diff --git a/e2e/jest/src/jest.test.ts b/e2e/jest/src/jest.test.ts
index 88b75796e1902..cf4a92839e98e 100644
--- a/e2e/jest/src/jest.test.ts
+++ b/e2e/jest/src/jest.test.ts
@@ -1,12 +1,12 @@
 import { stripIndents } from '@angular-devkit/core/src/utils/literals';
 import {
+  cleanupProject,
+  expectJestTestsToPass,
   newProject,
   runCLI,
   runCLIAsync,
   uniq,
   updateFile,
-  expectJestTestsToPass,
-  cleanupProject,
 } from '@nx/e2e/utils';
 
 describe('Jest', () => {
@@ -20,6 +20,21 @@ describe('Jest', () => {
     await expectJestTestsToPass('@nx/js:lib --unitTestRunner=jest');
   }, 500000);
 
+  it('should be resilient against NODE_ENV values', async () => {
+    const name = uniq('lib');
+    runCLI(
+      `generate @nx/js:lib ${name} --unitTestRunner=jest --no-interactive`
+    );
+
+    const results = await runCLIAsync(`test ${name}`, {
+      env: {
+        ...process.env, // need to set this for some reason, or else get "env: node: No such file or directory"
+        NODE_ENV: 'foobar',
+      },
+    });
+    expect(results.combinedOutput).toContain('Test Suites: 1 passed, 1 total');
+  });
+
   it('should merge with jest config globals', async () => {
     const testGlobal = `'My Test Global'`;
     const mylib = uniq('mylib');
diff --git a/packages/js/babel.ts b/packages/js/babel.ts
index 4841bd04e5273..043056005c168 100644
--- a/packages/js/babel.ts
+++ b/packages/js/babel.ts
@@ -52,7 +52,7 @@ module.exports = function (api: any, options: NxWebBabelPresetOptions = {}) {
         // For Jest tests, NODE_ENV is set as 'test' and we only want to set target as Node.
         // All other options will fail in Jest since Node does not support some ES features
         // such as import syntax.
-        isTest || process.env.NODE_ENV === 'test'
+        isTest || process.env.NODE_ENV === 'test' || process.env.JEST_WORKER_ID
           ? { targets: { node: 'current' }, loose: true }
           : {
               // Allow importing core-js in entrypoint and use browserslist to select polyfills.