we can report the correct path in stack traces
+                    self.path_mapping[filename] = bp_file
                     self.hit_breakpoint = True
                     return True
                 
@@ -171,11 +214,16 @@ class PdbAdapter:
             name = frame.f_code.co_name
             line = frame.f_lineno
             
+            # Use the VS Code path if we have a mapping, otherwise use the original path
+            display_path = self.path_mapping.get(filename, filename)
+            if filename != display_path:
+                self._debug_print(f"[PDB] Stack trace path mapping: {filename} -> {display_path}")
+            
             # Create frame info
             frames.append({
                 "id": frame_id,
                 "name": name,
-                "source": {"path": filename},
+                "source": {"path": display_path},
                 "line": line,
                 "column": 1,
                 "endLine": line,
diff --git a/python-ecosys/debugpy/vscode_launch_example.json b/python-ecosys/debugpy/vscode_launch_example.json
index 358f4d54..388e696b 100644
--- a/python-ecosys/debugpy/vscode_launch_example.json
+++ b/python-ecosys/debugpy/vscode_launch_example.json
@@ -2,8 +2,8 @@
     "version": "0.2.0",
     "configurations": [
         {
-            "name": "Micropython Attach",
-            "type": "debugpy",
+            "name": "Attach to MicroPython",
+            "type": "python",
             "request": "attach",
             "connect": {
                 "host": "localhost",
@@ -11,11 +11,11 @@
             },
             "pathMappings": [
                 {
-                    "localRoot": "${workspaceFolder}/lib/micropython-lib/python-ecosys/debugpy",
+                    "localRoot": "${workspaceFolder}",
                     "remoteRoot": "."
                 }
             ],
-            // "logToFile": true,
+            "logToFile": true,
             "justMyCode": false
         }
     ]