diff --git a/files/babel.config.cjs b/files/babel.config.cjs
index 22317a3..3b195ef 100644
--- a/files/babel.config.cjs
+++ b/files/babel.config.cjs
@@ -1,17 +1,40 @@
-let config;
+const {
+  babelCompatSupport,
+  templateCompatSupport,
+} = require('@embroider/compat/babel');
 
-// TODO - remove this once we have the better solution for injecting stage1 babel config into a real config file
-// this is needed because there are things (like ember-composible-helpers) that are now finding our babel config during
-// their stage1 build and historically they will never (99% of the time) have found any babel config.
-// we might need to keep something like this so that prebuild will never apply babel configs during stage1 i.e. a util
-// function that wraps your whole babel config
-if (
-  process.env.EMBROIDER_PREBUILD ||
-  process.env.EMBROIDER_TEST_SETUP_FORCE === 'classic'
-) {
-  config = {};
-} else {
-  config = require('./node_modules/.embroider/_babel_config_');
-}
+module.exports = {
+  plugins: [
+    [
+      'babel-plugin-ember-template-compilation',
+      {
+        compilerPath: 'ember-source/dist/ember-template-compiler.js',
+        enableLegacyModules: [
+          'ember-cli-htmlbars',
+          'ember-cli-htmlbars-inline-precompile',
+          'htmlbars-inline-precompile',
+        ],
+        transforms: [...templateCompatSupport()],
+      },
+    ],
+    [
+      'module:decorator-transforms',
+      {
+        runtime: { import: require.resolve('decorator-transforms/runtime') },
+      },
+    ],
+    [
+      '@babel/plugin-transform-runtime',
+      {
+        absoluteRuntime: __dirname,
+        useESModules: true,
+        regenerator: false,
+      },
+    ],
+    ...babelCompatSupport(),
+  ],
 
-module.exports = config;
+  generatorOpts: {
+    compact: false,
+  },
+};