diff --git a/docs/pages/build.md b/docs/pages/build.md
index f074b75d8..e3245b2ba 100644
--- a/docs/pages/build.md
+++ b/docs/pages/build.md
@@ -238,6 +238,10 @@ Example:
 ["module", { "esm": true, "sourceMaps": false }]
 ```
 
+##### `jsxRuntime`
+
+Explicitly set your [runtime](https://babeljs.io/docs/babel-preset-react#runtime). Defaults to `automatic`.
+
 #### `typescript`
 
 Enable generating type definitions with `tsc` if your source code is written in [TypeScript](http://www.typescriptlang.org/).
diff --git a/packages/react-native-builder-bob/babel-preset.js b/packages/react-native-builder-bob/babel-preset.js
index de4e99a5a..44820fabc 100644
--- a/packages/react-native-builder-bob/babel-preset.js
+++ b/packages/react-native-builder-bob/babel-preset.js
@@ -6,6 +6,7 @@ const browserslist = require('browserslist');
  * Babel preset for React Native Builder Bob
  * @param {'commonjs' | 'preserve'} options.modules - Whether to compile modules to CommonJS or preserve them
  * @param {Boolean} options.esm - Whether to output ES module compatible code, e.g. by adding extension to import/export statements
+ * @param {'automatic' | 'classic'} options.jsxRuntime - Which JSX runtime to use, defaults to 'automatic'
  */
 module.exports = function (api, options, cwd) {
   const cjs = options.modules === 'commonjs';
@@ -37,7 +38,8 @@ module.exports = function (api, options, cwd) {
       [
         require.resolve('@babel/preset-react'),
         {
-          runtime: 'automatic',
+          runtime:
+            options.jsxRuntime !== undefined ? options.jsxRuntime : 'automatic',
         },
       ],
       require.resolve('@babel/preset-typescript'),
diff --git a/packages/react-native-builder-bob/src/utils/compile.ts b/packages/react-native-builder-bob/src/utils/compile.ts
index c0afdf8e5..d7249bdfb 100644
--- a/packages/react-native-builder-bob/src/utils/compile.ts
+++ b/packages/react-native-builder-bob/src/utils/compile.ts
@@ -13,6 +13,7 @@ type Options = Input & {
   copyFlow?: boolean;
   modules: 'commonjs' | 'preserve';
   exclude: string;
+  jsxRuntime?: 'automatic' | 'classic';
 };
 
 const sourceExt = /\.([cm])?[jt]sx?$/;
@@ -29,6 +30,7 @@ export default async function compile({
   copyFlow,
   sourceMaps = true,
   report,
+  jsxRuntime = 'automatic',
 }: Options) {
   const files = glob.sync('**/*', {
     cwd: source,
@@ -113,6 +115,7 @@ export default async function compile({
                       // If a file is explicitly marked as ESM, then preserve the syntax
                       /\.m[jt]s$/.test(filepath) ? 'preserve' : modules,
                     esm,
+                    jsxRuntime,
                   },
                 ],
               ],