diff --git a/packages/core/parcel-bundler/src/transforms/babel/jsx.js b/packages/core/parcel-bundler/src/transforms/babel/jsx.js
index 48e37d1c45e..67bfc1dcf0c 100644
--- a/packages/core/parcel-bundler/src/transforms/babel/jsx.js
+++ b/packages/core/parcel-bundler/src/transforms/babel/jsx.js
@@ -74,7 +74,15 @@ async function getJSXConfig(asset, isSourceModule) {
       internal: true,
       babelVersion: 7,
       config: {
-        plugins: [[require('@babel/plugin-transform-react-jsx'), {pragma}]]
+        plugins: [
+          [
+            require('@babel/plugin-transform-react-jsx'),
+            {
+              pragma,
+              pragmaFrag: 'React.Fragment'
+            }
+          ]
+        ]
       }
     };
   }