diff --git a/packages/async-loader/async.js b/packages/async-loader/async.js
index 860908a32..252c7f953 100644
--- a/packages/async-loader/async.js
+++ b/packages/async-loader/async.js
@@ -1,36 +1,31 @@
 import { h, Component } from 'preact';
 
-export default function(req) {
-	function Async() {
-		Component.call(this);
-
-		let b, old;
-		this.componentWillMount = () => {
-			b = this.base = this.nextBase || this.__b; // short circuits 1st render
-			req(m => {
-				this.setState({ child: m.default || m });
-			});
-		};
+const PENDING = {};
 
-		this.shouldComponentUpdate = (_, nxt) => {
-			nxt = nxt.child === void 0;
-			if (nxt && old === void 0 && b) {
-				// Node.TEXT_NODE
-				if (b.nodeType === 3) {
-					old = b.data;
-				} else {
-					old = h(b.nodeName, {
-						dangerouslySetInnerHTML: { __html: b.innerHTML },
-					});
-				}
-			} else {
-				old = ''; // dump it
-			}
-			return !nxt;
-		};
+function Pending() {
+	throw PENDING;
+}
 
-		this.render = (p, s) => (s.child ? h(s.child, p) : old);
+export default function async(load) {
+	let component;
+	function AsyncComponent() {
+		Component.call(this);
+		if (!component) {
+			(this.componentWillMount = () => {
+				load(mod => {
+					component = (mod && mod.default) || mod;
+					this.componentDidCatch = null;
+					this.setState({});
+				});
+			}),
+				(this.componentDidCatch = err => {
+					if (err !== PENDING) throw err;
+				});
+			this.shouldComponentUpdate = () => component != null;
+		}
+		this.render = props => h(component || Pending, props);
 	}
-	(Async.prototype = new Component()).constructor = Async;
-	return Async;
+	AsyncComponent.preload = load;
+	(AsyncComponent.prototype = new Component()).constructor = AsyncComponent;
+	return AsyncComponent;
 }
diff --git a/packages/async-loader/index.js b/packages/async-loader/index.js
index d4fde234b..d2010f06f 100644
--- a/packages/async-loader/index.js
+++ b/packages/async-loader/index.js
@@ -1,3 +1,4 @@
+const path = require('path');
 const { getOptions, stringifyRequest } = require('loader-utils');
 
 exports.pitch = function(req) {
@@ -16,8 +17,12 @@ exports.pitch = function(req) {
 		name = query.formatName(this.resourcePath);
 	}
 
+	// import Async from '${path.relative(process.cwd(), path.resolve(__dirname, 'async-component.js'))}';
 	return `
-		import Async from '@preact/async-loader/async';
+		import Async from ${stringifyRequest(
+			this,
+			path.resolve(__dirname, 'async.js')
+		)};
 
 		function load(cb) {
 			require.ensure([], function (require) {
diff --git a/packages/cli/lib/lib/entry.js b/packages/cli/lib/lib/entry.js
index 9ce0d6f08..3a71f2b17 100644
--- a/packages/cli/lib/lib/entry.js
+++ b/packages/cli/lib/lib/entry.js
@@ -1,6 +1,6 @@
 /* global __webpack_public_path__ */
 
-import { h, render } from 'preact';
+import { h, render, hydrate } from 'preact';
 
 const interopDefault = m => (m && m.default ? m.default : m);
 
@@ -32,7 +32,8 @@ if (process.env.NODE_ENV === 'development') {
 let app = interopDefault(require('preact-cli-entrypoint'));
 
 if (typeof app === 'function') {
-	let root = document.body.firstElementChild;
+	let root =
+		document.getElementById('preact_root') || document.body.firstElementChild;
 
 	let init = () => {
 		let app = interopDefault(require('preact-cli-entrypoint'));
@@ -48,7 +49,11 @@ if (typeof app === 'function') {
 		 * to send other data like at some point in time.
 		 */
 		const CLI_DATA = { preRenderData };
-		root = render(h(app, { CLI_DATA }), document.body, root);
+		const doRender =
+			process.env.NODE_ENV !== 'production' || root.tagName !== 'script'
+				? render
+				: hydrate;
+		root = doRender(h(app, { CLI_DATA }), document.body, root);
 	};
 
 	if (module.hot) module.hot.accept('preact-cli-entrypoint', init);