diff --git a/resolvers/webpack/.eslintrc b/resolvers/webpack/.eslintrc
index 743d5c949e..544167c4bb 100644
--- a/resolvers/webpack/.eslintrc
+++ b/resolvers/webpack/.eslintrc
@@ -3,4 +3,7 @@
     "import/no-extraneous-dependencies": 1,
     "no-console": 1,
   },
+  "env": {
+    "es6": true,
+  },
 }
diff --git a/resolvers/webpack/CHANGELOG.md b/resolvers/webpack/CHANGELOG.md
index 8ab56e1a01..6485b171ee 100644
--- a/resolvers/webpack/CHANGELOG.md
+++ b/resolvers/webpack/CHANGELOG.md
@@ -5,8 +5,11 @@ This change log adheres to standards from [Keep a CHANGELOG](http://keepachangel
 
 ## Unreleased
 
+### Added
+- add support for webpack5 'externals function' ([#2023], thanks [@jet2jet])
+
 ### Changed
- - Add warning about async Webpack configs ([#1962], thanks [@ogonkov])
+- Add warning about async Webpack configs ([#1962], thanks [@ogonkov])
 - Replace node-libs-browser with is-core-module ([#1967], thanks [@andersk])
 
 ## 0.13.0 - 2020-09-27
@@ -141,6 +144,7 @@ This change log adheres to standards from [Keep a CHANGELOG](http://keepachangel
 - `interpret` configs (such as `.babel.js`).
   Thanks to [@gausie] for the initial PR ([#164], ages ago! 😅) and [@jquense] for tests ([#278]).
 
+[#2023]: https://github.com/benmosher/eslint-plugin-import/pull/2023
 [#1967]: https://github.com/benmosher/eslint-plugin-import/pull/1967
 [#1962]: https://github.com/benmosher/eslint-plugin-import/pull/1962
 [#1705]: https://github.com/benmosher/eslint-plugin-import/pull/1705
@@ -200,4 +204,5 @@ This change log adheres to standards from [Keep a CHANGELOG](http://keepachangel
 [@migueloller]: https://github.com/migueloller
 [@opichals]: https://github.com/opichals
 [@andersk]: https://github.com/andersk
-[@ogonkov]: https://github.com/ogonkov
\ No newline at end of file
+[@ogonkov]: https://github.com/ogonkov
+[@jet2jet]: https://github.com/jet2jet
\ No newline at end of file
diff --git a/resolvers/webpack/index.js b/resolvers/webpack/index.js
index 710630fdc7..fb03fc4d19 100644
--- a/resolvers/webpack/index.js
+++ b/resolvers/webpack/index.js
@@ -140,13 +140,14 @@ exports.resolve = function (source, file, settings) {
 
   log('Using config: ', webpackConfig);
 
+  const resolveSync = getResolveSync(configPath, webpackConfig, cwd);
+
   // externals
-  if (findExternal(source, webpackConfig.externals, path.dirname(file))) {
+  if (findExternal(source, webpackConfig.externals, path.dirname(file), resolveSync)) {
     return { found: true, path: null };
   }
 
   // otherwise, resolve "normally"
-  const resolveSync = getResolveSync(configPath, webpackConfig, cwd);
 
   try {
     return { found: true, path: resolveSync(path.dirname(file), source) };
@@ -323,7 +324,7 @@ function makeRootPlugin(ModulesInRootPlugin, name, root) {
 }
 /* eslint-enable */
 
-function findExternal(source, externals, context) {
+function findExternal(source, externals, context, resolveSync) {
   if (!externals) return false;
 
   // string match
@@ -331,7 +332,7 @@ function findExternal(source, externals, context) {
 
   // array: recurse
   if (Array.isArray(externals)) {
-    return externals.some(function (e) { return findExternal(source, e, context); });
+    return externals.some(function (e) { return findExternal(source, e, context, resolveSync); });
   }
 
   if (isRegex(externals)) {
@@ -340,13 +341,45 @@ function findExternal(source, externals, context) {
 
   if (typeof externals === 'function') {
     let functionExternalFound = false;
-    externals.call(null, context, source, function(err, value) {
+    const callback = function (err, value) {
       if (err) {
         functionExternalFound = false;
       } else {
-        functionExternalFound = findExternal(source, value, context);
+        functionExternalFound = findExternal(source, value, context, resolveSync);
       }
-    });
+    };
+    // - for prior webpack 5, 'externals function' uses 3 arguments
+    // - for webpack 5, the count of arguments is less than 3
+    if (externals.length === 3) {
+      externals.call(null, context, source, callback);
+    } else {
+      const ctx = {
+        context,
+        request: source,
+        contextInfo: {
+          issuer: '',
+          issuerLayer: null,
+          compiler: '',
+        },
+        getResolve: () => (resolveContext, requestToResolve, cb) => {
+          if (cb) {
+            try {
+              cb(null, resolveSync(resolveContext, requestToResolve));
+            } catch (e) {
+              cb(e);
+            }
+          } else {
+            log('getResolve without callback not supported');
+            return Promise.reject(new Error('Not supported'));
+          }
+        },
+      };
+      const result = externals.call(null, ctx, callback);
+      // todo handling Promise object (using synchronous-promise package?)
+      if (result && typeof result.then === 'function') {
+        log('Asynchronous functions for externals not supported');
+      }
+    }
     return functionExternalFound;
   }
 
diff --git a/resolvers/webpack/test/externals.js b/resolvers/webpack/test/externals.js
index 9cad635241..9c5b001eec 100644
--- a/resolvers/webpack/test/externals.js
+++ b/resolvers/webpack/test/externals.js
@@ -9,6 +9,13 @@ const webpack = require('../index');
 const file = path.join(__dirname, 'files', 'dummy.js');
 
 describe('externals', function () {
+  const settingsWebpack5 = {
+    config: require(path.join(__dirname, './files/webpack.config.webpack5.js')),
+  };
+  const settingsWebpack5Async = {
+    config: require(path.join(__dirname, './files/webpack.config.webpack5.async-externals.js')),
+  };
+
   it('works on just a string', function () {
     const resolved = webpack.resolve('bootstrap', file);
     expect(resolved).to.have.property('found', true);
@@ -32,4 +39,26 @@ describe('externals', function () {
     expect(resolved).to.have.property('found', true);
     expect(resolved).to.have.property('path', null);
   });
+
+  it('works on a function (synchronous) for webpack 5', function () {
+    const resolved = webpack.resolve('underscore', file, settingsWebpack5);
+    expect(resolved).to.have.property('found', true);
+    expect(resolved).to.have.property('path', null);
+  });
+
+  it('works on a function (synchronous) which uses getResolve for webpack 5', function () {
+    const resolved = webpack.resolve('graphql', file, settingsWebpack5);
+    expect(resolved).to.have.property('found', true);
+    expect(resolved).to.have.property('path', null);
+  });
+
+  it('prevents using an asynchronous function for webpack 5', function () {
+    const resolved = webpack.resolve('underscore', file, settingsWebpack5Async);
+    expect(resolved).to.have.property('found', false);
+  });
+
+  it('prevents using a function which uses Promise returned by getResolve for webpack 5', function () {
+    const resolved = webpack.resolve('graphql', file, settingsWebpack5Async);
+    expect(resolved).to.have.property('found', false);
+  });
 });
diff --git a/resolvers/webpack/test/files/webpack.config.webpack5.async-externals.js b/resolvers/webpack/test/files/webpack.config.webpack5.async-externals.js
new file mode 100644
index 0000000000..ba2902b83b
--- /dev/null
+++ b/resolvers/webpack/test/files/webpack.config.webpack5.async-externals.js
@@ -0,0 +1,21 @@
+module.exports = {
+  externals: [
+    { 'jquery': 'jQuery' },
+    'bootstrap',
+    async function ({ request },) {
+      if (request === 'underscore') {
+        return 'underscore'
+      }
+    },
+    function ({ request, getResolve }, callback) {
+      if (request === 'graphql') {
+        const resolve = getResolve()
+        // dummy call (some-module should be resolved on __dirname)
+        resolve(__dirname, 'some-module').then(
+          function () { callback(null, 'graphql') },
+          function (e) { callback(e) }
+        )
+      }
+    },
+  ],
+}
diff --git a/resolvers/webpack/test/files/webpack.config.webpack5.js b/resolvers/webpack/test/files/webpack.config.webpack5.js
new file mode 100644
index 0000000000..88a12567a1
--- /dev/null
+++ b/resolvers/webpack/test/files/webpack.config.webpack5.js
@@ -0,0 +1,27 @@
+module.exports = {
+  externals: [
+    { 'jquery': 'jQuery' },
+    'bootstrap',
+    function ({ request }, callback) {
+      if (request === 'underscore') {
+        return callback(null, 'underscore')
+      }
+      callback()
+    },
+    function ({ request, getResolve }, callback) {
+      if (request === 'graphql') {
+        const resolve = getResolve()
+        // dummy call (some-module should be resolved on __dirname)
+        resolve(__dirname, 'some-module', function (err, value) {
+          if (err) {
+            callback(err)
+          } else {
+            callback(null, 'graphql')
+          }
+        })
+      } else {
+        callback()
+      }
+    },
+  ],
+}