diff --git a/.gitignore b/.gitignore
index 40b0228..1af0b80 100755
--- a/.gitignore
+++ b/.gitignore
@@ -10,7 +10,8 @@
 npm-debug.log
 
 # Build
-dist
+/transform
+/preset
 
 # Coverage
 coverage
diff --git a/.prettierignore b/.prettierignore
index f95f741..16a9278 100644
--- a/.prettierignore
+++ b/.prettierignore
@@ -5,5 +5,6 @@ package-lock.json
 CHANGELOG.md
 node_modules
 coverage
-dist
+/preset
+/transform
 *.actual.*
\ No newline at end of file
diff --git a/README.md b/README.md
index b665dc4..7b010cd 100644
--- a/README.md
+++ b/README.md
@@ -50,26 +50,24 @@ npm install @marko/jest -D
 
 ```javascript
 module.exports = {
-  preset: "@marko/jest",
-  browser: true
+  preset: "@marko/jest/preset/browser"
 };
 ```
 
-The above is equivalent to:
+The above is roughly equivalent to:
 
 ```javascript
 const { defaults } = require("jest-config");
 
 module.exports = {
-  // uses a webpack style resolver, the default one has many issues.
-  resolver: "enhanced-resolve-jest",
+  // uses a webpack style resolver
+  resolver: "...",
   // allows for stuff like file watching of `.marko` files
   moduleFileExtensions: defaults.moduleFileExtensions.concat("marko"),
   // preprocesses Marko files.
-  transform: { "\\.marko$": "@marko/jest" },
+  transform: { "\\.marko$": "@marko/jest/transform/browser" },
   // transforms `.marko` files in node_modules as well
-  transformIgnorePatterns: ["node_modules/.*(?<!\\.marko)$"]
-  browser: true
+  transformIgnorePatterns: ["node_modules/.*(?<!\\.marko)$"
 };
 ```
 
@@ -81,18 +79,17 @@ Jest presets are extensible by default, meaning you should be able to continue t
 
 ```javascript
 module.exports = {
-  preset: "@marko/jest",
+  preset: "@marko/jest/preset/browser",
   transform: {
     "\\.ts$": "ts-jest"
-  },
-  browser: true
+  }
 };
 ```
 
-You can also get access to the preset configuration manually by importing `@marko/jest/jest-preset` and use it like so:
+You can also get access to the preset configuration manually by importing `@marko/jest/preset/browser/jest-preset` and use it like so:
 
 ```javascript
-const markoJest = require("@marko/jest/jest-preset");
+const markoJest = require("@marko/jest/preset/browser/jest-preset");
 module.exports = {
   transform: markoJest.transform,
   transformIgnorePatterns: markoJest.transformIgnorePatterns,
@@ -104,7 +101,7 @@ module.exports = {
 
 ## Test both server & browser
 
-The above configurations all set `browser: true`, for many Marko projects you may have a mix of server and browser components. You can test all of these with Jest by using the [projects configuration](https://jestjs.io/docs/en/configuration#projects-array-string-projectconfig) [like this project does](./blob/master/jest.config.js)!
+For many Marko projects you may have a mix of server and browser components. You can test all of these with Jest by using the [projects configuration](https://jestjs.io/docs/en/configuration#projects-array-string-projectconfig) [like this project does](./blob/master/jest.config.js)! Simply make sure to use `@marko/jest/preset/node` and `@marko/jest/preset/browser` according to the test environment.
 
 **jest.config.js**
 
@@ -113,14 +110,12 @@ module.exports = {
   projects: [
     {
       displayName: "browser",
-      preset: "@marko/jest",
-      browser: true,
+      preset: "@marko/jest/preset/browser",
       testMatch: ["**/__tests__/**/*.browser.js"]
     },
     {
       displayName: "server",
-      preset: "@marko/jest",
-      testEnvironment: "node",
+      preset: "@marko/jest/preset/node",
       testMatch: ["**/__tests__/**/*.server.js"]
     }
   ]
@@ -133,7 +128,7 @@ In the above example config, any tests with `*.browser.js` will run in a JSDOM c
 
 By default Jest will not transform any `.marko` files within your `node_modules` folder. Marko recommends publishing the original source Marko files when publishing to npm. To get around this you can use the [`transformIgnorePatterns`](https://jestjs.io/docs/en/tutorial-react-native#transformignorepatterns-customization) option in Jest and whitelist `.marko` files.
 
-The `@marko/jest` preset sets the ignore pattern for you. If you are just using the `@marko/jest` transformer standalone then you will have to do this yourself, like so:
+The `@marko/jest/preset/*` helpers set the ignore pattern for you. If you are using the `@marko/jest/transform/*` directly then you will have to do this yourself, like so:
 
 **jest.config.js**
 
diff --git a/jest-preset.js b/jest-preset.js
index 0bb6b4b..12b5d61 100644
--- a/jest-preset.js
+++ b/jest-preset.js
@@ -1,4 +1,13 @@
 const { defaults } = require("jest-config");
+const { version } = require("jest/package.json");
+const warning =
+  "@marko/jest preset will not work with jest@26 and above. Instead use @marko/jest/preset/browser or @marko/jest/preset/node.";
+
+if (parseInt(version.split(".")[0], 10) >= 26) {
+  throw new Error(warning);
+} else {
+  console.warn(warning);
+}
 
 module.exports = {
   // uses a webpack style resolver, the default one has many issues.
@@ -7,7 +16,7 @@ module.exports = {
   moduleFileExtensions: defaults.moduleFileExtensions.concat("marko"),
   // preprocesses Marko files.
   transform: {
-    "\\.marko$": require.resolve("."),
+    "\\.marko$": require.resolve("./transform/node"),
     "\\.[tj]s$": "babel-jest"
   },
   // Jest ignores node_module transforms by default.
diff --git a/jest.config.js b/jest.config.js
index 5adb33a..743e575 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -1,5 +1,4 @@
 const base = {
-  preset: "./jest-preset",
   transform: {
     "\\.ts$": "ts-jest",
     "\\.css$": "jest-transform-css"
@@ -10,14 +9,15 @@ module.exports = {
   projects: [
     {
       ...base,
-      displayName: "server",
+      preset: "./preset/node/jest-preset.js",
+      displayName: "node",
       testEnvironment: "node",
       testMatch: ["<rootDir>/test/server.test.ts"]
     },
     {
       ...base,
+      preset: "./preset/browser/jest-preset.js",
       displayName: "browser",
-      browser: true,
       testMatch: ["<rootDir>/test/browser.test.ts"]
     }
   ]
diff --git a/package.json b/package.json
index 04cc645..44228a8 100644
--- a/package.json
+++ b/package.json
@@ -32,7 +32,8 @@
     "typescript": "^3.5.3"
   },
   "files": [
-    "dist",
+    "preset",
+    "transform",
     "jest-preset.js"
   ],
   "homepage": "https://github.com/marko-js/jest",
@@ -42,7 +43,7 @@
     "test"
   ],
   "license": "MIT",
-  "main": "dist/index.js",
+  "main": "transform/node.js",
   "peerDependencies": {
     "marko": "^3 || ^4"
   },
diff --git a/src/preset/browser/jest-preset.ts b/src/preset/browser/jest-preset.ts
new file mode 100644
index 0000000..c5fd62f
--- /dev/null
+++ b/src/preset/browser/jest-preset.ts
@@ -0,0 +1,12 @@
+import sharedPreset from "../shared-preset";
+
+export = {
+  ...sharedPreset,
+  // uses a webpack style resolver, the default one has many issues.
+  resolver: require.resolve("./resolver"),
+  // preprocesses Marko files.
+  transform: {
+    "\\.marko$": require.resolve("../../transform/browser"),
+    ...sharedPreset.transform
+  }
+};
diff --git a/src/preset/browser/resolver.ts b/src/preset/browser/resolver.ts
new file mode 100644
index 0000000..f469938
--- /dev/null
+++ b/src/preset/browser/resolver.ts
@@ -0,0 +1,8 @@
+import { create, getDefaultConfig } from "enhanced-resolve-jest";
+
+export = create(jestConfig => {
+  const baseConfig = getDefaultConfig(jestConfig);
+  baseConfig.aliasFields = ["browser"];
+  baseConfig.mainFields = ["browser", "main"];
+  return baseConfig;
+});
diff --git a/src/preset/node/jest-preset.ts b/src/preset/node/jest-preset.ts
new file mode 100644
index 0000000..6776758
--- /dev/null
+++ b/src/preset/node/jest-preset.ts
@@ -0,0 +1,12 @@
+import sharedPreset from "../shared-preset";
+
+export = {
+  ...sharedPreset,
+  // avoid loading jsdom.
+  testEnvironment: "node",
+  // preprocesses Marko files.
+  transform: {
+    "\\.marko$": require.resolve("../../transform/node"),
+    ...sharedPreset.transform
+  }
+};
diff --git a/src/preset/shared-preset.ts b/src/preset/shared-preset.ts
new file mode 100644
index 0000000..f6d3267
--- /dev/null
+++ b/src/preset/shared-preset.ts
@@ -0,0 +1,10 @@
+import { defaults } from "jest-config";
+
+export = {
+  // allows for stuff like file watching of `.marko` files
+  moduleFileExtensions: defaults.moduleFileExtensions.concat("marko"),
+  transform: { "\\.[tj]s$": "babel-jest" },
+  // Jest ignores node_module transforms by default.
+  // Here we whitelist all `.marko` files.
+  transformIgnorePatterns: ["node_modules/.*(?<!\\.marko)$"]
+};
diff --git a/src/transform/browser.ts b/src/transform/browser.ts
new file mode 100644
index 0000000..8aaeef7
--- /dev/null
+++ b/src/transform/browser.ts
@@ -0,0 +1,2 @@
+import createTransform from "./create-transform";
+export = createTransform({ browser: true });
diff --git a/src/index.ts b/src/transform/create-transform.ts
similarity index 96%
rename from src/index.ts
rename to src/transform/create-transform.ts
index 58c41d0..59106a4 100644
--- a/src/index.ts
+++ b/src/transform/create-transform.ts
@@ -6,7 +6,7 @@ import ConcatMap from "concat-with-sourcemaps";
 import { Transformer } from "@jest/transform";
 const THIS_FILE = fs.readFileSync(__filename);
 
-export = {
+export = ({ browser }: { browser: boolean }) => ({
   getCacheKey(fileData, filename, configString, { instrument, rootDir }) {
     return crypto
       .createHash("md5")
@@ -25,7 +25,7 @@ export = {
   },
   process(src, filename, config) {
     const result = compiler[
-      config.browser &&
+      (browser || config.browser) &&
       compiler.compileForBrowser /** Only Marko 4 supports compileForBrowser, otherwise use compile */
         ? "compileForBrowser"
         : "compile"
@@ -98,4 +98,4 @@ export = {
     };
   },
   canInstrument: false
-} as Transformer;
+} as Transformer);
diff --git a/src/transform/node.ts b/src/transform/node.ts
new file mode 100644
index 0000000..d6e459b
--- /dev/null
+++ b/src/transform/node.ts
@@ -0,0 +1,2 @@
+import createTransform from "./create-transform";
+export = createTransform({ browser: false });
diff --git a/tsconfig.json b/tsconfig.json
index 550cd91..6e47f2e 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -3,7 +3,7 @@
     "lib": ["dom", "es2015", "scripthost"],
     "pretty": true,
     "target": "es5",
-    "outDir": "./dist",
+    "outDir": ".",
     "sourceMap": true,
     "declaration": true,
     "stripInternal": true,
@@ -14,5 +14,6 @@
     "moduleResolution": "node",
     "forceConsistentCasingInFileNames": true
   },
-  "include": ["./src/**/*"]
+  "include": ["./src/**/*"],
+  "exclude": []
 }