diff --git a/jest-preprocess.js b/jest-preprocess.js
index c5af6931..52a94180 100644
--- a/jest-preprocess.js
+++ b/jest-preprocess.js
@@ -2,4 +2,4 @@ const babelOptions = {
   presets: ['babel-preset-gatsby'],
 };
 
-module.exports = require('babel-jest').createTransformer(babelOptions);
+module.exports = require('babel-jest').default.createTransformer(babelOptions);
diff --git a/jest.config.js b/jest.config.js
index 2d83acea..11a69f51 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -1,3 +1,5 @@
+const esModules = ['gatsby', 'nanoevents'].join('|');
+
 module.exports = {
   testRegex: '/*.test.js$',
   collectCoverage: true,
@@ -26,11 +28,12 @@ module.exports = {
     '.+\\.(jpg|jpeg|png|gif|eot|otf|webp|svg|ttf|woff|woff2|mp4|webm|wav|mp3|m4a|aac|oga)$': `<rootDir>/__mocks__/file-mock.js`,
   },
   testPathIgnorePatterns: [`node_modules`, `\\.cache`],
-  transformIgnorePatterns: [`node_modules/(?!(gatsby)/)`],
+  transformIgnorePatterns: [`node_modules/(?!${esModules})`],
   globals: {
     __PATH_PREFIX__: ``,
   },
   testURL: `http://localhost`,
   setupFiles: [`<rootDir>/loadershim.js`],
   setupFilesAfterEnv: [`<rootDir>/jest.setup.js`],
+  testEnvironment: 'jsdom',
 };