diff --git a/packages/react-native/src/generators/application/files/app/babel.config.json.template b/packages/react-native/src/generators/application/files/app/babel.config.json.template
index d4b74b5be7..842102b0e5 100644
--- a/packages/react-native/src/generators/application/files/app/babel.config.json.template
+++ b/packages/react-native/src/generators/application/files/app/babel.config.json.template
@@ -1,3 +1,10 @@
 {
-  "presets": ["module:metro-react-native-babel-preset"]
+  "presets": [
+    [
+      "module:metro-react-native-babel-preset",
+      {
+        "useTransformReactJSX": true
+      }
+    ]
+  ]
 }
diff --git a/packages/react-native/src/generators/library/files/lib/babel.config.json.template b/packages/react-native/src/generators/library/files/lib/babel.config.json.template
index 34e8832831..2d9f310798 100644
--- a/packages/react-native/src/generators/library/files/lib/babel.config.json.template
+++ b/packages/react-native/src/generators/library/files/lib/babel.config.json.template
@@ -11,7 +11,9 @@
   "plugins": [],
   "env": {
     "test": {
-      "presets": ["module:metro-react-native-babel-preset"]
+      "presets": [
+        ["module:metro-react-native-babel-preset", { "useTransformReactJSX": true }]
+      ]
     }
   }
 }