diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index a7574f7..dfe24e3 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -44,6 +44,9 @@ importers:
 
   vite-plugin-compiled-react:
     dependencies:
+      '@babel/core':
+        specifier: ^7.26.10
+        version: 7.26.10
       '@babel/types':
         specifier: ^7.27.0
         version: 7.27.0
@@ -63,6 +66,9 @@ importers:
       '@compiled/react':
         specifier: ^0.18.3
         version: 0.18.3(react@19.1.0)
+      '@types/babel__core':
+        specifier: 7.20.5
+        version: 7.20.5
       '@types/node':
         specifier: ^22.14.0
         version: 22.14.0
diff --git a/vite-plugin-compiled-react/package.json b/vite-plugin-compiled-react/package.json
index 8d47974..2f0fc5b 100644
--- a/vite-plugin-compiled-react/package.json
+++ b/vite-plugin-compiled-react/package.json
@@ -14,7 +14,8 @@
     },
     "scripts": {
         "build": "rimraf lib && tsc -b && cat src/types.d.ts >> lib/index.d.ts",
-        "dev": "tsc -w"
+        "dev": "tsc -w",
+        "test": "pnpm build && node --test test/*.test.mjs"
     },
     "exports": {
         "import": "./lib/index.js"
@@ -23,6 +24,7 @@
         "lib"
     ],
     "dependencies": {
+        "@babel/core": "^7.26.10",
         "@babel/types": "^7.27.0",
         "@compiled/babel-plugin": "^0.37.1",
         "@compiled/babel-plugin-strip-runtime": "^0.37.1",
@@ -35,6 +37,7 @@
     },
     "devDependencies": {
         "@compiled/react": "^0.18.3",
+        "@types/babel__core": "7.20.5",
         "@types/node": "^22.14.0",
         "rimraf": "^6.0.1",
         "typescript": "^5.8.3",
diff --git a/vite-plugin-compiled-react/src/index.ts b/vite-plugin-compiled-react/src/index.ts
index 55510eb..362868b 100644
--- a/vite-plugin-compiled-react/src/index.ts
+++ b/vite-plugin-compiled-react/src/index.ts
@@ -1,10 +1,10 @@
 import t from '@babel/types';
+import babel from '@babel/core';
 import compiledPlugin from '@compiled/babel-plugin';
 import compiledStripRuntimePlugin from '@compiled/babel-plugin-strip-runtime';
-import type { ReactBabelOptions } from '@vitejs/plugin-react';
 import moduleResolverPlugin from 'babel-plugin-module-resolver';
 import { createHash } from 'crypto';
-import { EnvironmentModuleNode, type Plugin } from 'vite';
+import { createFilter, EnvironmentModuleNode, type Plugin } from 'vite';
 
 export type CompiledPluginOptions = {
   /**
@@ -37,8 +37,10 @@ export type CompiledPluginOptions = {
 };
 
 const virtualCssFiles = new Map();
+const defaultIncludeRE = /\.[tj]sx?$/;
 
 export const compiled = (options: CompiledPluginOptions = {}): Plugin => {
+  const filter = createFilter(defaultIncludeRE);
   const hash = (code: string) => {
     return createHash('md5').update(code).digest('hex').substring(2, 9);
   };
@@ -52,6 +54,8 @@ export const compiled = (options: CompiledPluginOptions = {}): Plugin => {
   let command = '';
   let root: string;
   const moduleResolverPluginAlias = {};
+  let plugins: babel.PluginItem[] = [];
+
   return {
     name: 'vite-plugin-compiled-react',
     enforce: 'pre',
@@ -82,6 +86,55 @@ export const compiled = (options: CompiledPluginOptions = {}): Plugin => {
           moduleResolverPluginAlias[find] = replacement;
         }
       }
+
+      plugins = [
+        {
+          visitor: {
+            Program(root) {
+              if (/extractAssets/.test(this.filename)) {
+                return;
+              }
+              root.unshiftContainer('body', importDeclaration);
+            },
+          },
+        },
+        [moduleResolverPlugin, { root, alias: moduleResolverPluginAlias }],
+        [compiledPlugin, { importReact: false, ...baseOptions }],
+      ];
+
+      if (
+        options.extract &&
+        (options.extract === true ||
+          (command === 'serve' && options.extract.serve) ||
+          (command === 'build' && options.extract.build))
+      ) {
+        plugins.push([
+          compiledStripRuntimePlugin,
+          { compiledRequireExclude: true },
+        ]);
+
+        plugins.push({
+          visitor: {
+            Program: {
+              exit(path, { file }) {
+                const styleRules = file.metadata.styleRules;
+                if (styleRules.length) {
+                  const code = styleRules.join('\n');
+                  const fileId = hash(code) + '.css';
+                  virtualCssFiles.set(fileId, styleRules.join('\n'));
+                  path.unshiftContainer(
+                    'body',
+                    t.importDeclaration(
+                      [],
+                      t.stringLiteral(`${virtualCssFileName}:${fileId}`)
+                    )
+                  );
+                }
+              },
+            },
+          },
+        });
+      }
     },
     resolveId(source, importer, options) {
       if (source.startsWith(virtualCssFileName)) {
@@ -145,66 +198,43 @@ export const compiled = (options: CompiledPluginOptions = {}): Plugin => {
                 `;
       }
     },
-    api: {
-      reactBabel(babelConfig: ReactBabelOptions) {
-        babelConfig.plugins.push({
-          visitor: {
-            Program(root) {
-              if (
-                /node_modules/.test(this.filename) ||
-                /extractAssets/.test(this.filename)
-              ) {
-                return;
-              }
-              if (/\.[jt]sx$/.test(this.filename)) {
-                root.unshiftContainer('body', importDeclaration);
-              }
-            },
-          },
-        });
+    async transform(code, id) {
+      // Keep the same default boundary as @vitejs/plugin-react: dependencies are excluded, the
+      // query is stripped before filtering, and plain .js/.ts files are eligible as well.
+      if (id.includes('/node_modules/')) {
+        return;
+      }
+      const [filepath] = id.split('?');
+      if (!filepath || !filter(filepath)) {
+        return;
+      }
+      if (
+        !filepath.endsWith('x') &&
+        !code.includes("'@compiled/react'") &&
+        !code.includes('"@compiled/react"')
+      ) {
+        return;
+      }
+      const res = await babel.transformAsync(code, {
+        filename: id,
+        sourceFileName: filepath,
+        sourceMaps: true,
+        plugins,
+        // Parse only: TypeScript and JSX are left for Vite's own transform. Babel must still
+        // understand them, otherwise annotations and `interface` are syntax errors here.
+        parserOpts: { plugins: ['jsx', 'typescript'] },
+        configFile: false,
+        babelrc: false,
+      });
 
-        babelConfig.plugins.push([
-          moduleResolverPlugin,
-          { root, alias: moduleResolverPluginAlias },
-        ]);
-        babelConfig.plugins.push([
-          compiledPlugin,
-          { importReact: false, ...baseOptions },
-        ]);
-        if (
-          options.extract &&
-          (options.extract === true ||
-            (command === 'serve' && options.extract.serve) ||
-            (command === 'build' && options.extract.build))
-        ) {
-          babelConfig.plugins.push([
-            compiledStripRuntimePlugin,
-            { compiledRequireExclude: true },
-          ]);
-
-          babelConfig.plugins.push({
-            visitor: {
-              Program: {
-                exit(path, { file }) {
-                  const styleRules = file.metadata.styleRules;
-                  if (styleRules.length) {
-                    const code = styleRules.join('\n');
-                    const fileId = hash(code) + '.css';
-                    virtualCssFiles.set(fileId, styleRules.join('\n'));
-                    path.unshiftContainer(
-                      'body',
-                      t.importDeclaration(
-                        [],
-                        t.stringLiteral(`${virtualCssFileName}:${fileId}`)
-                      )
-                    );
-                  }
-                },
-              },
-            },
-          });
-        }
-      },
+      if (!res || !res.code) {
+        return;
+      }
+
+      return {
+        code: res.code,
+        map: res.map,
+      };
     },
   };
 };
diff --git a/vite-plugin-compiled-react/test/filter.test.mjs b/vite-plugin-compiled-react/test/filter.test.mjs
new file mode 100644
index 0000000..73fe597
--- /dev/null
+++ b/vite-plugin-compiled-react/test/filter.test.mjs
@@ -0,0 +1,67 @@
+import assert from 'node:assert/strict';
+import { before, describe, it } from 'node:test';
+
+let compiled;
+
+before(async () => {
+  ({ compiled } = await import('../lib/index.js'));
+});
+
+describe('transform filter', () => {
+  it('transforms plain JavaScript files', async () => {
+    const result = await transform(
+      "import { css } from '@compiled/react'; export const value = css({ color: 'red' });",
+      '/project/src/style.js'
+    );
+
+    assertCompiled(result);
+  });
+
+  it('transforms plain TypeScript files', async () => {
+    const result = await transform(
+      "import { css } from '@compiled/react'; export const value: string = css({ color: 'red' });",
+      '/project/src/style.ts'
+    );
+
+    assertCompiled(result);
+  });
+
+  it('strips the query before filtering', async () => {
+    const result = await transform(
+      "export const Page = () => <div css={{ color: 'red' }} />;",
+      '/project/src/style.tsx?direct'
+    );
+
+    assertCompiled(result);
+    assert.match(result.code, /className=\{ax/);
+  });
+
+  it('does not transform dependencies', async () => {
+    const result = await transform(
+      "// @flow\nopaque type Token = string; export const token: Token = 'dependency';",
+      '/project/node_modules/flow-dependency/index.jsx'
+    );
+
+    assert.equal(result, undefined);
+  });
+
+  it('does not transform plain JavaScript without a Compiled import', async () => {
+    const result = await transform(
+      "import { jsx } from 'react/jsx-runtime'; export const Page = () => jsx('div', {});",
+      '/project/generated/runtime.js'
+    );
+
+    assert.equal(result, undefined);
+  });
+});
+
+async function transform(code, id) {
+  const plugin = compiled();
+  plugin.configResolved({ root: '/project', resolve: { alias: [] } });
+  return plugin.transform.call({}, code, id);
+}
+
+function assertCompiled(result) {
+  assert.ok(result);
+  assert.match(result.code, /generated by @compiled\/babel-plugin/);
+}