diff --git a/src/parcels/_core/particlefile.py b/src/parcels/_core/particlefile.py
index 50bdf309c..2acfe112b 100644
--- a/src/parcels/_core/particlefile.py
+++ b/src/parcels/_core/particlefile.py
@@ -275,7 +275,7 @@ def read_particlefile(path: PathLike, decode_times: bool = True) -> pd.DataFrame
 
     values = table.column("t").to_numpy()
     var = xr.Variable(("t",), values, attrs)
-    values = xr.coders.CFDatetimeCoder(time_unit="s").decode(var).values
+    values = xr.coders.CFDatetimeCoder(time_unit="ns").decode(var).values
     if "since" in attrs["units"]:
         values = values.astype("datetime64[ns]")
         df = df.with_columns(pl.Series("t", values, dtype=pl.Datetime("ns")))
diff --git a/tests/test_particlefile.py b/tests/test_particlefile.py
index d4ed34e34..72a16d997 100755
--- a/tests/test_particlefile.py
+++ b/tests/test_particlefile.py
@@ -344,6 +344,24 @@ def Update_lon(particles, fieldset):  # pragma: no cover
     assert np.allclose(pset.x, 0.6)
 
 
+@pytest.mark.parametrize("dt", [100, 200])
+def test_subsecond_outputdt(fieldset, dt, tmp_parquet):
+    """Test that outputdt can be subsecond and that the output times are correct."""
+
+    def Update_lon(particles, fieldset):  # pragma: no cover
+        particles.dx += dt / 1000.0  # Move at a rate of 1 unit per second
+
+    pset = ParticleSet(fieldset, x=[0], y=[0])
+    ofile = ParticleFile(tmp_parquet, outputdt=np.timedelta64(dt, "ms"))
+    pset.execute(Update_lon, runtime=np.timedelta64(1, "s"), dt=np.timedelta64(dt, "ms"), output_file=ofile)
+
+    df = parcels.read_particlefile(tmp_parquet)
+    np.testing.assert_allclose(df["x"], np.arange(0, 1 + 1e-6, dt / 1000.0), atol=1e-6)
+    expected_t = np.arange(0, 1001, dt).astype("timedelta64[ms]")
+    elapsed_t = (df["t"] - df["t"].min()).to_numpy().astype("timedelta64[ms]")
+    np.testing.assert_allclose(elapsed_t, expected_t, atol=1)
+
+
 def test_correct_misaligned_outputdt_dt(fieldset, tmp_parquet):
     """Testing that outputdt does not need to be a multiple of dt."""