diff --git a/packages/react-native/src/generators/library/files/lib/.babelrc__tmpl__ b/packages/react-native/src/generators/library/files/lib/.babelrc__tmpl__
index d4b74b5be7..c6d897d3b7 100644
--- a/packages/react-native/src/generators/library/files/lib/.babelrc__tmpl__
+++ b/packages/react-native/src/generators/library/files/lib/.babelrc__tmpl__
@@ -1,3 +1,11 @@
 {
-  "presets": ["module:metro-react-native-babel-preset"]
+  "presets": [
+    [
+      "@nrwl/react/babel",
+      {
+        "runtime": "automatic",
+        "useBuiltIns": "usage"
+      }
+    ]
+  ]
 }
diff --git a/packages/react-native/src/generators/library/files/lib/tsconfig.lib.json__tmpl__ b/packages/react-native/src/generators/library/files/lib/tsconfig.lib.json__tmpl__
index 800eaa9333..ba108d03dc 100644
--- a/packages/react-native/src/generators/library/files/lib/tsconfig.lib.json__tmpl__
+++ b/packages/react-native/src/generators/library/files/lib/tsconfig.lib.json__tmpl__
@@ -2,7 +2,8 @@
   "extends": "./tsconfig.json",
   "compilerOptions": {
     "outDir": "<%= offsetFromRoot %>dist/out-tsc",
-    "types": ["node"]
+    "types": ["node"],
+    "jsx": "react-native"
   },
   "exclude": ["**/*.spec.ts", "**/*.spec.tsx", "test-setup.ts"],
   "include": ["**/*.js", "**/*.jsx", "**/*.ts", "**/*.tsx"]
diff --git a/packages/react-native/src/generators/library/library.spec.ts b/packages/react-native/src/generators/library/library.spec.ts
index 01c5e6612e..be787597cc 100644
--- a/packages/react-native/src/generators/library/library.spec.ts
+++ b/packages/react-native/src/generators/library/library.spec.ts
@@ -273,7 +273,7 @@ describe('lib', () => {
         executor: '@nrwl/web:rollup',
         outputs: ['{options.outputPath}'],
         options: {
-          external: ['react/jsx-runtime'],
+          external: ['react/jsx-runtime', 'react-native'],
           entryFile: 'libs/my-lib/src/index.ts',
           outputPath: 'dist/libs/my-lib',
           project: 'libs/my-lib/package.json',
diff --git a/packages/react-native/src/generators/library/library.ts b/packages/react-native/src/generators/library/library.ts
index 70e067896f..ff62556f9c 100644
--- a/packages/react-native/src/generators/library/library.ts
+++ b/packages/react-native/src/generators/library/library.ts
@@ -81,7 +81,7 @@ function addProject(host: Tree, options: NormalizedSchema) {
 
   if (options.publishable || options.buildable) {
     const { libsDir } = getWorkspaceLayout(host);
-    const external = ['react/jsx-runtime'];
+    const external = ['react/jsx-runtime', 'react-native'];
 
     targets.build = {
       executor: '@nrwl/web:rollup',