diff --git a/e2e/__projects__/basic/__snapshots__/test.js.snap b/e2e/__projects__/basic/__snapshots__/test.js.snap
index 4ed8d43c..d5cef66c 100644
--- a/e2e/__projects__/basic/__snapshots__/test.js.snap
+++ b/e2e/__projects__/basic/__snapshots__/test.js.snap
@@ -33,25 +33,16 @@ var _default = {
 exports[\\"default\\"] = _default;
 ;
 \\"use strict\\";
-
-Object.defineProperty(exports, \\"__esModule\\", {
-  value: true
-});
-exports.render = render;
-
-var _vue = require(\\"vue\\");
-
-var _hoisted_1 = {
-  \\"class\\": \\"hello\\"
-};
-
+Object.defineProperty(exports, \\"__esModule\\", { value: true });
+var vue_1 = require(\\"vue\\");
+var _hoisted_1 = { class: \\"hello\\" };
 function render(_ctx, _cache) {
-  return (0, _vue.openBlock)(), (0, _vue.createBlock)(\\"div\\", _hoisted_1, [(0, _vue.createVNode)(\\"h1\\", {
-    \\"class\\": _ctx.headingClasses
-  }, (0, _vue.toDisplayString)(_ctx.msg), 3
-  /* TEXT, CLASS */
-  )]);
-};
+    return (vue_1.openBlock(), vue_1.createBlock(\\"div\\", _hoisted_1, [
+        vue_1.createVNode(\\"h1\\", { class: _ctx.headingClasses }, vue_1.toDisplayString(_ctx.msg), 3 /* TEXT, CLASS */)
+    ]));
+}
+exports.render = render;
+;
 ;exports.default = {...exports.default, render};
 //# sourceMappingURL=data:application/json;charset=utf-8;base64,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"
 `;
@@ -89,25 +80,16 @@ var _default = {
 exports[\\"default\\"] = _default;
 ;
 \\"use strict\\";
-
-Object.defineProperty(exports, \\"__esModule\\", {
-  value: true
-});
-exports.render = render;
-
-var _vue = require(\\"vue\\");
-
-var _hoisted_1 = {
-  \\"class\\": \\"hello\\"
-};
-
+Object.defineProperty(exports, \\"__esModule\\", { value: true });
+var vue_1 = require(\\"vue\\");
+var _hoisted_1 = { class: \\"hello\\" };
 function render(_ctx, _cache) {
-  return (0, _vue.openBlock)(), (0, _vue.createBlock)(\\"div\\", _hoisted_1, [(0, _vue.createVNode)(\\"h1\\", {
-    \\"class\\": _ctx.headingClasses
-  }, (0, _vue.toDisplayString)(_ctx.msg), 3
-  /* TEXT, CLASS */
-  )]);
-};
+    return (vue_1.openBlock(), vue_1.createBlock(\\"div\\", _hoisted_1, [
+        vue_1.createVNode(\\"h1\\", { class: _ctx.headingClasses }, vue_1.toDisplayString(_ctx.msg), 3 /* TEXT, CLASS */)
+    ]));
+}
+exports.render = render;
+;
 ;exports.default = {...exports.default, render};
 //# sourceMappingURL=data:application/json;charset=utf-8;base64,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"
 `;
diff --git a/lib/process.js b/lib/process.js
index c4f324dc..f8b5ede8 100644
--- a/lib/process.js
+++ b/lib/process.js
@@ -2,6 +2,7 @@ const { parse, compileTemplate } = require('@vue/compiler-sfc')
 const { transform } = require('@babel/core')
 const convertSourceMap = require('convert-source-map')
 const babelTransformer = require('babel-jest')
+const { transpileModule } = require('typescript')
 
 const generateSourceMap = require('./generate-source-map')
 const typescriptTransformer = require('./transformers/typescript')
@@ -9,6 +10,7 @@ const coffeescriptTransformer = require('./transformers/coffee')
 const _processStyle = require('./process-style')
 const processCustomBlocks = require('./process-custom-blocks')
 const getVueJestConfig = require('./utils').getVueJestConfig
+const getTsJestConfig = require('./utils').getTsJestConfig
 const logResultErrors = require('./utils').logResultErrors
 const stripInlineSourceMap = require('./utils').stripInlineSourceMap
 const getCustomTransformer = require('./utils').getCustomTransformer
@@ -68,10 +70,19 @@ function processTemplate(template, filename, config) {
 
   logResultErrors(result)
 
-  const babelify = transform(result.code, { filename: 'file.js' })
+  const tsconfig = getTsJestConfig(config)
 
-  return {
-    code: babelify.code
+  if (tsconfig) {
+    // they are using TypeScript.
+    const { outputText } = transpileModule(result.code, { tsconfig })
+    return { code: outputText }
+  } else {
+    // babel
+    const babelify = transform(result.code, { filename: 'file.js' })
+
+    return {
+      code: babelify.code
+    }
   }
 }