diff --git a/src/ln.js b/src/ln.js
index 363c319..878fda1 100644
--- a/src/ln.js
+++ b/src/ln.js
@@ -1,7 +1,6 @@
 var fs = require('fs');
 var path = require('path');
 var common = require('./common');
-var os = require('os');
 
 //@
 //@ ### ln([options,] source, dest)
@@ -42,15 +41,29 @@ function _ln(options, source, dest) {
   }
 
   if (options.symlink) {
-    if ((isAbsolute && !fs.existsSync(sourcePath)) || !fs.existsSync(path.resolve(process.cwd(), path.dirname(dest), source))) {
+    var isWindows = common.platform === 'win';
+    var linkType = isWindows ? 'file' : null;
+    var resolvedSourcePath = isAbsolute ? sourcePath : path.resolve(process.cwd(), path.dirname(dest), source);
+    if (!fs.existsSync(resolvedSourcePath)) {
       common.error('Source file does not exist', true);
+    } else if (isWindows && fs.statSync(resolvedSourcePath).isDirectory()) {
+      linkType =  'junction';
+    }
+
+    try {
+      fs.symlinkSync(linkType === 'junction' ? resolvedSourcePath: source, dest, linkType);
+    } catch (err) {
+      common.error(err.message);
     }
-    fs.symlinkSync(source, dest, os.platform() === "win32" ? "junction" : null);
   } else {
     if (!fs.existsSync(source)) {
       common.error('Source file does not exist', true);
     }
-    fs.linkSync(source, dest);
+    try {
+      fs.linkSync(source, dest);
+    } catch (err) {
+      common.error(err.message);
+    }
   }
 }
 module.exports = _ln;
diff --git a/test/ln.js b/test/ln.js
index 9f35aba..e7cd049 100644
--- a/test/ln.js
+++ b/test/ln.js
@@ -1,5 +1,6 @@
 var shell = require('..');
 var common = require('../src/common');
+var isWindows = common.platform === 'win';
 
 var assert = require('assert'),
     fs = require('fs'),
@@ -7,6 +8,19 @@ var assert = require('assert'),
 
 shell.config.silent = true;
 
+// On Windows, symlinks for files need admin permissions. This helper
+// skips certain tests if we are on Windows and got an EPERM error
+function skipOnWinForEPERM (action, test) {
+    action();
+    var error = shell.error();
+
+    if (isWindows && error && /EPERM:/.test(error)) {
+        console.log("Got EPERM when testing symlinks on Windows. Assuming non-admin environment and skipping test.");
+    } else {
+        test();
+    }
+}
+
 shell.rm('-rf', 'tmp');
 shell.mkdir('tmp');
 
@@ -45,13 +59,6 @@ assert.ok(shell.error());
 // Valids
 //
 
-// On Windows, symlinks for files need admin permissions.
-// It is also broken now since current implementation simply uses `'junction'` type which is only
-// valid for directories.
-// TODO: Fix this for Windows and also add symlink tests for directories
-if (common.platform === 'win')
-    shell.exit(123);
-
 shell.ln('tmp/file1', 'tmp/linkfile1');
 assert(fs.existsSync('tmp/linkfile1'));
 assert.equal(
@@ -64,17 +71,25 @@ assert.equal(
   'new content 1'
 );
 
-shell.ln('-s', 'file2', 'tmp/linkfile2');
-assert(fs.existsSync('tmp/linkfile2'));
-assert.equal(
-  fs.readFileSync('tmp/file2').toString(),
-  fs.readFileSync('tmp/linkfile2').toString()
-);
-fs.writeFileSync('tmp/file2', 'new content 2');
-assert.equal(
-  fs.readFileSync('tmp/linkfile2').toString(),
-  'new content 2'
-);
+skipOnWinForEPERM(shell.ln.bind(shell, '-s', 'file2', 'tmp/linkfile2'), function () {
+    assert(fs.existsSync('tmp/linkfile2'));
+    assert.equal(
+        fs.readFileSync('tmp/file2').toString(),
+        fs.readFileSync('tmp/linkfile2').toString()
+    );
+    fs.writeFileSync('tmp/file2', 'new content 2');
+    assert.equal(
+        fs.readFileSync('tmp/linkfile2').toString(),
+        'new content 2'
+    );
+});
+
+// Symbolic link directory test
+shell.mkdir('tmp/ln');
+shell.touch('tmp/ln/hello');
+shell.ln('-s', 'ln', 'tmp/dir1');
+assert(fs.existsSync('tmp/ln/hello'));
+assert(fs.existsSync('tmp/dir1/hello'));
 
 shell.ln('-f', 'tmp/file1.js', 'tmp/file2.js');
 assert(fs.existsSync('tmp/file2.js'));
@@ -88,46 +103,49 @@ assert.equal(
   'new content js'
 );
 
-shell.ln('-sf', 'file1.txt', 'tmp/file2.txt');
-assert(fs.existsSync('tmp/file2.txt'));
-assert.equal(
-  fs.readFileSync('tmp/file1.txt').toString(),
-  fs.readFileSync('tmp/file2.txt').toString()
-);
-fs.writeFileSync('tmp/file1.txt', 'new content txt');
-assert.equal(
-  fs.readFileSync('tmp/file2.txt').toString(),
-  'new content txt'
-);
+skipOnWinForEPERM(shell.ln.bind(shell, '-sf', 'file1.txt', 'tmp/file2.txt'), function () {
+    assert(fs.existsSync('tmp/file2.txt'));
+    assert.equal(
+        fs.readFileSync('tmp/file1.txt').toString(),
+        fs.readFileSync('tmp/file2.txt').toString()
+    );
+    fs.writeFileSync('tmp/file1.txt', 'new content txt');
+    assert.equal(
+        fs.readFileSync('tmp/file2.txt').toString(),
+        'new content txt'
+    );
+});
 
 // Abspath regression
-shell.ln('-sf', 'file1', path.resolve('tmp/abspath'));
-assert(fs.existsSync('tmp/abspath'));
-assert.equal(
-  fs.readFileSync('tmp/file1').toString(),
-  fs.readFileSync('tmp/abspath').toString()
-);
-fs.writeFileSync('tmp/file1', 'new content 3');
-assert.equal(
-  fs.readFileSync('tmp/abspath').toString(),
-  'new content 3'
-);
+skipOnWinForEPERM(shell.ln.bind(shell, '-sf', 'file1', path.resolve('tmp/abspath')), function () {
+    assert(fs.existsSync('tmp/abspath'));
+    assert.equal(
+        fs.readFileSync('tmp/file1').toString(),
+        fs.readFileSync('tmp/abspath').toString()
+    );
+    fs.writeFileSync('tmp/file1', 'new content 3');
+    assert.equal(
+        fs.readFileSync('tmp/abspath').toString(),
+        'new content 3'
+    );
+});
 
 // Relative regression
-shell.ln('-sf', 'file1.txt', 'tmp/file2.txt');
-shell.mkdir('-p', 'tmp/new');
-// Move the symlink first, as the reverse confuses `mv`.
-shell.mv('tmp/file2.txt', 'tmp/new/file2.txt');
-shell.mv('tmp/file1.txt', 'tmp/new/file1.txt');
-assert(fs.existsSync('tmp/new/file2.txt'));
-assert.equal(
-  fs.readFileSync('tmp/new/file1.txt').toString(),
-  fs.readFileSync('tmp/new/file2.txt').toString()
-);
-fs.writeFileSync('tmp/new/file1.txt', 'new content txt');
-assert.equal(
-  fs.readFileSync('tmp/new/file2.txt').toString(),
-  'new content txt'
-);
+skipOnWinForEPERM(shell.ln.bind(shell, '-sf', 'file1.txt', 'tmp/file2.txt'), function () {
+    shell.mkdir('-p', 'tmp/new');
+    // Move the symlink first, as the reverse confuses `mv`.
+    shell.mv('tmp/file2.txt', 'tmp/new/file2.txt');
+    shell.mv('tmp/file1.txt', 'tmp/new/file1.txt');
+    assert(fs.existsSync('tmp/new/file2.txt'));
+    assert.equal(
+        fs.readFileSync('tmp/new/file1.txt').toString(),
+        fs.readFileSync('tmp/new/file2.txt').toString()
+    );
+    fs.writeFileSync('tmp/new/file1.txt', 'new content txt');
+    assert.equal(
+        fs.readFileSync('tmp/new/file2.txt').toString(),
+        'new content txt'
+    );
+});
 
 shell.exit(123);