diff --git a/bundle/libraries/libraries.go b/bundle/libraries/libraries.go
index 29848236c..d26768f95 100644
--- a/bundle/libraries/libraries.go
+++ b/bundle/libraries/libraries.go
@@ -3,6 +3,7 @@ package libraries
 import (
 	"context"
 	"fmt"
+	"net/url"
 	"path/filepath"
 	"strings"
 
@@ -92,13 +93,13 @@ func findArtifactsAndMarkForUpload(ctx context.Context, lib *compute.Library, b
 	}
 
 	if len(matches) == 0 && isLocalLibrary(lib) {
-		return fmt.Errorf("no library found for %s", libPath(lib))
+		return fmt.Errorf("file %s is referenced in libraries section but doesn't exist on the local file system", libPath(lib))
 	}
 
 	for _, match := range matches {
 		af, err := findArtifactFileByLocalPath(match, b)
 		if err != nil {
-			cmdio.LogString(ctx, fmt.Sprintf("%s. Skipping %s. In order to use the library upload it manually", err.Error(), match))
+			cmdio.LogString(ctx, fmt.Sprintf("%s. Skipping uploading. In order to use the define 'artifacts' section", err.Error()))
 		} else {
 			af.Libraries = append(af.Libraries, lib)
 		}
@@ -116,7 +117,7 @@ func findArtifactFileByLocalPath(path string, b *bundle.Bundle) (*config.Artifac
 		}
 	}
 
-	return nil, fmt.Errorf("artifact file is not found for path %s", path)
+	return nil, fmt.Errorf("artifact section is not defined for file at %s", path)
 }
 
 func libPath(library *compute.Library) string {
@@ -139,11 +140,34 @@ func isLocalLibrary(library *compute.Library) bool {
 		return false
 	}
 
-	return !isDbfsPath(path) && !isWorkspacePath(path)
+	if isExplicitFileScheme(path) {
+		return true
+	}
+
+	if isRemoteStorageScheme(path) {
+		return false
+	}
+
+	return !isWorkspacePath(path)
 }
 
-func isDbfsPath(path string) bool {
-	return strings.HasPrefix(path, "dbfs:/")
+func isExplicitFileScheme(path string) bool {
+	return strings.HasPrefix(path, "file://")
+}
+
+func isRemoteStorageScheme(path string) bool {
+	url, err := url.Parse(path)
+	if err != nil {
+		return false
+	}
+
+	if url.Scheme == "" {
+		return false
+	}
+
+	// If the path starts with scheme:// format, it's a correct remote storage scheme
+	return strings.HasPrefix(path, url.Scheme+"://")
+
 }
 
 func isWorkspacePath(path string) bool {
diff --git a/bundle/libraries/libraries_test.go b/bundle/libraries/libraries_test.go
new file mode 100644
index 000000000..050efe749
--- /dev/null
+++ b/bundle/libraries/libraries_test.go
@@ -0,0 +1,30 @@
+package libraries
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/databricks/databricks-sdk-go/service/compute"
+	"github.com/stretchr/testify/require"
+)
+
+var testCases map[string]bool = map[string]bool{
+	"./some/local/path":          true,
+	"/some/full/path":            true,
+	"/Workspace/path/to/package": false,
+	"/Users/path/to/package":     false,
+	"file://path/to/package":     true,
+	"C:\\path\\to\\package":      true,
+	"dbfs://path/to/package":     false,
+	"s3://path/to/package":       false,
+	"abfss://path/to/package":    false,
+}
+
+func TestIsLocalLbrary(t *testing.T) {
+	for p, result := range testCases {
+		lib := compute.Library{
+			Whl: p,
+		}
+		require.Equal(t, result, isLocalLibrary(&lib), fmt.Sprintf("isLocalLibrary must return %t for path %s ", result, p))
+	}
+}