diff --git a/package.json b/package.json
index f131fbf6e2..f0d0e64c6d 100644
--- a/package.json
+++ b/package.json
@@ -35,7 +35,10 @@
     "babel-core": "6.5.2",
     "babel-eslint": "5.0.0",
     "babel-loader": "6.2.3",
+    "babel-plugin-react-transform": "2.0.0",
     "babel-plugin-transform-class-properties": "6.5.2",
+    "babel-plugin-transform-decorators-legacy": "1.3.4",
+    "babel-plugin-transform-object-rest-spread": "6.5.0",
     "babel-preset-es2015": "6.5.0",
     "babel-preset-react": "6.5.0",
     "babel-preset-stage-2": "6.5.0",
@@ -47,6 +50,7 @@
     "history": "2.0.0",
     "react-dom": "0.14.7",
     "react-hot-loader": "1.3.0",
+    "react-transform-hmr": "1.0.2",
     "semver": "5.1.0",
     "shelljs": "0.6.0",
     "webpack": "1.12.14",
diff --git a/src/core/server/base.js b/src/core/server/base.js
index dc40424c55..db5bd3abb0 100644
--- a/src/core/server/base.js
+++ b/src/core/server/base.js
@@ -45,6 +45,7 @@ export default function(routes) {
   }));
 
   if (ENV === 'development') {
+    console.log('Adding Webpack Dev Server'); // eslint-disable-line no-console
     devServer(app);
   }
 
diff --git a/src/core/server/dev.js b/src/core/server/dev.js
index cc2de2e146..d93f33f70d 100644
--- a/src/core/server/dev.js
+++ b/src/core/server/dev.js
@@ -7,6 +7,22 @@ import config from 'config';
 
 const APP_NAME = config.get('currentApp');
 
+const BABEL_QUERY = {
+  presets: ['react', 'es2015'],
+  plugins: [
+    ['transform-object-rest-spread'],
+    ['transform-class-properties'],
+    ['transform-decorators-legacy'],
+    ['react-transform', {
+      transforms: [{
+        transform: 'react-transform-hmr',
+        imports: ['react'],
+        locals: ['module'],
+      }],
+    }],
+  ],
+};
+
 export default function(app) {
   const conf = Object.assign(webpackConfig, {
     devtool: 'inline-source-map',
@@ -14,6 +30,14 @@ export default function(app) {
       'webpack-hot-middleware/client',
       `./src/${APP_NAME}/client`,
     ],
+    module: {
+      loaders: [{
+        test: /\.jsx?$/,
+        exclude: /node_modules/,
+        loader: 'babel',
+        query: BABEL_QUERY,
+      }],
+    },
     plugins: [
       new webpack.optimize.OccurenceOrderPlugin(),
       new webpack.HotModuleReplacementPlugin(),