diff --git a/readme.md b/readme.md
index 48a4bdbc..66ed0965 100644
--- a/readme.md
+++ b/readme.md
@@ -121,7 +121,7 @@ Styles can be preprocessed via plugins.
 Plugins are regular JavaScript modules that export a simple function with the following signature:
 
 ```js
-(css: string) => string
+(css: string, settings: Object) => string
 ```
 
 Basically they accept a CSS string in input, optionally modify it and finally return it.
@@ -147,6 +147,47 @@ Plugins are applied in definition order left to right before styles are scoped.
 
 N.B. when applying the plugins styled-jsx replaces template literals expressions with placeholders e.g. `%%styledjsxexpression_ExprNumber%%` because otherwise CSS parsers would get invalid CSS.
 
+#### Plugin options and settings
+
+Users can set plugin options by registering a plugin as an array that contains
+the plugin path and an options object.
+
+```json
+{
+  "plugins": [
+    [
+      "styled-jsx/babel",
+      {
+        "plugins": [
+          ["my-styled-jsx-plugin-package", { "exampleOption":  true }]
+        ],
+        "sourceMaps": true
+      }
+    ]
+  ]
+}
+```
+
+Each plugin receives a `settings` object as second argument which contains
+the babel and user options:
+
+```js
+export default (css, settings) => { /* ... */ }
+```
+
+The `settings` object has the following shape:
+
+```js
+{
+  sourceMaps: true,
+
+  // user options
+  options: {
+    exampleOption: true
+  }
+}
+```
+
 ### Targeting The Root
 
 Notice that the parent `<div>` above also gets a `data-jsx` attribute. We do this so that
diff --git a/src/_utils.js b/src/_utils.js
index b0ff4162..556d47cf 100644
--- a/src/_utils.js
+++ b/src/_utils.js
@@ -217,7 +217,7 @@ export const addSourceMaps = (code, generator, filename) =>
     `/*@ sourceURL=${filename} */`
   ].join('\n')
 
-export const combinePlugins = plugins => {
+export const combinePlugins = (plugins, opts) => {
   if (!plugins) {
     return css => css
   }
@@ -231,14 +231,12 @@ export const combinePlugins = plugins => {
     )
   }
 
-  const env = typeof window === 'undefined' ? 'compile' : 'runtime'
-
   return plugins
     .map((plugin, i) => {
       let options = {}
       if (Array.isArray(plugin)) {
-        plugin = plugin[0]
         options = plugin[1] || {}
+        plugin = plugin[0]
       }
 
       // eslint-disable-next-line import/no-dynamic-require
@@ -256,7 +254,7 @@ export const combinePlugins = plugins => {
       return {
         plugin: p,
         settings: {
-          env,
+          ...opts,
           options
         }
       }
diff --git a/src/babel-external.js b/src/babel-external.js
index 4c4914db..88bc400c 100644
--- a/src/babel-external.js
+++ b/src/babel-external.js
@@ -158,7 +158,7 @@ const callVisitor = (visitor, path, state) => {
   const { opts } = file
   visitor(path, {
     validate: opts.validate,
-    sourceMaps: opts.sourceMaps,
+    sourceMaps: state.opts.sourceMaps || opts.sourceMaps,
     sourceFileName: opts.sourceFileName,
     file,
     plugins
diff --git a/src/babel.js b/src/babel.js
index b0e16598..afc0b951 100644
--- a/src/babel.js
+++ b/src/babel.js
@@ -37,7 +37,7 @@ const callExternalVisitor = (visitor, path, state) => {
   const { opts } = file
   visitor(path, {
     validate: true,
-    sourceMaps: opts.sourceMaps,
+    sourceMaps: state.opts.sourceMaps || opts.sourceMaps,
     sourceFileName: opts.sourceFileName,
     file,
     plugins
@@ -295,7 +295,9 @@ export default function({ types: t }) {
           // We replace styles with the function call
           const [id, css, loc] = state.styles.shift()
 
-          const useSourceMaps = Boolean(state.file.opts.sourceMaps)
+          const useSourceMaps = Boolean(
+            state.opts.sourceMaps || state.file.opts.sourceMaps
+          )
           let transformedCss
 
           if (useSourceMaps) {
@@ -338,7 +340,9 @@ export default function({ types: t }) {
           state.file.hasJSXStyle = false
           state.imports = []
           if (!plugins) {
-            plugins = combinePlugins(state.opts.plugins)
+            plugins = combinePlugins(state.opts.plugins, {
+              sourceMaps: state.opts.sourceMaps || state.file.opts.sourceMaps
+            })
           }
         },
         exit({ node, scope }, state) {
diff --git a/test/__snapshots__/index.js.snap b/test/__snapshots__/index.js.snap
index ffb119df..bac0e894 100644
--- a/test/__snapshots__/index.js.snap
+++ b/test/__snapshots__/index.js.snap
@@ -1,5 +1,23 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
+exports[`generates source maps (babel options) 1`] = `
+"import _JSXStyle from 'styled-jsx/style';
+export default (() => <div data-jsx={188072295}>
+    <p data-jsx={188072295}>test</p>
+    <p data-jsx={188072295}>woot</p>
+    <_JSXStyle styleId={188072295} css={\\"p[data-jsx=\\\\\\"188072295\\\\\\"]{color:red}\\\\n/*# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJzb3VyY2VzIjpbXSwibmFtZXMiOltdLCJtYXBwaW5ncyI6IiIsImZpbGUiOiJzb3VyY2UtbWFwcy5qcyIsInNvdXJjZXNDb250ZW50IjpbXX0= */\\\\n/*@ sourceURL=source-maps.js */\\"} />
+  </div>);"
+`;
+
+exports[`generates source maps (plugin options) 1`] = `
+"import _JSXStyle from 'styled-jsx/style';
+export default (() => <div data-jsx={188072295}>
+    <p data-jsx={188072295}>test</p>
+    <p data-jsx={188072295}>woot</p>
+    <_JSXStyle styleId={188072295} css={\\"p[data-jsx=\\\\\\"188072295\\\\\\"]{color:red}\\\\n/*# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJzb3VyY2VzIjpbXSwibmFtZXMiOltdLCJtYXBwaW5ncyI6IiIsImZpbGUiOiJzb3VyY2UtbWFwcy5qcyIsInNvdXJjZXNDb250ZW50IjpbXX0= */\\\\n/*@ sourceURL=source-maps.js */\\"} />
+  </div>);"
+`;
+
 exports[`generates source maps 1`] = `
 "import _JSXStyle from 'styled-jsx/style';
 export default (() => <div data-jsx={188072295}>
diff --git a/test/__snapshots__/plugins.js.snap b/test/__snapshots__/plugins.js.snap
new file mode 100644
index 00000000..d71c9954
--- /dev/null
+++ b/test/__snapshots__/plugins.js.snap
@@ -0,0 +1,13 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`applies plugins 1`] = `
+"import _JSXStyle from 'styled-jsx/style';
+import styles from './styles';
+const color = 'red';
+
+export default (() => <div data-jsx={4216192053} data-jsx-ext={styles.__scopedHash}>
+    <p data-jsx={4216192053} data-jsx-ext={styles.__scopedHash}>test</p>
+    <_JSXStyle styleId={4216192053} css={\`span[data-jsx=\\"4216192053\\"].\${color}[data-jsx=\\"4216192053\\"]{color:\${otherColor}}\`} />
+    <_JSXStyle styleId={styles.__scopedHash} css={styles.__scoped} />
+  </div>);"
+`;
diff --git a/test/fixtures/plugins/options.js b/test/fixtures/plugins/options.js
new file mode 100644
index 00000000..d0c4376d
--- /dev/null
+++ b/test/fixtures/plugins/options.js
@@ -0,0 +1 @@
+export default (css, settings) => settings.options.test
diff --git a/test/index.js b/test/index.js
index 905a9b77..52668f5c 100644
--- a/test/index.js
+++ b/test/index.js
@@ -40,13 +40,20 @@ test('works with global styles', async t => {
   t.snapshot(code)
 })
 
-test('generates source maps', async t => {
+test('generates source maps (babel options)', async t => {
   const { code } = await transform('./fixtures/source-maps.js', {
     sourceMaps: true
   })
   t.snapshot(code)
 })
 
+test('generates source maps (plugin options)', async t => {
+  const { code } = await _transform('./fixtures/source-maps.js', {
+    plugins: [[plugin, { sourceMaps: true }]]
+  })
+  t.snapshot(code)
+})
+
 test('mixed global and scoped', async t => {
   const { code } = await transform('./fixtures/mixed-global-scoped.js')
   t.snapshot(code)
diff --git a/test/plugins.js b/test/plugins.js
index fcdbb66e..09e9956e 100644
--- a/test/plugins.js
+++ b/test/plugins.js
@@ -3,23 +3,21 @@ import test from 'ava'
 
 // Ours
 import babelPlugin from '../src/babel'
-import {combinePlugins} from '../src/_utils'
+import { combinePlugins } from '../src/_utils'
 import _transform from './_transform'
-import read from './_read'
 import testPlugin1 from './fixtures/plugins/plugin'
 import testPlugin2 from './fixtures/plugins/another-plugin'
 
-const transform = (file, opts = {}) => (
+const transform = (file, opts = {}) =>
   _transform(file, {
     plugins: [
       [
         babelPlugin,
-        {plugins: [require.resolve('./fixtures/plugins/another-plugin')]}
+        { plugins: [require.resolve('./fixtures/plugins/another-plugin')] }
       ]
     ],
     ...opts
   })
-)
 
 test('combinePlugins returns an identity function when plugins is undefined', t => {
   const test = 'test'
@@ -49,13 +47,24 @@ test('combinePlugins throws if loaded plugins are not functions', t => {
 })
 
 test('combinePlugins works with a single plugin', t => {
-  const plugins = combinePlugins([
-    require.resolve('./fixtures/plugins/plugin')
-  ])
+  const plugins = combinePlugins([require.resolve('./fixtures/plugins/plugin')])
 
   t.is(testPlugin1('test'), plugins('test'))
 })
 
+test('combinePlugins works with options', t => {
+  const expectedOption = 'my-test'
+  const plugins = combinePlugins([
+    [
+      require.resolve('./fixtures/plugins/options'),
+      {
+        test: expectedOption
+      }
+    ]
+  ])
+  t.is(plugins(''), expectedOption)
+})
+
 test('combinePlugins applies plugins left to right', t => {
   const plugins = combinePlugins([
     require.resolve('./fixtures/plugins/plugin'),
@@ -66,7 +75,6 @@ test('combinePlugins applies plugins left to right', t => {
 })
 
 test('applies plugins', async t => {
-  const {code} = await transform('./fixtures/with-plugins.js')
-  const out = await read('./fixtures/with-plugins.out.js')
-  t.is(code, out.trim())
+  const { code } = await transform('./fixtures/with-plugins.js')
+  t.snapshot(code)
 })