diff --git a/packages/babel-core/README.md b/packages/babel-core/README.md
index 8a08cf2d94..aeb600c947 100644
--- a/packages/babel-core/README.md
+++ b/packages/babel-core/README.md
@@ -218,7 +218,8 @@ Following is a table of the options you can use:
 | `auxiliaryCommentBefore` | `null`               | Attach a comment before all non-user injected code |
 | `root`                   | `"."`                | Specify the "root" folder that defines the location to search for "babel.config.js", and the default folder to allow `.babelrc` files inside of.|
 | `configFile`             | `undefined`          | The config file to load Babel's config from. Defaults to searching for "babel.config.js" inside the "root" folder. `false` will disable searching for config files.|
-| `babelrc`                | `(root)`             | Specify whether or not to use .babelrc and .babelignore files. Not available when using the CLI, [use `--no-babelrc` instead](https://babeljs.io/docs/usage/cli/#babel-ignoring-babelrc). `false` to disable searching, and `true` to always search, a string path of the package to search inside of, or an array of paths to packages to search inside of. |
+| `babelrc`                | `true`               | Specify whether or not to use .babelrc and .babelignore files. Not available when using the CLI, [use `--no-babelrc` instead](https://babeljs.io/docs/usage/cli/#babel-ignoring-babelrc) |
+| `babelrcRoots`           | `(root)`             | Specify which packages should be search for .babelrc files when they are being compiled. `true` to _always_ search, or a path string or an array of paths to packages to search inside of. Defaults to only searching the "root" package. |
 | `envName`                | env vars             | Defaults to environment variable `BABEL_ENV` if set, or else `NODE_ENV` if set, or else it defaults to `"development"` |
 | `code`                   | `true`               | Enable code generation |
 | `comments`               | `true`               | Output comments in generated output |
diff --git a/packages/babel-core/src/config/config-chain.js b/packages/babel-core/src/config/config-chain.js
index da91fd83e2..1038652bc2 100644
--- a/packages/babel-core/src/config/config-chain.js
+++ b/packages/babel-core/src/config/config-chain.js
@@ -132,18 +132,18 @@ export function buildRootChain(
 
   const {
     root: rootDir = ".",
-    babelrc = undefined,
+    babelrc = true,
+    babelrcRoots,
     configFile: configFileName = true,
   } = opts;
 
+  const absoluteRoot = path.resolve(context.cwd, rootDir);
+
   let configFile;
   if (typeof configFileName === "string") {
     configFile = loadConfig(configFileName, context.cwd, context.envName);
   } else if (configFileName === true) {
-    configFile = findRootConfig(
-      path.resolve(context.cwd, rootDir),
-      context.envName,
-    );
+    configFile = findRootConfig(absoluteRoot, context.envName);
   }
 
   const configFileChain = emptyChain();
@@ -162,7 +162,11 @@ export function buildRootChain(
   let ignoreFile, babelrcFile;
   const fileChain = emptyChain();
   // resolve all .babelrc files
-  if (pkgData && babelrcLoadEnabled(context, pkgData, babelrc, rootDir)) {
+  if (
+    babelrc &&
+    pkgData &&
+    babelrcLoadEnabled(context, pkgData, babelrcRoots, absoluteRoot)
+  ) {
     ({ ignore: ignoreFile, config: babelrcFile } = findRelativeConfig(
       pkgData,
       context.envName,
@@ -203,28 +207,28 @@ export function buildRootChain(
 function babelrcLoadEnabled(
   context: ConfigContext,
   pkgData: FilePackageData,
-  babelrc: BabelrcSearch | void,
-  rootDir: string,
+  babelrcRoots: BabelrcSearch | void,
+  absoluteRoot: string,
 ): boolean {
-  if (typeof babelrc === "boolean") return babelrc;
-
-  const absoluteRoot = path.resolve(context.cwd, rootDir);
+  if (typeof babelrcRoots === "boolean") return babelrcRoots;
 
   // Fast path to avoid having to load micromatch if the babelrc is just
   // loading in the standard root directory.
-  if (
-    babelrc === undefined ||
-    babelrc === rootDir ||
-    (Array.isArray(babelrc) && babelrc.length === 1 && babelrc[0] === rootDir)
-  ) {
+  if (babelrcRoots === undefined) {
     return pkgData.directories.indexOf(absoluteRoot) !== -1;
   }
 
-  const babelrcRoots = (Array.isArray(babelrc) ? babelrc : [babelrc]).map(pat =>
-    path.resolve(context.cwd, pat),
-  );
+  let babelrcPatterns = babelrcRoots;
+  if (!Array.isArray(babelrcPatterns)) babelrcPatterns = [babelrcPatterns];
+  babelrcPatterns = babelrcPatterns.map(pat => path.resolve(context.cwd, pat));
 
-  return micromatch(pkgData.directories, babelrcRoots).length > 0;
+  // Fast path to avoid having to load micromatch if the babelrc is just
+  // loading in the standard root directory.
+  if (babelrcPatterns.length === 1 && babelrcPatterns[0] === absoluteRoot) {
+    return pkgData.directories.indexOf(absoluteRoot) !== -1;
+  }
+
+  return micromatch(pkgData.directories, babelrcPatterns).length > 0;
 }
 
 /**
diff --git a/packages/babel-core/src/config/partial.js b/packages/babel-core/src/config/partial.js
index e0fa76b81a..2a491f5e69 100644
--- a/packages/babel-core/src/config/partial.js
+++ b/packages/babel-core/src/config/partial.js
@@ -128,7 +128,7 @@ class PartialConfig {
    * this.babelrc directly.
    */
   hasFilesystemConfig(): boolean {
-    return this.babelrc !== undefined;
+    return this.babelrc !== undefined || this.config !== undefined;
   }
 }
 Object.freeze(PartialConfig.prototype);
diff --git a/packages/babel-core/src/config/validation/options.js b/packages/babel-core/src/config/validation/options.js
index e4b5f4cde8..4b6024cf03 100644
--- a/packages/babel-core/src/config/validation/options.js
+++ b/packages/babel-core/src/config/validation/options.js
@@ -36,9 +36,12 @@ const ROOT_VALIDATORS: ValidatorSet = {
   filenameRelative: (assertString: Validator<
     $PropertyType<ValidatedOptions, "filenameRelative">,
   >),
-  babelrc: (assertBabelrcSearch: Validator<
+  babelrc: (assertBoolean: Validator<
     $PropertyType<ValidatedOptions, "babelrc">,
   >),
+  babelrcRoots: (assertBabelrcSearch: Validator<
+    $PropertyType<ValidatedOptions, "babelrcRoots">,
+  >),
   code: (assertBoolean: Validator<$PropertyType<ValidatedOptions, "code">>),
   ast: (assertBoolean: Validator<$PropertyType<ValidatedOptions, "ast">>),
 
@@ -157,10 +160,11 @@ export type ValidatedOptions = {
   cwd?: string,
   filename?: string,
   filenameRelative?: string,
-  babelrc?: BabelrcSearch,
-  code?: boolean,
+  babelrc?: boolean,
+  babelrcRoots?: BabelrcSearch,
   configFile?: ConfigFileSearch,
   root?: string,
+  code?: boolean,
   ast?: boolean,
   inputSourceMap?: RootInputSourceMapOption,
   envName?: string,
diff --git a/packages/babel-register/test/index.js b/packages/babel-register/test/index.js
index 67eef99204..5643bdcf6f 100644
--- a/packages/babel-register/test/index.js
+++ b/packages/babel-register/test/index.js
@@ -1,4 +1,5 @@
 import fs from "fs";
+import path from "path";
 
 let currentHook;
 let currentOptions;
@@ -39,6 +40,11 @@ describe("@babel/register", function() {
   let babelRegister;
 
   function setupRegister(config = { babelrc: false }) {
+    config = {
+      cwd: path.dirname(testFile),
+      ...config,
+    };
+
     babelRegister = require(registerFile);
     babelRegister.default(config);
   }