diff --git a/packages/next/src/index.ts b/packages/next/src/index.ts
index 0a3837780..cdc29f6e4 100644
--- a/packages/next/src/index.ts
+++ b/packages/next/src/index.ts
@@ -1,6 +1,5 @@
 import { NextBuilder } from './builder.js';
 import type { NextConfig } from 'next';
-import semver from 'semver';
 
 export function withWorkflow(
   nextConfigOrFn:
@@ -51,35 +50,10 @@ export function withWorkflow(
     // shallow clone to avoid read-only on top-level
     nextConfig = Object.assign({}, nextConfig);
 
-    // configure the loader if turbopack is being used
-    if (!nextConfig.turbopack) {
-      nextConfig.turbopack = {};
-    }
-    if (!nextConfig.turbopack.rules) {
-      nextConfig.turbopack.rules = {};
-    }
-    const existingRules = nextConfig.turbopack.rules as any;
-    const nextVersion = require('next/package.json').version;
-    const supportsTurboCondition = semver.gte(nextVersion, 'v16.0.0');
-
-    for (const key of ['*.tsx', '*.ts', '*.jsx', '*.js']) {
-      nextConfig.turbopack.rules[key] = {
-        ...(supportsTurboCondition
-          ? {
-              condition: {
-                ...existingRules[key]?.condition,
-                any: [
-                  ...(existingRules[key]?.condition.any || []),
-                  {
-                    content: /(use workflow|use step)/,
-                  },
-                ],
-              },
-            }
-          : {}),
-        loaders: [...(existingRules[key]?.loaders || []), loaderPath],
-      };
-    }
+    // NOTE: Turbopack configuration is currently disabled due to conflicts with Next.js's
+    // built-in TypeScript and JSX transform handling. The webpack loader below handles
+    // workflow transformations for both webpack and turbopack builds.
+    // TODO: Investigate proper Turbopack loader integration that doesn't override defaults.
 
     // configure the loader for webpack
     const existingWebpackModify = nextConfig.webpack;
diff --git a/packages/next/src/loader.ts b/packages/next/src/loader.ts
index b1ffb6788..b0daeb6ba 100644
--- a/packages/next/src/loader.ts
+++ b/packages/next/src/loader.ts
@@ -1,85 +1,123 @@
 import { relative } from 'node:path';
 import { transform } from '@swc/core';
 
+// Minimal webpack loader context type
+interface LoaderContext {
+  resourcePath: string;
+  async(): (
+    err: Error | null,
+    content?: string | Buffer,
+    sourceMap?: any
+  ) => void;
+}
+
 // This loader applies the "use workflow"/"use step"
 // client transformation
-export default async function workflowLoader(
-  this: {
-    resourcePath: string;
-  },
+export default function workflowLoader(
+  this: LoaderContext,
   source: string | Buffer,
   sourceMap: any
-): Promise<string> {
+) {
+  const callback = this.async();
+  if (!callback) {
+    throw new Error('Workflow loader requires async support');
+  }
+
   const filename = this.resourcePath;
   const normalizedSource = source.toString();
 
   // only apply the transform if file needs it
   if (!normalizedSource.match(/(use step|use workflow)/)) {
-    return normalizedSource;
+    // Pass through to the next loader without transformation
+    return callback(null, source, sourceMap);
   }
 
-  const isTypeScript = filename.endsWith('.ts') || filename.endsWith('.tsx');
-  const isTsx = filename.endsWith('.tsx');
+  processWorkflowFile.call(
+    this,
+    normalizedSource,
+    filename,
+    sourceMap,
+    callback
+  );
+}
+
+async function processWorkflowFile(
+  this: LoaderContext,
+  normalizedSource: string,
+  filename: string,
+  sourceMap: any,
+  callback: (
+    err: Error | null,
+    content?: string | Buffer,
+    sourceMap?: any
+  ) => void
+) {
+  try {
+    const isTypeScript = filename.endsWith('.ts') || filename.endsWith('.tsx');
+    const isTsx = filename.endsWith('.tsx');
 
-  // Calculate relative filename for SWC plugin
-  // The SWC plugin uses filename to generate workflowId, so it must be relative
-  const workingDir = process.cwd();
-  const normalizedWorkingDir = workingDir
-    .replace(/\\/g, '/')
-    .replace(/\/$/, '');
-  const normalizedFilepath = filename.replace(/\\/g, '/');
+    // Calculate relative filename for SWC plugin
+    // The SWC plugin uses filename to generate workflowId, so it must be relative
+    const workingDir = process.cwd();
+    const normalizedWorkingDir = workingDir
+      .replace(/\\/g, '/')
+      .replace(/\/$/, '');
+    const normalizedFilepath = filename.replace(/\\/g, '/');
 
-  // Windows fix: Use case-insensitive comparison to work around drive letter casing issues
-  const lowerWd = normalizedWorkingDir.toLowerCase();
-  const lowerPath = normalizedFilepath.toLowerCase();
+    // Windows fix: Use case-insensitive comparison to work around drive letter casing issues
+    const lowerWd = normalizedWorkingDir.toLowerCase();
+    const lowerPath = normalizedFilepath.toLowerCase();
 
-  let relativeFilename: string;
-  if (lowerPath.startsWith(lowerWd + '/')) {
-    // File is under working directory - manually calculate relative path
-    relativeFilename = normalizedFilepath.substring(
-      normalizedWorkingDir.length + 1
-    );
-  } else if (lowerPath === lowerWd) {
-    // File IS the working directory (shouldn't happen)
-    relativeFilename = '.';
-  } else {
-    // Use relative() for files outside working directory
-    relativeFilename = relative(workingDir, filename).replace(/\\/g, '/');
+    let relativeFilename: string;
+    if (lowerPath.startsWith(lowerWd + '/')) {
+      // File is under working directory - manually calculate relative path
+      relativeFilename = normalizedFilepath.substring(
+        normalizedWorkingDir.length + 1
+      );
+    } else if (lowerPath === lowerWd) {
+      // File IS the working directory (shouldn't happen)
+      relativeFilename = '.';
+    } else {
+      // Use relative() for files outside working directory
+      relativeFilename = relative(workingDir, filename).replace(/\\/g, '/');
 
-    if (relativeFilename.startsWith('../')) {
-      relativeFilename = relativeFilename
-        .split('/')
-        .filter((part) => part !== '..')
-        .join('/');
+      if (relativeFilename.startsWith('../')) {
+        relativeFilename = relativeFilename
+          .split('/')
+          .filter((part) => part !== '..')
+          .join('/');
+      }
     }
-  }
 
-  // Final safety check - ensure we never pass an absolute path to SWC
-  if (relativeFilename.includes(':') || relativeFilename.startsWith('/')) {
-    // This should rarely happen, but use filename split as last resort
-    relativeFilename = normalizedFilepath.split('/').pop() || 'unknown.ts';
-  }
+    // Final safety check - ensure we never pass an absolute path to SWC
+    if (relativeFilename.includes(':') || relativeFilename.startsWith('/')) {
+      // This should rarely happen, but use filename split as last resort
+      relativeFilename = normalizedFilepath.split('/').pop() || 'unknown.ts';
+    }
 
-  // Transform with SWC
-  const result = await transform(normalizedSource, {
-    filename: relativeFilename,
-    jsc: {
-      parser: {
-        syntax: isTypeScript ? 'typescript' : 'ecmascript',
-        tsx: isTsx,
+    // Transform with SWC
+    const result = await transform(normalizedSource, {
+      filename: relativeFilename,
+      jsc: {
+        parser: {
+          syntax: isTypeScript ? 'typescript' : 'ecmascript',
+          tsx: isTsx,
+        },
+        target: 'es2022',
+        experimental: {
+          plugins: [
+            [require.resolve('@workflow/swc-plugin'), { mode: 'client' }],
+          ],
+        },
       },
-      target: 'es2022',
-      experimental: {
-        plugins: [
-          [require.resolve('@workflow/swc-plugin'), { mode: 'client' }],
-        ],
-      },
-    },
-    minify: false,
-    inputSourceMap: sourceMap,
-    sourceMaps: true,
-    inlineSourcesContent: true,
-  });
+      minify: false,
+      inputSourceMap: sourceMap,
+      sourceMaps: true,
+      inlineSourcesContent: true,
+    });
 
-  return result.code;
+    callback(null, result.code, result.map);
+  } catch (error) {
+    callback(error as Error);
+  }
 }