diff --git a/package.json b/package.json
index e1efe411..32ba3488 100644
--- a/package.json
+++ b/package.json
@@ -13,7 +13,8 @@
     "find-cache-dir": "^2.0.0",
     "loader-utils": "^1.0.2",
     "mkdirp": "^0.5.1",
-    "pify": "^4.0.1"
+    "pify": "^4.0.1",
+    "schema-utils": "^2.6.4"
   },
   "peerDependencies": {
     "@babel/core": "^7.0.0",
@@ -45,7 +46,7 @@
   },
   "scripts": {
     "clean": "rimraf lib/",
-    "build": "babel src/ --out-dir lib/",
+    "build": "babel src/ --out-dir lib/ --copy-files",
     "format": "prettier --write --trailing-comma all 'src/**/*.js' 'test/**/*.test.js' 'test/helpers/*.js' && prettier --write --trailing-comma es5 'scripts/*.js'",
     "lint": "eslint src test",
     "precommit": "lint-staged",
diff --git a/src/index.js b/src/index.js
index fd0c2cca..2209bc65 100644
--- a/src/index.js
+++ b/src/index.js
@@ -23,9 +23,11 @@ const { version } = require("../package.json");
 const cache = require("./cache");
 const transform = require("./transform");
 const injectCaller = require("./injectCaller");
+const schema = require("./schema");
 
 const { isAbsolute } = require("path");
 const loaderUtils = require("loader-utils");
+const validateOptions = require("schema-utils");
 
 function subscribe(subscriber, metadata, context) {
   if (context[subscriber]) {
@@ -54,6 +56,10 @@ async function loader(source, inputSourceMap, overrides) {
 
   let loaderOptions = loaderUtils.getOptions(this) || {};
 
+  validateOptions(schema, loaderOptions, {
+    name: "Babel loader",
+  });
+
   if (loaderOptions.customize != null) {
     if (typeof loaderOptions.customize !== "string") {
       throw new Error(
diff --git a/src/schema.json b/src/schema.json
new file mode 100644
index 00000000..9c52785a
--- /dev/null
+++ b/src/schema.json
@@ -0,0 +1,28 @@
+{
+  "type": "object",
+  "properties": {
+    "cacheDirectory": {
+      "oneOf": [
+        {
+          "type": "boolean"
+        },
+        {
+          "type": "string"
+        }
+      ],
+      "default": false
+    },
+    "cacheIdentifier": {
+      "type": "string"
+    },
+    "cacheCompression": {
+      "type": "boolean",
+      "default": true
+    },
+    "customize": {
+      "type": "string",
+      "default": null
+    }
+  },
+  "additionalProperties": true
+}
diff --git a/yarn.lock b/yarn.lock
index 99801e93..db992f8b 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5713,6 +5713,14 @@ schema-utils@^1.0.0:
     ajv-errors "^1.0.0"
     ajv-keywords "^3.1.0"
 
+schema-utils@^2.6.4:
+  version "2.6.4"
+  resolved "https://registry.yarnpkg.com/schema-utils/-/schema-utils-2.6.4.tgz#a27efbf6e4e78689d91872ee3ccfa57d7bdd0f53"
+  integrity sha512-VNjcaUxVnEeun6B2fiiUDjXXBtD4ZSH7pdbfIu1pOFwgptDPLMo/z9jr4sUfsjFVPqDCEin/F7IYlq7/E6yDbQ==
+  dependencies:
+    ajv "^6.10.2"
+    ajv-keywords "^3.4.1"
+
 semver-compare@^1.0.0:
   version "1.0.0"
   resolved "https://registry.yarnpkg.com/semver-compare/-/semver-compare-1.0.0.tgz#0dee216a1c941ab37e9efb1788f6afc5ff5537fc"