diff --git a/.eslintignore b/.eslintignore
index e0b10d03b..6d98106b6 100644
--- a/.eslintignore
+++ b/.eslintignore
@@ -7,6 +7,7 @@ node_package/tests/node_modules
 node_package/webpack.config.js
 **/node_modules/**
 **/assets/webpack/**
+**/public/webpack/**
 **/generated/**
 **/app/assets/javascripts/application.js
 **/coverage/**
diff --git a/.gitignore b/.gitignore
index 3c55121fe..e170c797a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -12,7 +12,7 @@
 
 /spec/examples.txt
 /spec/dummy/client/node_modules
-/spec/dummy/app/assets/webpack/
+/spec/dummy/public/webpack/
 /spec/dummy/coverage/
 /spec/react_on_rails/dummy-for-generators/
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 77c255de3..ac0e2e29c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,25 @@ Contributors: please follow the recommendations outlined at [keepachangelog.com]
 ## [Unreleased]
 *Please add entries here for your pull requests.*
 
+## [8.0.0] - 2017-05-03
+
+### Added
+Support for WebpackerLite in the generators. [#822](https://github.com/shakacode/react_on_rails/pull/822) by [kaizencodes](https://github.com/kaizencodes) and [justin808](https://github.com/justin808).
+
+1. You do not need to switch to WebpackerLite to use 8.0.0.
+2. You can find an upgrade example in [react-webpack-rails-tutorial PR #387](https://github.com/shakacode/react-webpack-rails-tutorial/pull/387).
+
+### Changed
+Breaking change is that the default value of symlink_non_digested_assets_regex has changed from this
+old value to nil. This is a breaking change if you didn't have this value set in your
+config/initializers/react_on_rails.rb file and you need this because you're using webpack's CSS
+features and you have not switched to webpacker lite.
+
+```
+symlink_non_digested_assets_regex: /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/,
+```
+
+
 ## [7.0.4] - 2017-04-27
 - Return empty json when nil in json_safe_and_pretty [#824](https://github.com/shakacode/react_on_rails/pull/824) by [dzirtusss](https://github.com/dzirtusss)
 
diff --git a/README.md b/README.md
index 5ceb421ec..9166dc19a 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,7 @@
 
 **For a complete example of this gem, see our live demo at [www.reactrails.com](http://www.reactrails.com). ([Source Code](https://github.com/shakacode/react-webpack-rails-tutorial))**
 
-**Speaking!**: Justin is speaking [GORUCO](http://goruco.com/#speakers) on Saturday, June 24, 2017 in NYC: "Front-End Sadness to Happiness: The React on Rails Story". [Email Justin](mailto:justin@shakacode.com) to give this talk at your local meetup or company. [Subscribe](https://app.mailerlite.com/webforms/landing/l1d9x5) to be notified of local and *online* presentations of this talk. 
+**Speaking!**: Justin is speaking [GORUCO](http://goruco.com/#speakers) on Saturday, June 24, 2017 in NYC: "Front-End Sadness to Happiness: The React on Rails Story". [Email Justin](mailto:justin@shakacode.com) to give this talk at your local meetup or company. [Subscribe](https://app.mailerlite.com/webforms/landing/l1d9x5) to be notified of local and *online* presentations of this talk.
 
 **Aloha from Justin Gordon** ([bio](http://www.railsonmaui.com/about)) and the [ShakaCode](http://www.shakacode.com) Team! We're actively looking for new projects involving React, React-Native, and Rails, including conversion of AngularJs to React. Please [contact me](mailto:justin@shakacode.com) if we could potentially help you in any way. Besides consulting on bigger projects, [ShakaCode](http://www.shakacode.com) is doing ScreenHero plus Slack/Github based [coaching](http://www.shakacode.com/work/shakacode-coaching-plan.pdf) for React on Rails. See our blog post [Can ShakaCode Help You?](https://blog.shakacode.com/can-shakacode-help-you-4a5b1e5a8a63#.jex6tg9w9) for more information.
 
@@ -49,7 +49,7 @@ For more testimonials, see [Live Projects](PROJECTS.md) and [Kudos](./KUDOS.md).
 * [284 Ruby Rogues: React on Rails with Justin Gordon and Rob Wise](https://devchat.tv/ruby-rogues/284-rr-react-on-rails-with-justin-gordon-and-rob-wise)
 
 # NEWS
-* 2017-04-25: 7.0.0 Shipped! Performance improvements! Please upgrade! Only "breaking" change is that you have to update both the node module and the Ruby gem. 
+* 2017-04-25: 7.0.0 Shipped! Performance improvements! Please upgrade! Only "breaking" change is that you have to update both the node module and the Ruby gem.
 * 2017-04-09: 8.0.0 beta work to include webpacker_lite gem has begun. See [#786](https://github.com/shakacode/react_on_rails/issues/786).
 * *See [NEWS.md](NEWS.md) for more notes over time.*
 
@@ -106,6 +106,10 @@ Universal React with Rails: Part I](https://medium.com/@alexfedoseev/isomorphic-
 
 We're definitely not doing that. With react_on_rails, webpack is mainly generating a nice JavaScript file for inclusion into `application.js`. We're going to KISS. And that's all relative given how much there is to get right in an enterprise class web application.
 
+## Upgrade
+
+To upgrade existing apps to react on rails 7 see the [Installation Overview](docs/basics/installation-overview.md)
+
 ## Getting Started
 
 **For more detailed instructions**, see the [React on Rails Basic Tutorial](docs/tutorial.md).
@@ -144,9 +148,9 @@ We're definitely not doing that. With react_on_rails, webpack is mainly generati
   foreman start -f Procfile.dev
   ```
 
-8. Visit [localhost:5000/hello_world](http://localhost:5000/hello_world). Note, `foreman` defaults to PORT 5000 unless you set the value of PORT in your environment. For example, you can `export PORT=3000` to use the Rails default port of 3000.
+8. Visit [localhost:3000/hello_world](http://localhost:3000/hello_world). Note, `foreman` defaults to PORT 5000 unless you set the value of PORT in your environment. For example, you can `export PORT=3000` to use the Rails default port of 3000. For the hello_world example this is already set.
 
-### Installation Summary
+### Installation Overview
 
 See the [Installation Overview](docs/basics/installation-overview.md) for a concise set summary of what's in a React on Rails installation.
 
@@ -222,7 +226,7 @@ In the following screenshot you can see the 3 parts of React on Rails rendering:
 2. The wrapper div `<div id="HelloWorld-react-component-0">` specifies the div where to place the React rendering. It encloses the server-rendered HTML for the React component
 3. Additional JavaScript is placed to console log any messages, such as server rendering errors. Note, these server side logs can be configured to only be sent to the server logs.
 
-**Note**: 
+**Note**:
 
 * If server rendering is not used (prerender: false), then the major difference is that the HTML rendered for the React component only contains the outer div: `<div id="HelloWorld-react-component-0"/>`. The first specification of the React component is just the same.
 * The below image is not yet updated for version 7.0.0 which uses a `<script>` tag for the props. Instead of a hidden div, we have the props inside of the a `<script>` tag.
diff --git a/docs/additional-reading/rspec-configuration.md b/docs/additional-reading/rspec-configuration.md
index 1eb00be01..3487fb941 100644
--- a/docs/additional-reading/rspec-configuration.md
+++ b/docs/additional-reading/rspec-configuration.md
@@ -31,7 +31,8 @@ The following `config/react_on_rails.rb` settings **must** match your setup:
 ```ruby
   # Directory where your generated assets go. All generated assets must go to the same directory.
   # Configure this in your webpack config files. This relative to your Rails root directory.
-  config.generated_assets_dir = File.join(%w(app assets webpack))
+  # We recommend having different generated assets dirs per Rails env.
+  config.generated_assets_dir = File.join(%w[public webpack], Rails.env)
 
   # Define the files we need to check for webpack compilation when running tests.
   config.webpack_generated_files = %w( webpack-bundle.js )
diff --git a/docs/basics/installation-overview.md b/docs/basics/installation-overview.md
index 8cdab7d82..5afa09d07 100644
--- a/docs/basics/installation-overview.md
+++ b/docs/basics/installation-overview.md
@@ -1,6 +1,6 @@
 # Installation Overview
 
-Here's an overview of installation if you're not using the generator. 
+Here's an overview of installation if you're not using the generator.
 
 Note, the best way to understand how to use ReactOnRails is to study the examples:
 
@@ -9,23 +9,26 @@ Note, the best way to understand how to use ReactOnRails is to study the example
 
 ## Configure the `/client` Directory
 
-This directory has no references to Rails outside of the destination directory for the files created by the various Webpack config files. 
+This directory has no references to Rails outside of the destination directory for the files created by the various Webpack config files.
 
 The only requirements within this directory for basic React on Rails integration are:
 
 1. Your webpack configuration files:
-   1. Create outputs in a directory like `/app/assets/webpack`, which is customizable in your `config/initializers/react_on_rails.rb`.
+   1. Create outputs in a directory like `/public/webpack`, which is customizable in your `config/initializers/react_on_rails.rb`.
    1. Provide server rendering if you wish to use that feature.
 1. Your JavaScript code "registers" any components and stores per the ReactOnRails APIs of ReactOnRails.register(components) and ReactOnRails.registerStore(stores). See API docs in [README.md](../../README.md) and the [ReactOnRails.js source](../../node_package/src/ReactOnRails.js).
 1. Set your registration file as an "entry" point in your Webpack configs.
+1. Add the [Manifest plugin](https://github.com/danethurber/webpack-manifest-plugin) to your config. For examples see [dummy config](../../spec/dummy/client/webpack.client.base.config.js).
+The default path: `public/webpack` can be loaded with webpackConfigLoader as shown in the dummy example.
 1. You create scripts in `client/package.json` per the example apps. These are used for building your Webpack assets. Also do this for your top level `package.json`.
 
 ## Rails Steps (outside of /client)
+1. Add  `gem "webpacker_lite"` to the Gemfile, run bundle. The gem provides the `stylesheet_pack_tag` and `javascript_pack_tag` helpers which is used to load the bundled assets to your layouts.[Dummy Example](../../spec/dummy/app/views/layouts/application.html.erb)
 1. Configure the `config/initializers/react_on_rails.rb`. You can adjust some necessary settings and defaults. See file [spec/dummy/config/initializers/react_on_rails.rb](../../spec/dummy/config/initializers/react_on_rails.rb) for a detailed example of configuration, including comments on the different values to configure.
 1. Configure your Procfiles per the example apps. These are at the root of your Rails installation.
 1. Configure `config/initializers/assets.rb` probably like [spec/dummy/config/initializers/assets.rb](../../spec/dummy/config/initializers/assets.rb). This example shows what's necessary if you're enabling the hot-reloading Rails development option.
 1. Configure your top level JavaScript files for inclusion in your layout. You'll want a version that you use for static assets, and you want a file for any files in your setup that are not part of your webpack build. The reason for this is for use with hot-reloading. If you are not using hot reloading, then you only need to configure your `application.js` file to include your Webpack generated files. For more information on hot reloading, see [Hot Reloading of Assets For Rails Development](../additional-reading/hot-reloading-rails-development.md)
- 
+
 1. Configure your `lib/tasks/assets.rake` file to run webpack during asset precompilation.
 1. If you are deploying to Heroku, see [heroku-deployment.md](/docs/additional-reading/heroku-deployment.md)
 
diff --git a/lib/generators/react_on_rails/base_generator.rb b/lib/generators/react_on_rails/base_generator.rb
index 886f081a2..e3ebf051a 100644
--- a/lib/generators/react_on_rails/base_generator.rb
+++ b/lib/generators/react_on_rails/base_generator.rb
@@ -27,7 +27,7 @@ def update_git_ignore
           node_modules
 
           # Generated js bundles
-          /app/assets/webpack/*
+          /public/webpack/*
         DATA
 
         if dest_file_exists?(".gitignore")
@@ -37,26 +37,6 @@ def update_git_ignore
         end
       end
 
-      def update_application_js
-        data = <<-DATA.strip_heredoc
-          //= require webpack-bundle
-
-        DATA
-
-        app_js_path = "app/assets/javascripts/application.js"
-        found_app_js = dest_file_exists?(app_js_path) || dest_file_exists?("#{app_js_path}.coffee")
-        if found_app_js
-          prepend_to_file(found_app_js, data)
-        else
-          create_file(app_js_path, data)
-        end
-      end
-
-      def strip_application_js_of_double_blank_lines
-        application_js = File.join(destination_root, "app/assets/javascripts/application.js")
-        gsub_file(application_js, /^\n^\n/, "\n")
-      end
-
       def create_react_directories
         dirs = %w(components containers startup)
         dirs.each { |name| empty_directory("client/app/bundles/HelloWorld/#{name}") }
@@ -65,6 +45,8 @@ def create_react_directories
       def copy_base_files
         base_path = "base/base/"
         base_files = %w(app/controllers/hello_world_controller.rb
+                        config/webpack/paths.yml
+                        config/webpack/development.server.yml
                         client/.babelrc
                         client/webpack.config.js
                         client/REACT_ON_RAILS_CLIENT_README.md)
@@ -73,14 +55,15 @@ def copy_base_files
 
       def template_base_files
         base_path = "base/base/"
-        %w(config/initializers/react_on_rails.rb
+        %w(app/views/layouts/hello_world.html.erb
+           config/initializers/react_on_rails.rb
            Procfile.dev
            package.json
            client/package.json).each { |file| template("#{base_path}#{file}.tt", file) }
       end
 
       def add_base_gems_to_gemfile
-        append_to_file("Gemfile", "\ngem 'mini_racer', platforms: :ruby\n")
+        append_to_file("Gemfile", "\ngem 'mini_racer', platforms: :ruby\ngem 'webpacker_lite'\n")
       end
 
       ASSETS_RB_APPEND = <<-DATA.strip_heredoc
@@ -93,7 +76,7 @@ def add_base_gems_to_gemfile
 # Rails.application.config.assets.precompile += %w( server-bundle.js )
 
 # Add folder with webpack generated assets to assets.paths
-Rails.application.config.assets.paths << Rails.root.join("app", "assets", "webpack")
+Rails.application.config.assets.paths << Rails.root.join("public", "webpack", Rails.env)
       DATA
 
       def append_to_assets_initializer
@@ -138,6 +121,10 @@ def print_helpful_message
 
           What to do next:
 
+            - Include your webpack assets to your application layout.
+
+              <%= javascript_pack_tag 'main' %>
+
             - Ensure your bundle and yarn installs of dependencies are up to date.
 
                 bundle && yarn
diff --git a/lib/generators/react_on_rails/dev_tests_generator.rb b/lib/generators/react_on_rails/dev_tests_generator.rb
index 54d2a14a5..7fe609291 100644
--- a/lib/generators/react_on_rails/dev_tests_generator.rb
+++ b/lib/generators/react_on_rails/dev_tests_generator.rb
@@ -45,15 +45,6 @@ def change_package_json_to_use_local_react_on_rails_module
         File.open(package_json, "w+") { |f| f.puts new_contents }
       end
 
-      def change_webpack_client_base_config_to_include_fallback
-        sentinel = /^\s\s},\n\s\splugins: \[\n/
-        config = File.join(destination_root, "client", "webpack.config.js")
-        old_contents = File.read(config)
-        new_contents = "const path = require('path');\n" +
-                       old_contents.gsub(sentinel, FALLBACK_OPTION_FOR_NODE_MODULES)
-        File.open(config, "w+") { |f| f.puts new_contents }
-      end
-
       def add_test_related_gems_to_gemfile
         gem("rspec-rails", group: :test)
         gem("capybara", group: :test)
diff --git a/lib/generators/react_on_rails/templates/.eslintrc b/lib/generators/react_on_rails/templates/.eslintrc
new file mode 100644
index 000000000..753be616c
--- /dev/null
+++ b/lib/generators/react_on_rails/templates/.eslintrc
@@ -0,0 +1,23 @@
+---
+extends: eslint-config-shakacode
+
+plugins:
+  - react
+
+globals:
+  __DEBUG_SERVER_ERRORS__: true
+  __SERVER_ERRORS__: true
+
+env:
+  browser: true
+  node: true
+  mocha: true
+
+rules:
+  no-console: 0
+
+  # https://github.com/benmosher/eslint-plugin-import/issues/340
+  import/no-extraneous-dependencies: 0
+
+  # because template cannot find react-on-rails
+  import/no-unresolved: 0
diff --git a/lib/generators/react_on_rails/templates/base/base/Procfile.dev.tt b/lib/generators/react_on_rails/templates/base/base/Procfile.dev.tt
index c4a7691d8..d35befe16 100644
--- a/lib/generators/react_on_rails/templates/base/base/Procfile.dev.tt
+++ b/lib/generators/react_on_rails/templates/base/base/Procfile.dev.tt
@@ -1,2 +1,2 @@
 web: rails s -p 3000
-client: sh -c 'rm app/assets/webpack/* || true && cd client && bundle exec rake react_on_rails:locale && yarn run build:development'
+client: sh -c 'rm -rf public/webpack/* || true && cd client && bundle exec rake react_on_rails:locale && yarn run build:development'
diff --git a/lib/generators/react_on_rails/templates/base/base/app/controllers/hello_world_controller.rb b/lib/generators/react_on_rails/templates/base/base/app/controllers/hello_world_controller.rb
index a8f38ef25..1ae3ddaa4 100644
--- a/lib/generators/react_on_rails/templates/base/base/app/controllers/hello_world_controller.rb
+++ b/lib/generators/react_on_rails/templates/base/base/app/controllers/hello_world_controller.rb
@@ -1,4 +1,6 @@
 class HelloWorldController < ApplicationController
+  layout "hello_world"
+
   def index
     @hello_world_props = { name: "Stranger" }
   end
diff --git a/lib/generators/react_on_rails/templates/base/base/app/views/layouts/hello_world.html.erb.tt b/lib/generators/react_on_rails/templates/base/base/app/views/layouts/hello_world.html.erb.tt
new file mode 100644
index 000000000..8cbcf7494
--- /dev/null
+++ b/lib/generators/react_on_rails/templates/base/base/app/views/layouts/hello_world.html.erb.tt
@@ -0,0 +1,15 @@
+<!DOCTYPE html>
+<html>
+  <head>
+    <title>ReactOnRailsWithWebpacker</title>
+    <%%= csrf_meta_tags %>
+
+    <%%= stylesheet_link_tag    'application', media: 'all', 'data-turbolinks-track': 'reload' %>
+    <%%= javascript_include_tag 'application', 'data-turbolinks-track': 'reload' %>
+    <%%= javascript_pack_tag 'main' %>
+  </head>
+
+  <body>
+    <%%= yield %>
+  </body>
+</html>
diff --git a/lib/generators/react_on_rails/templates/base/base/client/package.json.tt b/lib/generators/react_on_rails/templates/base/base/client/package.json.tt
index 538444400..00e9ef0aa 100644
--- a/lib/generators/react_on_rails/templates/base/base/client/package.json.tt
+++ b/lib/generators/react_on_rails/templates/base/base/client/package.json.tt
@@ -8,9 +8,9 @@
     "npm": "4.1.1"
   },
   "scripts": {
-    "build:test": "webpack --config webpack.config.js",
+    "build:test": "NODE_ENV=test webpack --config webpack.config.js",
     "build:production": "NODE_ENV=production webpack --config webpack.config.js",
-    "build:development": "webpack -w --config webpack.config.js"
+    "build:development": "NODE_ENV=development webpack -w --config webpack.config.js"
   },
   "cacheDirectories": ["node_modules", "client/node_modules"],
   "dependencies": {
@@ -25,6 +25,7 @@
     "es5-shim": "^4.5.9",
     "expose-loader": "^0.7.3",
     "imports-loader": "^0.7.1",
+    "js-yaml": "^3.8.2",
     "react": "^15.5.4",
     "react-dom": "^15.5.4",
     "react-on-rails": "<%= VersionSyntaxConverter.new.rubygem_to_npm %>",
@@ -32,7 +33,8 @@
     "react-redux": "^5.0.4",
     "redux": "^3.6.0",
     <%- end -%>
-    "webpack": "^2.3.3"
+    "webpack": "^2.3.3",
+    "webpack-manifest-plugin": "^1.1.0"
   },
   "devDependencies": {
   }
diff --git a/lib/generators/react_on_rails/templates/base/base/client/webpack.config.js b/lib/generators/react_on_rails/templates/base/base/client/webpack.config.js
index 7266ac43d..0f63d21bf 100644
--- a/lib/generators/react_on_rails/templates/base/base/client/webpack.config.js
+++ b/lib/generators/react_on_rails/templates/base/base/client/webpack.config.js
@@ -3,11 +3,19 @@
  "only-multiline"} ] */
 
 const webpack = require('webpack');
-const pathLib = require('path');
+const { resolve } = require('path');
+const ManifestPlugin = require('webpack-manifest-plugin');
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
 
-const devBuild = process.env.NODE_ENV !== 'production';
+const configPath = resolve('..', 'config', 'webpack');
+const { env, paths, publicPath } = webpackConfigLoader(configPath);
+
+const devBuild = env !== 'production';
 
 const config = {
+
+  context: resolve(__dirname),
+
   entry: [
     'es5-shim/es5-shim',
     'es5-shim/es5-sham',
@@ -17,15 +25,19 @@ const config = {
 
   output: {
     filename: 'webpack-bundle.js',
-    path: pathLib.resolve(__dirname, '../app/assets/webpack'),
+    path: resolve('..', paths.output, paths.assets),
   },
 
   resolve: {
     extensions: ['.js', '.jsx'],
   },
+
+
   plugins: [
-    new webpack.EnvironmentPlugin({ NODE_ENV: 'development' }),
+    new webpack.EnvironmentPlugin(JSON.parse(JSON.stringify(env))),
+    new ManifestPlugin({ fileName: paths.manifest, publicPath, writeToFileEmit: true }),
   ],
+
   module: {
     rules: [
       {
diff --git a/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt b/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
index f180c73e4..382127702 100644
--- a/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
+++ b/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
@@ -4,7 +4,7 @@ ReactOnRails.configure do |config|
 
   # Directory where your generated assets go. All generated assets must go to the same directory.
   # Configure this in your webpack config files. This relative to your Rails root directory.
-  config.generated_assets_dir = File.join(%w(app assets webpack))
+  config.generated_assets_dir = File.join(%w[public webpack], Rails.env)
 
   # Define the files we need to check for webpack compilation when running tests.
   config.webpack_generated_files = %w( webpack-bundle.js )
@@ -82,9 +82,8 @@ ReactOnRails.configure do |config|
   config.server_render_method = "ExecJS"
   <%- end -%>
 
-  # Client js uses assets not digested by rails.
-  # For any asset matching this regex, non-digested symlink will be created (what webpack's css wants)
-  # To disable symlinks set this parameter to nil.
-  config.symlink_non_digested_assets_regex = /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/
-
+  # If you want to use webpack for CSS and images, and still use the asset pipeline,
+  # see https://github.com/shakacode/react_on_rails/blob/master/docs/additional-reading/rails-assets.md
+  # And you will use a setting like this.
+  # config.symlink_non_digested_assets_regex = /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/
 end
diff --git a/lib/generators/react_on_rails/templates/base/base/config/webpack/development.server.yml b/lib/generators/react_on_rails/templates/base/base/config/webpack/development.server.yml
new file mode 100644
index 000000000..79accb5bc
--- /dev/null
+++ b/lib/generators/react_on_rails/templates/base/base/config/webpack/development.server.yml
@@ -0,0 +1,9 @@
+default: &default
+  enabled: false
+  host: localhost
+  port: 3500
+
+development:
+  <<: *default
+  # set to true of you want hot loading as default
+  enabled: false
diff --git a/lib/generators/react_on_rails/templates/base/base/config/webpack/paths.yml b/lib/generators/react_on_rails/templates/base/base/config/webpack/paths.yml
new file mode 100644
index 000000000..007cc8d6e
--- /dev/null
+++ b/lib/generators/react_on_rails/templates/base/base/config/webpack/paths.yml
@@ -0,0 +1,18 @@
+default: &default
+  output: public
+  assets: webpack
+  manifest: manifest.json
+  node_modules: client/node_modules
+  source: client/app
+
+development:
+  <<: *default
+  assets: webpack/development
+
+test:
+  <<: *default
+  assets: webpack/test
+
+production:
+  <<: *default
+  assets: webpack/production
diff --git a/lib/react_on_rails/configuration.rb b/lib/react_on_rails/configuration.rb
index 68c326576..dc98f4bd4 100644
--- a/lib/react_on_rails/configuration.rb
+++ b/lib/react_on_rails/configuration.rb
@@ -4,7 +4,7 @@ def self.configure
     setup_config_values
   end
 
-  DEFAULT_GENERATED_ASSETS_DIR = File.join(%w(app assets webpack)).freeze
+  DEFAULT_GENERATED_ASSETS_DIR = File.join(%w(public webpack), Rails.env).freeze
 
   def self.setup_config_values
     ensure_webpack_generated_files_exists
@@ -98,7 +98,7 @@ def self.configuration
       webpack_generated_files: [],
       rendering_extension: nil,
       server_render_method: "",
-      symlink_non_digested_assets_regex: /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/,
+      symlink_non_digested_assets_regex: nil,
       npm_build_test_command: "",
       i18n_dir: "",
       i18n_yml_dir: "",
diff --git a/lib/react_on_rails/version.rb b/lib/react_on_rails/version.rb
index f0fbe5f90..a3f85d7b2 100644
--- a/lib/react_on_rails/version.rb
+++ b/lib/react_on_rails/version.rb
@@ -1,3 +1,3 @@
 module ReactOnRails
-  VERSION = "7.0.4".freeze
+  VERSION = "8.0.0.beta.1".freeze
 end
diff --git a/package.json b/package.json
index 94b5dd89e..1eb82f010 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "react-on-rails",
-  "version": "7.0.4",
+  "version": "8.0.0-beta.1",
   "description": "react-on-rails JavaScript for react_on_rails Ruby gem",
   "main": "node_package/lib/ReactOnRails.js",
   "directories": {
@@ -37,7 +37,8 @@
     "release-it": "^2.7.1",
     "tap-spec": "^4.1.1",
     "tape": "^4.6.3",
-    "webpack": "^2.3.3"
+    "webpack": "^2.3.3",
+    "webpack-manifest-plugin": "^1.1.0"
   },
   "peerDependencies": {
     "babel-runtime": ">= 6",
@@ -45,7 +46,8 @@
     "react-dom": ">= 0.14"
   },
   "files": [
-    "node_package/lib"
+    "node_package/lib",
+    "webpackConfigLoader.js"
   ],
   "scripts": {
     "test": "babel-tape-runner -r node_package/tests/helpers/test_helper.js node_package/tests/*.js | tap-spec",
diff --git a/rakelib/example_type.rb b/rakelib/example_type.rb
index 3cf14c2a7..2dfcb80dd 100644
--- a/rakelib/example_type.rb
+++ b/rakelib/example_type.rb
@@ -49,7 +49,7 @@ def node_modules_dir
       end
 
       def webpack_bundles_dir
-        File.join(dir, "app", "assets", "javascripts", "webpack")
+        File.join(dir, "public", "webpack", "test")
       end
 
       def webpack_bundles
@@ -131,7 +131,7 @@ def clean_files
       def build_webpack_bundles_shell_commands
         webpack_command = File.join("$(yarn bin)", "webpack")
         shell_commands = []
-        shell_commands << "#{webpack_command} --config webpack.config.js"
+        shell_commands << "NODE_ENV=test #{webpack_command} --config webpack.config.js"
       end
 
       # Assumes we are inside a rails app's folder and necessary gems have been installed
diff --git a/rakelib/run_rspec.rake b/rakelib/run_rspec.rake
index 63c998406..a6081414d 100644
--- a/rakelib/run_rspec.rake
+++ b/rakelib/run_rspec.rake
@@ -62,7 +62,7 @@ namespace :run_rspec do
   end
 
   desc "run all tests no examples"
-  task all_but_examples: [:gem, :dummy, :dummy_no_turbolinks, :dummy_turbolinks_2, :empty, :js_tests] do
+  task all_but_examples: [:gem, :dummy_no_turbolinks, :dummy_turbolinks_2, :dummy, :empty, :js_tests] do
     puts "Completed all RSpec tests"
   end
 
diff --git a/spec/dummy/.gitignore b/spec/dummy/.gitignore
index 566dce6d9..83c2b2dd5 100644
--- a/spec/dummy/.gitignore
+++ b/spec/dummy/.gitignore
@@ -18,6 +18,6 @@
 
 /node_modules
 
-/app/assets/webpack
+/public/assets/webpack/*
 
 /spec/examples.txt
diff --git a/spec/dummy/Gemfile b/spec/dummy/Gemfile
index 3d2282c8b..12987ffdf 100644
--- a/spec/dummy/Gemfile
+++ b/spec/dummy/Gemfile
@@ -43,6 +43,8 @@ gem 'sdoc', '~> 0.4.0', group: :doc
 
 gem "react_on_rails", path: "../.."
 
+gem "webpacker_lite"
+
 gem "mini_racer"
 
 group :development, :test do
diff --git a/spec/dummy/Gemfile.lock b/spec/dummy/Gemfile.lock
index e065a9771..a0120d2a7 100644
--- a/spec/dummy/Gemfile.lock
+++ b/spec/dummy/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: ../..
   specs:
-    react_on_rails (7.0.4)
+    react_on_rails (8.0.0.beta.1)
       addressable
       connection_pool
       execjs (~> 2.5)
@@ -134,7 +134,7 @@ GEM
     minitest (5.10.1)
     multi_json (1.12.1)
     nio4r (2.0.0)
-    nokogiri (1.7.0.1)
+    nokogiri (1.7.1)
       mini_portile2 (~> 2.1.0)
     parser (2.4.0.0)
       ast (~> 2.2)
@@ -272,11 +272,15 @@ GEM
     turbolinks (5.0.1)
       turbolinks-source (~> 5)
     turbolinks-source (5.0.0)
-    tzinfo (1.2.2)
+    tzinfo (1.2.3)
       thread_safe (~> 0.1)
     uglifier (3.1.4)
       execjs (>= 0.3.0, < 3)
     unicode-display_width (1.1.3)
+    webpacker_lite (1.0.0)
+      activesupport (>= 4.2)
+      multi_json (~> 1.2)
+      railties (>= 4.2)
     websocket (1.2.4)
     websocket-driver (0.6.5)
       websocket-extensions (>= 0.1.0)
@@ -324,6 +328,7 @@ DEPENDENCIES
   sqlite3
   turbolinks (~> 5.0)
   uglifier
+  webpacker_lite
 
 BUNDLED WITH
    1.14.6
diff --git a/spec/dummy/Procfile b/spec/dummy/Procfile
index c2c566e8c..ddf706613 100644
--- a/spec/dummy/Procfile
+++ b/spec/dummy/Procfile
@@ -1 +1 @@
-web: bundle exec puma -C config/puma.rb
+run: echo "Run Procfile.static or Procfile.hot"
diff --git a/spec/dummy/Procfile.hot b/spec/dummy/Procfile.hot
index 9f73263bc..24c4b43ca 100644
--- a/spec/dummy/Procfile.hot
+++ b/spec/dummy/Procfile.hot
@@ -3,7 +3,7 @@
 rails: REACT_ON_RAILS_ENV=HOT rails s -b 0.0.0.0
 
 # Run the hot reload server for client development
-hot-assets: HOT_RAILS_PORT=3500 yarn run hot-assets
+hot-assets: HOT_RAILS_PORT=3500 REACT_ON_RAILS_ENV=HOT yarn run hot-assets
 
 # Keep the JS fresh for server rendering. Remove if not server rendering
 rails-server-assets: yarn run build:dev:server
diff --git a/spec/dummy/app/views/layouts/application.html.erb b/spec/dummy/app/views/layouts/application.html.erb
index 178c4f080..4c03bc72f 100644
--- a/spec/dummy/app/views/layouts/application.html.erb
+++ b/spec/dummy/app/views/layouts/application.html.erb
@@ -9,20 +9,12 @@
 
   <%= yield :head %>
 
-  <%= env_stylesheet_link_tag(static: 'application_static',
-                              hot: 'application_non_webpack',
-                              media: 'all',
-                              'data-turbolinks-track' => true) %>
+  <%= stylesheet_pack_tag(static: 'app-bundle',
+                          media: 'all',
+                          'data-turbolinks-track': true) %>
 
-  <!-- These do not use turbolinks, so no data-turbolinks-track -->
-  <!-- This is to load the hot assets. -->
-  <%= env_javascript_include_tag(hot: ['http://localhost:3500/vendor-bundle.js',
-                                       'http://localhost:3500/app-bundle.js']) %>
-
-  <!-- These do use turbolinks -->
-  <%= env_javascript_include_tag(static: 'application_static',
-                                 hot: 'application_non_webpack',
-                                 'data-turbolinks-track' => true) %>
+  <%= javascript_pack_tag('vendor-bundle', 'data-turbolinks-track': true) %>
+  <%= javascript_pack_tag('app-bundle', 'data-turbolinks-track': true) %>
 
   <%= csrf_meta_tags %>
 </head>
diff --git a/spec/dummy/client/package.json b/spec/dummy/client/package.json
index 654d10ff6..c7a49e9c0 100644
--- a/spec/dummy/client/package.json
+++ b/spec/dummy/client/package.json
@@ -34,7 +34,7 @@
     "react": "^15.5.4",
     "react-dom": "^15.5.4",
     "react-helmet": "^5.0.3",
-    "react-on-rails": "file:../../..",
+    "react-on-rails": "file:../../../",
     "react-proptypes": "^0.0.1",
     "react-redux": "^5.0.4",
     "react-router": "3.0.5",
@@ -45,7 +45,8 @@
     "sass-resources-loader": "1.2.1",
     "style-loader": "^0.16.1",
     "url-loader": "^0.5.8",
-    "webpack": "^2.3.3"
+    "webpack": "^2.3.3",
+    "webpack-manifest-plugin": "^1.1.0"
   },
   "devDependencies": {
     "babel-plugin-react-transform": "^2.0.2",
@@ -67,14 +68,14 @@
   "scripts": {
     "lint": "eslint --ext .js,.jsx .",
     "test": "yarn run build:test && rspec",
-    "build:test": "yarn run build:client && yarn run build:server",
+    "build:test": "NODE_ENV=test yarn run build:client && NODE_ENV=test yarn run build:server",
     "build:production:client": "NODE_ENV=production webpack --config webpack.client.rails.build.config.js",
     "build:production:server": "NODE_ENV=production webpack --config webpack.server.rails.build.config.js",
     "build:client": "webpack --config webpack.client.rails.build.config.js",
-    "build:dev:client": "webpack -w --config webpack.client.rails.build.config.js",
-    "build:dev:server": "webpack -w --config webpack.server.rails.build.config.js",
+    "build:dev:client": "NODE_ENV=development webpack -w --config webpack.client.rails.build.config.js",
+    "build:dev:server": "NODE_ENV=development webpack -w --config webpack.server.rails.build.config.js",
     "build:server": "webpack --config webpack.server.rails.build.config.js",
-    "hot-assets": "babel-node server-rails-hot.js",
+    "hot-assets": "NODE_ENV=development babel-node server-rails-hot.js",
     "install-react-on-rails": "rm -rf node_modules/react-on-rails && npm i 'file:../../..'"
   },
   "author": "",
diff --git a/spec/dummy/client/server-rails-hot.js b/spec/dummy/client/server-rails-hot.js
index eb1c6c62d..5e8e3b338 100644
--- a/spec/dummy/client/server-rails-hot.js
+++ b/spec/dummy/client/server-rails-hot.js
@@ -16,16 +16,18 @@
 
 import webpack from 'webpack';
 import WebpackDevServer from 'webpack-dev-server';
-
+const { resolve } = require('path');
 import webpackConfig from './webpack.client.rails.hot.config';
 
-const hotRailsPort = process.env.HOT_RAILS_PORT || 3500;
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
+const configPath = resolve('..', 'config', 'webpack');
+const { devServer: devServerConfig, publicPath } = webpackConfigLoader(configPath);
 
 const compiler = webpack(webpackConfig);
 
 const devServer = new WebpackDevServer(compiler, {
-  contentBase: `http://lvh.me:${hotRailsPort}`,
-  publicPath: webpackConfig.output.publicPath,
+  contentBase: `http://lvh.me:${devServerConfig.port}`,
+  publicPath,
   hot: true,
   inline: true,
   historyApiFallback: true,
@@ -41,9 +43,9 @@ const devServer = new WebpackDevServer(compiler, {
   },
 });
 
-devServer.listen(hotRailsPort, 'localhost', err => {
+devServer.listen(devServerConfig.port, 'localhost', err => {
   if (err) console.error(err);
   console.log(
-    `=> 🔥  Webpack development server is running on port ${hotRailsPort}`
+    `=> 🔥  Webpack development server is running on port ${devServerConfig.port}`
   );
 });
diff --git a/spec/dummy/client/webpack.client.base.config.js b/spec/dummy/client/webpack.client.base.config.js
index 3b59e200c..72a328310 100644
--- a/spec/dummy/client/webpack.client.base.config.js
+++ b/spec/dummy/client/webpack.client.base.config.js
@@ -2,30 +2,36 @@
 // webpack.client.rails.hot.config and webpack.client.rails.build.config.
 
 const webpack = require('webpack');
-const path = require('path');
+const { resolve, join } = require('path');
 const webpackCommon = require('./webpack.common');
 const { assetLoaderRules } = webpackCommon;
 
+const ManifestPlugin = require('webpack-manifest-plugin');
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
+const configPath = resolve('..', 'config', 'webpack');
+const { paths, publicPath } = webpackConfigLoader(configPath);
+
 const devBuild = process.env.NODE_ENV !== 'production';
 
 module.exports = {
 
   // the project dir
-  context: __dirname,
+  context: resolve(__dirname),
   entry: {
     // This will contain the app entry points defined by
     // webpack.client.rails.hot.config and webpack.client.rails.build.config
-    app: [
+    'app-bundle': [
       './app/startup/clientRegistration',
     ],
   },
   resolve: {
     extensions: ['.js', '.jsx'],
     alias: {
-      images: path.join(process.cwd(), 'app', 'assets', 'images'),
+      images: join(process.cwd(), 'app', 'assets', 'images'),
     },
   },
 
+
   plugins: [
     new webpack.EnvironmentPlugin({ NODE_ENV: 'development' }),
     new webpack.DefinePlugin({
@@ -34,12 +40,13 @@ module.exports = {
 
     // https://webpack.js.org/guides/code-splitting-libraries/#implicit-common-vendor-chunk
     new webpack.optimize.CommonsChunkPlugin({
-      name: 'vendor',
+      name: 'vendor-bundle',
       minChunks(module) {
         // this assumes your vendor imports exist in the node_modules directory
         return module.context && module.context.indexOf('node_modules') !== -1;
       },
     }),
+    new ManifestPlugin({ fileName: paths.manifest, publicPath, writeToFileEmit: true }),
   ],
 
   module: {
diff --git a/spec/dummy/client/webpack.client.rails.build.config.js b/spec/dummy/client/webpack.client.rails.build.config.js
index 117309604..2173a579a 100644
--- a/spec/dummy/client/webpack.client.rails.build.config.js
+++ b/spec/dummy/client/webpack.client.rails.build.config.js
@@ -6,15 +6,18 @@
 
 const ExtractTextPlugin = require('extract-text-webpack-plugin');
 const config = require('./webpack.client.base.config');
-const path = require('path');
+const { resolve } = require('path');
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
+const configPath = resolve('..', 'config', 'webpack');
+const { paths, publicPath } = webpackConfigLoader(configPath);
 
 const devBuild = process.env.NODE_ENV !== 'production';
 
 config.output = {
-  filename: '[name]-bundle.js',
-  path: path.resolve(__dirname, '../app/assets/webpack'),
-  publicPath: '/assets/',
-};
+  filename: '[name].js',
+  path: resolve('..', paths.output, paths.assets),
+  publicPath,
+},
 
 // See webpack.client.base.config for adding modules common to both the webpack dev server and rails
 
@@ -95,7 +98,7 @@ config.module.rules.push(
 
 config.plugins.push(
   new ExtractTextPlugin({
-    filename: '[name]-bundle.css',
+    filename: '[name].css',
     allChunks: true
   })
 );
diff --git a/spec/dummy/client/webpack.client.rails.hot.config.js b/spec/dummy/client/webpack.client.rails.hot.config.js
index 2cc9feb50..a2bb6850d 100644
--- a/spec/dummy/client/webpack.client.rails.hot.config.js
+++ b/spec/dummy/client/webpack.client.rails.hot.config.js
@@ -4,22 +4,23 @@
 // Note that Foreman (Procfile.dev) has also been configured to take care of this.
 /* eslint-disable comma-dangle */
 
-const path = require('path');
+const { resolve } = require('path');
 const webpack = require('webpack');
 
 const config = require('./webpack.client.base.config');
-
-const hotRailsPort = process.env.HOT_RAILS_PORT || 3500;
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
+const configPath = resolve('..', 'config', 'webpack');
+const { devServer, paths, publicPath } = webpackConfigLoader(configPath);
 
 config.entry.app.push(
-  `webpack-dev-server/client?http://localhost:${hotRailsPort}`,
+  `webpack-dev-server/client?${devServer.host}:${devServer.port}`,
   'webpack/hot/only-dev-server'
 );
 
 config.output = {
-  filename: '[name]-bundle.js',
-  path: path.join(__dirname, 'public'),
-  publicPath: `http://localhost:${hotRailsPort}/`,
+  filename: '[name].js',
+  path: resolve('..', paths.output, paths.assets),
+  publicPath,
 };
 
 config.module.rules.push(
@@ -106,7 +107,7 @@ config.module.rules.push(
 
 config.plugins.push(
   new webpack.HotModuleReplacementPlugin(),
-  new webpack.NoErrorsPlugin()
+  new webpack.NoEmitOnErrorsPlugin()
 );
 
 config.devtool = 'eval-source-map';
diff --git a/spec/dummy/client/webpack.server.rails.build.config.js b/spec/dummy/client/webpack.server.rails.build.config.js
index 834eadcaa..ea64c5e76 100644
--- a/spec/dummy/client/webpack.server.rails.build.config.js
+++ b/spec/dummy/client/webpack.server.rails.build.config.js
@@ -2,11 +2,14 @@
 /* eslint-disable comma-dangle */
 
 const webpack = require('webpack');
-const path = require('path');
-const { imageLoaderRules } = require('./webpack.common');
+const { resolve, join } = require('path');
 const webpackCommon = require('./webpack.common');
 const { assetLoaderRules } = webpackCommon;
 
+const webpackConfigLoader = require('react-on-rails/webpackConfigLoader');
+const configPath = resolve('..', 'config', 'webpack');
+const { paths } = webpackConfigLoader(configPath);
+
 const devBuild = process.env.NODE_ENV !== 'production';
 const nodeEnv = devBuild ? 'development' : 'production';
 
@@ -19,14 +22,15 @@ module.exports = {
   ],
   output: {
     filename: 'server-bundle.js',
-    path: path.resolve(__dirname, '../app/assets/webpack'),
+    path: resolve('..', paths.output, paths.assets),
   },
   resolve: {
     extensions: ['.js', '.jsx'],
     alias: {
-      images: path.join(process.cwd(), 'app', 'assets', 'images'),
+      images: join(process.cwd(), 'app', 'assets', 'images'),
     },
   },
+
   plugins: [
     new webpack.DefinePlugin({
       'process.env': {
diff --git a/spec/dummy/client/yarn.lock b/spec/dummy/client/yarn.lock
index 8574f73e5..38d176e70 100644
--- a/spec/dummy/client/yarn.lock
+++ b/spec/dummy/client/yarn.lock
@@ -2259,6 +2259,16 @@ fresh@0.3.0:
   version "0.3.0"
   resolved "https://registry.yarnpkg.com/fresh/-/fresh-0.3.0.tgz#651f838e22424e7566de161d8358caa199f83d4f"
 
+fs-extra@^0.30.0:
+  version "0.30.0"
+  resolved "https://registry.yarnpkg.com/fs-extra/-/fs-extra-0.30.0.tgz#f233ffcc08d4da7d432daa449776989db1df93f0"
+  dependencies:
+    graceful-fs "^4.1.2"
+    jsonfile "^2.1.0"
+    klaw "^1.0.0"
+    path-is-absolute "^1.0.0"
+    rimraf "^2.2.8"
+
 fs-readdir-recursive@^1.0.0:
   version "1.0.0"
   resolved "https://registry.yarnpkg.com/fs-readdir-recursive/-/fs-readdir-recursive-1.0.0.tgz#8cd1745c8b4f8a29c8caec392476921ba195f560"
@@ -2392,7 +2402,7 @@ globule@^1.0.0:
     lodash "~4.16.4"
     minimatch "~3.0.2"
 
-graceful-fs@^4.1.2, graceful-fs@^4.1.4:
+graceful-fs@^4.1.2, graceful-fs@^4.1.4, graceful-fs@^4.1.6, graceful-fs@^4.1.9:
   version "4.1.11"
   resolved "https://registry.yarnpkg.com/graceful-fs/-/graceful-fs-4.1.11.tgz#0e8bdfe4d1ddb8854d64e04ea7c00e2a026e5658"
 
@@ -2965,6 +2975,12 @@ json5@^0.5.0:
   version "0.5.1"
   resolved "https://registry.yarnpkg.com/json5/-/json5-0.5.1.tgz#1eade7acc012034ad84e2396767ead9fa5495821"
 
+jsonfile@^2.1.0:
+  version "2.4.0"
+  resolved "https://registry.yarnpkg.com/jsonfile/-/jsonfile-2.4.0.tgz#3736a2b428b87bbda0cc83b53fa3d633a35c2ae8"
+  optionalDependencies:
+    graceful-fs "^4.1.6"
+
 jsonify@~0.0.0:
   version "0.0.0"
   resolved "https://registry.yarnpkg.com/jsonify/-/jsonify-0.0.0.tgz#2c74b6ee41d93ca51b7b5aaee8f503631d252a73"
@@ -2999,6 +3015,12 @@ kind-of@^3.0.2:
   dependencies:
     is-buffer "^1.0.2"
 
+klaw@^1.0.0:
+  version "1.3.1"
+  resolved "https://registry.yarnpkg.com/klaw/-/klaw-1.3.1.tgz#4088433b46b3b1ba259d78785d8e96f73ba02439"
+  optionalDependencies:
+    graceful-fs "^4.1.9"
+
 lazy-cache@^0.2.3:
   version "0.2.7"
   resolved "https://registry.yarnpkg.com/lazy-cache/-/lazy-cache-0.2.7.tgz#7feddf2dcb6edb77d11ef1d117ab5ffdf0ab1b65"
@@ -3161,7 +3183,7 @@ lodash.uniq@^4.3.0:
   version "4.5.0"
   resolved "https://registry.yarnpkg.com/lodash.uniq/-/lodash.uniq-4.5.0.tgz#d0225373aeb652adc1bc82e4945339a842754773"
 
-lodash@^4.0.0, lodash@^4.14.0, lodash@^4.17.2, lodash@^4.17.4, lodash@^4.2.0, lodash@^4.2.1, lodash@^4.3.0, lodash@^4.6.1:
+"lodash@>=3.5 <5", lodash@^4.0.0, lodash@^4.14.0, lodash@^4.17.2, lodash@^4.17.4, lodash@^4.2.0, lodash@^4.2.1, lodash@^4.3.0, lodash@^4.6.1:
   version "4.17.4"
   resolved "https://registry.yarnpkg.com/lodash/-/lodash-4.17.4.tgz#78203a4d1c328ae1d86dca6460e369b57f4055ae"
 
@@ -4155,8 +4177,8 @@ react-helmet@^5.0.3:
     prop-types "^15.5.4"
     react-side-effect "^1.1.0"
 
-"react-on-rails@file:../../..":
-  version "6.10.1"
+"react-on-rails@file:../../../":
+  version "7.0.0"
 
 react-proptypes@^0.0.1:
   version "0.0.1"
@@ -4432,8 +4454,8 @@ resolve-from@^1.0.0:
   resolved "https://registry.yarnpkg.com/resolve-from/-/resolve-from-1.0.1.tgz#26cbfe935d1aeeeabb29bc3fe5aeb01e93d44226"
 
 resolve-pathname@^2.0.0:
-  version "2.0.2"
-  resolved "https://registry.yarnpkg.com/resolve-pathname/-/resolve-pathname-2.0.2.tgz#e55c016eb2e9df1de98e85002282bfb38c630436"
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/resolve-pathname/-/resolve-pathname-2.1.0.tgz#e8358801b86b83b17560d4e3c382d7aef2100944"
 
 resolve-url-loader@^2.0.2:
   version "2.0.2"
@@ -5140,8 +5162,8 @@ validate-npm-package-license@^3.0.1:
     spdx-expression-parse "~1.0.0"
 
 value-equal@^0.2.0:
-  version "0.2.0"
-  resolved "https://registry.yarnpkg.com/value-equal/-/value-equal-0.2.0.tgz#4f41c60a3fc011139a2ec3d3340a8998ae8b69c0"
+  version "0.2.1"
+  resolved "https://registry.yarnpkg.com/value-equal/-/value-equal-0.2.1.tgz#c220a304361fce6994dbbedaa3c7e1a1b895871d"
 
 vary@~1.1.0:
   version "1.1.0"
@@ -5222,6 +5244,13 @@ webpack-dev-server@^2.4.2:
     webpack-dev-middleware "^1.9.0"
     yargs "^6.0.0"
 
+webpack-manifest-plugin@^1.1.0:
+  version "1.1.0"
+  resolved "https://registry.yarnpkg.com/webpack-manifest-plugin/-/webpack-manifest-plugin-1.1.0.tgz#6b6c718aade8a2537995784b46bd2e9836057caa"
+  dependencies:
+    fs-extra "^0.30.0"
+    lodash ">=3.5 <5"
+
 webpack-sources@^0.1.0:
   version "0.1.4"
   resolved "https://registry.yarnpkg.com/webpack-sources/-/webpack-sources-0.1.4.tgz#ccc2c817e08e5fa393239412690bb481821393cd"
diff --git a/spec/dummy/config/initializers/assets.rb b/spec/dummy/config/initializers/assets.rb
index 1e210fb3b..c2552cea4 100644
--- a/spec/dummy/config/initializers/assets.rb
+++ b/spec/dummy/config/initializers/assets.rb
@@ -11,7 +11,7 @@
 # Rails.application.config.assets.precompile += %w( search.js )
 
 # Add folder with webpack generated assets to assets.paths
-Rails.application.config.assets.paths << Rails.root.join("app", "assets", "webpack")
+Rails.application.config.assets.paths << Rails.root.join("public", "webpack", Rails.env)
 
 # Precompile additional assets.
 # application.js, application.css, and all non-JS/CSS in app/assets folder are already added.
diff --git a/spec/dummy/config/initializers/react_on_rails.rb b/spec/dummy/config/initializers/react_on_rails.rb
index dbd916d72..f9070f74f 100644
--- a/spec/dummy/config/initializers/react_on_rails.rb
+++ b/spec/dummy/config/initializers/react_on_rails.rb
@@ -15,7 +15,7 @@ def self.custom_context(view_context)
 ReactOnRails.configure do |config|
   # Directory where your generated assets go. All generated assets must go to the same directory.
   # Configure this in your webpack config files. This relative to your Rails root directory.
-  config.generated_assets_dir = File.join(%w(app assets webpack))
+  config.generated_assets_dir = File.join(%w(public webpack), Rails.env)
 
   # Define the files we need to check for webpack compilation when running tests.
   config.webpack_generated_files = %w(app-bundle.js vendor-bundle.js server-bundle.js)
@@ -93,8 +93,8 @@ def self.custom_context(view_context)
   # The server render method - either ExecJS or NodeJS
   config.server_render_method = "ExecJS"
 
-  # Client js uses assets not digested by rails.
-  # For any asset matching this regex, a file is copied to the correct path to have a digest.
-  # To disable creating digested assets, set this parameter to nil.
-  config.symlink_non_digested_assets_regex = /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/
+  # If you want to use webpack for CSS and images, and still use the asset pipeline,
+  # see https://github.com/shakacode/react_on_rails/blob/master/docs/additional-reading/rails-assets.md
+  # And you will use a setting like this.
+  # config.symlink_non_digested_assets_regex = /\.(png|jpg|jpeg|gif|tiff|woff|ttf|eot|svg|map)/
 end
diff --git a/spec/dummy/config/webpack/development.server.yml b/spec/dummy/config/webpack/development.server.yml
new file mode 100644
index 000000000..d99cbbd95
--- /dev/null
+++ b/spec/dummy/config/webpack/development.server.yml
@@ -0,0 +1,8 @@
+default: &default
+  enabled: false
+  host: localhost
+  port: 3500
+
+development:
+  <<: *default
+  enabled: false
diff --git a/spec/dummy/config/webpack/paths.yml b/spec/dummy/config/webpack/paths.yml
new file mode 100644
index 000000000..b4ebf32f6
--- /dev/null
+++ b/spec/dummy/config/webpack/paths.yml
@@ -0,0 +1,18 @@
+default: &default
+  config: client/webpack
+  output: public
+  assets: webpack
+  manifest: manifest.json
+  source: client/app
+
+development:
+  <<: *default
+  assets: webpack/development
+
+test:
+  <<: *default
+  assets: webpack/test
+
+production:
+  <<: *default
+  assets: webpack/production
diff --git a/spec/dummy/package.json b/spec/dummy/package.json
index de10a1190..280101707 100644
--- a/spec/dummy/package.json
+++ b/spec/dummy/package.json
@@ -12,7 +12,7 @@
     "test": "yarn run build:test && yarn run lint && rspec",
     "lint": "cd client && yarn run lint",
     "install-react-on-rails": "cd client && yarn run install-react-on-rails",
-    "build:clean": "rm -r app/assets/webpack/* || true",
+    "build:clean": "rm -rf public/webpack || true",
     "build:production:client": "(cd client && yarn run build:production:client --silent)",
     "build:production:server": "(cd client && yarn run build:production:server --silent)",
     "build:client": "(cd client && yarn run build:client --silent",
diff --git a/spec/dummy/spec/requests/server_render_check_spec.rb b/spec/dummy/spec/requests/server_render_check_spec.rb
index 6564d1e98..b66360df4 100644
--- a/spec/dummy/spec/requests/server_render_check_spec.rb
+++ b/spec/dummy/spec/requests/server_render_check_spec.rb
@@ -29,7 +29,7 @@
   end
 
   describe "reloading the server bundle" do
-    let(:server_bundle) { File.expand_path("../../../app/assets/webpack/server-bundle.js", __FILE__) }
+    let(:server_bundle) { File.expand_path("../../../public/webpack/" + Rails.env + "/server-bundle.js", __FILE__) }
     let!(:original_bundle_text) { File.read(server_bundle) }
 
     before do
diff --git a/spec/react_on_rails/generators/dev_tests_generator_spec.rb b/spec/react_on_rails/generators/dev_tests_generator_spec.rb
index e3cee30a5..5513b0dc1 100644
--- a/spec/react_on_rails/generators/dev_tests_generator_spec.rb
+++ b/spec/react_on_rails/generators/dev_tests_generator_spec.rb
@@ -38,13 +38,6 @@
         assert_match("gem 'poltergeist'", contents)
       end
     end
-
-    it "changes the webpack.config.js to use a resolveLoader" do
-      expected = ReactOnRails::Generators::FALLBACK_OPTION_FOR_NODE_MODULES
-      assert_file("client/webpack.config.js") do |contents|
-        assert_match(expected, contents)
-      end
-    end
   end
 
   context "with server-rendering" do
diff --git a/spec/react_on_rails/generators/install_generator_spec.rb b/spec/react_on_rails/generators/install_generator_spec.rb
index e524e3ec9..0b31d6f5b 100644
--- a/spec/react_on_rails/generators/install_generator_spec.rb
+++ b/spec/react_on_rails/generators/install_generator_spec.rb
@@ -73,7 +73,7 @@
         node_modules
 
         # Generated js bundles
-        /app/assets/webpack/*
+        /public/webpack/*
 
         MSG
       expect(GeneratorMessages.output)
@@ -87,6 +87,10 @@
 
         What to do next:
 
+          - Include your webpack assets to your application layout.
+
+            <%= javascript_pack_tag 'main' %>
+
           - Ensure your bundle and yarn installs of dependencies are up to date.
 
               bundle && yarn
@@ -111,6 +115,10 @@
 
         What to do next:
 
+          - Include your webpack assets to your application layout.
+
+            <%= javascript_pack_tag 'main' %>
+
           - Ensure your bundle and yarn installs of dependencies are up to date.
 
               bundle && yarn
@@ -120,7 +128,7 @@
               foreman start -f Procfile.dev
 
           - Visit http://localhost:3000/hello_world and see your React On Rails app running!
-        MSG
+      MSG
       expect(GeneratorMessages.output)
         .to include(GeneratorMessages.format_info(expected))
     end
diff --git a/spec/react_on_rails/support/shared_examples/base_generator_examples.rb b/spec/react_on_rails/support/shared_examples/base_generator_examples.rb
index fa5ed45ad..12820eb7d 100644
--- a/spec/react_on_rails/support/shared_examples/base_generator_examples.rb
+++ b/spec/react_on_rails/support/shared_examples/base_generator_examples.rb
@@ -16,21 +16,11 @@
       node_modules
 
       # Generated js bundles
-      /app/assets/webpack/*
+      /public/webpack/*
     MATCH
     assert_file ".gitignore", match
   end
 
-  it "updates application.js" do
-    match = <<-MATCH.strip_heredoc
-      //= require webpack-bundle
-
-    MATCH
-    assert_file("app/assets/javascripts/application.js") do |contents|
-      assert_match(match, contents)
-    end
-  end
-
   it "creates react directories" do
     dirs = %w(components containers startup)
     dirs.each { |dirname| assert_directory "client/app/bundles/HelloWorld/#{dirname}" }
@@ -44,6 +34,7 @@
        client/.babelrc
        client/package.json
        config/initializers/react_on_rails.rb
+       config/webpack/paths.yml
        package.json
        Procfile.dev).each { |file| assert_file(file) }
   end
diff --git a/webpackConfigLoader.js b/webpackConfigLoader.js
new file mode 100644
index 000000000..3c686d7a9
--- /dev/null
+++ b/webpackConfigLoader.js
@@ -0,0 +1,28 @@
+const { join } = require('path');
+const { env } = require('process');
+const { safeLoad } = require('js-yaml');
+const { readFileSync } = require('fs');
+
+const configLoader = (configPath) => {
+  const paths = safeLoad(readFileSync(join(configPath, 'paths.yml'), 'utf8'))[env.NODE_ENV];
+
+  const devServerConfig = join(configPath, 'development.server.yml');
+  const devServer = safeLoad(readFileSync(devServerConfig, 'utf8')).development;
+
+  if (env.REACT_ON_RAILS_ENV === 'HOT') {
+    devServer.enabled = true;
+  }
+  const productionBuild = env.NODE_ENV === 'production';
+
+  const publicPath = !productionBuild && devServer.enabled ?
+    `http://${devServer.host}:${devServer.port}/` : `/${paths.assets}/`;
+
+  return {
+    devServer,
+    env,
+    paths,
+    publicPath,
+  };
+};
+
+module.exports = configLoader;
diff --git a/yarn.lock b/yarn.lock
index 63eefbdfa..c77682956 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1847,6 +1847,16 @@ form-data@~2.1.1:
     combined-stream "^1.0.5"
     mime-types "^2.1.12"
 
+fs-extra@^0.30.0:
+  version "0.30.0"
+  resolved "https://registry.yarnpkg.com/fs-extra/-/fs-extra-0.30.0.tgz#f233ffcc08d4da7d432daa449776989db1df93f0"
+  dependencies:
+    graceful-fs "^4.1.2"
+    jsonfile "^2.1.0"
+    klaw "^1.0.0"
+    path-is-absolute "^1.0.0"
+    rimraf "^2.2.8"
+
 fs-readdir-recursive@^1.0.0:
   version "1.0.0"
   resolved "https://registry.yarnpkg.com/fs-readdir-recursive/-/fs-readdir-recursive-1.0.0.tgz#8cd1745c8b4f8a29c8caec392476921ba195f560"
@@ -1982,7 +1992,7 @@ globby@^5.0.0:
     pify "^2.0.0"
     pinkie-promise "^2.0.0"
 
-graceful-fs@4.1.11, graceful-fs@^4.1.2, graceful-fs@^4.1.4:
+graceful-fs@4.1.11, graceful-fs@^4.1.2, graceful-fs@^4.1.4, graceful-fs@^4.1.6, graceful-fs@^4.1.9:
   version "4.1.11"
   resolved "https://registry.yarnpkg.com/graceful-fs/-/graceful-fs-4.1.11.tgz#0e8bdfe4d1ddb8854d64e04ea7c00e2a026e5658"
 
@@ -2421,6 +2431,12 @@ json5@^0.5.0:
   version "0.5.0"
   resolved "https://registry.yarnpkg.com/json5/-/json5-0.5.0.tgz#9b20715b026cbe3778fd769edccd822d8332a5b2"
 
+jsonfile@^2.1.0:
+  version "2.4.0"
+  resolved "https://registry.yarnpkg.com/jsonfile/-/jsonfile-2.4.0.tgz#3736a2b428b87bbda0cc83b53fa3d633a35c2ae8"
+  optionalDependencies:
+    graceful-fs "^4.1.6"
+
 jsonify@~0.0.0:
   version "0.0.0"
   resolved "https://registry.yarnpkg.com/jsonify/-/jsonify-0.0.0.tgz#2c74b6ee41d93ca51b7b5aaee8f503631d252a73"
@@ -2450,6 +2466,12 @@ kind-of@^3.0.2:
   dependencies:
     is-buffer "^1.0.2"
 
+klaw@^1.0.0:
+  version "1.3.1"
+  resolved "https://registry.yarnpkg.com/klaw/-/klaw-1.3.1.tgz#4088433b46b3b1ba259d78785d8e96f73ba02439"
+  optionalDependencies:
+    graceful-fs "^4.1.9"
+
 lazy-cache@^1.0.3:
   version "1.0.4"
   resolved "https://registry.yarnpkg.com/lazy-cache/-/lazy-cache-1.0.4.tgz#a1d78fc3a50474cb80845d3b3b6e1da49a446e8e"
@@ -2502,7 +2524,7 @@ lodash.pickby@^4.6.0:
   version "4.6.0"
   resolved "https://registry.yarnpkg.com/lodash.pickby/-/lodash.pickby-4.6.0.tgz#7dea21d8c18d7703a27c704c15d3b84a67e33aff"
 
-lodash@4.17.4, lodash@^4.14.0, lodash@^4.3.0:
+lodash@4.17.4, "lodash@>=3.5 <5", lodash@^4.14.0, lodash@^4.3.0:
   version "4.17.4"
   resolved "https://registry.yarnpkg.com/lodash/-/lodash-4.17.4.tgz#78203a4d1c328ae1d86dca6460e369b57f4055ae"
 
@@ -2721,11 +2743,11 @@ oauth-sign@~0.8.1:
   version "0.8.2"
   resolved "https://registry.yarnpkg.com/oauth-sign/-/oauth-sign-0.8.2.tgz#46a6ab7f0aead8deae9ec0565780b7d4efeb9d43"
 
-object-assign@^4.0.0, object-assign@^4.0.1, object-assign@^4.1.0:
+object-assign@^4.0.0, object-assign@^4.0.1:
   version "4.1.0"
   resolved "https://registry.yarnpkg.com/object-assign/-/object-assign-4.1.0.tgz#7a3b3d0e98063d43f4c03f2e8ae6cd51a86883a0"
 
-object-assign@^4.1.1:
+object-assign@^4.1.0, object-assign@^4.1.1:
   version "4.1.1"
   resolved "https://registry.yarnpkg.com/object-assign/-/object-assign-4.1.1.tgz#2109adc7965887cfc05cbbd442cac8bfbb360863"
 
@@ -3037,6 +3059,9 @@ react-dom@^15.5.4:
     object-assign "^4.1.0"
     prop-types "~15.5.7"
 
+"react-on-rails@file:./":
+  version "6.10.0"
+
 react-proxy@^1.1.7:
   version "1.1.8"
   resolved "https://registry.yarnpkg.com/react-proxy/-/react-proxy-1.1.8.tgz#9dbfd9d927528c3aa9f444e4558c37830ab8c26a"
@@ -3790,6 +3815,13 @@ webidl-conversions@^4.0.0:
   version "4.0.1"
   resolved "https://registry.yarnpkg.com/webidl-conversions/-/webidl-conversions-4.0.1.tgz#8015a17ab83e7e1b311638486ace81da6ce206a0"
 
+webpack-manifest-plugin@^1.1.0:
+  version "1.1.0"
+  resolved "https://registry.yarnpkg.com/webpack-manifest-plugin/-/webpack-manifest-plugin-1.1.0.tgz#6b6c718aade8a2537995784b46bd2e9836057caa"
+  dependencies:
+    fs-extra "^0.30.0"
+    lodash ">=3.5 <5"
+
 webpack-sources@^0.2.3:
   version "0.2.3"
   resolved "https://registry.yarnpkg.com/webpack-sources/-/webpack-sources-0.2.3.tgz#17c62bfaf13c707f9d02c479e0dcdde8380697fb"