diff --git a/lib/babel.js b/lib/babel.js
index a88870cc0..696fe23dc 100644
--- a/lib/babel.js
+++ b/lib/babel.js
@@ -1,8 +1,15 @@
 'use strict';
 
+var pkgDir = require('pkg-dir').sync;
 var debug = require('debug')('ava');
+var hasha = require('hasha');
+var cacha = require('cacha');
+var path = require('path');
 
 var opts = JSON.parse(process.argv[2]);
+var testPath = opts.file;
+
+var cache = cacha(path.join(pkgDir(path.dirname(testPath)), 'node_modules', '.cache', 'ava'));
 
 if (debug.enabled) {
 	// Forward the `time-require` `--sorted` flag.
@@ -33,24 +40,13 @@ sourceMapSupport.install({
 	}
 });
 
-var createEspowerPlugin = require('babel-plugin-espower/create');
 var requireFromString = require('require-from-string');
 var loudRejection = require('loud-rejection/api')(process);
 var serializeError = require('serialize-error');
-var babel = require('babel-core');
 var send = require('./send');
 
-var testPath = opts.file;
-
-// initialize power-assert
-var powerAssert = createEspowerPlugin(babel, {
-	patterns: require('./enhance-assert').PATTERNS
-});
-
 // if generators are not supported, use regenerator
 var options = {
-	presets: [require('babel-preset-stage-2'), require('babel-preset-es2015')],
-	plugins: [powerAssert, require('babel-plugin-transform-runtime')],
 	sourceMaps: true
 };
 
@@ -67,11 +63,44 @@ if (inputSourceMap) {
 }
 
 // include test file
-var transpiled = babel.transformFileSync(testPath, options);
-sourceMapCache[testPath] = transpiled.map;
-requireFromString(transpiled.code, testPath, {
-	appendPaths: module.paths
-});
+var cachePath = hasha(cacheKey(testPath));
+var hashPath = cachePath + '_hash';
+
+var prevHash = cache.getSync(hashPath, {encoding: 'utf8'});
+var currHash = hasha.fromFileSync(testPath);
+
+if (prevHash === currHash) {
+	var cached = JSON.parse(cache.getSync(cachePath));
+
+	sourceMapCache[testPath] = cached.map;
+	requireFromString(cached.code, testPath, {
+		appendPaths: module.paths
+	});
+} else {
+	var createEspowerPlugin = require('babel-plugin-espower/create');
+	var babel = require('babel-core');
+
+	// initialize power-assert
+	var powerAssert = createEspowerPlugin(babel, {
+		patterns: require('./enhance-assert').PATTERNS
+	});
+
+	options.presets = [require('babel-preset-stage-2'), require('babel-preset-es2015')];
+	options.plugins = [powerAssert, require('babel-plugin-transform-runtime')];
+
+	var transpiled = babel.transformFileSync(testPath, options);
+
+	cache.setSync(hashPath, currHash);
+	cache.setSync(cachePath, JSON.stringify({
+		code: transpiled.code,
+		map: transpiled.map
+	}));
+
+	sourceMapCache[testPath] = transpiled.map;
+	requireFromString(transpiled.code, testPath, {
+		appendPaths: module.paths
+	});
+}
 
 process.on('uncaughtException', function (exception) {
 	send('uncaughtException', {exception: serializeError(exception)});
@@ -118,3 +147,16 @@ process.on('ava-teardown', function () {
 function exit() {
 	send('teardown');
 }
+
+function cacheKey(path) {
+	var key = path;
+
+	key += require('../package.json').version;
+	key += require('babel-core/package.json').version;
+	key += require('babel-plugin-espower/package.json').version;
+	key += require('babel-plugin-transform-runtime/package.json').version;
+	key += require('babel-preset-stage-2/package.json').version;
+	key += require('babel-preset-es2015/package.json').version;
+
+	return hasha(key);
+}
diff --git a/package.json b/package.json
index da80585b4..951636e07 100644
--- a/package.json
+++ b/package.json
@@ -86,6 +86,7 @@
     "babel-preset-stage-2": "^6.3.13",
     "babel-runtime": "^6.3.19",
     "bluebird": "^3.0.0",
+    "cacha": "^1.0.3",
     "chalk": "^1.0.0",
     "co-with-promise": "^4.6.0",
     "core-assert": "^0.1.0",
@@ -95,6 +96,7 @@
     "figures": "^1.4.0",
     "fn-name": "^2.0.0",
     "globby": "^4.0.0",
+    "hasha": "^2.0.2",
     "is-generator-fn": "^1.0.0",
     "is-observable": "^0.1.0",
     "is-promise": "^2.1.0",
@@ -103,6 +105,7 @@
     "meow": "^3.6.0",
     "object-assign": "^4.0.1",
     "observable-to-promise": "^0.1.0",
+    "pkg-dir": "^1.0.0",
     "plur": "^2.0.0",
     "power-assert-formatter": "^1.3.0",
     "power-assert-renderers": "^0.1.0",