diff --git a/packages/metro/src/ModuleGraph/worker/collectDependencies.js b/packages/metro/src/ModuleGraph/worker/collectDependencies.js
index 9bd5be1cec..570cf1bd51 100644
--- a/packages/metro/src/ModuleGraph/worker/collectDependencies.js
+++ b/packages/metro/src/ModuleGraph/worker/collectDependencies.js
@@ -812,7 +812,9 @@ const DefaultDependencyTransformer: DependencyTransformer = {
     >;
     // Always add the debug name argument last
     if (state.keepRequireNames) {
-      path.node.arguments.push(types.stringLiteral(dependency.name));
+      path.node.arguments.push(
+        types.stringLiteral(getDebugName(dependency.name)),
+      );
     }
   },
 
@@ -906,7 +908,7 @@ function createModuleIDExpression(
 }
 
 function createModuleNameLiteral(dependency: InternalDependency) {
-  return types.stringLiteral(dependency.name);
+  return types.stringLiteral(getDebugName(dependency.name));
 }
 
 /**
@@ -929,6 +931,26 @@ function createModuleNameLiteral(dependency: InternalDependency) {
  *
  * This method should be utilized by `registerDependency`.
  */
+const INLINE_MODULE_PREFIX = 'metro:inline';
+
+/**
+ * The name shown beside a dependency in development output. An inline module
+ * specifier carries a whole module in its payload, so only its header is kept.
+ */
+function getDebugName(name: string): string {
+  if (
+    name.length > INLINE_MODULE_PREFIX.length &&
+    name.slice(0, INLINE_MODULE_PREFIX.length).toLowerCase() ===
+      INLINE_MODULE_PREFIX
+  ) {
+    const commaIndex = name.indexOf(',');
+    if (commaIndex !== -1) {
+      return name.slice(0, commaIndex + 1) + '...';
+    }
+  }
+  return name;
+}
+
 function getKeyForDependency(qualifier: ImportQualifier): string {
   const {asyncType, contextParams, isESMImport, name} = qualifier;
 
diff --git a/packages/metro/src/integration_tests/__tests__/inline-module-test.js b/packages/metro/src/integration_tests/__tests__/inline-module-test.js
new file mode 100644
index 0000000000..fa65ca2062
--- /dev/null
+++ b/packages/metro/src/integration_tests/__tests__/inline-module-test.js
@@ -0,0 +1,66 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ * @oncall react_native
+ */
+
+'use strict';
+
+const Metro = require('../../..');
+const execBundle = require('../execBundle');
+
+jest.setTimeout(30 * 1000);
+
+async function build({dev}: {dev: boolean}) {
+  const config = await Metro.loadConfig({
+    config: require.resolve('../metro.config.js'),
+  });
+  return Metro.runBuild(config, {
+    entry: 'inline-module/index.js',
+    dev,
+    minify: !dev,
+  });
+}
+
+test('an inline module resolves to a virtual module anchored at its importer', async () => {
+  const {code} = await build({dev: true});
+  expect(execBundle(code)).toEqual({
+    // The inline module's relative import resolved to the shared counter.
+    fromInline: 11,
+    // Same source, different importer: a separate module instance, sharing the
+    // counter it imports.
+    fromSibling: 102,
+    // The weak id refers to the same module instance as the static require.
+    fromWeakId: 1003,
+    weakIdIsOwnModuleId: true,
+  });
+});
+
+test('each inline module is named beside its importer, in the virtual namespace', async () => {
+  const {code} = await build({dev: true});
+  const names = [...new Set(code.match(/"virtual:[^"]*"/g))].sort();
+  expect(names).toEqual([
+    expect.stringMatching(
+      /^"virtual:inline-module\/index\.inline-[0-9a-f]{16}\.js"$/,
+    ),
+    expect.stringMatching(
+      /^"virtual:inline-module\/sibling\.inline-[0-9a-f]{16}\.js"$/,
+    ),
+  ]);
+});
+
+test('development output abbreviates inline module specifiers in require names', async () => {
+  const {code} = await build({dev: true});
+  expect(code).toContain('"metro:inline;base64,..."');
+  expect(code).not.toContain('"metro:inline;base64,aW1wb3J0');
+});
+
+test('builds in production', async () => {
+  const {code} = await build({dev: false});
+  expect(execBundle(code)).toMatchObject({fromInline: 11, fromSibling: 102});
+});
diff --git a/packages/metro/src/integration_tests/basic_bundle/inline-module/index.js b/packages/metro/src/integration_tests/basic_bundle/inline-module/index.js
new file mode 100644
index 0000000000..2dd97ee5aa
--- /dev/null
+++ b/packages/metro/src/integration_tests/basic_bundle/inline-module/index.js
@@ -0,0 +1,35 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @format
+ * @oncall react_native
+ */
+
+declare var require: {
+  (id: string | number): any,
+  resolveWeak: (id: string) => string | number,
+};
+
+// The same source from a different origin is a different module with its own
+// module scope.
+const {default: bumpFromSibling} = require('./sibling');
+// The inline module imports a sibling relatively: it resolves from this file's
+// directory, because the virtual module is anchored here.
+const inline = require('metro:inline;base64,aW1wb3J0IHtpbmNyZW1lbnR9IGZyb20gJy4vc3ViZGlyL2NvdW50ZXInOwpleHBvcnQgZGVmYXVsdCBmdW5jdGlvbiBidW1wKG4pIHsKICByZXR1cm4gaW5jcmVtZW50KCkgKyBuOwp9CmV4cG9ydCBjb25zdCBvd25Nb2R1bGVJZCA9IG1vZHVsZS5pZDsK');
+
+const weakId = require.resolveWeak(
+  'metro:inline;base64,aW1wb3J0IHtpbmNyZW1lbnR9IGZyb20gJy4vc3ViZGlyL2NvdW50ZXInOwpleHBvcnQgZGVmYXVsdCBmdW5jdGlvbiBidW1wKG4pIHsKICByZXR1cm4gaW5jcmVtZW50KCkgKyBuOwp9CmV4cG9ydCBjb25zdCBvd25Nb2R1bGVJZCA9IG1vZHVsZS5pZDsK',
+);
+
+const dynamicRequire = require;
+
+module.exports = {
+  fromInline: inline.default(10),
+  fromSibling: bumpFromSibling(100),
+  // Requiring by the weak id reaches the same instance as the static require.
+  fromWeakId: dynamicRequire(weakId).default(1000),
+  weakIdIsOwnModuleId: weakId === inline.ownModuleId,
+};
diff --git a/packages/metro/src/integration_tests/basic_bundle/inline-module/sibling.js b/packages/metro/src/integration_tests/basic_bundle/inline-module/sibling.js
new file mode 100644
index 0000000000..3f98f782bf
--- /dev/null
+++ b/packages/metro/src/integration_tests/basic_bundle/inline-module/sibling.js
@@ -0,0 +1,11 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @format
+ * @oncall react_native
+ */
+
+module.exports = require('metro:inline;base64,aW1wb3J0IHtpbmNyZW1lbnR9IGZyb20gJy4vc3ViZGlyL2NvdW50ZXInOwpleHBvcnQgZGVmYXVsdCBmdW5jdGlvbiBidW1wKG4pIHsKICByZXR1cm4gaW5jcmVtZW50KCkgKyBuOwp9CmV4cG9ydCBjb25zdCBvd25Nb2R1bGVJZCA9IG1vZHVsZS5pZDsK');
diff --git a/packages/metro/src/integration_tests/basic_bundle/inline-module/subdir/counter.js b/packages/metro/src/integration_tests/basic_bundle/inline-module/subdir/counter.js
new file mode 100644
index 0000000000..f8b8ef0f9b
--- /dev/null
+++ b/packages/metro/src/integration_tests/basic_bundle/inline-module/subdir/counter.js
@@ -0,0 +1,15 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @format
+ * @oncall react_native
+ */
+
+let count = 0;
+
+export function increment(): number {
+  return ++count;
+}
diff --git a/packages/metro/src/lib/__tests__/resolveInlineModule-test.js b/packages/metro/src/lib/__tests__/resolveInlineModule-test.js
new file mode 100644
index 0000000000..3cd68dedba
--- /dev/null
+++ b/packages/metro/src/lib/__tests__/resolveInlineModule-test.js
@@ -0,0 +1,99 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ * @oncall react_native
+ */
+
+'use strict';
+
+import metroSchemeResolver from '../metroSchemeResolver';
+import {createResolutionContext} from 'metro-resolver/private/__tests__/utils';
+import crypto from 'node:crypto';
+import path from 'node:path';
+
+const ORIGIN = '/root/project/foo.js';
+
+// The virtual path an inline module with `source` gets when imported from
+// ORIGIN.
+function inlinePath(source: string) {
+  const hash = crypto
+    .createHash('sha1')
+    .update(source)
+    .digest('hex')
+    .slice(0, 16);
+  return path.join(path.dirname(ORIGIN), `foo.inline-${hash}.js`);
+}
+
+function resolve(specifier: string) {
+  return metroSchemeResolver(
+    {
+      ...createResolutionContext({}),
+      originModulePath: ORIGIN,
+      resolveRequest: () => {
+        throw new Error('inline module resolution must not delegate');
+      },
+    },
+    specifier,
+    null,
+  );
+}
+
+test('decodes a base64 payload into a virtual module beside the importer', () => {
+  const source = 'export default 1;';
+  expect(
+    resolve('metro:inline;base64,' + Buffer.from(source).toString('base64')),
+  ).toEqual({
+    type: 'virtualModule',
+    virtualPath: inlinePath(source),
+    source,
+  });
+});
+
+test('decodes a percent-encoded payload', () => {
+  expect(resolve('metro:inline,export%20default%20%22a%2Cb%22%3B')).toEqual({
+    type: 'virtualModule',
+    virtualPath: inlinePath('export default "a,b";'),
+    source: 'export default "a,b";',
+  });
+});
+
+function virtualPathOf(specifier: string): ?string {
+  const resolution = resolve(specifier);
+  if (resolution.type !== 'virtualModule') {
+    throw new Error('Expected a virtual module');
+  }
+  return resolution.virtualPath;
+}
+
+test('the same source in either encoding has one virtual path', () => {
+  expect(virtualPathOf('metro:inline;base64,MQ==')).toBe(
+    virtualPathOf('metro:inline,1'),
+  );
+});
+
+test('different sources have different virtual paths', () => {
+  expect(virtualPathOf('metro:inline,1')).not.toBe(
+    virtualPathOf('metro:inline,2'),
+  );
+});
+
+test('ignores the case of the parameters', () => {
+  expect(resolve('metro:inline;BASE64,MQ==')).toMatchObject({source: '1'});
+});
+
+test('rejects an unknown parameter', () => {
+  expect(() => resolve('metro:inline;gzip,hello')).toThrow(
+    "Unsupported parameter 'gzip'",
+  );
+});
+
+test('rejects a specifier with no payload separator', () => {
+  expect(() => resolve('metro:inline')).toThrow(
+    'Malformed inline module specifier',
+  );
+});
diff --git a/packages/metro/src/lib/metroSchemeResolver.js b/packages/metro/src/lib/metroSchemeResolver.js
index 590256bd5e..253e7cb2fb 100644
--- a/packages/metro/src/lib/metroSchemeResolver.js
+++ b/packages/metro/src/lib/metroSchemeResolver.js
@@ -11,6 +11,10 @@
 
 import type {CustomResolver} from 'metro-resolver';
 
+import {
+  INLINE_MODULE_SPECIFIER,
+  resolveInlineModule,
+} from './resolveInlineModule';
 import * as path from 'node:path';
 
 const BABEL_RUNTIME_SPECIFIER = 'babel-runtime';
@@ -35,12 +39,20 @@ function getBabelRuntimePackageJsonPath(): string {
 }
 
 /**
- * Resolver used for Metro's own `metro:` URI scheme, currently handling only
- * metro:babel-runtime and subpaths.
+ * Resolver used for Metro's own `metro:` URI scheme, handling
+ * metro:babel-runtime (and subpaths) and metro:inline modules.
  */
 export default ((context, specifier, platform) => {
   const {protocol, pathname} = new URL(specifier);
 
+  if (
+    pathname === INLINE_MODULE_SPECIFIER ||
+    pathname.startsWith(INLINE_MODULE_SPECIFIER + ';') ||
+    pathname.startsWith(INLINE_MODULE_SPECIFIER + ',')
+  ) {
+    return resolveInlineModule(context, pathname);
+  }
+
   // Maps `metro:babel-runtime` (and subpaths, e.g.
   // `metro:babel-runtime/helpers/interopRequireDefault`) to metro-runtime's
   // `@babel/runtime` dependency, so injected Babel helpers resolve
diff --git a/packages/metro/src/lib/resolveInlineModule.js b/packages/metro/src/lib/resolveInlineModule.js
new file mode 100644
index 0000000000..4a2013048f
--- /dev/null
+++ b/packages/metro/src/lib/resolveInlineModule.js
@@ -0,0 +1,84 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ * @oncall react_native
+ */
+
+import type {ResolutionContext, VirtualResolution} from 'metro-resolver';
+
+import crypto from 'node:crypto';
+import path from 'node:path';
+
+export const INLINE_MODULE_SPECIFIER = 'inline';
+
+// 64 bits, enough that distinct sources beside one importer never share a
+// path. A collision would be two sources at one virtual path, which Metro
+// reports as an error rather than bundling either.
+const INLINE_MODULE_HASH_LENGTH = 16;
+
+/**
+ * Resolves the `inline` pathname of Metro's own URI scheme, so that a transform
+ * may emit a module inline in its importer:
+ *
+ *   require('metro:inline;base64,ZXhwb3J0IGRlZmF1bHQgMQ==')
+ *
+ * The payload is the module's source, encoded as in a `data:` URL. Unlike a
+ * `data:` URL, an inline module belongs to its importer: the same payload in
+ * two modules is two modules, and imports inside it resolve exactly as they
+ * would from the importer. That is what makes it usable for modules a
+ * transform derives from the importing file, which is not what `data:`
+ * promises, so it is deliberately not spelled `data:`.
+ *
+ * Its virtual path sits beside the importer, with the importer's extension and
+ * a hash of the source in its name: `App.tsx` imports `App.inline-<hash>.tsx`.
+ * So each distinct inline module gets its own path, the same source spelled
+ * two ways is one module, and the transform treats it as the importer's kind
+ * of file.
+ *
+ * The result is a pure function of (origin module, specifier). Nothing on disk
+ * can invalidate it.
+ */
+export function resolveInlineModule(
+  context: ResolutionContext,
+  pathname: string,
+): VirtualResolution {
+  const commaIndex = pathname.indexOf(',');
+  if (commaIndex === -1) {
+    throw new Error(`Malformed inline module specifier: metro:${pathname}`);
+  }
+  const parameters = pathname
+    .slice(INLINE_MODULE_SPECIFIER.length, commaIndex)
+    .split(';')
+    .map(part => part.trim().toLowerCase())
+    .filter(part => part !== '');
+  const payload = pathname.slice(commaIndex + 1);
+
+  for (const parameter of parameters) {
+    if (parameter !== 'base64') {
+      throw new Error(
+        `Unsupported parameter '${parameter}' in inline module specifier: metro:${pathname}`,
+      );
+    }
+  }
+
+  const source = parameters.includes('base64')
+    ? Buffer.from(payload, 'base64').toString('utf8')
+    : decodeURIComponent(payload);
+
+  const {dir, name, ext} = path.parse(context.originModulePath);
+  const hash = crypto
+    .createHash('sha1')
+    .update(source)
+    .digest('hex')
+    .slice(0, INLINE_MODULE_HASH_LENGTH);
+  return {
+    type: 'virtualModule',
+    virtualPath: path.join(dir, `${name}.inline-${hash}${ext}`),
+    source,
+  };
+}