diff --git a/.babelrc b/.babelrc
deleted file mode 100644
index 6849ed4f..00000000
--- a/.babelrc
+++ /dev/null
@@ -1,8 +0,0 @@
-{
-  "presets": [
-    ["@babel/env"]
-  ],
-  "plugins": [
-    "@babel/plugin-transform-runtime"
-  ]
-}
\ No newline at end of file
diff --git a/babel.config.js b/babel.config.js
new file mode 100644
index 00000000..424f157b
--- /dev/null
+++ b/babel.config.js
@@ -0,0 +1,14 @@
+module.exports = {
+  sourceType: 'module',
+  presets: [
+    [
+      '@babel/preset-env',
+      {
+        targets: {
+          node: 'current',
+          esmodules: true,
+        },
+      },
+    ],
+  ],
+}
diff --git a/compatibility-scripts/vue-apollo-patch.js b/compatibility-scripts/vue-apollo-patch.js
new file mode 100644
index 00000000..e1702929
--- /dev/null
+++ b/compatibility-scripts/vue-apollo-patch.js
@@ -0,0 +1,34 @@
+// This patch is run from post-install script and it is a temporary hack until a pending PR is merged
+// More details here:
+// https://github.com/vuejs/vue-apollo/issues/1011
+const fs = require('fs')
+const path = require('path')
+
+const useQueryPath = path.resolve(
+  __dirname,
+  '../node_modules/@vue/apollo-composable/dist/useQuery.js',
+)
+
+const vueApolloComposablePath = path.resolve(
+  __dirname,
+  '../node_modules/@vue/apollo-composable/dist/vue-apollo-composable.js',
+)
+
+fs.writeFileSync(
+  useQueryPath,
+  fs.readFileSync(useQueryPath, 'utf8').replace(/^onServerPrefetch, /mu, ''),
+)
+
+fs.writeFileSync(
+  useQueryPath,
+  fs
+    .readFileSync(useQueryPath, 'utf8')
+    .replace(/onServerPrefetch === null.*?\}\);/msu, ''),
+)
+
+fs.writeFileSync(
+  vueApolloComposablePath,
+  fs
+    .readFileSync(vueApolloComposablePath, 'utf8')
+    .replace(/vue_demi_5.onServerPrefetch === null.*?\}\);/msu, ''),
+)
diff --git a/jest.config.js b/jest.config.js
index 09a45c1d..9d901b60 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -12,8 +12,14 @@ module.exports = merge(config, {
   },
   snapshotSerializers: ['<rootDir>/node_modules/jest-serializer-vue'],
   testPathIgnorePatterns: [
-    '<rootDir>/node_modules',
+    '<rootDir>/node_modules/',
     '<rootDir>/src/__tests__/components',
     '<rootDir>/src/__tests__/directives',
   ],
+  moduleNameMapper: {
+    '@vue/apollo-composable': [
+      '<rootDir>/node_modules/@vue/apollo-composable/dist/index.js',
+    ],
+  },
+  transformIgnorePatterns: ['node_modules/(?!(@vue/apollo-composable)/)'],
 })
diff --git a/package.json b/package.json
index a316663e..622a3162 100644
--- a/package.json
+++ b/package.json
@@ -11,7 +11,8 @@
     "test": "kcd-scripts test",
     "test:update": "npm test -- --updateSnapshot --coverage",
     "validate": "kcd-scripts validate",
-    "setup": "npm install && npm run validate -s"
+    "setup": "npm install && npm run validate -s",
+    "postinstall": "node compatibility-scripts/vue-apollo-patch.js"
   },
   "engines": {
     "node": ">10.18"
@@ -52,14 +53,14 @@
     "lodash.merge": "^4.6.2"
   },
   "devDependencies": {
+    "@apollo/client": "3.3.6",
     "@babel/plugin-transform-runtime": "^7.12.1",
     "@testing-library/jest-dom": "^5.11.5",
     "@testing-library/user-event": "^12.4.0",
     "@types/estree": "0.0.45",
+    "@vue/apollo-composable": "^4.0.0-alpha.12",
     "@vue/compiler-sfc": "^3.0.4",
     "apollo-boost": "^0.4.9",
-    "apollo-cache-inmemory": "^1.6.6",
-    "apollo-client": "^2.6.10",
     "axios": "^0.20.0",
     "dtslint": "^4.0.6",
     "element-plus": "^1.0.1-beta.7",
@@ -81,8 +82,8 @@
     "vuex": "^4.0.0-rc.2"
   },
   "peerDependencies": {
-    "vue": ">= 3",
-    "@vue/compiler-sfc": ">= 3"
+    "@vue/compiler-sfc": ">= 3",
+    "vue": ">= 3"
   },
   "husky": {
     "hooks": {
diff --git a/src/__tests__/components/VueApollo.vue b/src/__tests__/components/VueApollo.vue
index a491c0e4..372978d3 100644
--- a/src/__tests__/components/VueApollo.vue
+++ b/src/__tests__/components/VueApollo.vue
@@ -1,6 +1,7 @@
 <template>
   <div>
-    <div v-if="$apollo.queries.user.loading">Loading</div>
+    <div v-if="loading">Loading</div>
+
     <div v-if="user">
       <div>Email: {{ user.email }}</div>
       <form @submit.prevent="updateUser">
@@ -15,47 +16,39 @@
 </template>
 
 <script>
-import {userQuery, updateUserMutation} from './VueApollo/queries'
+import {reactive, ref} from 'vue'
+import {useQuery, useMutation, useResult} from '@vue/apollo-composable'
+import {updateUserMutation, getUserQuery} from './VueApollo/queries'
 
 export default {
-  apollo: {
-    user: {
-      query: userQuery,
-      variables() {
-        return {id: this.id}
-      },
-    },
-  },
   props: {
     id: {
       type: String,
       required: true,
     },
   },
-  data() {
-    return {
-      user: null,
-      email: '',
-    }
-  },
-  methods: {
-    async updateUser() {
-      const {
-        data: {
-          updateUser: {email},
-        },
-      } = await this.$apollo.mutate({
-        mutation: updateUserMutation,
-        variables: {
-          input: {
-            email: this.email,
-            id: this.id,
-          },
+  setup(props) {
+    const email = ref('')
+
+    const {result, loading, error} = useQuery(getUserQuery, {id: props.id})
+    const user = useResult(result, null, data => data.user)
+
+    const {mutate: updateUser} = useMutation(updateUserMutation, () => ({
+      variables: {
+        input: {
+          email: email.value,
+          id: props.id,
         },
-      })
+      },
+    }))
 
-      this.user.email = email
-    },
+    return {
+      email,
+      user,
+      loading,
+      error,
+      updateUser,
+    }
   },
 }
 </script>
diff --git a/src/__tests__/components/VueApollo/queries.js b/src/__tests__/components/VueApollo/queries.js
index 05cd43c2..cd85fa2f 100644
--- a/src/__tests__/components/VueApollo/queries.js
+++ b/src/__tests__/components/VueApollo/queries.js
@@ -1,19 +1,18 @@
-import gql from 'graphql-tag'
+import {gql} from 'apollo-boost'
 
-export const updateUserMutation = gql`
-  mutation updateUser($data: UpdateUserInput) {
-    updateUser(input: $data) {
+export const getUserQuery = gql`
+  query getUser($id: String!) {
+    user(id: $id) {
       id
       email
     }
   }
 `
-
-export const userQuery = gql`
-  query User($id: String!) {
-    user(id: $id) {
+export const updateUserMutation = gql`
+  mutation updateUser($data: UpdateUserInput) {
+    updateUser(input: $data) {
       id
       email
     }
   }
-`
+`
\ No newline at end of file
diff --git a/src/__tests__/vue-apollo.js b/src/__tests__/vue-apollo.js
index d7728ed8..a7d04e01 100644
--- a/src/__tests__/vue-apollo.js
+++ b/src/__tests__/vue-apollo.js
@@ -1,75 +1,94 @@
-test.todo('Your test suite must contain at least one test.')
-// import '@testing-library/jest-dom'
-// import fetch from 'isomorphic-unfetch'
-// import {render, fireEvent, screen} from '..'
-// import VueApollo from 'vue-apollo'
-// import {InMemoryCache} from 'apollo-cache-inmemory'
-// import ApolloClient from 'apollo-boost'
+import '@testing-library/jest-dom'
+import fetch from 'isomorphic-unfetch'
+import {render, fireEvent, screen} from '..'
+import {DefaultApolloClient} from '@vue/apollo-composable'
+import ApolloClient from 'apollo-boost'
+import {setupServer} from 'msw/node'
+import {graphql} from 'msw'
+import Component from './components/VueApollo.vue'
 
-// // Since vue-apollo doesn't provides a MockProvider for Vue,
-// // you need to use some kind of mocks for the queries.
+// Since vue-apollo doesn't provide a MockProvider for Vue,
+// you need to use some kind of mocks for the queries.
 
-// // We recommend using Mock Service Worker library to declaratively mock API communication
-// // in your tests instead of stubbing window.fetch, or relying on third-party adapters.
+// We are using Mock Service Worker (aka MSW) library to declaratively mock API communication
+// in your tests instead of stubbing window.fetch, or relying on third-party adapters.
 
-// import {setupServer} from 'msw/node'
-// import {graphql} from 'msw'
+const server = setupServer(
+  ...[
+    graphql.query('getUser', (req, res, ctx) => {
+      const {variables} = req
 
-// import Component from './components/VueApollo.vue'
+      if (variables.id !== '1') {
+        return res(
+          ctx.errors([
+            {
+              message: 'User not found',
+            },
+          ]),
+        )
+      }
 
-// const apolloClient = new ApolloClient({
-//   uri: 'http://localhost:3020/graphql',
-//   cache: new InMemoryCache({
-//     addTypename: false,
-//   }),
-//   fetch,
-// })
+      return res(
+        ctx.data({
+          user: {
+            id: 1,
+            email: 'alice@example.com',
+            __typename: 'User',
+          },
+        }),
+      )
+    }),
 
-// const server = setupServer(
-//   ...[
-//     graphql.mutation('updateUser', (req, res, ctx) => {
-//       const {variables} = req
+    graphql.mutation('updateUser', (req, res, ctx) => {
+      const {variables} = req
 
-//       return res(
-//         ctx.data({
-//           updateUser: {id: variables.input.id, email: variables.input.email},
-//         }),
-//       )
-//     }),
-//     graphql.query('User', (req, res, ctx) => {
-//       return res(ctx.data({user: {id: '1', email: 'alice@example.com'}}))
-//     }),
-//   ],
-// )
+      return res(
+        ctx.data({
+          updateUser: {
+            id: variables.input.id,
+            email: variables.input.email,
+            __typename: 'User',
+          },
+        }),
+      )
+    }),
+  ],
+)
 
-// beforeAll(() => server.listen())
-// afterEach(() => server.resetHandlers())
-// afterAll(() => server.close())
+beforeAll(() => server.listen())
+afterEach(() => server.resetHandlers())
+afterAll(() => server.close())
 
-// test('mocking queries and mutations', async () => {
-//   render(Component, {props: {id: '1'}}, localVue => {
-//     localVue.use(VueApollo)
+test('mocking queries and mutations', async () => {
+  const apolloClient = new ApolloClient({
+    uri: 'http://localhost:3000',
+    fetch,
+  })
 
-//     return {
-//       apolloProvider: new VueApollo({defaultClient: apolloClient}),
-//     }
-//   })
+  render(Component, {
+    props: {id: '1'},
+    global: {
+      provide: {
+        [DefaultApolloClient]: apolloClient,
+      },
+    },
+  })
 
-//   //Initial rendering will be in the loading state,
-//   expect(screen.getByText('Loading')).toBeInTheDocument()
+  //Initial rendering will be in the loading state,
+  expect(screen.getByText('Loading')).toBeInTheDocument()
 
-//   expect(
-//     await screen.findByText('Email: alice@example.com'),
-//   ).toBeInTheDocument()
+  expect(
+    await screen.findByText('Email: alice@example.com'),
+  ).toBeInTheDocument()
 
-//   await fireEvent.update(
-//     screen.getByLabelText('Email'),
-//     'alice+new@example.com',
-//   )
+  await fireEvent.update(
+    screen.getByLabelText('Email'),
+    'alice+new@example.com',
+  )
 
-//   await fireEvent.click(screen.getByRole('button', {name: 'Change email'}))
+  await fireEvent.click(screen.getByRole('button', {name: 'Change email'}))
 
-//   expect(
-//     await screen.findByText('Email: alice+new@example.com'),
-//   ).toBeInTheDocument()
-// })
+  expect(
+    await screen.findByText('Email: alice+new@example.com'),
+  ).toBeInTheDocument()
+})