diff --git a/README.md b/README.md
index 55fa1b3b..f7c40dc6 100644
--- a/README.md
+++ b/README.md
@@ -66,7 +66,7 @@ module.exports = {
 |        [**`injectType`**](#injecttype)        |      `{String}`      | `styleTag`  | Allows to setup how styles will be injected into the DOM   |
 |        [**`attributes`**](#attributes)        |      `{Object}`      |    `{}`     | Adds custom attributes to tag                              |
 |            [**`insert`**](#insert)            | `{String\|Function}` |   `head`    | Inserts tag at the given position into the DOM             |
-| [**`styleTagTransform`**](#styleTagTransform) |     `{Function}`     | `undefined` | Transform tag and css when insert 'style' tag into the DOM |
+| [**`styleTagTransform`**](#styleTagTransform) | `{String\|Function}` | `undefined` | Transform tag and css when insert 'style' tag into the DOM |
 |              [**`base`**](#base)              |      `{Number}`      |   `true`    | Sets module ID base (DLLPlugin)                            |
 |          [**`esModule`**](#esmodule)          |     `{Boolean}`      |   `true`    | Use ES modules syntax                                      |
 
@@ -542,9 +542,41 @@ Insert styles at top of `head` tag.
 
 ### `styleTagTransform`
 
-Type: `Function`
+Type: `String | Function`
 Default: `undefined`
 
+#### `String`
+
+Allows to setup absolute path to custom function that allows to override default behavior styleTagTransform.
+
+> ⚠ Do not forget that this code will be used in the browser and not all browsers support latest ECMA features like `let`, `const`, `arrow function expression` and etc, we recommend use only ECMA 5 features, but it is depends what browsers you want to support
+
+**webpack.config.js**
+
+```js
+module.exports = {
+  module: {
+    rules: [
+      {
+        test: /\.css$/i,
+        use: [
+          {
+            loader: "style-loader",
+            options: {
+              injectType: "styleTag",
+              styleTagTransform: require.resolve("module-path"),
+            },
+          },
+          "css-loader",
+        ],
+      },
+    ],
+  },
+};
+```
+
+#### `Function`
+
 Transform tag and css when insert 'style' tag into the DOM.
 
 > ⚠ Do not forget that this code will be used in the browser and not all browsers support latest ECMA features like `let`, `const`, `arrow function expression` and etc, we recommend use only ECMA 5 features, but it is depends what browsers you want to support
diff --git a/src/index.js b/src/index.js
index c6e60fda..5f3c0711 100644
--- a/src/index.js
+++ b/src/index.js
@@ -17,6 +17,7 @@ import {
   getExportLazyStyleCode,
   getSetAttributesCode,
   getInsertOptionCode,
+  getStyleTagTransformFnCode,
 } from "./utils";
 
 import schema from "./options.json";
@@ -26,7 +27,6 @@ const loaderAPI = () => {};
 loaderAPI.pitch = function loader(request) {
   const options = this.getOptions(schema);
   const injectType = options.injectType || "styleTag";
-  const { styleTagTransform } = options;
   const esModule =
     typeof options.esModule !== "undefined" ? options.esModule : true;
   const runtimeOptions = {};
@@ -46,20 +46,12 @@ loaderAPI.pitch = function loader(request) {
       ? "module-path"
       : "selector";
 
-  const styleTagTransformFn =
-    typeof styleTagTransform === "function"
-      ? styleTagTransform.toString()
-      : `function(css, style){
-      if (style.styleSheet) {
-        style.styleSheet.cssText = css;
-      } else {
-      while (style.firstChild) {
-        style.removeChild(style.firstChild);
-      }
-
-      style.appendChild(document.createTextNode(css));
-    }
-  }`;
+  const styleTagTransformType =
+    typeof options.styleTagTransform === "function"
+      ? "function"
+      : options.styleTagTransform && path.isAbsolute(options.styleTagTransform)
+      ? "module-path"
+      : "default";
 
   switch (injectType) {
     case "linkTag": {
@@ -103,6 +95,13 @@ ${esModule ? "export default {}" : ""}`;
       ${getImportInsertBySelectorCode(esModule, this, insertType, options)}
       ${getSetAttributesCode(esModule, this, options)}
       ${getImportInsertStyleElementCode(esModule, this)}
+      ${getStyleTagTransformFnCode(
+        esModule,
+        this,
+        options,
+        isSingleton,
+        styleTagTransformType
+      )}
       ${getImportStyleContentCode(esModule, this, request)}
       ${isAuto ? getImportIsOldIECode(esModule, this) : ""}
       ${
@@ -120,7 +119,7 @@ var refs = 0;
 var update;
 var options = ${JSON.stringify(runtimeOptions)};
 
-${getStyleTagTransformFn(styleTagTransformFn, isSingleton)};
+${getStyleTagTransformFn(options, isSingleton)};
 options.setAttributes = setAttributes;
 ${getInsertOptionCode(insertType, options)}
 options.domAPI = ${getdomAPI(isAuto)};
@@ -162,6 +161,13 @@ ${getExportLazyStyleCode(esModule, this, request)}
       ${getImportInsertBySelectorCode(esModule, this, insertType, options)}
       ${getSetAttributesCode(esModule, this, options)}
       ${getImportInsertStyleElementCode(esModule, this)}
+      ${getStyleTagTransformFnCode(
+        esModule,
+        this,
+        options,
+        isSingleton,
+        styleTagTransformType
+      )}
       ${getImportStyleContentCode(esModule, this, request)}
       ${isAuto ? getImportIsOldIECode(esModule, this) : ""}
       ${
@@ -172,7 +178,7 @@ ${getExportLazyStyleCode(esModule, this, request)}
 
 var options = ${JSON.stringify(runtimeOptions)};
 
-${getStyleTagTransformFn(styleTagTransformFn, isSingleton)};
+${getStyleTagTransformFn(options, isSingleton)};
 options.setAttributes = setAttributes;
 ${getInsertOptionCode(insertType, options)}
 options.domAPI = ${getdomAPI(isAuto)};
diff --git a/src/options.json b/src/options.json
index f80f0a08..7500ddd5 100644
--- a/src/options.json
+++ b/src/options.json
@@ -39,7 +39,14 @@
     },
     "styleTagTransform": {
       "description": "Transform tag and css when insert 'style' tag into the DOM",
-      "instanceof": "Function"
+      "anyOf": [
+        {
+          "type": "string"
+        },
+        {
+          "instanceof": "Function"
+        }
+      ]
     }
   },
   "additionalProperties": false
diff --git a/src/runtime/styleTagTransform.js b/src/runtime/styleTagTransform.js
new file mode 100644
index 00000000..8098d895
--- /dev/null
+++ b/src/runtime/styleTagTransform.js
@@ -0,0 +1,14 @@
+/* istanbul ignore next  */
+function styleTagTransform(css, style) {
+  if (style.styleSheet) {
+    style.styleSheet.cssText = css;
+  } else {
+    while (style.firstChild) {
+      style.removeChild(style.firstChild);
+    }
+
+    style.appendChild(document.createTextNode(css));
+  }
+}
+
+module.exports = styleTagTransform;
diff --git a/src/utils.js b/src/utils.js
index a456c666..168624e2 100644
--- a/src/utils.js
+++ b/src/utils.js
@@ -284,10 +284,49 @@ function getImportIsOldIECode(esModule, loaderContext) {
     : `var isOldIE = require(${modulePath});`;
 }
 
-function getStyleTagTransformFn(styleTagTransformFn, isSingleton) {
+function getStyleTagTransformFnCode(
+  esModule,
+  loaderContext,
+  options,
+  isSingleton,
+  styleTagTransformType
+) {
+  if (isSingleton) {
+    return "";
+  }
+
+  if (styleTagTransformType === "default") {
+    const modulePath = stringifyRequest(
+      loaderContext,
+      `!${path.join(__dirname, "runtime/styleTagTransform.js")}`
+    );
+
+    return esModule
+      ? `import styleTagTransformFn from ${modulePath};`
+      : `var styleTagTransformFn = require(${modulePath});`;
+  }
+
+  if (styleTagTransformType === "module-path") {
+    const modulePath = stringifyRequest(
+      loaderContext,
+      `${options.styleTagTransform}`
+    );
+
+    return esModule
+      ? `import styleTagTransformFn from ${modulePath};`
+      : `var styleTagTransformFn = require(${modulePath});`;
+  }
+
+  return "";
+}
+
+function getStyleTagTransformFn(options, isSingleton) {
+  // Todo remove "function" type for styleTagTransform option in next major release, because code duplication occurs. Leave require.resolve()
   return isSingleton
     ? ""
-    : `options.styleTagTransform = ${styleTagTransformFn}`;
+    : typeof options.styleTagTransform === "function"
+    ? `options.styleTagTransform = ${options.styleTagTransform.toString()}`
+    : `options.styleTagTransform = styleTagTransformFn`;
 }
 
 function getExportStyleCode(esModule, loaderContext, request) {
@@ -356,4 +395,5 @@ export {
   getExportLazyStyleCode,
   getSetAttributesCode,
   getInsertOptionCode,
+  getStyleTagTransformFnCode,
 };
diff --git a/test/__snapshots__/styleTagTransform-option.test.js.snap b/test/__snapshots__/styleTagTransform-option.test.js.snap
index 59cf33eb..bdbaebd2 100644
--- a/test/__snapshots__/styleTagTransform-option.test.js.snap
+++ b/test/__snapshots__/styleTagTransform-option.test.js.snap
@@ -50,6 +50,32 @@ exports[`"styleTagTransform" option should work when the "styleTagTransform" opt
 
 exports[`"styleTagTransform" option should work when the "styleTagTransform" option is not specify: warnings 1`] = `Array []`;
 
+exports[`"styleTagTransform" option should work when the "styleTagTransform" option is path to module and injectType lazyStyleTag: DOM 1`] = `
+"<!DOCTYPE html><html><head>
+  <title>style-loader test</title>
+  <style id=\\"existing-style\\">.existing { color: yellow }</style>
+<style>body {
+  color: red;
+}
+.modify{}
+</style><style>h1 {
+  color: blue;
+}
+.modify{}
+</style></head>
+<body>
+  <h1>Body</h1>
+  <div class=\\"target\\"></div>
+  <iframe class=\\"iframeTarget\\"></iframe>
+
+
+</body></html>"
+`;
+
+exports[`"styleTagTransform" option should work when the "styleTagTransform" option is path to module and injectType lazyStyleTag: errors 1`] = `Array []`;
+
+exports[`"styleTagTransform" option should work when the "styleTagTransform" option is path to module and injectType lazyStyleTag: warnings 1`] = `Array []`;
+
 exports[`"styleTagTransform" option should work when the "styleTagTransform" option is specify and injectType lazyStyleTag: DOM 1`] = `
 "<!DOCTYPE html><html><head>
   <title>style-loader test</title>
diff --git a/test/__snapshots__/validate-options.test.js.snap b/test/__snapshots__/validate-options.test.js.snap
index f8b48aee..6bd14287 100644
--- a/test/__snapshots__/validate-options.test.js.snap
+++ b/test/__snapshots__/validate-options.test.js.snap
@@ -32,20 +32,22 @@ exports[`validate options should throw an error on the "insert" option with "tru
 
 exports[`validate options should throw an error on the "styleTagTransform" option with "[]" value 1`] = `
 "Invalid options object. Style Loader has been initialized using an options object that does not match the API schema.
- - options.styleTagTransform should be an instance of function.
-   -> Transform tag and css when insert 'style' tag into the DOM"
+ - options.styleTagTransform should be one of these:
+   string | function
+   -> Transform tag and css when insert 'style' tag into the DOM
+   Details:
+    * options.styleTagTransform should be a string.
+    * options.styleTagTransform should be an instance of function."
 `;
 
 exports[`validate options should throw an error on the "styleTagTransform" option with "true" value 1`] = `
 "Invalid options object. Style Loader has been initialized using an options object that does not match the API schema.
- - options.styleTagTransform should be an instance of function.
-   -> Transform tag and css when insert 'style' tag into the DOM"
-`;
-
-exports[`validate options should throw an error on the "styleTagTransform" option with "true" value 2`] = `
-"Invalid options object. Style Loader has been initialized using an options object that does not match the API schema.
- - options.styleTagTransform should be an instance of function.
-   -> Transform tag and css when insert 'style' tag into the DOM"
+ - options.styleTagTransform should be one of these:
+   string | function
+   -> Transform tag and css when insert 'style' tag into the DOM
+   Details:
+    * options.styleTagTransform should be a string.
+    * options.styleTagTransform should be an instance of function."
 `;
 
 exports[`validate options should throw an error on the "unknown" option with "/test/" value 1`] = `
diff --git a/test/fixtures/styleTagTransform.js b/test/fixtures/styleTagTransform.js
new file mode 100644
index 00000000..8ebce4e4
--- /dev/null
+++ b/test/fixtures/styleTagTransform.js
@@ -0,0 +1,8 @@
+function styleTagTransform(css, style) {
+  // eslint-disable-next-line no-param-reassign
+  style.innerHTML = `${css}.modify{}\n`;
+
+  document.head.appendChild(style);
+}
+
+module.exports = styleTagTransform;
diff --git a/test/styleTagTransform-option.test.js b/test/styleTagTransform-option.test.js
index 43b6b660..4938032a 100644
--- a/test/styleTagTransform-option.test.js
+++ b/test/styleTagTransform-option.test.js
@@ -83,4 +83,20 @@ describe('"styleTagTransform" option', () => {
     expect(getWarnings(stats)).toMatchSnapshot("warnings");
     expect(getErrors(stats)).toMatchSnapshot("errors");
   });
+
+  it(`should work when the "styleTagTransform" option is path to module and injectType lazyStyleTag`, async () => {
+    const entry = getEntryByInjectType("simple.js", "lazyStyleTag");
+    const compiler = getCompiler(entry, {
+      injectType: "lazyStyleTag",
+      styleTagTransform: require.resolve("./fixtures/styleTagTransform"),
+    });
+    const stats = await compile(compiler);
+
+    runInJsDom("main.bundle.js", compiler, stats, (dom) => {
+      expect(dom.serialize()).toMatchSnapshot("DOM");
+    });
+
+    expect(getWarnings(stats)).toMatchSnapshot("warnings");
+    expect(getErrors(stats)).toMatchSnapshot("errors");
+  });
 });
diff --git a/test/validate-options.test.js b/test/validate-options.test.js
index d7925347..87f9d19f 100644
--- a/test/validate-options.test.js
+++ b/test/validate-options.test.js
@@ -28,8 +28,8 @@ describe("validate options", () => {
     },
     styleTagTransform: {
       // eslint-disable-next-line func-names
-      success: [function () {}],
-      failure: ["true", true, []],
+      success: [function () {}, require.resolve("path")],
+      failure: [true, []],
     },
     unknown: {
       success: [],