diff --git a/compiler/apps/playground/components/Editor/ConfigEditor.tsx b/compiler/apps/playground/components/Editor/ConfigEditor.tsx
index 18f904d225f0e..cf80b48dbf0da 100644
--- a/compiler/apps/playground/components/Editor/ConfigEditor.tsx
+++ b/compiler/apps/playground/components/Editor/ConfigEditor.tsx
@@ -14,6 +14,7 @@ import React, {
   unstable_ViewTransition as ViewTransition,
   unstable_addTransitionType as addTransitionType,
   startTransition,
+  Activity,
 } from 'react';
 import {Resizable} from 're-resizable';
 import {useStore, useStoreDispatch} from '../StoreContext';
@@ -34,12 +35,8 @@ export default function ConfigEditor({
   const [isExpanded, setIsExpanded] = useState(false);
 
   return (
-    // TODO: Use <Activity> when it is compatible with Monaco: https://github.com/suren-atoyan/monaco-react/issues/753
     <>
-      <div
-        style={{
-          display: isExpanded ? 'block' : 'none',
-        }}>
+      <Activity mode={isExpanded ? 'visible' : 'hidden'}>
         <ExpandedEditor
           onToggle={() => {
             startTransition(() => {
@@ -49,11 +46,8 @@ export default function ConfigEditor({
           }}
           formattedAppliedConfig={formattedAppliedConfig}
         />
-      </div>
-      <div
-        style={{
-          display: !isExpanded ? 'block' : 'none',
-        }}>
+      </Activity>
+      <Activity mode={isExpanded ? 'hidden' : 'visible'}>
         <CollapsedEditor
           onToggle={() => {
             startTransition(() => {
@@ -62,7 +56,7 @@ export default function ConfigEditor({
             });
           }}
         />
-      </div>
+      </Activity>
     </>
   );
 }
@@ -122,7 +116,8 @@ function ExpandedEditor({
 
   return (
     <ViewTransition
-      update={{[CONFIG_PANEL_TRANSITION]: 'slide-in', default: 'none'}}>
+      enter={{[CONFIG_PANEL_TRANSITION]: 'slide-in', default: 'none'}}
+      exit={{[CONFIG_PANEL_TRANSITION]: 'slide-out', default: 'none'}}>
       <Resizable
         minWidth={300}
         maxWidth={600}
diff --git a/compiler/apps/playground/package.json b/compiler/apps/playground/package.json
index 6d5757008a5bc..7c187b439e78a 100644
--- a/compiler/apps/playground/package.json
+++ b/compiler/apps/playground/package.json
@@ -26,7 +26,7 @@
     "@babel/traverse": "^7.18.9",
     "@babel/types": "7.26.3",
     "@heroicons/react": "^1.0.6",
-    "@monaco-editor/react": "^4.4.6",
+    "@monaco-editor/react": "^4.8.0-rc.2",
     "@playwright/test": "^1.51.1",
     "@use-gesture/react": "^10.2.22",
     "hermes-eslint": "^0.25.0",
@@ -40,13 +40,13 @@
     "prettier": "^3.3.3",
     "pretty-format": "^29.3.1",
     "re-resizable": "^6.9.16",
-    "react": "19.1.1",
-    "react-dom": "19.1.1"
+    "react": "19.2",
+    "react-dom": "19.2"
   },
   "devDependencies": {
     "@types/node": "18.11.9",
-    "@types/react": "19.1.13",
-    "@types/react-dom": "19.1.9",
+    "@types/react": "19.2",
+    "@types/react-dom": "19.2",
     "autoprefixer": "^10.4.13",
     "clsx": "^1.2.1",
     "concurrently": "^7.4.0",
@@ -58,7 +58,7 @@
     "wait-on": "^7.2.0"
   },
   "resolutions": {
-    "@types/react": "19.1.12",
-    "@types/react-dom": "19.1.9"
+    "@types/react": "19.2",
+    "@types/react-dom": "19.2"
   }
 }
diff --git a/compiler/apps/playground/styles/globals.css b/compiler/apps/playground/styles/globals.css
index 86b069f0579c4..ead5d83a65d9b 100644
--- a/compiler/apps/playground/styles/globals.css
+++ b/compiler/apps/playground/styles/globals.css
@@ -79,6 +79,15 @@
 ::view-transition-group(.slide-in) {
   z-index: 1;
 }
+::view-transition-old(.slide-out) {
+  animation-name: slideOutLeft;
+}
+::view-transition-new(.slide-out) {
+  animation-name: slideInLeft;
+}
+::view-transition-group(.slide-out) {
+  z-index: 1;
+}
 
 @keyframes slideOutLeft {
   from {
diff --git a/compiler/apps/playground/yarn.lock b/compiler/apps/playground/yarn.lock
index 00b8a6950f93a..232d37448ee33 100644
--- a/compiler/apps/playground/yarn.lock
+++ b/compiler/apps/playground/yarn.lock
@@ -701,19 +701,19 @@
     "@jridgewell/resolve-uri" "^3.1.0"
     "@jridgewell/sourcemap-codec" "^1.4.14"
 
-"@monaco-editor/loader@^1.4.0":
-  version "1.4.0"
-  resolved "https://registry.yarnpkg.com/@monaco-editor/loader/-/loader-1.4.0.tgz#f08227057331ec890fa1e903912a5b711a2ad558"
-  integrity sha512-00ioBig0x642hytVspPl7DbQyaSWRaolYie/UFNjoTdvoKPzo6xrXLhTk9ixgIKcLH5b5vDOjVNiGyY+uDCUlg==
+"@monaco-editor/loader@^1.6.1":
+  version "1.6.1"
+  resolved "https://registry.npmjs.org/@monaco-editor/loader/-/loader-1.6.1.tgz#c99177d87765abf10de31a0086084e714acfbc0f"
+  integrity sha512-w3tEnj9HYEC73wtjdpR089AqkUPskFRcdkxsiSFt3SoUc3OHpmu+leP94CXBm4mHfefmhsdfI0ZQu6qJ0wgtPg==
   dependencies:
     state-local "^1.0.6"
 
-"@monaco-editor/react@^4.4.6":
-  version "4.6.0"
-  resolved "https://registry.yarnpkg.com/@monaco-editor/react/-/react-4.6.0.tgz#bcc68671e358a21c3814566b865a54b191e24119"
-  integrity sha512-RFkU9/i7cN2bsq/iTkurMWOEErmYcY6JiQI3Jn+WeR/FGISH8JbHERjpS9oRuSOPvDMJI0Z8nJeKkbOs9sBYQw==
+"@monaco-editor/react@^4.8.0-rc.2":
+  version "4.8.0-rc.2"
+  resolved "https://registry.npmjs.org/@monaco-editor/react/-/react-4.8.0-rc.2.tgz#e9acf652e23e9f640671a69875f496dde7f098aa"
+  integrity sha512-RzFHKBCnRA4RnozaG/EPhKsbkhX5wcApSa5MElR/AD2ojxhMY+QP+G8aJpxALCnIwKs6L0dec5MJ0nAjMUEqnA==
   dependencies:
-    "@monaco-editor/loader" "^1.4.0"
+    "@monaco-editor/loader" "^1.6.1"
 
 "@next/env@15.6.0-canary.7":
   version "15.6.0-canary.7"
@@ -859,6 +859,11 @@
   resolved "https://registry.yarnpkg.com/@types/react-dom/-/react-dom-19.1.9.tgz#5ab695fce1e804184767932365ae6569c11b4b4b"
   integrity sha512-qXRuZaOsAdXKFyOhRBg6Lqqc0yay13vN7KrIg4L7N4aaHN68ma9OK3NE1BoDFgFOTfM7zg+3/8+2n8rLUH3OKQ==
 
+"@types/react-dom@19.2":
+  version "19.2.2"
+  resolved "https://registry.npmjs.org/@types/react-dom/-/react-dom-19.2.2.tgz#a4cc874797b7ddc9cb180ef0d5dc23f596fc2332"
+  integrity sha512-9KQPoO6mZCi7jcIStSnlOWn2nEF3mNmyr3rIAsGnAbQKYbRLyqmeSc39EVgtxXVia+LMT8j3knZLAZAh+xLmrw==
+
 "@types/react@19.1.12":
   version "19.1.12"
   resolved "https://registry.yarnpkg.com/@types/react/-/react-19.1.12.tgz#7bfaa76aabbb0b4fe0493c21a3a7a93d33e8937b"
@@ -866,10 +871,10 @@
   dependencies:
     csstype "^3.0.2"
 
-"@types/react@19.1.13":
-  version "19.1.13"
-  resolved "https://registry.yarnpkg.com/@types/react/-/react-19.1.13.tgz#fc650ffa680d739a25a530f5d7ebe00cdd771883"
-  integrity sha512-hHkbU/eoO3EG5/MZkuFSKmYqPbSVk5byPFa3e7y/8TybHiLMACgI8seVYlicwk7H5K/rI2px9xrQp/C+AUDTiQ==
+"@types/react@19.2":
+  version "19.2.2"
+  resolved "https://registry.npmjs.org/@types/react/-/react-19.2.2.tgz#ba123a75d4c2a51158697160a4ea2ff70aa6bf36"
+  integrity sha512-6mDvHUFSjyT2B2yeNx2nUgMxh9LtOWvkhIU3uePn2I2oyNymUAX1NIsdgviM4CH+JSrp2D2hsMvJOkxY+0wNRA==
   dependencies:
     csstype "^3.0.2"
 
@@ -3589,12 +3594,12 @@ re-resizable@^6.9.16:
   resolved "https://registry.yarnpkg.com/re-resizable/-/re-resizable-6.10.0.tgz#d684a096ab438f1a93f59ad3a580a206b0ce31ee"
   integrity sha512-hysSK0xmA5nz24HBVztlk4yCqCLCvS32E6ZpWxVKop9x3tqCa4yAj1++facrmkOf62JsJHjmjABdKxXofYioCw==
 
-react-dom@19.1.1:
-  version "19.1.1"
-  resolved "https://registry.yarnpkg.com/react-dom/-/react-dom-19.1.1.tgz#2daa9ff7f3ae384aeb30e76d5ee38c046dc89893"
-  integrity sha512-Dlq/5LAZgF0Gaz6yiqZCf6VCcZs1ghAJyrsu84Q/GT0gV+mCxbfmKNoGRKBYMJ8IEdGPqu49YWXD02GCknEDkw==
+react-dom@19.2:
+  version "19.2.0"
+  resolved "https://registry.npmjs.org/react-dom/-/react-dom-19.2.0.tgz#00ed1e959c365e9a9d48f8918377465466ec3af8"
+  integrity sha512-UlbRu4cAiGaIewkPyiRGJk0imDN2T3JjieT6spoL2UeSf5od4n5LB/mQ4ejmxhCFT1tYe8IvaFulzynWovsEFQ==
   dependencies:
-    scheduler "^0.26.0"
+    scheduler "^0.27.0"
 
 react-is@^16.13.1:
   version "16.13.1"
@@ -3606,10 +3611,10 @@ react-is@^18.0.0:
   resolved "https://registry.yarnpkg.com/react-is/-/react-is-18.3.1.tgz#e83557dc12eae63a99e003a46388b1dcbb44db7e"
   integrity sha512-/LLMVyas0ljjAtoYiPqYiL8VWXzUUdThrmU5+n20DZv+a+ClRoevUzw5JxU+Ieh5/c87ytoTBV9G1FiKfNJdmg==
 
-react@19.1.1:
-  version "19.1.1"
-  resolved "https://registry.yarnpkg.com/react/-/react-19.1.1.tgz#06d9149ec5e083a67f9a1e39ce97b06a03b644af"
-  integrity sha512-w8nqGImo45dmMIfljjMwOGtbmC/mk4CMYhWIicdSflH91J9TyCyczcPFXJzrZ/ZXcgGRFeP6BU0BEJTw6tZdfQ==
+react@19.2:
+  version "19.2.0"
+  resolved "https://registry.npmjs.org/react/-/react-19.2.0.tgz#d33dd1721698f4376ae57a54098cb47fc75d93a5"
+  integrity sha512-tmbWg6W31tQLeB5cdIBOicJDJRR2KzXsV7uSK9iNfLWQ5bIZfxuPEHp7M8wiHyHnn0DD1i7w3Zmin0FtkrwoCQ==
 
 read-cache@^1.0.0:
   version "1.0.0"
@@ -3785,10 +3790,10 @@ safe-regex-test@^1.1.0:
     es-errors "^1.3.0"
     is-regex "^1.2.1"
 
-scheduler@^0.26.0:
-  version "0.26.0"
-  resolved "https://registry.yarnpkg.com/scheduler/-/scheduler-0.26.0.tgz#4ce8a8c2a2095f13ea11bf9a445be50c555d6337"
-  integrity sha512-NlHwttCI/l5gCPR3D1nNXtWABUmBwvZpEQiD4IXSbIDq8BzLIK/7Ir5gTFSGZDUu37K5cMNp0hFtzO38sC7gWA==
+scheduler@^0.27.0:
+  version "0.27.0"
+  resolved "https://registry.npmjs.org/scheduler/-/scheduler-0.27.0.tgz#0c4ef82d67d1e5c1e359e8fc76d3a87f045fe5bd"
+  integrity sha512-eNv+WrVbKu1f3vbYJT/xtiF5syA5HPIMtf9IgY/nKg0sWqzAUEvqY/xm7OcZc/qafLx/iO9FgOmeSAp4v5ti/Q==
 
 semver@^6.3.1:
   version "6.3.1"