diff --git a/packages/slate-config/README.md b/packages/slate-config/README.md
index 0458304cf..598d4a67f 100644
--- a/packages/slate-config/README.md
+++ b/packages/slate-config/README.md
@@ -17,7 +17,7 @@ module.exports = {
   ...commonPaths
 
   // Configuration values can be set directly
-  'babel.enable': true,
+  'webpack.babel.enable': true,
 
   // Or computed when the schema file is require()'d by another file
   'paths.theme': process.cwd(),
diff --git a/packages/slate-tools/package.json b/packages/slate-tools/package.json
index f2d018948..8870cb9ef 100755
--- a/packages/slate-tools/package.json
+++ b/packages/slate-tools/package.json
@@ -80,5 +80,8 @@
     "write-file-webpack-plugin": "4.2.0",
     "yamljs": "0.2.10",
     "yargs": "^11.0.0"
+  },
+  "devDependencies": {
+    "mock-fs": "^4.6.0"
   }
 }
diff --git a/packages/slate-tools/slate-tools.schema.js b/packages/slate-tools/slate-tools.schema.js
index 3ee2dec1c..8c6137a7c 100644
--- a/packages/slate-tools/slate-tools.schema.js
+++ b/packages/slate-tools/slate-tools.schema.js
@@ -5,59 +5,22 @@ const commonPaths = require('@shopify/slate-config/common/paths.schema');
 module.exports = {
   ...commonPaths,
 
-  // Paths to exclude for all webpack loaders
-  'webpack.commonExcludes': ['node_modules', 'assets/static/'],
-
-  // Enable/disable Babel for theme scripts
-  'babel.enable': true,
-
-  // A path to a valid Babel configuration
-  'babel.configPath': (config) =>
-    path.join(config.get('paths.theme'), '.babelrc'),
-
-  // Optimization settings for the cssnano plugin
-  'cssnano.settings': {zindex: false},
-
   // Enable/disable the prompt to skip uploading settings_data.json
   'cli.promptSettings': true,
 
-  // Object which contains entrypoints used in webpack's config.entry key
-  'webpack.entrypoints': {
-    static: path.resolve(__dirname, 'tools/webpack/static-files-glob.js'),
-  },
-
-  // Extends webpack development config using 'webpack-merge'
-  // https://www.npmjs.com/package/webpack-merge
-  'webpack.config.extend.dev': {},
-
-  // Extends webpack production config using 'webpack-merge'
-  // https://www.npmjs.com/package/webpack-merge
-  'webpack.config.extend.prod': {},
-
-  // Default port used for asset server. If it is not available, the next port
-  // that is available is used.
-  'network.startPort': 3000,
-
   // Path to Eslint bin executable
   'eslint.bin': path.resolve(__dirname, 'node_modules/.bin/eslint'),
 
-  // Path to .eslintrc file
-  'eslint.rc': (config) => path.resolve(config.get('paths.theme'), '.eslintrc'),
-
   // Path to .eslintignore file
   'eslint.ignore': (config) =>
     path.resolve(config.get('paths.theme'), '.eslintignore'),
 
-  // Path to Eslint bin executable
-  'stylelint.bin': path.resolve(__dirname, 'node_modules/.bin/stylelint'),
-
-  // Path to .stylelintrc file
-  'stylelint.rc': (config) =>
-    path.resolve(config.get('paths.theme'), '.stylelintrc'),
+  // Path to .eslintrc file
+  'eslint.rc': (config) => path.resolve(config.get('paths.theme'), '.eslintrc'),
 
-  // Path to .stylelintignore file
-  'stylelint.ignore': (config) =>
-    path.resolve(config.get('paths.theme'), '.stylelintignore'),
+  // Default port used for asset server. If it is not available, the next port
+  // that is available is used.
+  'network.startPort': 3000,
 
   // Path to Prettier bin executable
   'prettier.bin': path.resolve(__dirname, 'node_modules/.bin/prettier'),
@@ -70,9 +33,6 @@ module.exports = {
   'prettier.ignore': (config) =>
     path.resolve(config.get('paths.theme'), '.prettierignore'),
 
-  // Path to Themelint bin executable
-  'themelint.bin': path.resolve(__dirname, 'node_modules/.bin/theme-lint'),
-
   // Path to self-signed SSL certificate which is used when developing
   // (browsersync, asset server) to avoid browsers rejecting requests based
   // on SSL
@@ -82,4 +42,44 @@ module.exports = {
   // (browsersync, asset server) to avoid browsers rejecting requests based
   // on SSL
   'ssl.key': path.resolve(os.homedir(), '.localhost_ssl/server.key'),
+
+  // Path to Eslint bin executable
+  'stylelint.bin': path.resolve(__dirname, 'node_modules/.bin/stylelint'),
+
+  // Path to .stylelintrc file
+  'stylelint.rc': (config) =>
+    path.resolve(config.get('paths.theme'), '.stylelintrc'),
+
+  // Path to .stylelintignore file
+  'stylelint.ignore': (config) =>
+    path.resolve(config.get('paths.theme'), '.stylelintignore'),
+
+  // Path to Themelint bin executable
+  'themelint.bin': path.resolve(__dirname, 'node_modules/.bin/theme-lint'),
+
+  // Include babel-loader in the webpack core config
+  'webpack.babel.enable': true,
+
+  // A path to a valid Babel configuration. File must exist for Babel to be enabled.
+  'webpack.babel.configPath': (config) =>
+    path.join(config.get('paths.theme'), '.babelrc'),
+
+  // Paths to exclude for all webpack loaders
+  'webpack.commonExcludes': ['node_modules', 'assets/static/'],
+
+  // Extends webpack development config using 'webpack-merge'
+  // https://www.npmjs.com/package/webpack-merge
+  'webpack.config.extend.dev': {},
+
+  // Extends webpack production config using 'webpack-merge'
+  // https://www.npmjs.com/package/webpack-merge
+  'webpack.config.extend.prod': {},
+
+  // Optimization settings for the cssnano plugin
+  'webpack.cssnano.settings': {zindex: false},
+
+  // Object which contains entrypoints used in webpack's config.entry key
+  'webpack.entrypoints': {
+    static: path.resolve(__dirname, 'tools/webpack/static-files-glob.js'),
+  },
 };
diff --git a/packages/slate-tools/tools/webpack/config/core.js b/packages/slate-tools/tools/webpack/config/core.js
index b20051289..3b13b0e2f 100755
--- a/packages/slate-tools/tools/webpack/config/core.js
+++ b/packages/slate-tools/tools/webpack/config/core.js
@@ -7,7 +7,6 @@ const ExtractTextPlugin = require('extract-text-webpack-plugin');
 const SlateConfig = require('@shopify/slate-config');
 
 const commonExcludes = require('../common-excludes');
-const babelLoader = require('../loaders/babel-loader');
 const {entrypointFiles} = require('../entrypoints');
 const config = new SlateConfig(require('../../../slate-tools.schema'));
 
@@ -88,8 +87,6 @@ module.exports = {
 
   module: {
     rules: [
-      ...babelLoader(),
-
       {
         test: /\.js$/,
         exclude: commonExcludes(),
diff --git a/packages/slate-tools/tools/webpack/config/dev.js b/packages/slate-tools/tools/webpack/config/dev.js
index ebc19c5a8..f968891e4 100755
--- a/packages/slate-tools/tools/webpack/config/dev.js
+++ b/packages/slate-tools/tools/webpack/config/dev.js
@@ -6,6 +6,7 @@ const autoprefixer = require('autoprefixer');
 const SlateConfig = require('@shopify/slate-config');
 
 const webpackCoreConfig = require('./core');
+const babel = require('./parts/babel');
 const commonExcludes = require('../common-excludes');
 const {templateFiles, layoutFiles} = require('../entrypoints');
 const HtmlWebpackIncludeLiquidStylesPlugin = require('../html-webpack-include-chunks');
@@ -20,6 +21,7 @@ Object.keys(webpackCoreConfig.entry).forEach((name) => {
 
 module.exports = merge(
   webpackCoreConfig,
+  babel,
   {
     mode: 'development',
 
diff --git a/packages/slate-tools/tools/webpack/config/parts/__tests__/babel.test.js b/packages/slate-tools/tools/webpack/config/parts/__tests__/babel.test.js
new file mode 100644
index 000000000..7ba99bee5
--- /dev/null
+++ b/packages/slate-tools/tools/webpack/config/parts/__tests__/babel.test.js
@@ -0,0 +1,51 @@
+const mock = require('mock-fs');
+
+beforeEach(() => {
+  global.slateUserConfig = {};
+  jest.resetModules();
+});
+
+afterEach(mock.restore);
+
+describe('returns an empty object', () => {
+  test(`if 'webpack.babel.enable' config is set to false`, () => {
+    global.slateUserConfig['webpack.babel.enable'] = false;
+
+    const babelLoader = require('../babel');
+    const results = babelLoader();
+
+    expect(typeof results).toBe('object');
+    expect(Object.keys(results).length).toBe(0);
+  });
+  test(`if file at 'webpack.babel.configPath' config does not exist`, () => {
+    const babelLoader = require('../babel');
+
+    mock();
+
+    const results = babelLoader();
+
+    expect(typeof results).toBe('object');
+    expect(Object.keys(results).length).toBe(0);
+  });
+});
+
+describe('returns a webpack config object containing babel-loader', () => {
+  test(`if 'webpack.babel.enable' config is true and file at 'webpack.babel.configPath' exists`, () => {
+    const babelConfigPath = 'some/path';
+
+    global.slateUserConfig['webpack.babel.configPath'] = babelConfigPath;
+
+    const babelLoader = require('../babel');
+
+    mock({[babelConfigPath]: '{}'});
+
+    const results = babelLoader();
+
+    expect(typeof results).toBe('object');
+    expect(results.module).toBeDefined();
+    expect(results.module.rules).toBeDefined();
+    expect(Array.isArray(results.module.rules)).toBeTruthy();
+    expect(typeof results.module.rules[0]).toBe('object');
+    expect(results.module.rules[0].options.extends).toBe(babelConfigPath);
+  });
+});
diff --git a/packages/slate-tools/tools/webpack/config/parts/babel.js b/packages/slate-tools/tools/webpack/config/parts/babel.js
new file mode 100644
index 000000000..dd377e433
--- /dev/null
+++ b/packages/slate-tools/tools/webpack/config/parts/babel.js
@@ -0,0 +1,30 @@
+const fs = require('fs');
+const SlateConfig = require('@shopify/slate-config');
+
+const commonExcludes = require('../../common-excludes');
+const config = new SlateConfig(require('../../../../slate-tools.schema'));
+
+module.exports = () => {
+  if (
+    !fs.existsSync(config.get('webpack.babel.configPath')) ||
+    !config.get('webpack.babel.enable')
+  ) {
+    return {};
+  }
+
+  return {
+    module: {
+      rules: [
+        {
+          test: /\.js$/,
+          exclude: commonExcludes(),
+          loader: 'babel-loader',
+          options: {
+            babelrc: false,
+            extends: config.get('webpack.babel.configPath'),
+          },
+        },
+      ],
+    },
+  };
+};
diff --git a/packages/slate-tools/tools/webpack/config/prod.js b/packages/slate-tools/tools/webpack/config/prod.js
index f1383e39e..b029c7639 100755
--- a/packages/slate-tools/tools/webpack/config/prod.js
+++ b/packages/slate-tools/tools/webpack/config/prod.js
@@ -11,6 +11,7 @@ const SlateConfig = require('@shopify/slate-config');
 const SlateLiquidAssetsPlugin = require('@shopify/html-webpack-liquid-asset-tags-plugin');
 const SlateTagPlugin = require('@shopify/slate-tag-webpack-plugin');
 
+const babel = require('./parts/babel');
 const commonExcludes = require('../common-excludes');
 const webpackCoreConfig = require('./core');
 const packageJson = require('../../../package.json');
@@ -26,6 +27,7 @@ const extractStyles = new ExtractTextPlugin({
 
 module.exports = merge(
   webpackCoreConfig,
+  babel,
   {
     mode: 'production',
     devtool: 'hidden-source-map',
@@ -61,7 +63,7 @@ module.exports = merge(
                   sourceMap: true,
                   plugins: [
                     autoprefixer,
-                    cssnano(config.get('cssnano.settings')),
+                    cssnano(config.get('webpack.cssnano.settings')),
                   ],
                 },
               },
diff --git a/packages/slate-tools/tools/webpack/loaders/babel-loader.js b/packages/slate-tools/tools/webpack/loaders/babel-loader.js
deleted file mode 100644
index 78eba16ce..000000000
--- a/packages/slate-tools/tools/webpack/loaders/babel-loader.js
+++ /dev/null
@@ -1,26 +0,0 @@
-const fs = require('fs');
-const SlateConfig = require('@shopify/slate-config');
-
-const commonExcludes = require('../common-excludes');
-const config = new SlateConfig(require('../../../slate-tools.schema'));
-
-module.exports = () => {
-  if (
-    !fs.existsSync(config.get('babel.configPath')) ||
-    !config.get('babel.enable')
-  ) {
-    return [];
-  }
-
-  return [
-    {
-      test: /\.js$/,
-      exclude: commonExcludes(),
-      loader: 'babel-loader',
-      options: {
-        babelrc: false,
-        extends: config.get('babel.configPath'),
-      },
-    },
-  ];
-};
diff --git a/yarn.lock b/yarn.lock
index 6aef0cb2f..344e7f5e5 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -7486,6 +7486,10 @@ mock-fs@^4.4.2:
   version "4.4.2"
   resolved "https://registry.yarnpkg.com/mock-fs/-/mock-fs-4.4.2.tgz#09dec5313f97095a450be6aa2ad8ab6738d63d6b"
 
+mock-fs@^4.6.0:
+  version "4.6.0"
+  resolved "https://registry.yarnpkg.com/mock-fs/-/mock-fs-4.6.0.tgz#d944ef4c3e03ceb4e8332b4b31b8ac254051c8ae"
+
 modify-values@^1.0.0:
   version "1.0.1"
   resolved "https://registry.yarnpkg.com/modify-values/-/modify-values-1.0.1.tgz#b3939fa605546474e3e3e3c63d64bd43b4ee6022"