diff --git a/build-system/common/esbuild-babel.js b/build-system/common/esbuild-babel.js
index fa660e5882b4..c0be441d57da 100644
--- a/build-system/common/esbuild-babel.js
+++ b/build-system/common/esbuild-babel.js
@@ -83,17 +83,51 @@ function getEsbuildBabelPlugin(
       build.onLoad({filter: /\.[cm]?js$/, namespace: ''}, async (file) => {
         const filename = file.path;
         const {contents, hash} = await batchedRead(filename, optionsHash);
-        const transformed = await transformContents(filename, contents, hash, {
-          ...babelOptions,
+
+        const transformed = await transformContents(
           filename,
-          filenameRelative: path.basename(filename),
-        });
+          contents,
+          hash,
+          getFileBabelOptions(babelOptions, filename)
+        );
         return {contents: transformed};
       });
     },
   };
 }
 
+const CJS_TRANSFORMS = new Set([
+  'transform-modules-commonjs',
+  'proposal-dynamic-import',
+  'syntax-dynamic-import',
+  'proposal-export-namespace-from',
+  'syntax-export-namespace-from',
+]);
+
+/**
+ * @param {!Object} babelOptions
+ * @param {string} filename
+ * @return {!Object}
+ */
+function getFileBabelOptions(babelOptions, filename) {
+  // Patch for leaving files within node_modules as esm, since esbuild will break when trying
+  // to process a module file that contains CJS exports. This function is called after
+  // babel.loadOptions, therefore all of the plugins from preset-env have already been applied.
+  // and must be disabled individually.
+  if (filename.includes('node_modules')) {
+    const plugins = babelOptions.plugins.filter(
+      ({key}) => !CJS_TRANSFORMS.has(key)
+    );
+    babelOptions = {...babelOptions, plugins};
+  }
+
+  return {
+    ...babelOptions,
+    filename,
+    filenameRelative: path.basename(filename),
+  };
+}
+
 module.exports = {
   getEsbuildBabelPlugin,
 };
diff --git a/build-system/tasks/runtime-test/runtime-test-base.js b/build-system/tasks/runtime-test/runtime-test-base.js
index 8b32f8cd4b81..e5ab75cc95ea 100644
--- a/build-system/tasks/runtime-test/runtime-test-base.js
+++ b/build-system/tasks/runtime-test/runtime-test-base.js
@@ -314,6 +314,10 @@ class RuntimeTestConfig {
       },
       plugins: [importPathPlugin, babelPlugin],
       sourcemap: 'inline',
+      // TODO(rsimha): Remove this workaround once evanw/esbuild#1202 is fixed.
+      banner: {
+        js: "function require(x) { throw new Error('Cannot require ' + x) }",
+      },
     };
   }
 
diff --git a/package-lock.json b/package-lock.json
index 5ede8f2a3348..5dd3255ac570 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -6639,9 +6639,9 @@
       }
     },
     "esbuild": {
-      "version": "0.9.7",
-      "resolved": "https://registry.npmjs.org/esbuild/-/esbuild-0.9.7.tgz",
-      "integrity": "sha512-VtUf6aQ89VTmMLKrWHYG50uByMF4JQlVysb8dmg6cOgW8JnFCipmz7p+HNBl+RR3LLCuBxFGVauAe2wfnF9bLg==",
+      "version": "0.11.19",
+      "resolved": "https://registry.npmjs.org/esbuild/-/esbuild-0.11.19.tgz",
+      "integrity": "sha512-X2h8UThAwKLxmc1OChHVegIScphS/qU9cUB5vCEV2T0A024E8Ptpg9xssXXcs+j1uEgXrDJZuVRzx2JsmGzq7A==",
       "dev": true
     },
     "escalade": {
diff --git a/package.json b/package.json
index f76c74380841..2884449fb630 100644
--- a/package.json
+++ b/package.json
@@ -85,7 +85,7 @@
     "del": "6.0.0",
     "enzyme": "3.11.0",
     "enzyme-adapter-preact-pure": "3.1.0",
-    "esbuild": "0.9.7",
+    "esbuild": "0.11.19",
     "escodegen": "2.0.0",
     "eslint": "7.26.0",
     "eslint-config-prettier": "8.3.0",