diff --git a/packages/next/client/index.tsx b/packages/next/client/index.tsx
index c4ec6dfe7aa5..f966b50224db 100644
--- a/packages/next/client/index.tsx
+++ b/packages/next/client/index.tsx
@@ -1,7 +1,6 @@
 /* global location */
 import '../build/polyfills/polyfill-module'
 import React, { useState } from 'react'
-import ReactDOM from 'react-dom'
 import { HeadManagerContext } from '../shared/lib/head-manager-context'
 import mitt, { MittEmitter } from '../shared/lib/mitt'
 import { RouterContext } from '../shared/lib/router-context'
@@ -41,6 +40,10 @@ import { RefreshContext } from './streaming/refresh'
 import { ImageConfigContext } from '../shared/lib/image-config-context'
 import { ImageConfigComplete } from '../shared/lib/image-config'
 
+const ReactDOM = process.env.__NEXT_REACT_ROOT
+  ? require('react-dom/client')
+  : require('react-dom')
+
 /// <reference types="react-dom/experimental" />
 
 declare let __webpack_public_path__: string
@@ -549,8 +552,7 @@ function renderReactElement(
   if (process.env.__NEXT_REACT_ROOT) {
     if (!reactRoot) {
       // Unlike with createRoot, you don't need a separate root.render() call here
-      const ReactDOMClient = require('react-dom/client')
-      reactRoot = ReactDOMClient.hydrateRoot(domEl, reactEl)
+      reactRoot = ReactDOM.hydrateRoot(domEl, reactEl)
       // TODO: Remove shouldHydrate variable when React 18 is stable as it can depend on `reactRoot` existing
       shouldHydrate = false
     } else {
diff --git a/packages/next/server/next.ts b/packages/next/server/next.ts
index 31f6f7502438..f2d46252a9a6 100644
--- a/packages/next/server/next.ts
+++ b/packages/next/server/next.ts
@@ -183,6 +183,14 @@ function createServer(options: NextServerOptions): NextServer {
     )
   }
 
+  // Make sure env of custom server is overridden.
+  // Use dynamic require to make sure it's executed in it's own context.
+  const ReactDOMServer = require('react-dom/server.browser')
+  const shouldUseReactRoot = !!ReactDOMServer.renderToReadableStream
+  if (shouldUseReactRoot) {
+    ;(process.env as any).__NEXT_REACT_ROOT = 'true'
+  }
+
   return new NextServer(options)
 }
 
diff --git a/test/integration/custom-server/test/index.test.js b/test/integration/custom-server/test/index.test.js
index 330fe4b1c4ef..8d4e2ee70311 100644
--- a/test/integration/custom-server/test/index.test.js
+++ b/test/integration/custom-server/test/index.test.js
@@ -132,8 +132,18 @@ describe('Custom Server', () => {
       try {
         browser = await webdriver(context.appPort, '/test-index-hmr')
         const text = await browser.elementByCss('#go-asset').text()
+        const logs = await browser.log()
         expect(text).toBe('Asset')
 
+        // Hydrates with react 18 is correct as expected
+        expect(
+          logs.some((log) =>
+            log.message.includes(
+              'ReactDOM.hydrate is no longer supported in React 18'
+            )
+          )
+        ).toBe(false)
+
         indexPg.replace('Asset', 'Asset!!')
 
         await check(() => browser.elementByCss('#go-asset').text(), /Asset!!/)