diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
index c86b94d43f..357d0e4117 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
@@ -49,11 +49,16 @@ exports[`angular configuration for android 1`] = `
     mainFields: [
       'module',
       'main'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -349,11 +354,16 @@ exports[`angular configuration for ios 1`] = `
     mainFields: [
       'module',
       'main'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/base.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/base.spec.ts.snap
index 4955469d67..8d21ad6eac 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/base.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/base.spec.ts.snap
@@ -43,11 +43,16 @@ exports[`base configuration for android 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -329,11 +334,16 @@ exports[`base configuration for ios 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/javascript.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/javascript.spec.ts.snap
index a35aeb83b7..6244d106bd 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/javascript.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/javascript.spec.ts.snap
@@ -43,11 +43,16 @@ exports[`javascript configuration for android 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -367,11 +372,16 @@ exports[`javascript configuration for ios 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/react.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/react.spec.ts.snap
index 67de0a79fb..707ed31ba3 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/react.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/react.spec.ts.snap
@@ -46,11 +46,16 @@ exports[`react configuration > android > adds ReactRefreshWebpackPlugin when HMR
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -360,11 +365,16 @@ exports[`react configuration > android > base config 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -652,11 +662,16 @@ exports[`react configuration > ios > adds ReactRefreshWebpackPlugin when HMR ena
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -967,11 +982,16 @@ exports[`react configuration > ios > base config 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/svelte.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/svelte.spec.ts.snap
index 2c11a48a49..f373575aed 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/svelte.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/svelte.spec.ts.snap
@@ -8,7 +8,7 @@ exports[`svelte configuration for android 1`] = `
     '~/package.json'
   ],
   devtool: 'inline-source-map',
-  target: 'node',
+  target: 'electron-main',
   watchOptions: {
     ignored: [
       '__jest__/platforms/**',
@@ -30,7 +30,8 @@ exports[`svelte configuration for android 1`] = `
     symlinks: true,
     alias: {
       '~': '__jest__/src',
-      '@': '__jest__/src'
+      '@': '__jest__/src',
+      'tns-core-modules': '@nativescript/core'
     },
     extensions: [
       '.android.svelte',
@@ -45,11 +46,16 @@ exports[`svelte configuration for android 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -117,7 +123,7 @@ exports[`svelte configuration for android 1`] = `
       },
       /* config.module.rule('workers') */
       {
-        test: /\\\\.(js|ts)$/,
+        test: /\\\\.(js|ts|svelte)$/,
         exclude: [
           /node_modules/
         ],
@@ -189,18 +195,19 @@ exports[`svelte configuration for android 1`] = `
           /node_modules/
         ],
         use: [
-          /* config.module.rule('svelte').use('svelte-loader-hot') */
+          /* config.module.rule('svelte').use('svelte-loader') */
           {
-            loader: 'svelte-loader-hot',
+            loader: 'svelte-loader',
             options: {
-              dev: true,
+              compilerOptions: {
+                dev: true
+              },
               preprocess: undefined,
               hotReload: true,
               hotOptions: {
                 injectCss: false,
                 'native': true
-              },
-              onwarn: function () { /* omitted long function */ }
+              }
             }
           }
         ]
@@ -319,7 +326,7 @@ exports[`svelte configuration for ios 1`] = `
     '~/package.json'
   ],
   devtool: 'inline-source-map',
-  target: 'node',
+  target: 'electron-main',
   watchOptions: {
     ignored: [
       '__jest__/platforms/**',
@@ -341,7 +348,8 @@ exports[`svelte configuration for ios 1`] = `
     symlinks: true,
     alias: {
       '~': '__jest__/src',
-      '@': '__jest__/src'
+      '@': '__jest__/src',
+      'tns-core-modules': '@nativescript/core'
     },
     extensions: [
       '.ios.svelte',
@@ -356,11 +364,16 @@ exports[`svelte configuration for ios 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -428,7 +441,7 @@ exports[`svelte configuration for ios 1`] = `
       },
       /* config.module.rule('workers') */
       {
-        test: /\\\\.(js|ts)$/,
+        test: /\\\\.(js|ts|svelte)$/,
         exclude: [
           /node_modules/
         ],
@@ -500,18 +513,19 @@ exports[`svelte configuration for ios 1`] = `
           /node_modules/
         ],
         use: [
-          /* config.module.rule('svelte').use('svelte-loader-hot') */
+          /* config.module.rule('svelte').use('svelte-loader') */
           {
-            loader: 'svelte-loader-hot',
+            loader: 'svelte-loader',
             options: {
-              dev: true,
+              compilerOptions: {
+                dev: true
+              },
               preprocess: undefined,
               hotReload: true,
               hotOptions: {
                 injectCss: false,
                 'native': true
-              },
-              onwarn: function () { /* omitted long function */ }
+              }
             }
           }
         ]
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/typescript.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/typescript.spec.ts.snap
index d95cab7f08..878ca85516 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/typescript.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/typescript.spec.ts.snap
@@ -43,11 +43,16 @@ exports[`typescript configuration for android 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -367,11 +372,16 @@ exports[`typescript configuration for ios 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/vue.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/vue.spec.ts.snap
index 52f510895e..4e983c7291 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/vue.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/vue.spec.ts.snap
@@ -46,11 +46,16 @@ exports[`vue configuration for android 1`] = `
       '.scss',
       '.android.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
@@ -364,11 +369,16 @@ exports[`vue configuration for ios 1`] = `
       '.scss',
       '.ios.json',
       '.json'
+    ],
+    modules: [
+      '__jest__/node_modules',
+      'node_modules'
     ]
   },
   resolveLoader: {
     modules: [
-      'node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules/@nativescript/webpack/dist/loaders',
+      '__jest__/node_modules',
       'node_modules'
     ]
   },
diff --git a/packages/webpack5/package.json b/packages/webpack5/package.json
index 258998ce86..b6b5621040 100644
--- a/packages/webpack5/package.json
+++ b/packages/webpack5/package.json
@@ -13,7 +13,8 @@
 	"scripts": {
 		"build": "tsc --project tsconfig.build.json",
 		"test": "jest",
-		"prepack": "npm test && npm run build && cp -R src/stubs dist/stubs && chmod +x dist/bin/index.js"
+		"copy-stubs": "mkdirp dist/stubs && cp -R src/stubs/* dist/stubs",
+		"prepack": "npm test && npm run build && npm run copy-stubs && chmod +x dist/bin/index.js"
 	},
 	"dependencies": {
 		"@babel/core": "7.13.14",
diff --git a/packages/webpack5/scripts/jest.setup.ts b/packages/webpack5/scripts/jest.setup.ts
index a6bf18bd01..65a90cfae9 100644
--- a/packages/webpack5/scripts/jest.setup.ts
+++ b/packages/webpack5/scripts/jest.setup.ts
@@ -66,6 +66,22 @@ jest.mock('path', () => {
 				return resolved.substr(li);
 			}
 
+			// handle resolutions with __dirname
+			// used in base config's resolveLoader
+			const root = path.resolve(__dirname, '..');
+			if (resolved.startsWith(root)) {
+				const newPath = resolved.replace(root, '__jest__');
+
+				if (newPath.startsWith('__jest__/src')) {
+					return newPath.replace(
+						'__jest__/src',
+						'__jest__/node_modules/@nativescript/webpack/dist'
+					);
+				}
+
+				return newPath;
+			}
+
 			return resolved;
 		},
 	};
diff --git a/packages/webpack5/src/configuration/base.ts b/packages/webpack5/src/configuration/base.ts
index f50beb3a91..1fa20f1db2 100644
--- a/packages/webpack5/src/configuration/base.ts
+++ b/packages/webpack5/src/configuration/base.ts
@@ -113,10 +113,13 @@ export default function (config: Config, env: IWebpackEnv = _env): Config {
 
 	// look for loaders in
 	//  - node_modules/@nativescript/webpack/dist/loaders
+	//  - node_modules/@nativescript/webpack/node_modules
 	//  - node_modules
 	// allows for cleaner rules, without having to specify full paths to loaders
 	config.resolveLoader.modules
-		.add('node_modules/@nativescript/webpack/dist/loaders')
+		.add(resolve(__dirname, '../loaders'))
+		.add(resolve(__dirname, '../../node_modules'))
+		.add(getProjectFilePath('node_modules'))
 		.add('node_modules');
 
 	config.resolve.extensions
@@ -137,6 +140,12 @@ export default function (config: Config, env: IWebpackEnv = _env): Config {
 	// resolve symlinks
 	config.resolve.symlinks(true);
 
+	// resolve modules in project node_modules first
+	// then fall-back to default node resolution (up the parent folder chain)
+	config.resolve.modules
+		.add(getProjectFilePath('node_modules'))
+		.add('node_modules');
+
 	config.module
 		.rule('bundle')
 		.enforce('post')
diff --git a/packages/webpack5/src/configuration/svelte.ts b/packages/webpack5/src/configuration/svelte.ts
index 1f1dbba2ad..b942571a46 100644
--- a/packages/webpack5/src/configuration/svelte.ts
+++ b/packages/webpack5/src/configuration/svelte.ts
@@ -1,6 +1,6 @@
 import Config from 'webpack-chain';
 
-import { getProjectFilePath, getProjectRootPath } from '../helpers/project';
+import { getProjectFilePath } from '../helpers/project';
 import { getPlatformName } from '../helpers/platform';
 import { env as _env, IWebpackEnv } from '../index';
 import { error } from '../helpers/log';
@@ -13,47 +13,51 @@ export default function (config: Config, env: IWebpackEnv = _env): Config {
 	const mode = env.production ? 'production' : 'development';
 	const production = mode === 'production';
 
+	// target('node') is the default but causes svelte-loader to detect it as a "server" render, disabling HMR
+	// electron-main sneaks us past the target == 'node' check and gets us HMR
+	config.target('electron-main');
+
+	// svelte-hmr still references tns-core-modules, so we shim it here for compat.
+	config.resolve.alias.set('tns-core-modules', '@nativescript/core');
+
 	// resolve .svelte files
 	// the order is reversed because we are using prepend!
 	config.resolve.extensions.prepend('.svelte').prepend(`.${platform}.svelte`);
+
+	// add worker support to .svelte files (new Worker('./path'))
+	config.module.rule('workers').test(/\.(js|ts|svelte)$/);
+
 	// add a rule for .svelte files
 	config.module
 		.rule('svelte')
 		.test(/\.svelte$/)
 		.exclude.add(/node_modules/)
 		.end()
-		.use('svelte-loader-hot')
-		.loader('svelte-loader-hot')
+		.use('svelte-loader')
+		.loader('svelte-loader')
 		.tap((options) => {
+			const svelteConfig = getSvelteConfig();
 			return {
 				...options,
-				dev: !production,
-				preprocess: getSvelteConfigPreprocessor(),
+				compilerOptions: {
+					...svelteConfig?.compilerOptions,
+					dev: !production,
+				},
+				preprocess: svelteConfig?.preprocess,
 				hotReload: !production,
 				hotOptions: {
 					injectCss: false,
 					native: true,
 				},
-				// Suppress A11y warnings
-				onwarn(warning, warn) {
-					if (!/A11y:/.test(warning.message)) {
-						warn(warning);
-					}
-				},
 			};
 		});
 
 	return config;
 }
 
-function getSvelteConfigPreprocessor(): any {
-	const config = getSvelteConfig();
-
-	return config?.preprocess;
-}
-
 interface ISvelteConfig {
 	preprocess: any;
+	compilerOptions: any;
 }
 
 function getSvelteConfig(): ISvelteConfig | undefined {
diff --git a/packages/webpack5/src/helpers/config.ts b/packages/webpack5/src/helpers/config.ts
index 3e8951a167..ae649ead9c 100644
--- a/packages/webpack5/src/helpers/config.ts
+++ b/packages/webpack5/src/helpers/config.ts
@@ -1,11 +1,15 @@
 import { env } from '../index';
-import { error } from './log';
+import { error, warnOnce } from './log';
 
 function getCLILib() {
 	if (!env.nativescriptLibPath) {
-		throw error(`
+		warnOnce(
+			'getCLILib',
+			`
 			Cannot find NativeScript CLI path. Make sure --env.nativescriptLibPath is passed
-		`);
+		`
+		);
+		return false;
 	}
 
 	return require(env.nativescriptLibPath);
@@ -15,10 +19,15 @@ function getCLILib() {
  * Utility to get a value from the nativescript.config.ts file.
  *
  * @param {string} key The key to get from the config. Supports dot-notation.
+ * @param defaultValue The fallback value if the key is not set in the config.
  */
 export function getValue<T = any>(key: string, defaultValue?: any): T {
 	const lib = getCLILib();
 
+	if (!lib) {
+		return defaultValue;
+	}
+
 	return (lib.projectConfigService as {
 		getValue(key: string, defaultValue?: any): T;
 	}).getValue(key, defaultValue);
diff --git a/packages/webpack5/src/helpers/index.ts b/packages/webpack5/src/helpers/index.ts
index 405087f5ac..56637d566b 100644
--- a/packages/webpack5/src/helpers/index.ts
+++ b/packages/webpack5/src/helpers/index.ts
@@ -1,11 +1,15 @@
 import { merge } from 'webpack-merge';
 
+import {
+	getPackageJson,
+	getProjectRootPath,
+	getProjectFilePath,
+} from './project';
 import { addVirtualEntry, addVirtualModule } from './virtualModules';
-import { getPackageJson, getProjectRootPath } from './project';
 import { applyFileReplacements } from './fileReplacements';
 import { addCopyRule, removeCopyRule } from './copyRules';
+import { error, info, warn, warnOnce } from './log';
 import { determineProjectFlavor } from './flavor';
-import { error, info, warn } from './log';
 import { getValue } from './config';
 import { getIPS } from './host';
 import {
@@ -51,6 +55,7 @@ export default {
 		error,
 		info,
 		warn,
+		warnOnce,
 	},
 	platform: {
 		addPlatform,
@@ -62,6 +67,7 @@ export default {
 		getPlatformName,
 	},
 	project: {
+		getProjectFilePath,
 		getProjectRootPath,
 		getPackageJson,
 	},
diff --git a/packages/webpack5/src/helpers/log.ts b/packages/webpack5/src/helpers/log.ts
index 725048848e..ac70c163ac 100644
--- a/packages/webpack5/src/helpers/log.ts
+++ b/packages/webpack5/src/helpers/log.ts
@@ -28,6 +28,16 @@ export function warn(...data: any): void {
 	console.warn(`[@nativescript/webpack] Warn: \n`, ...cleanup(data));
 }
 
+const warnedMap: any = {};
+export function warnOnce(key: string, ...data: any): void {
+	if (warnedMap[key]) {
+		return;
+	}
+
+	warnedMap[key] = true;
+	warn(...data);
+}
+
 export function info(...data: any): void {
 	if (env.verbose) {
 		console.log(`[@nativescript/webpack] Info: \n`, ...cleanup(data));
diff --git a/packages/webpack5/src/helpers/platform.ts b/packages/webpack5/src/helpers/platform.ts
index 2619f52877..f59389af13 100644
--- a/packages/webpack5/src/helpers/platform.ts
+++ b/packages/webpack5/src/helpers/platform.ts
@@ -1,7 +1,7 @@
 import { dirname, resolve } from 'path';
 
 import { getPackageJson, getProjectRootPath } from './project';
-import { error, info } from './log';
+import { error, info, warnOnce } from './log';
 import { env } from '../';
 
 import AndroidPlatform from '../platforms/android';
@@ -65,13 +65,20 @@ export function getPlatformName(): Platform {
 		`);
 	}
 
-	throw error(`
+	warnOnce(
+		'getPlatformName',
+		`
 		You need to provide a target platform!
 
 		Available platforms: ${Object.keys(platforms).join(', ')}
 
 		Use --env.platform=<platform> or --env.android, --env.ios to specify the target platform.
-	`);
+
+		Defaulting to "ios".
+	`
+	);
+
+	return 'ios';
 }
 
 /**