diff --git a/packages/subapp-server/lib/setup-hapi-routes.js b/packages/subapp-server/lib/setup-hapi-routes.js
index 3916eb3af..299743c93 100644
--- a/packages/subapp-server/lib/setup-hapi-routes.js
+++ b/packages/subapp-server/lib/setup-hapi-routes.js
@@ -106,17 +106,25 @@ function setupRouteRender({ subAppsByPath, srcDir, routeOptions }) {
   // load subapps for the route
   if (routeOptions.subApps) {
     routeOptions.__internals.subApps = [].concat(routeOptions.subApps).map(x => {
-      let options = {};
+      let options;
       if (Array.isArray(x)) {
         options = x[1];
         x = x[0];
       }
       // absolute: use as path
+      // module: resolve module path
       // else: assume dir under srcDir
-      // TBD: handle it being a module
+      if (!x.startsWith(".") && !x.startsWith("/")) {
+        const subAppPath = optionalRequire.resolve(x);
+        if (subAppPath) {
+          const { manifest, subAppOptions } = require(x);
+          x = manifest ? Path.dirname(subAppPath) : x;
+          options = options || subAppOptions;
+        }
+      }
       return {
         subapp: subAppsByPath[Path.isAbsolute(x) ? x : Path.resolve(srcDir, x)],
-        options
+        options: options || {}
       };
     });
   }
diff --git a/packages/subapp-util/lib/index.js b/packages/subapp-util/lib/index.js
index 098c19581..dc0b6574e 100644
--- a/packages/subapp-util/lib/index.js
+++ b/packages/subapp-util/lib/index.js
@@ -5,6 +5,7 @@
 const Url = require("url");
 const Path = require("path");
 const assert = require("assert");
+const _ = require("lodash");
 const optionalRequire = require("optional-require")(require);
 const scanDir = require("filter-scan-dir");
 const appMode = optionalRequire(Path.resolve(".prod/.app-mode.json"), { default: {} });
@@ -29,6 +30,18 @@ function removeExt(f) {
   return ix > 0 ? f.substring(0, ix) : f;
 }
 
+const validateModuleManifest = manifest => {
+  const entries = _.pick(manifest, ["entry", "serverEntry", "reducers"]);
+  Object.keys(entries).forEach(x => {
+    if (!Path.isAbsolute(entries[x])) {
+      throw new Error(
+        `Could not resolve subapp ${x} "${entries[x]}".\
+ Please provide absolute path to the ${x} in subapp manifest`
+      );
+    }
+  });
+};
+
 //
 // scan a subapp's directory for additional things:
 // - server side entry in server.js, server-{name}.js, server-{verbatimName}.js
@@ -122,11 +135,12 @@ function scanSubAppsFromDir(srcDir, maxLevel = Infinity) {
   const fullSrcDir = Path.resolve(srcDir);
 
   const subApps = { [MAP_BY_PATH_SYM]: {} };
-  const { maniFiles = [], files = [] } = scanDir.sync({
+  const { maniFiles = [], files = [], modFiles = [] } = scanDir.sync({
     dir: srcDir,
     grouping: true,
     maxLevel,
     filter: (f, p, ex) => {
+      if (ex.noExt === "subapps-modules") return "modFiles";
       if (ex.noExt === "subapp-manifest") return "maniFiles";
       return f.startsWith("subapp");
     },
@@ -162,7 +176,25 @@ function scanSubAppsFromDir(srcDir, maxLevel = Infinity) {
     return null;
   });
 
-  const errors = [].concat(errors1, errors2).filter(x => x);
+  // process subapps modules
+  let errors3 = [];
+  if (modFiles.length > 0) {
+    const manifests = es6Require(Path.join(fullSrcDir, modFiles[0]));
+    errors3 = Object.keys(manifests).map(modName => {
+      try {
+        const manifest = manifests[modName];
+        validateModuleManifest(manifest);
+        const modFullDir = Path.dirname(require.resolve(modName));
+        const subapp = Object.assign({ subAppDir: modName, module: true }, manifest);
+        subApps[manifest.name] = subApps[MAP_BY_PATH_SYM][modFullDir] = subapp;
+      } catch (error) {
+        return error;
+      }
+      return null;
+    });
+  }
+
+  const errors = [].concat(errors1, errors2, errors3).filter(x => x);
   if (errors.length > 0) {
     console.error("Loading SubApps failed");
     errors.forEach(err => {
@@ -242,7 +274,7 @@ function loadSubAppByName(name) {
   const container = getSubAppContainer();
   const subAppDir = manifest.subAppDir;
   // load subapp's entry
-  xrequire(Path.resolve(appSrcDir(), subAppDir, manifest.entry));
+  xrequire(manifest.module ? manifest.entry : Path.resolve(appSrcDir(), subAppDir, manifest.entry));
 
   // if subapp did not register itself then register it
   if (!container[name]) {
@@ -258,13 +290,17 @@ function loadSubAppServerByName(name) {
   const { subAppDir, serverEntry } = manifest;
 
   if (serverEntry) {
-    return es6Require(Path.resolve(appSrcDir(), subAppDir, serverEntry));
+    return es6Require(
+      manifest.module ? serverEntry : Path.resolve(appSrcDir(), subAppDir, serverEntry)
+    );
   } else if (serverEntry === false) {
     return {};
   }
 
   // generate a server from subapp's main file
-  const subapp = es6Require(Path.resolve(appSrcDir(), subAppDir, manifest.entry));
+  const subapp = es6Require(
+    manifest.module ? manifest.entry : Path.resolve(appSrcDir(), subAppDir, manifest.entry)
+  );
 
   return {
     StartComponent: subapp.Component
@@ -275,11 +311,15 @@ function refreshSubAppByName(name) {
   const manifest = subAppManifest()[name];
   const { subAppDir } = manifest;
 
-  const entryFullPath = xrequire.resolve(Path.resolve(appSrcDir(), subAppDir, manifest.entry));
+  const entryFullPath = xrequire.resolve(
+    manifest.module ? manifest.entry : Path.resolve(appSrcDir(), subAppDir, manifest.entry)
+  );
   if (!xrequire.cache[entryFullPath] && manifest.serverEntry) {
     // also reload server side module
     const serverEntryFullPath = xrequire.resolve(
-      Path.resolve(appSrcDir(), subAppDir, manifest.serverEntry)
+      manifest.module
+        ? manifest.serverEntry
+        : Path.resolve(appSrcDir(), subAppDir, manifest.serverEntry)
     );
     console.log("reloading server side subapp", name, serverEntryFullPath);
     delete xrequire.cache[serverEntryFullPath];
diff --git a/packages/xarc-webpack/lib/partials/entry.js b/packages/xarc-webpack/lib/partials/entry.js
index b3eb2760c..84d7d784b 100644
--- a/packages/xarc-webpack/lib/partials/entry.js
+++ b/packages/xarc-webpack/lib/partials/entry.js
@@ -52,21 +52,24 @@ function makeEntryPartial() {
   }
 
   function genSubAppHmrEntry(hmrDir, isDev, manifest) {
-    let subAppReq = `${manifest.subAppDir}/${manifest.entry}`;
+    let subAppReq = manifest.module ? manifest.entry : `${manifest.subAppDir}/${manifest.entry}`;
+
     // subapp has built-in code to handle HMR accept
     // or not running in webpack dev mode
     // => do not generate HMR accept code
     if (manifest.hmrSelfAccept || !isDev) {
-      return `./${subAppReq}`;
+      return manifest.module ? subAppReq : `./${subAppReq}`;
     }
 
     const hmrEntry = `hmr-${manifest.subAppDir.replace(/[\/\\]/g, "-")}.js`;
-    subAppReq = `../${subAppReq}`;
+    subAppReq = manifest.module ? subAppReq : `../${subAppReq}`;
 
     let reducerHmrCode = "";
 
     if (manifest.reducers) {
-      const subAppReducers = `../${manifest.subAppDir}/reducers`;
+      const subAppReducers = manifest.module
+        ? manifest.reducers
+        : `../${manifest.subAppDir}/reducers`;
       reducerHmrCode = `
 import { getReduxCreateStore } from "subapp-redux";
 import reducers from "${subAppReducers}";
diff --git a/samples/demo-tree-shaking/package.json b/samples/demo-tree-shaking/package.json
index 3d65dc2ce..2b9b1ccc3 100644
--- a/samples/demo-tree-shaking/package.json
+++ b/samples/demo-tree-shaking/package.json
@@ -55,6 +55,7 @@
     "lodash": "^4.17.10",
     "milligram": "^1.3.0",
     "react-intl": "^3.11.0",
+    "intl-format-cache": "4.2.46",
     "react-notify-toast": "^0.4.1",
     "react-router-config": "^5.1.1"
   },
diff --git a/samples/react-jest-app/package.json b/samples/react-jest-app/package.json
index 70fd71e4b..a85adc8f4 100644
--- a/samples/react-jest-app/package.json
+++ b/samples/react-jest-app/package.json
@@ -62,7 +62,7 @@
     "@xarc/app-dev": "^5.3.4",
     "electrode-archetype-opt-critical-css": "^1.0.3",
     "electrode-archetype-opt-eslint": "^1.0.3",
-    "electrode-archetype-opt-jest": "^25.0.0",
+    "electrode-archetype-opt-jest": "^26.0.0",
     "electrode-archetype-opt-less": "^1.0.2",
     "electrode-archetype-opt-mocha": "^1.0.3",
     "electrode-archetype-opt-phantomjs": "^1.0.2",
@@ -80,8 +80,7 @@
       "electrode-auto-ssr": "../../packages/electrode-auto-ssr"
     },
     "devDependencies": {
-      "@xarc/app-dev": "../../packages/xarc-app-dev",
-      "electrode-archetype-opt-jest": "../../packages/electrode-archetype-opt-jest"
+      "@xarc/app-dev": "../../packages/xarc-app-dev"
     }
   },
   "optionalDependencies": {}