diff --git a/.babelrc b/.babelrc
index 5f70eebb..8397ea55 100644
--- a/.babelrc
+++ b/.babelrc
@@ -7,11 +7,11 @@
 // is supported for each context.
 {
   "presets": [
-    ["env", { "targets": { "node": true } }],
-    "stage-3",
-    "react"
+    ["@babel/preset-env", { "targets": { "node": true } }],
+    "@babel/preset-stage-3",
+    "@babel/preset-react"
   ],
   "plugins": [
-    "syntax-dynamic-import"
+    "@babel/plugin-syntax-dynamic-import"
   ]
 }
diff --git a/internal/webpack/configFactory.js b/internal/webpack/configFactory.js
index 42b96e23..34805d03 100644
--- a/internal/webpack/configFactory.js
+++ b/internal/webpack/configFactory.js
@@ -373,44 +373,54 @@ export default function webpackConfigFactory(buildOptions) {
 
                 presets: [
                   // JSX
-                  'react',
+                  // We use the development mode to add the react-dev babel plugins
+                  // This decorates our components with  __self prop to JSX elements,
+                  // which React will use to generate some runtime warnings
+                  // And give us the path to our components in the
+                  // react dev tools.
+                  ifDev(['@babel/preset-react', { development: true }]),
+                  // We turn off development mode in production builds
+                  ifProd(['@babel/preset-react', { development: false }]),
                   // Stage 3 javascript syntax.
                   // "Candidate: complete spec and initial browser implementations."
                   // Add anything lower than stage 3 at your own risk. :)
-                  'stage-3',
+                  '@babel/preset-stage-3',
                   // For our client bundles we transpile all the latest ratified
                   // ES201X code into ES5, safe for browsers.  We exclude module
                   // transilation as webpack takes care of this for us, doing
                   // tree shaking in the process.
-                  ifClient(['env', { es2015: { modules: false } }]),
+                  ifClient([
+                    '@babel/preset-env',
+                    { es2015: { modules: false } },
+                  ]),
                   // For a node bundle we use the specific target against
                   // babel-preset-env so that only the unsupported features of
                   // our target node version gets transpiled.
-                  ifNode(['env', { targets: { node: true } }]),
+                  ifNode([
+                    '@babel/preset-env',
+                    {
+                      targets: { node: true },
+                      useBuiltIns: 'usage',
+                    },
+                  ]),
                 ].filter(x => x != null),
 
                 plugins: [
                   // Required to support react hot loader.
                   ifDevClient('react-hot-loader/babel'),
-                  // This decorates our components with  __self prop to JSX elements,
-                  // which React will use to generate some runtime warnings.
-                  ifDev('transform-react-jsx-self'),
-                  // Adding this will give us the path to our components in the
-                  // react dev tools.
-                  ifDev('transform-react-jsx-source'),
                   // Replaces the React.createElement function with one that is
                   // more optimized for production.
                   // NOTE: Symbol needs to be polyfilled. Ensure this feature
                   // is enabled in the polyfill.io configuration.
-                  ifProd('transform-react-inline-elements'),
+                  ifProd('@babel/plugin-transform-react-inline-elements'),
                   // Hoists element creation to the top level for subtrees that
                   // are fully static, which reduces call to React.createElement
                   // and the resulting allocations. More importantly, it tells
                   // React that the subtree hasn’t changed so React can completely
                   // skip it when reconciling.
-                  ifProd('transform-react-constant-elements'),
+                  ifProd('@babel/plugin-transform-react-constant-elements'),
                   // Add syntax dynamic import for direct webpack `import()` support
-                  'syntax-dynamic-import',
+                  '@babel/plugin-syntax-dynamic-import',
                 ].filter(x => x != null),
               },
               buildOptions,
diff --git a/package.json b/package.json
index 2e1fd654..2a350e3b 100644
--- a/package.json
+++ b/package.json
@@ -85,19 +85,19 @@
   },
   "devDependencies": {
     "assets-webpack-plugin": "3.5.1",
-    "babel-cli": "6.26.0",
-    "babel-core": "6.26.0",
+    "@babel/cli": "^7.0.0-beta.42",
+    "@babel/core": "^7.0.0-beta.42",
+    "@babel/plugin-syntax-dynamic-import": "^7.0.0-beta.42",
+    "@babel/plugin-transform-react-constant-elements": "^7.0.0-beta.42",
+    "@babel/plugin-transform-react-inline-elements": "^7.0.0-beta.42",
+    "@babel/node": "^7.0.0-beta.42",
+    "@babel/preset-env": "^7.0.0-beta.42",
+    "@babel/preset-react": "^7.0.0-beta.42",
+    "@babel/preset-stage-3": "^7.0.0-beta.42",
+    "babel-core": "7.0.0-bridge.0",
     "babel-eslint": "8.2.2",
-    "babel-jest": "22.4.1",
-    "babel-loader": "7.1.4",
-    "babel-plugin-syntax-dynamic-import": "6.18.0",
-    "babel-plugin-transform-react-constant-elements": "6.23.0",
-    "babel-plugin-transform-react-inline-elements": "6.22.0",
-    "babel-plugin-transform-react-jsx-self": "6.22.0",
-    "babel-plugin-transform-react-jsx-source": "6.22.0",
-    "babel-preset-env": "1.6.1",
-    "babel-preset-react": "6.24.1",
-    "babel-preset-stage-3": "6.24.1",
+    "babel-jest": "22.4.3",
+    "babel-loader": "8.0.0-beta.0",
     "babel-template": "6.26.0",
     "chokidar": "2.0.2",
     "css-loader": "0.28.10",
@@ -119,7 +119,7 @@
     "husky": "0.14.3",
     "istanbul-api": "1.3.1",
     "istanbul-reports": "1.3.0",
-    "jest": "22.4.2",
+    "jest": "22.4.3",
     "lint-staged": "7.0.0",
     "md5": "2.2.1",
     "modernizr-loader": "1.0.1",