diff --git a/crates/pack-core/src/client/context.rs b/crates/pack-core/src/client/context.rs
index 102d4cc2fd..dc610099a3 100644
--- a/crates/pack-core/src/client/context.rs
+++ b/crates/pack-core/src/client/context.rs
@@ -278,7 +278,7 @@ pub async fn get_client_module_options_context(
     } else {
         false
     };
-    let jsx_runtime_options = get_jsx_transform_options(
+    let jsx_transform_options = get_jsx_transform_options(
         project_path.clone(),
         mode,
         false,
@@ -381,7 +381,6 @@ pub async fn get_client_module_options_context(
             enable_typescript_transform: Some(
                 TypescriptTransformOptions::default().resolved_cell(),
             ),
-            enable_jsx: Some(JsxTransformOptions::default().resolved_cell()),
             ignore_dynamic_requests: true,
             ..Default::default()
         },
@@ -406,6 +405,7 @@ pub async fn get_client_module_options_context(
     let foreign_codes_options_context = ModuleOptionsContext {
         ecmascript: EcmascriptOptionsContext {
             enable_typeof_window_inlining: None,
+            enable_jsx: Some(jsx_transform_options),
             ..module_options_context.ecmascript
         },
         enable_webpack_loaders: foreign_enable_webpack_loaders,
@@ -417,6 +417,7 @@ pub async fn get_client_module_options_context(
 
     let internal_context = ModuleOptionsContext {
         ecmascript: EcmascriptOptionsContext {
+            enable_jsx: Some(JsxTransformOptions::default().resolved_cell()),
             ..module_options_context.ecmascript.clone()
         },
         enable_postcss_transform: None,
@@ -428,7 +429,7 @@ pub async fn get_client_module_options_context(
         // we try resolve it once at the root and pass down a context to all
         // the modules.
         ecmascript: EcmascriptOptionsContext {
-            enable_jsx: Some(jsx_runtime_options),
+            enable_jsx: Some(jsx_transform_options),
             enable_typescript_transform: Some(tsconfig),
             enable_decorators: Some(decorators_options.to_resolved().await?),
             ..module_options_context.ecmascript.clone()
diff --git a/crates/pack-core/src/config.rs b/crates/pack-core/src/config.rs
index e64d92d8ee..8d7a28f5d2 100644
--- a/crates/pack-core/src/config.rs
+++ b/crates/pack-core/src/config.rs
@@ -123,6 +123,7 @@ pub struct Config {
     provider: Option<FxIndexMap<RcStr, ProviderConfigValue>>,
     images: Option<ImageConfig>,
     pub styles: Option<StyleConfig>,
+    react: Option<ReactConfig>,
     optimization: Option<OptimizationConfig>,
     stats: Option<bool>,
     persistent_caching: Option<bool>,
@@ -240,6 +241,14 @@ pub struct ExternalAdvanced {
     pub sub_path: Option<ExternalSubPath>,
 }
 
+#[turbo_tasks::value(eq = "manual")]
+#[derive(Clone, Debug, PartialEq, Default, Deserialize, OperationValue)]
+#[serde(rename_all = "camelCase")]
+pub struct ReactConfig {
+    /// JSX runtime mode: "automatic" (default) or "classic"
+    pub runtime: Option<RcStr>,
+}
+
 #[turbo_tasks::value(eq = "manual")]
 #[derive(Clone, Debug, PartialEq, Default, Deserialize, OperationValue)]
 #[serde(rename_all = "camelCase")]
@@ -944,6 +953,11 @@ impl Config {
         self.styles.clone().unwrap_or_default().cell()
     }
 
+    #[turbo_tasks::function]
+    pub fn react(&self) -> Vc<ReactConfig> {
+        self.react.clone().unwrap_or_default().cell()
+    }
+
     #[turbo_tasks::function]
     pub fn output(&self) -> Vc<OutputConfig> {
         self.output.clone().unwrap_or_default().cell()
diff --git a/crates/pack-core/src/transform_options.rs b/crates/pack-core/src/transform_options.rs
index 3c3f81f12d..ee54a29f2a 100644
--- a/crates/pack-core/src/transform_options.rs
+++ b/crates/pack-core/src/transform_options.rs
@@ -121,13 +121,9 @@ pub async fn get_jsx_transform_options(
     enable_react_refresh: bool,
 ) -> Result<Vc<JsxTransformOptions>> {
     let tsconfig = get_typescript_options(project_path.clone()).await?;
-
     let is_emotion_enabled = config.styles().await?.emotion.is_some();
+    let react_config = config.react().await?;
 
-    // [NOTE]: ref: WEB-901
-    // next.js does not allow to overriding react runtime config via tsconfig /
-    // jsconfig, it forces overrides into automatic runtime instead.
-    // [TODO]: we need to emit / validate config message like next.js devserver does
     let react_transform_options = JsxTransformOptions {
         development: mode.await?.is_react_development(),
         // https://github.com/vercel/next.js/blob/3dc2c1c7f8441cdee31da9f7e0986d654c7fd2e7/packages/next/src/build/swc/options.ts#L112
@@ -137,7 +133,7 @@ pub async fn get_jsx_transform_options(
         } else {
             None
         },
-        runtime: Some("automatic".into()),
+        runtime: react_config.runtime.clone().or(Some("automatic".into())),
         react_refresh: enable_react_refresh,
     };
 
diff --git a/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/config.json b/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/config.json
index 675f949692..7face3a7db 100644
--- a/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/config.json
+++ b/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/config.json
@@ -5,6 +5,9 @@
                 "import": "input/index.js",
                 "name": "main"
             }
-        ]
+        ],
+        "react": {
+            "runtime": "classic"
+        }
     }
 }
\ No newline at end of file
diff --git a/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/issues/Ecmascript-file-had-an-error-df4108.txt b/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/issues/Ecmascript-file-had-an-error-df4108.txt
deleted file mode 100644
index 91234d3ca6..0000000000
--- a/crates/pack-tests/tests/snapshot/basic/foreign_jsx_transform/issues/Ecmascript-file-had-an-error-df4108.txt
+++ /dev/null
@@ -1,13 +0,0 @@
-error - [analysis] /basic/foreign_jsx_transform/node_modules/foreign-jsx-transform/index.js:1:0  Ecmascript file had an error
-         + v-------------v
-       1 + /** @jsx jsx */
-         + ^-------------^
-       2 | var a = 1;
-       3 | export default a;
-  
-  pragma cannot be set when runtime is automatic
-  
-  Import trace:
-    Browser:
-      ./basic/foreign_jsx_transform/node_modules/foreign-jsx-transform/index.js
-      ./basic/foreign_jsx_transform/input/index.js
\ No newline at end of file