diff --git a/.gitignore b/.gitignore
index 04c397bb7e3db..a906e2cf7d5d8 100644
--- a/.gitignore
+++ b/.gitignore
@@ -34,6 +34,7 @@ tests/webTestServer.js.map
 tests/webhost/*.d.ts
 tests/webhost/webtsc.js
 tests/cases/**/*.js
+!tests/cases/docker/*.js/
 tests/cases/**/*.js.map
 *.config
 scripts/debug.bat
diff --git a/src/testRunner/externalCompileRunner.ts b/src/testRunner/externalCompileRunner.ts
index 4e1575ca47d67..4e2cb0041d187 100644
--- a/src/testRunner/externalCompileRunner.ts
+++ b/src/testRunner/externalCompileRunner.ts
@@ -157,7 +157,7 @@ ${sanitizeDockerfileOutput(result.stderr.toString())}`;
 }
 
 function sanitizeDockerfileOutput(result: string): string {
-    return stripAbsoluteImportPaths(sanitizeTimestamps(stripRushStageNumbers(stripANSIEscapes(normalizeNewlines(result)))));
+    return stripAbsoluteImportPaths(sanitizeTimestamps(sanitizeVersionSpecifiers(stripRushStageNumbers(stripANSIEscapes(normalizeNewlines(result))))));
 }
 
 function normalizeNewlines(result: string): string {
@@ -176,10 +176,14 @@ function sanitizeTimestamps(result: string): string {
     return result.replace(/\[\d?\d:\d\d:\d\d (A|P)M\]/g, "[XX:XX:XX XM]")
         .replace(/\d+(\.\d+)? seconds?/g, "? seconds")
         .replace(/\d+(\.\d+)? minutes?/g, "")
-        .replace(/\d+(\.\d+)?s/g, "?s")
-        .replace(/\d+.\d+.\d+-insiders.\d\d\d\d\d\d\d\d/g, "X.X.X-insiders.xxxxxxxx");
+        .replace(/\d+(\.\d+)?s/g, "?s");
 }
 
+function sanitizeVersionSpecifiers(result: string): string {
+    return result
+        .replace(/\d+.\d+.\d+-insiders.\d\d\d\d\d\d\d\d/g, "X.X.X-insiders.xxxxxxxx")
+        .replace(/@\d+\.\d+\.\d+/g, "@X.X.X");
+}
 
 /**
  * Import types and some other error messages use absolute paths in errors as they have no context to be written relative to;
diff --git a/tests/baselines/reference/docker/xterm.js.log b/tests/baselines/reference/docker/xterm.js.log
new file mode 100644
index 0000000000000..5eb25dc4da087
--- /dev/null
+++ b/tests/baselines/reference/docker/xterm.js.log
@@ -0,0 +1,10 @@
+Exit Code: 0
+Standard output:
+
+> xterm@X.X.X build /xtermjs
+> tsc -b ./tsconfig.all.json
+
+
+
+
+Standard error:
diff --git a/tests/cases/docker/xterm.js/Dockerfile b/tests/cases/docker/xterm.js/Dockerfile
new file mode 100644
index 0000000000000..179459d280e10
--- /dev/null
+++ b/tests/cases/docker/xterm.js/Dockerfile
@@ -0,0 +1,14 @@
+# node-pty doesn't build on node 12 right now, so we lock to 8 - the version xterm itself tests against :(
+FROM node:8
+RUN git clone https://github.com/xtermjs/xterm.js.git /xtermjs
+WORKDIR /xtermjs
+RUN git pull
+COPY --from=typescript/typescript /typescript/typescript-*.tgz /typescript.tgz
+RUN mkdir /typescript
+RUN tar -xzvf /typescript.tgz -C /typescript
+RUN npm i typescript@/typescript/package
+RUN npm install
+# Set entrypoint back to bash (`node` base image made it `node`)
+ENTRYPOINT [ "/bin/bash", "-c" , "exec \"${@:0}\";"]
+# Build
+CMD npm run build
\ No newline at end of file