diff --git a/e2e/react/src/cypress-component-tests.test.ts b/e2e/react/src/cypress-component-tests.test.ts
index 8692b785fb080..050179003fd7c 100644
--- a/e2e/react/src/cypress-component-tests.test.ts
+++ b/e2e/react/src/cypress-component-tests.test.ts
@@ -215,4 +215,33 @@ ${content}`;
       'All specs passed!'
     );
   }, 300_000);
+
+  it('should work with async webpack config', () => {
+    // TODO: (caleb) for whatever reason the MF webpack config + CT is running, but cypress is not starting up?
+    // are they overriding some option on top of each other causing cypress to not see it's running?
+    createFile(
+      `apps/${appName}/webpack.config.js`,
+      `module.exports = async function (configuration) {
+  await new Promise((res) => {
+    setTimeout(() => {
+      console.log('I am from the custom async Webpack config')
+      res()
+    }, 1000)
+  })
+  const defaultConfig = require("@nrwl/react/plugins/webpack")
+  return defaultConfig(configuration);
+};`
+    );
+    updateProjectConfig(appName, (config) => {
+      config.targets[
+        'build'
+      ].options.webpackConfig = `apps/${appName}/webpack.config.js`;
+
+      return config;
+    });
+
+    const results = runCLI(`component-test ${appName}`);
+    expect(results).toContain('I am from the custom async Webpack config');
+    expect(results).toContain('All specs passed!');
+  });
 });
diff --git a/packages/react/plugins/component-testing/index.ts b/packages/react/plugins/component-testing/index.ts
index c595aa9c36d54..b05005ab66c5f 100644
--- a/packages/react/plugins/component-testing/index.ts
+++ b/packages/react/plugins/component-testing/index.ts
@@ -19,6 +19,18 @@ import {
   getProjectConfigByPath,
 } from '@nrwl/cypress/src/utils/ct-helpers';
 
+import type { Configuration } from 'webpack';
+type ViteDevServer = {
+  framework: 'react';
+  bundler: 'vite';
+  viteConfig?: any;
+};
+
+type WebpackDevServer = {
+  framework: 'react';
+  bundler: 'webpack';
+  webpackConfig?: any;
+};
 /**
  * React nx preset for Cypress Component Testing
  *
@@ -42,18 +54,13 @@ export function nxComponentTestingPreset(
   options?: NxComponentTestingOptions
 ): {
   specPattern: string;
-  devServer: {
-    framework?: 'react';
-    bundler?: 'vite' | 'webpack';
-    viteConfig?: any;
-    webpackConfig?: any;
-  };
+  devServer: ViteDevServer | WebpackDevServer;
   videosFolder: string;
   screenshotsFolder: string;
   video: boolean;
   chromeWebSecurity: boolean;
 } {
-  if (options.bundler === 'vite') {
+  if (options?.bundler === 'vite') {
     return {
       ...nxBaseCypressPreset(pathToConfig),
       specPattern: 'src/**/*.cy.{js,jsx,ts,tsx}',
@@ -63,7 +70,7 @@ export function nxComponentTestingPreset(
     };
   }
 
-  let webpackConfig;
+  let webpackConfig: any;
   try {
     const graph = readCachedProjectGraph();
     const { targets: ctTargets, name: ctProjectName } = getProjectConfigByPath(
@@ -119,10 +126,11 @@ export function nxComponentTestingPreset(
     devServer: {
       // cypress uses string union type,
       // need to use const to prevent typing to string
-      framework: 'react',
-      bundler: 'webpack',
+      // but don't want to use as const on webpackConfig
+      // so it is still user modifiable
+      ...({ framework: 'react', bundler: 'webpack' } as const),
       webpackConfig,
-    } as const,
+    },
   };
 }
 
@@ -194,47 +202,43 @@ function buildTargetWebpack(
     buildableProjectConfig.sourceRoot!
   );
 
-  const isScriptOptimizeOn =
-    typeof options.optimization === 'boolean'
-      ? options.optimization
-      : options.optimization && options.optimization.scripts
-      ? options.optimization.scripts
-      : false;
-
-  let customWebpack;
   if (options.webpackConfig) {
+    let customWebpack: any;
+
+    const isScriptOptimizeOn =
+      typeof options.optimization === 'boolean'
+        ? options.optimization
+        : options.optimization && options.optimization.scripts
+        ? options.optimization.scripts
+        : false;
+
     customWebpack = resolveCustomWebpackConfig(
       options.webpackConfig,
       options.tsConfig
     );
 
-    if (typeof customWebpack.then === 'function') {
-      // cypress configs have to be sync.
-      // TODO(caleb): there might be a workaround with setUpNodeEvents preprocessor?
-      logger.warn(stripIndents`Nx React Component Testing Preset currently doesn't support custom async webpack configs. 
-      Skipping the custom webpack config option '${options.webpackConfig}'`);
-      customWebpack = null;
-    }
-  }
-
-  const defaultWebpack = getWebpackConfig(
-    context,
-    options,
-    true,
-    isScriptOptimizeOn,
-    {
-      root: ctProjectConfig.root,
-      sourceRoot: ctProjectConfig.sourceRoot,
-      configuration: parsed.configuration,
-    }
-  );
+    return async () => {
+      customWebpack = await customWebpack;
+      const defaultWebpack = getWebpackConfig(
+        context,
+        options,
+        true,
+        isScriptOptimizeOn,
+        {
+          root: ctProjectConfig.root,
+          sourceRoot: ctProjectConfig.sourceRoot,
+          configuration: parsed.configuration,
+        }
+      );
 
-  if (customWebpack) {
-    return customWebpack(defaultWebpack, {
-      options,
-      context,
-      configuration: parsed.configuration,
-    });
+      if (customWebpack) {
+        return await customWebpack(defaultWebpack, {
+          options,
+          context,
+          configuration: parsed.configuration,
+        });
+      }
+      return defaultWebpack;
+    };
   }
-  return defaultWebpack;
 }
diff --git a/packages/react/src/generators/cypress-component-configuration/__snapshots__/cypress-component-configuration.spec.ts.snap b/packages/react/src/generators/cypress-component-configuration/__snapshots__/cypress-component-configuration.spec.ts.snap
index 6eaccf7587c4b..a3e3b0d3c27d8 100644
--- a/packages/react/src/generators/cypress-component-configuration/__snapshots__/cypress-component-configuration.spec.ts.snap
+++ b/packages/react/src/generators/cypress-component-configuration/__snapshots__/cypress-component-configuration.spec.ts.snap
@@ -7,8 +7,9 @@ import { nxComponentTestingPreset } from '@nrwl/react/plugins/component-testing'
 export default defineConfig({
   component: nxComponentTestingPreset(__filename, {
     bundler: 'vite'
-  }) as any,
-});"
+  }),
+});
+"
 `;
 
 exports[`React:CypressComponentTestConfiguration should generate cypress component test config with project graph 1`] = `
@@ -18,8 +19,9 @@ import { nxComponentTestingPreset } from '@nrwl/react/plugins/component-testing'
 export default defineConfig({
   component: nxComponentTestingPreset(__filename, {
     bundler: 'vite'
-  }) as any,
-});"
+  }),
+});
+"
 `;
 
 exports[`React:CypressComponentTestConfiguration should generate cypress component test config with webpack 1`] = `
@@ -29,8 +31,9 @@ import { nxComponentTestingPreset } from '@nrwl/react/plugins/component-testing'
 export default defineConfig({
   component: nxComponentTestingPreset(__filename, {
     bundler: 'webpack'
-  }) as any,
-});"
+  }),
+});
+"
 `;
 
 exports[`React:CypressComponentTestConfiguration should generate cypress config with vite 1`] = `
@@ -40,8 +43,9 @@ import { nxComponentTestingPreset } from '@nrwl/react/plugins/component-testing'
 export default defineConfig({
   component: nxComponentTestingPreset(__filename, {
     bundler: 'vite'
-  }) as any,
-});"
+  }),
+});
+"
 `;
 
 exports[`React:CypressComponentTestConfiguration should generate tests for existing js components 1`] = `
diff --git a/packages/react/src/generators/cypress-component-configuration/files/cypress.config.ts__tpl__ b/packages/react/src/generators/cypress-component-configuration/files/cypress.config.ts__tpl__
index 22b4b44221a71..fae43e41d7b39 100644
--- a/packages/react/src/generators/cypress-component-configuration/files/cypress.config.ts__tpl__
+++ b/packages/react/src/generators/cypress-component-configuration/files/cypress.config.ts__tpl__
@@ -4,5 +4,5 @@ import { nxComponentTestingPreset } from '@nrwl/react/plugins/component-testing'
 export default defineConfig({
   component: nxComponentTestingPreset(__filename, {
     bundler: '<%= bundler %>'
-  }) as any,
-});
\ No newline at end of file
+  }),
+});