diff --git a/packages/web/src/utils/config.spec.ts b/packages/web/src/utils/config.spec.ts
index 8be66631cf..44ef83e748 100644
--- a/packages/web/src/utils/config.spec.ts
+++ b/packages/web/src/utils/config.spec.ts
@@ -442,16 +442,18 @@ describe('getBaseWebpackPartial', () => {
       });
     });
 
-    it('should support envName overrides', () => {
+    it('should set envName to production when script optimization is enabled', () => {
+      const esm = true;
+      const isScriptOptimizeOn = true;
+      const emitDecoratorMetadata = true;
       const result = getBaseWebpackPartial(
         {
           ...input,
           progress: true,
         },
-        true,
-        true,
-        true,
-        'production'
+        esm,
+        isScriptOptimizeOn,
+        emitDecoratorMetadata
       );
 
       const rule = result.module.rules.find(
@@ -464,5 +466,31 @@ describe('getBaseWebpackPartial', () => {
         babelrc: true,
       });
     });
+
+    it('should override envName when script optimization is disabled', () => {
+      const esm = true;
+      const isScriptOptimizeOn = false;
+      const emitDecoratorMetadata = true;
+      const result = getBaseWebpackPartial(
+        {
+          ...input,
+          progress: true,
+        },
+        esm,
+        isScriptOptimizeOn,
+        emitDecoratorMetadata,
+        'staging'
+      );
+
+      const rule = result.module.rules.find(
+        (r) => typeof r.loader === 'string' && r.loader.match(/babel-loader/)
+      );
+      expect(rule.options).toMatchObject({
+        rootMode: 'upward',
+        cwd: '/root/root/src',
+        envName: 'staging',
+        babelrc: true,
+      });
+    });
   });
 });
diff --git a/packages/web/src/utils/config.ts b/packages/web/src/utils/config.ts
index 4998c0b412..64cdb2b27b 100644
--- a/packages/web/src/utils/config.ts
+++ b/packages/web/src/utils/config.ts
@@ -57,7 +57,7 @@ export function getBaseWebpackPartial(
             cwd: join(options.root, options.sourceRoot),
             emitDecoratorMetadata,
             isModern: esm,
-            envName: configuration,
+            envName: isScriptOptimizeOn ? 'production' : configuration,
             babelrc: true,
             cacheDirectory: true,
             cacheCompression: false,