diff --git a/sphinx_needs/directives/list2need.py b/sphinx_needs/directives/list2need.py
index 378c39f39..84fea658f 100644
--- a/sphinx_needs/directives/list2need.py
+++ b/sphinx_needs/directives/list2need.py
@@ -76,7 +76,6 @@ def run(self) -> Sequence[nodes.Node]:
         if not delimiter:
             delimiter = "."
 
-        content_raw = "\n".join(self.content)
         types_raw = self.options.get("types")
         if not types_raw:
             raise SphinxWarning("types must be set.")
@@ -114,10 +113,13 @@ def run(self) -> Sequence[nodes.Node]:
         # Retrieve tags defined at list level
         tags = self.options.get("tags", "")
 
+        _, content_first_line = self.state_machine.get_source_and_line(
+            self.content_offset + 1
+        )
+
         list_needs = []
         # Storing the data in a sorted list
-        for content_line in content_raw.split("\n"):
-            # for groups in line.findall(content_raw):
+        for content_lineno, content_line in enumerate(self.content):
             match = LINE_REGEX.search(content_line)
             if not match:
                 continue
@@ -173,6 +175,7 @@ def run(self) -> Sequence[nodes.Node]:
                     "content": content.lstrip(),
                     "level": level,
                     "options": {},
+                    "lineno": content_first_line + content_lineno,
                 }
                 list_needs.append(need)
             else:
@@ -184,7 +187,6 @@ def run(self) -> Sequence[nodes.Node]:
                 )
 
         # Finally creating the rst code
-        overall_text = []
         for index, list_need in enumerate(list_needs):
             # Search for meta data in the complete title/content
             search_string = list_need["title"] + list_need["content"]
@@ -226,11 +228,12 @@ def run(self) -> Sequence[nodes.Node]:
             if presentation == "nested":
                 indented_text_list = ["   " * list_need["level"] + x for x in text_list]
                 text_list = indented_text_list
-            overall_text += text_list
 
-        self.state_machine.insert_input(
-            overall_text, self.state_machine.document.attributes["source"]
-        )
+            self.state_machine.insert_input(
+                text_list,
+                self.state_machine.document.attributes["source"]
+                + "\0%d" % list_need["lineno"],
+            )
 
         return []
 
diff --git a/sphinx_needs/directives/need.py b/sphinx_needs/directives/need.py
index beaf76414..7acea2cd5 100644
--- a/sphinx_needs/directives/need.py
+++ b/sphinx_needs/directives/need.py
@@ -160,9 +160,15 @@ def run(self) -> Sequence[nodes.Node]:
                 self._log_warning(f"Invalid value for '{key}' option: {err}")
                 return []
 
+        source_path, source_lineno = self.state_machine.get_source_and_line(self.lineno)
+        if "\0" in source_path:
+            # Retrieve line number encoded in source name
+            source_path, source_lineno = source_path.split("\0")
+            source_lineno = int(source_lineno)
+        docname = self.env.path2doc(source_path)
         source = NeedItemSourceDirective(
-            docname=self.env.docname,
-            lineno=self.lineno,
+            docname=source_path if docname is None else docname,
+            lineno=source_lineno,
             lineno_content=self.content_offset + 1,
         )