diff --git a/examples/general/src/app/Comp.jsx b/examples/general/src/app/Comp.jsx
index 1cd65ad..dc22a1a 100644
--- a/examples/general/src/app/Comp.jsx
+++ b/examples/general/src/app/Comp.jsx
@@ -1,4 +1,8 @@
+'use client';
+
+import { Inner } from './Inner';
+
 export function Comp() {
-    throw new Error('Comp error thrown');
-    return Math.random() > 0.5 ? <div>Comp content</div> : 'Comp content';
+    // throw new Error('Comp error thrown');
+    return <div>Comp content <Inner /></div>;
 }
diff --git a/examples/general/src/app/Inner.jsx b/examples/general/src/app/Inner.jsx
new file mode 100644
index 0000000..9b7e722
--- /dev/null
+++ b/examples/general/src/app/Inner.jsx
@@ -0,0 +1,5 @@
+'use client';
+
+export function Inner() {
+  return <div>Inner</div>;
+}
\ No newline at end of file
diff --git a/examples/general/src/app/page.jsx b/examples/general/src/app/page.jsx
index 459db49..6f5b7b7 100644
--- a/examples/general/src/app/page.jsx
+++ b/examples/general/src/app/page.jsx
@@ -1,5 +1,6 @@
 import { Comp } from "./Comp";
 import { Comp as Comp2 } from "./Comp";
+import { Inner } from "./Inner";
 
 export const dynamic = 'force-dynamic';
 
@@ -23,6 +24,7 @@ export default async function Page() {
       <Comp2 />
       {renderTest()}
       <ABC />
+      <Inner />
     </div>
   );
 }
diff --git a/packages/next-rsc-error-handler/README.md b/packages/next-rsc-error-handler/README.md
index 6d23abc..c2f34cd 100644
--- a/packages/next-rsc-error-handler/README.md
+++ b/packages/next-rsc-error-handler/README.md
@@ -2,7 +2,7 @@
 
 Webpack plugin that allow to handle RSC errors on the server side.
 
-**This plugin requires all the client components to be marked with `'use client;'`**
+**This plugin does not allow dual client and server components**
 
 ## Get started
 
diff --git a/packages/next-rsc-error-handler/src/loader.js b/packages/next-rsc-error-handler/src/loader.js
index 41e5117..905f42e 100644
--- a/packages/next-rsc-error-handler/src/loader.js
+++ b/packages/next-rsc-error-handler/src/loader.js
@@ -2,6 +2,7 @@ import parser from "@babel/parser";
 import traverse from "@babel/traverse";
 import generate from "@babel/generator";
 import * as t from "@babel/types";
+import path from "node:path";
 
 import {
   getRelativePath,
@@ -14,15 +15,36 @@ import {
 const WRAPPER_NAME = "__rscWrapper";
 const WRAPPER_PATH = "next-rsc-error-handler/inserted/wrapper";
 
+const clientComponents = new Set();
+const serverComponents = new Set();
+
 export default function (source) {
-  if (isClientComponent(source)) {
+  const resourcePath = this.resourcePath;
+  const relativePath = getRelativePath(resourcePath);
+
+  if (isRoute(relativePath)) {
     return source;
   }
 
-  const resourcePath = this.resourcePath;
-  const filePath = getRelativePath(resourcePath);
+  const noExtRelativePath = dropExtension(relativePath);
+  const isTrulyClientComponent = isClientComponent(source);
+
+  if (isTrulyClientComponent || clientComponents.has(noExtRelativePath)) {
+    if (!isTrulyClientComponent && serverComponents.has(noExtRelativePath)) {
+      throw new Error(`${relativePath} is used on both client and server`);
+    }
+
+    const ast = parser.parse(source, {
+      sourceType: "module",
+      plugins: ["typescript", "jsx"],
+    });
+
+    traverse.default(ast, {
+      ImportDeclaration(p) {
+        clientComponents.add(getImportRelativePath(resourcePath, p));
+      },
+    });
 
-  if (isRoute(filePath)) {
     return source;
   }
 
@@ -41,17 +63,21 @@ export default function (source) {
     }
 
     const ctx = {
-      filePath,
+      filePath: relativePath,
       componentName: functionName,
     };
     const optionsExpression = getOptionsExpressionLiteral(ctx);
 
     wasWrapped = true;
-
     wrapFn(p, WRAPPER_NAME, optionsExpression);
   }
 
+  const innerServerComponents = new Set();
+
   traverse.default(ast, {
+    ImportDeclaration(p) {
+      innerServerComponents.add(getImportRelativePath(resourcePath, p));
+    },
     // TODO add FunctionExpression
     FunctionDeclaration(p) {
       const functionName = p.node.id?.name ?? "";
@@ -67,19 +93,21 @@ export default function (source) {
     return source;
   }
 
+  innerServerComponents.forEach((c) => serverComponents.add(c));
+
   addImport(ast);
   const output = generate.default(ast);
 
   return output.code;
 }
 
-function isInApp(resourcePath) {
-  return /^(src(\/|\\))?app(\/|\\)/.test(resourcePath);
+function isInApp(relativePath) {
+  return /^(src(\/|\\))?app(\/|\\)/.test(relativePath);
 }
 
-function isRoute(resourcePath) {
+function isRoute(relativePath) {
   return (
-    isInApp(resourcePath) && /(\/|\\)route\.(c|m)?(t|j)s$/.test(resourcePath)
+    isInApp(relativePath) && /(\/|\\)route\.(c|m)?(t|j)s$/.test(relativePath)
   );
 }
 
@@ -101,3 +129,15 @@ function addImport(ast) {
 
   ast.program.body.unshift(wrapperImport);
 }
+
+function dropExtension(relativePath) {
+  return relativePath.replace(/\.[^/.]+$/, "");
+}
+
+function getImportRelativePath(resourcePath, p) {
+  return dropExtension(
+    getRelativePath(
+      path.resolve(path.dirname(resourcePath), p.node.source.value)
+    )
+  );
+}