diff --git a/build.gradle b/build.gradle
index 6f989e2..6f79a75 100644
--- a/build.gradle
+++ b/build.gradle
@@ -78,7 +78,7 @@ dependencies {
 	}
 
 	// tinyfile management
-	implementation ('net.fabricmc:tiny-remapper:0.5.0')
+	implementation ('net.fabricmc:tiny-remapper:0.6.0')
 	implementation 'net.fabricmc:access-widener:2.0.0'
 	implementation 'net.fabricmc:mapping-io:0.2.1'
 
diff --git a/src/main/java/net/fabricmc/loom/util/TinyRemapperHelper.java b/src/main/java/net/fabricmc/loom/util/TinyRemapperHelper.java
index aa295f0..77f710d 100644
--- a/src/main/java/net/fabricmc/loom/util/TinyRemapperHelper.java
+++ b/src/main/java/net/fabricmc/loom/util/TinyRemapperHelper.java
@@ -28,6 +28,7 @@ import java.io.File;
 import java.io.IOException;
 import java.nio.file.Path;
 import java.util.Map;
+import java.util.regex.Pattern;
 
 import com.google.common.collect.ImmutableMap;
 import org.gradle.api.Project;
@@ -47,6 +48,11 @@ public final class TinyRemapperHelper {
 			.put("javax/annotation/concurrent/Immutable", "org/jetbrains/annotations/Unmodifiable")
 			.build();
 
+	/**
+	 * Matches the new local variable naming format introduced in 21w37a.
+	 */
+	private static final Pattern MC_LV_PATTERN = Pattern.compile("\\$\\$\\d+");
+
 	private TinyRemapperHelper() {
 	}
 
@@ -58,6 +64,7 @@ public final class TinyRemapperHelper {
 				.withMappings(out -> JSR_TO_JETBRAINS.forEach(out::acceptClass))
 				.renameInvalidLocals(true)
 				.rebuildSourceFilenames(true)
+				.invalidLvNamePattern(MC_LV_PATTERN)
 				.build();
 	}