diff --git a/backend/lib/backend-lib.mjs b/backend/lib/backend-lib.mjs
new file mode 100644
index 0000000..a0bf63a
--- /dev/null
+++ b/backend/lib/backend-lib.mjs
@@ -0,0 +1,3 @@
+export function backend() {
+  return 'backend';
+}
diff --git a/backend/package.json b/backend/package.json
new file mode 100644
index 0000000..b62002e
--- /dev/null
+++ b/backend/package.json
@@ -0,0 +1,33 @@
+{
+  "name": "backend",
+  "version": "1.0.0",
+  "scripts": {
+    "test": "jest"
+  },
+  "devDependencies": {
+    "babel-plugin-transform-es2015-modules-commonjs": "^6.26.2",
+    "jest": "^24.5.0"
+  },
+  "jest": {
+    "testEnvironment": "node",
+    "testMatch": [
+      "**/?(*.)(spec|test).?(m)js?(x)"
+    ],
+    "moduleFileExtensions": [
+      "js",
+      "mjs"
+    ],
+    "transform": {
+      "^.+\\.m?js$": "babel-jest"
+    }
+  },
+  "babel": {
+    "env": {
+      "test": {
+        "plugins": [
+          "transform-es2015-modules-commonjs"
+        ]
+      }
+    }
+  }
+}
diff --git a/backend/use-backend-lib.test.mjs b/backend/use-backend-lib.test.mjs
new file mode 100644
index 0000000..8e27311
--- /dev/null
+++ b/backend/use-backend-lib.test.mjs
@@ -0,0 +1,7 @@
+// Works fine
+
+import { backend } from './lib/backend-lib';
+
+test('test using backend library', () => {
+  expect(backend()).toBeTruthy();
+});
diff --git a/backend/use-project-lib.test.mjs b/backend/use-project-lib.test.mjs
new file mode 100644
index 0000000..e15ecc2
--- /dev/null
+++ b/backend/use-project-lib.test.mjs
@@ -0,0 +1,7 @@
+// Jest encountered an unexpected token
+
+import { foo } from '../lib/project-lib';
+
+test('test using project-level library', () => {
+  expect(foo()).toBeTruthy();
+});
diff --git a/lib/project-lib.mjs b/lib/project-lib.mjs
new file mode 100644
index 0000000..7efce94
--- /dev/null
+++ b/lib/project-lib.mjs
@@ -0,0 +1,3 @@
+export function foo() {
+  return 'foo';
+}