diff --git a/packages/next/build/webpack-config.ts b/packages/next/build/webpack-config.ts
index 63223dd363fc6ff..8cfdbb20cecdb5b 100644
--- a/packages/next/build/webpack-config.ts
+++ b/packages/next/build/webpack-config.ts
@@ -1256,11 +1256,16 @@ export default async function getBaseWebpackConfig(
       }
     }
 
-    const shouldBeBundled = isResourceInPackages(
-      res,
-      config.experimental.transpilePackages,
-      resolvedExternalPackageDirs
-    )
+    // If a package is included in `transpilePackages`, we don't want to make it external.
+    // And also, if that resource is an ES module, we bundle it too because we can't
+    // rely on the require hook to alias `react` to our precompiled version.
+    const shouldBeBundled =
+      isResourceInPackages(
+        res,
+        config.experimental.transpilePackages,
+        resolvedExternalPackageDirs
+      ) ||
+      (isEsm && config.experimental.appDir)
 
     if (/node_modules[/\\].*\.[mc]?js$/.test(res)) {
       if (layer === WEBPACK_LAYERS.server) {
diff --git a/test/e2e/app-dir/rsc-external.test.ts b/test/e2e/app-dir/app-external.test.ts
similarity index 84%
rename from test/e2e/app-dir/rsc-external.test.ts
rename to test/e2e/app-dir/app-external.test.ts
index 7eb2160ea56ee91..becf667a7140bc7 100644
--- a/test/e2e/app-dir/rsc-external.test.ts
+++ b/test/e2e/app-dir/app-external.test.ts
@@ -18,7 +18,7 @@ async function resolveStreamResponse(response: any, onData?: any) {
   return result
 }
 
-describe('app dir - rsc external dependency', () => {
+describe('app dir - external dependency', () => {
   let next: NextInstance
 
   if ((global as any).isNextDeploy) {
@@ -28,7 +28,7 @@ describe('app dir - rsc external dependency', () => {
 
   beforeAll(async () => {
     next = await createNext({
-      files: new FileRef(path.join(__dirname, './rsc-external')),
+      files: new FileRef(path.join(__dirname, './app-external')),
       dependencies: {
         '@next/font': 'canary',
         react: 'latest',
@@ -166,4 +166,30 @@ describe('app dir - rsc external dependency', () => {
       )
     ).toMatch(/^__myFont_.{6}, __myFont_Fallback_.{6}$/)
   })
+
+  describe('react in external esm packages', () => {
+    it('should use the same react in client app', async () => {
+      const html = await renderViaHTTP(next.url, '/esm/client')
+
+      const v1 = html.match(/App React Version: ([^<]+)</)[1]
+      const v2 = html.match(/External React Version: ([^<]+)</)[1]
+      expect(v1).toBe(v2)
+    })
+
+    it('should use the same react in server app', async () => {
+      const html = await renderViaHTTP(next.url, '/esm/server')
+
+      const v1 = html.match(/App React Version: ([^<]+)</)[1]
+      const v2 = html.match(/External React Version: ([^<]+)</)[1]
+      expect(v1).toBe(v2)
+    })
+
+    it('should use the same react in pages', async () => {
+      const html = await renderViaHTTP(next.url, '/test-pages-esm')
+
+      const v1 = html.match(/App React Version: ([^<]+)</)[1]
+      const v2 = html.match(/External React Version: ([^<]+)</)[1]
+      expect(v1).toBe(v2)
+    })
+  })
 })
diff --git a/test/e2e/app-dir/rsc-external/app/css/[...slug]/page.js b/test/e2e/app-dir/app-external/app/css/[...slug]/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/css/[...slug]/page.js
rename to test/e2e/app-dir/app-external/app/css/[...slug]/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/css/modules/page.js b/test/e2e/app-dir/app-external/app/css/modules/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/css/modules/page.js
rename to test/e2e/app-dir/app-external/app/css/modules/page.js
diff --git a/test/e2e/app-dir/app-external/app/esm/client/page.js b/test/e2e/app-dir/app-external/app/esm/client/page.js
new file mode 100644
index 000000000000000..c768fe9d4716d9a
--- /dev/null
+++ b/test/e2e/app-dir/app-external/app/esm/client/page.js
@@ -0,0 +1,15 @@
+'use client'
+import { version, useValue } from 'esm-with-react'
+
+import React from 'react'
+
+export default function Index() {
+  const value = useValue()
+  return (
+    <div>
+      <h2>{'App React Version: ' + React.version}</h2>
+      <h2>{'External React Version: ' + version}</h2>
+      <h2>{'Test: ' + value}</h2>
+    </div>
+  )
+}
diff --git a/test/e2e/app-dir/app-external/app/esm/server/page.js b/test/e2e/app-dir/app-external/app/esm/server/page.js
new file mode 100644
index 000000000000000..fc89753d16a5700
--- /dev/null
+++ b/test/e2e/app-dir/app-external/app/esm/server/page.js
@@ -0,0 +1,12 @@
+import { version } from 'esm-with-react'
+
+import React from 'react'
+
+export default function Index() {
+  return (
+    <div>
+      <h2>{'App React Version: ' + React.version}</h2>
+      <h2>{'External React Version: ' + version}</h2>
+    </div>
+  )
+}
diff --git a/test/e2e/app-dir/rsc-external/app/external-imports/client/page.js b/test/e2e/app-dir/app-external/app/external-imports/client/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/external-imports/client/page.js
rename to test/e2e/app-dir/app-external/app/external-imports/client/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/external-imports/server/page.js b/test/e2e/app-dir/app-external/app/external-imports/server/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/external-imports/server/page.js
rename to test/e2e/app-dir/app-external/app/external-imports/server/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/font/page.js b/test/e2e/app-dir/app-external/app/font/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/font/page.js
rename to test/e2e/app-dir/app-external/app/font/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/layout.js b/test/e2e/app-dir/app-external/app/layout.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/layout.js
rename to test/e2e/app-dir/app-external/app/layout.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/3rd-party-package/client.js b/test/e2e/app-dir/app-external/app/react-server/3rd-party-package/client.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/3rd-party-package/client.js
rename to test/e2e/app-dir/app-external/app/react-server/3rd-party-package/client.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/3rd-party-package/page.js b/test/e2e/app-dir/app-external/app/react-server/3rd-party-package/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/3rd-party-package/page.js
rename to test/e2e/app-dir/app-external/app/react-server/3rd-party-package/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/client-detector.js b/test/e2e/app-dir/app-external/app/react-server/client-detector.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/client-detector.js
rename to test/e2e/app-dir/app-external/app/react-server/client-detector.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/detector.js b/test/e2e/app-dir/app-external/app/react-server/detector.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/detector.js
rename to test/e2e/app-dir/app-external/app/react-server/detector.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/optout/client.js b/test/e2e/app-dir/app-external/app/react-server/optout/client.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/optout/client.js
rename to test/e2e/app-dir/app-external/app/react-server/optout/client.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/optout/page.js b/test/e2e/app-dir/app-external/app/react-server/optout/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/optout/page.js
rename to test/e2e/app-dir/app-external/app/react-server/optout/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/react-server/page.js b/test/e2e/app-dir/app-external/app/react-server/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/react-server/page.js
rename to test/e2e/app-dir/app-external/app/react-server/page.js
diff --git a/test/e2e/app-dir/rsc-external/app/shared-esm-dep/page.js b/test/e2e/app-dir/app-external/app/shared-esm-dep/page.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/app/shared-esm-dep/page.js
rename to test/e2e/app-dir/app-external/app/shared-esm-dep/page.js
diff --git a/test/e2e/app-dir/rsc-external/components/random-module-instance.js b/test/e2e/app-dir/app-external/components/random-module-instance.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/components/random-module-instance.js
rename to test/e2e/app-dir/app-external/components/random-module-instance.js
diff --git a/test/e2e/app-dir/rsc-external/next.config.js b/test/e2e/app-dir/app-external/next.config.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/next.config.js
rename to test/e2e/app-dir/app-external/next.config.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/index.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/index.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/index.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/index.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/index.server.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/index.server.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/index.server.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/index.server.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/package.json b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/subpath.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/subpath.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/subpath.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/subpath.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/subpath.server.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/subpath.server.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports-optout/subpath.server.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports-optout/subpath.server.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/dep.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/dep.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/dep.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/dep.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/dep.server.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/dep.server.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/dep.server.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/dep.server.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/index.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/index.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/index.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/index.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/index.server.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/index.server.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/index.server.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/index.server.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/package.json b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/subpath.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/subpath.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/subpath.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/subpath.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/subpath.server.js b/test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/subpath.server.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/conditional-exports/subpath.server.js
rename to test/e2e/app-dir/app-external/node_modules_bak/conditional-exports/subpath.server.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/css/index.js b/test/e2e/app-dir/app-external/node_modules_bak/css/index.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/css/index.js
rename to test/e2e/app-dir/app-external/node_modules_bak/css/index.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/css/module.js b/test/e2e/app-dir/app-external/node_modules_bak/css/module.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/css/module.js
rename to test/e2e/app-dir/app-external/node_modules_bak/css/module.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/css/package.json b/test/e2e/app-dir/app-external/node_modules_bak/css/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/css/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/css/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/css/style.css b/test/e2e/app-dir/app-external/node_modules_bak/css/style.css
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/css/style.css
rename to test/e2e/app-dir/app-external/node_modules_bak/css/style.css
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/css/styles.module.css b/test/e2e/app-dir/app-external/node_modules_bak/css/styles.module.css
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/css/styles.module.css
rename to test/e2e/app-dir/app-external/node_modules_bak/css/styles.module.css
diff --git a/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/index.js b/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/index.js
new file mode 100644
index 000000000000000..a82da124dde342b
--- /dev/null
+++ b/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/index.js
@@ -0,0 +1,6 @@
+import React from 'react'
+
+const Context = React.createContext ? React.createContext('hello') : null
+
+export const version = React.version
+export const useValue = () => React.useContext(Context)
diff --git a/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/package.json b/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/package.json
new file mode 100644
index 000000000000000..54a365f710e0610
--- /dev/null
+++ b/test/e2e/app-dir/app-external/node_modules_bak/esm-with-react/package.json
@@ -0,0 +1,9 @@
+{
+  "name": "esm-with-react",
+  "type": "module",
+  "exports": "./index.js",
+  "dependencies": {
+    "react": "^18",
+    "react-dom": "^18"
+  }
+}
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/font/index.ts b/test/e2e/app-dir/app-external/node_modules_bak/font/index.ts
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/font/index.ts
rename to test/e2e/app-dir/app-external/node_modules_bak/font/index.ts
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/font/my-font.woff2 b/test/e2e/app-dir/app-external/node_modules_bak/font/my-font.woff2
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/font/my-font.woff2
rename to test/e2e/app-dir/app-external/node_modules_bak/font/my-font.woff2
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/font/package.json b/test/e2e/app-dir/app-external/node_modules_bak/font/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/font/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/font/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/browser.js b/test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/browser.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/browser.js
rename to test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/browser.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/index.js b/test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/index.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/index.js
rename to test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/index.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/index.mjs b/test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/index.mjs
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/index.mjs
rename to test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/index.mjs
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/package.json b/test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/non-isomorphic-text/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/non-isomorphic-text/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/random-module-instance/index.js b/test/e2e/app-dir/app-external/node_modules_bak/random-module-instance/index.js
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/random-module-instance/index.js
rename to test/e2e/app-dir/app-external/node_modules_bak/random-module-instance/index.js
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/random-module-instance/package.json b/test/e2e/app-dir/app-external/node_modules_bak/random-module-instance/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/random-module-instance/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/random-module-instance/package.json
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/untranspiled-module/index.ts b/test/e2e/app-dir/app-external/node_modules_bak/untranspiled-module/index.ts
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/untranspiled-module/index.ts
rename to test/e2e/app-dir/app-external/node_modules_bak/untranspiled-module/index.ts
diff --git a/test/e2e/app-dir/rsc-external/node_modules_bak/untranspiled-module/package.json b/test/e2e/app-dir/app-external/node_modules_bak/untranspiled-module/package.json
similarity index 100%
rename from test/e2e/app-dir/rsc-external/node_modules_bak/untranspiled-module/package.json
rename to test/e2e/app-dir/app-external/node_modules_bak/untranspiled-module/package.json
diff --git a/test/e2e/app-dir/app-external/pages/test-pages-esm.jsx b/test/e2e/app-dir/app-external/pages/test-pages-esm.jsx
new file mode 100644
index 000000000000000..2a8d016df9225f6
--- /dev/null
+++ b/test/e2e/app-dir/app-external/pages/test-pages-esm.jsx
@@ -0,0 +1,14 @@
+import { version, useValue } from 'esm-with-react'
+
+import React from 'react'
+
+export default function Index() {
+  const value = useValue()
+  return (
+    <div>
+      <h2>{'App React Version: ' + React.version}</h2>
+      <h2>{'External React Version: ' + version}</h2>
+      <h2>{'Test: ' + value}</h2>
+    </div>
+  )
+}
diff --git a/test/e2e/app-dir/rsc-external/pages/test-pages.jsx b/test/e2e/app-dir/app-external/pages/test-pages.jsx
similarity index 100%
rename from test/e2e/app-dir/rsc-external/pages/test-pages.jsx
rename to test/e2e/app-dir/app-external/pages/test-pages.jsx