diff --git a/.eslintrc.json b/.eslintrc.json
index 7b537000..3e27a3b7 100644
--- a/.eslintrc.json
+++ b/.eslintrc.json
@@ -106,7 +106,6 @@
       "files": ["*.spec.ts"],
       "extends": ["plugin:jest/recommended"],
       "rules": {
-        "jest/no-done-callback": "off",
         "jest/expect-expect": "off"
       }
     },
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 8e097f79..e85298ba 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -21,7 +21,7 @@ jobs:
         with:
           node-version: ${{ matrix.node-version }}
       - name: install
-        run: npm install --force
+        run: npm install
       - name: build
         run: npm run build -- --skip-nx-cache
       - name: test
diff --git a/angular.json b/angular.json
index c4792405..45bf7eca 100644
--- a/angular.json
+++ b/angular.json
@@ -87,8 +87,7 @@
         "test": {
           "builder": "@nrwl/jest:jest",
           "options": {
-            "jestConfig": "apps/example-app/jest.config.js",
-            "setupFile": "apps/example-app/src/test-setup.ts"
+            "jestConfig": "apps/example-app/jest.config.js"
           },
           "outputs": ["coverage/"]
         }
@@ -232,8 +231,7 @@
         "test": {
           "builder": "@nrwl/jest:jest",
           "options": {
-            "jestConfig": "projects/testing-library/jest.config.js",
-            "setupFile": "projects/testing-library/test-setup.ts"
+            "jestConfig": "projects/testing-library/jest.config.js"
           },
           "outputs": ["coverage/projects/testing-library"]
         }
@@ -284,8 +282,7 @@
         "test": {
           "builder": "@nrwl/jest:jest",
           "options": {
-            "jestConfig": "projects/jest-utils/jest.config.js",
-            "setupFile": "projects/jest-utils/test-setup.ts"
+            "jestConfig": "projects/jest-utils/jest.config.js"
           },
           "outputs": ["coverage/projects/jest-utils"]
         }
diff --git a/apps/example-app/src/app/examples/14-async-component.spec.ts b/apps/example-app/src/app/examples/14-async-component.spec.ts
index 6a2ca2e5..ba72ce70 100644
--- a/apps/example-app/src/app/examples/14-async-component.spec.ts
+++ b/apps/example-app/src/app/examples/14-async-component.spec.ts
@@ -14,3 +14,16 @@ test('can use fakeAsync utilities', fakeAsync(async () => {
   const hello = await screen.findByText('Hello world');
   expect(hello).toBeInTheDocument();
 }));
+
+test('can use fakeTimer utilities', async () => {
+  jest.useFakeTimers();
+  await render(AsyncComponent);
+
+  const load = await screen.findByRole('button', { name: /load/i });
+  fireEvent.click(load);
+
+  jest.advanceTimersByTime(10_000);
+
+  const hello = await screen.findByText('Hello world');
+  expect(hello).toBeInTheDocument();
+});
diff --git a/apps/example-app/src/app/examples/15-dialog.component.spec.ts b/apps/example-app/src/app/examples/15-dialog.component.spec.ts
index bcb41875..694af3a7 100644
--- a/apps/example-app/src/app/examples/15-dialog.component.spec.ts
+++ b/apps/example-app/src/app/examples/15-dialog.component.spec.ts
@@ -1,5 +1,6 @@
 import { MatDialogModule, MatDialogRef } from '@angular/material/dialog';
-import { render, screen, fireEvent, waitForElementToBeRemoved } from '@testing-library/angular';
+import { render, screen, waitForElementToBeRemoved, fireEvent } from '@testing-library/angular';
+import userEvent from '@testing-library/user-event';
 
 import { DialogComponent, DialogContentComponent, DialogContentComponentModule } from './15-dialog.component';
 
@@ -18,24 +19,25 @@ test('dialog closes', async () => {
   });
 
   const cancelButton = await screen.findByRole('button', { name: /cancel/i });
-  fireEvent.click(cancelButton);
+  userEvent.click(cancelButton);
 
   expect(closeFn).toHaveBeenCalledTimes(1);
 });
 
-test('opens and closes the dialog with buttons', async () => {
+test('closes the dialog via the backdrop', async () => {
   await render(DialogComponent, {
     imports: [MatDialogModule, DialogContentComponentModule],
   });
 
   const openDialogButton = await screen.findByRole('button', { name: /open dialog/i });
-  fireEvent.click(openDialogButton);
+  userEvent.click(openDialogButton);
 
   await screen.findByRole('dialog');
   await screen.findByRole('heading', { name: /dialog title/i });
 
-  const cancelButton = await screen.findByRole('button', { name: /cancel/i });
-  fireEvent.click(cancelButton);
+  // using fireEvent because of:
+  // unable to click element as it has or inherits pointer-events set to "none"
+  fireEvent.click(document.querySelector('.cdk-overlay-backdrop'));
 
   await waitForElementToBeRemoved(() => screen.getByRole('dialog'));
 
@@ -43,19 +45,19 @@ test('opens and closes the dialog with buttons', async () => {
   expect(dialogTitle).not.toBeInTheDocument();
 });
 
-test('closes the dialog via the backdrop', async () => {
+test('opens and closes the dialog with buttons', async () => {
   await render(DialogComponent, {
     imports: [MatDialogModule, DialogContentComponentModule],
   });
 
   const openDialogButton = await screen.findByRole('button', { name: /open dialog/i });
-  fireEvent.click(openDialogButton);
+  userEvent.click(openDialogButton);
 
   await screen.findByRole('dialog');
   await screen.findByRole('heading', { name: /dialog title/i });
 
-  // eslint-disable-next-line testing-library/no-node-access
-  fireEvent.click(document.querySelector('.cdk-overlay-backdrop'));
+  const cancelButton = await screen.findByRole('button', { name: /cancel/i });
+  userEvent.click(cancelButton);
 
   await waitForElementToBeRemoved(() => screen.getByRole('dialog'));
 
diff --git a/apps/example-app/src/app/issues/issue-106.spec.ts b/apps/example-app/src/app/issues/issue-106.spec.ts
index 0ac749a8..b1f6cc2c 100644
--- a/apps/example-app/src/app/issues/issue-106.spec.ts
+++ b/apps/example-app/src/app/issues/issue-106.spec.ts
@@ -15,7 +15,7 @@ class TestSelectComponent {
   }
 }
 
-it('https://github.com/testing-library/angular-testing-library/issues/106', async () => {
+test('https://github.com/testing-library/angular-testing-library/issues/106', async () => {
   await render(TestSelectComponent);
   const toggle = screen.getByTestId('toggle');
   const hiddenText = screen.queryByTestId('getme');
@@ -30,7 +30,7 @@ it('https://github.com/testing-library/angular-testing-library/issues/106', asyn
   await waitFor(() => expect(screen.queryByTestId('getme')).toBeInTheDocument());
 });
 
-it('better https://github.com/testing-library/angular-testing-library/issues/106', async () => {
+test('better https://github.com/testing-library/angular-testing-library/issues/106', async () => {
   await render(TestSelectComponent);
   const toggle = screen.getByTestId('toggle');
   const hiddenText = screen.queryByTestId('getme');
diff --git a/jest.preset.js b/jest.preset.js
index 21c2ab11..3f434cfc 100644
--- a/jest.preset.js
+++ b/jest.preset.js
@@ -7,22 +7,10 @@ module.exports = {
   },
   resolver: '@nrwl/jest/plugins/resolver',
   moduleFileExtensions: ['ts', 'js', 'html'],
-  coverageReporters: ['html'],
-  snapshotSerializers: [
-    'jest-preset-angular/build/serializers/no-ng-attributes',
-    'jest-preset-angular/build/serializers/ng-snapshot',
-    'jest-preset-angular/build/serializers/html-comment',
-  ],
   globals: {
     'ts-jest': {
       tsconfig: '<rootDir>/tsconfig.spec.json',
       stringifyContentPathRegex: '\\.(html|svg)$',
-      astTransformers: {
-        before: [
-          'jest-preset-angular/build/InlineFilesTransformer',
-          'jest-preset-angular/build/StripStylesTransformer',
-        ],
-      },
     },
   },
 };
diff --git a/package.json b/package.json
index aa4e8a86..af3e7ed8 100644
--- a/package.json
+++ b/package.json
@@ -28,18 +28,18 @@
     "prepare": "husky install"
   },
   "dependencies": {
-    "@angular/animations": "12.0.0",
-    "@angular/cdk": "12.0.0",
-    "@angular/common": "12.0.0",
-    "@angular/compiler": "12.0.0",
-    "@angular/core": "12.0.0",
-    "@angular/forms": "12.0.0",
-    "@angular/material": "12.0.0",
-    "@angular/platform-browser": "12.0.0",
-    "@angular/platform-browser-dynamic": "12.0.0",
-    "@angular/router": "12.0.0",
-    "@ngrx/store": "12.0.0",
-    "@nrwl/angular": "12.0.3",
+    "@angular/animations": "12.1.1",
+    "@angular/cdk": "12.1.1",
+    "@angular/common": "12.1.1",
+    "@angular/compiler": "12.1.1",
+    "@angular/core": "12.1.1",
+    "@angular/forms": "12.1.1",
+    "@angular/material": "12.1.1",
+    "@angular/platform-browser": "12.1.1",
+    "@angular/platform-browser-dynamic": "12.1.1",
+    "@angular/router": "12.1.1",
+    "@ngrx/store": "12.2.0",
+    "@nrwl/angular": "12.5.1",
     "@nrwl/nx-cloud": "11.2.0",
     "@testing-library/dom": "^8.0.0",
     "@testing-library/user-event": "^13.1.9",
@@ -49,23 +49,23 @@
     "zone.js": "~0.11.4"
   },
   "devDependencies": {
-    "@angular-devkit/build-angular": "12.0.0",
+    "@angular-devkit/build-angular": "12.1.0",
     "@angular-eslint/eslint-plugin": "~12.0.0",
     "@angular-eslint/eslint-plugin-template": "~12.0.0",
     "@angular-eslint/template-parser": "~12.0.0",
-    "@angular/cli": "12.0.0",
-    "@angular/compiler-cli": "12.0.0",
-    "@angular/language-service": "12.0.0",
-    "@nrwl/cli": "12.0.3",
-    "@nrwl/eslint-plugin-nx": "12.0.3",
-    "@nrwl/jest": "12.0.3",
-    "@nrwl/linter": "12.0.3",
-    "@nrwl/node": "12.0.3",
-    "@nrwl/nx-plugin": "12.0.3",
-    "@nrwl/workspace": "12.3.1",
+    "@angular/cli": "12.1.0",
+    "@angular/compiler-cli": "12.1.1",
+    "@angular/language-service": "12.1.1",
+    "@nrwl/cli": "12.5.1",
+    "@nrwl/eslint-plugin-nx": "12.5.1",
+    "@nrwl/jest": "12.5.1",
+    "@nrwl/linter": "12.5.1",
+    "@nrwl/node": "12.5.1",
+    "@nrwl/nx-plugin": "12.5.1",
+    "@nrwl/workspace": "12.5.1",
     "@testing-library/jest-dom": "^5.11.10",
     "@types/jasmine": "~3.5.0",
-    "@types/jest": "~26.0.3",
+    "@types/jest": "^26.0.23",
     "@types/node": "14.14.37",
     "@typescript-eslint/eslint-plugin": "4.22.0",
     "@typescript-eslint/parser": "4.22.0",
@@ -77,11 +77,11 @@
     "eslint-plugin-jest-dom": "3.8.0",
     "eslint-plugin-testing-library": "^4.0.1",
     "husky": "^6.0.0",
-    "jasmine-core": "~3.6.0",
+    "jasmine-core": "~3.7.0",
     "jasmine-spec-reporter": "~5.0.0",
-    "jest": "^26.1.0",
-    "jest-preset-angular": "8.4.0",
-    "karma": "~5.0.0",
+    "jest": "^27.0.6",
+    "jest-preset-angular": "9.0.4",
+    "karma": "~6.3.4",
     "karma-chrome-launcher": "~3.1.0",
     "karma-jasmine": "~4.0.0",
     "karma-jasmine-html-reporter": "^1.5.0",
@@ -90,7 +90,7 @@
     "prettier": "^2.3.0",
     "rimraf": "^3.0.2",
     "semantic-release": "^17.1.1",
-    "ts-jest": "26.5.4",
+    "ts-jest": "^27.0.3",
     "ts-node": "9.1.1",
     "typescript": "4.2.4"
   }
diff --git a/projects/jest-utils/jest.config.js b/projects/jest-utils/jest.config.js
index efed0e8c..0d80b628 100644
--- a/projects/jest-utils/jest.config.js
+++ b/projects/jest-utils/jest.config.js
@@ -5,4 +5,5 @@ module.exports = {
     color: 'magenta',
   },
   preset: '../../jest.preset.js',
+  setupFilesAfterEnv: ['<rootDir>/test-setup.ts'],
 };
diff --git a/projects/jest-utils/tests/create-mock.spec.ts b/projects/jest-utils/tests/create-mock.spec.ts
index 8b814fe6..98b94314 100644
--- a/projects/jest-utils/tests/create-mock.spec.ts
+++ b/projects/jest-utils/tests/create-mock.spec.ts
@@ -24,12 +24,12 @@ class FixtureComponent {
   }
 }
 
-it('mocks all functions', () => {
+test('mocks all functions', () => {
   const mock = createMock(FixtureService);
   expect(mock.print.mock).toBeDefined();
 });
 
-it('provides a mock service', async () => {
+test('provides a mock service', async () => {
   const { getByText } = await render(FixtureComponent, {
     providers: [provideMock(FixtureService)],
   });
@@ -39,14 +39,13 @@ it('provides a mock service', async () => {
   expect(service.print).toHaveBeenCalledTimes(1);
 });
 
-// eslint-disable-next-line jest/expect-expect
-it('is possible to write a mock implementation', async (done) => {
+test('is possible to write a mock implementation', async () => {
   const { getByText } = await render(FixtureComponent, {
     providers: [provideMock(FixtureService)],
   });
 
   const service = TestBed.inject(FixtureService) as Mock<FixtureService>;
-  service.print.mockImplementation(() => done());
 
   fireEvent.click(getByText('Print'));
+  expect(service.print).toHaveBeenCalled();
 });
diff --git a/projects/testing-library/jest.config.js b/projects/testing-library/jest.config.js
index 379e4581..216a1f4e 100644
--- a/projects/testing-library/jest.config.js
+++ b/projects/testing-library/jest.config.js
@@ -5,4 +5,5 @@ module.exports = {
     color: 'magenta',
   },
   preset: '../../jest.preset.js',
+  setupFilesAfterEnv: ['<rootDir>/test-setup.ts'],
 };
diff --git a/projects/testing-library/src/lib/testing-library.ts b/projects/testing-library/src/lib/testing-library.ts
index 168bd0d7..b521ab5d 100644
--- a/projects/testing-library/src/lib/testing-library.ts
+++ b/projects/testing-library/src/lib/testing-library.ts
@@ -8,7 +8,7 @@ import {
   SimpleChanges,
   ApplicationInitStatus,
 } from '@angular/core';
-import { ComponentFixture, TestBed } from '@angular/core/testing';
+import { ComponentFixture, TestBed, tick } from '@angular/core/testing';
 import { By } from '@angular/platform-browser';
 import { BrowserAnimationsModule, NoopAnimationsModule } from '@angular/platform-browser/animations';
 import { NavigationExtras, Router } from '@angular/router';
@@ -310,14 +310,21 @@ async function waitForWrapper<T>(
   callback: () => T extends Promise<any> ? never : T,
   options?: dtlWaitForOptions,
 ): Promise<T> {
+  let inFakeAsync = true;
+  try {
+    tick(0);
+  } catch (err) {
+    inFakeAsync = false;
+  }
+
   detectChanges();
+
   return await dtlWaitFor(() => {
-    try {
-      return callback();
-    } catch (error) {
-      setImmediate(() => detectChanges());
-      throw error;
+    setTimeout(() => detectChanges(), 0);
+    if (inFakeAsync) {
+      tick(0);
     }
+    return callback();
   }, options);
 }
 
@@ -345,10 +352,8 @@ async function waitForElementToBeRemovedWrapper<T>(
   }
 
   return await dtlWaitForElementToBeRemoved(() => {
-    const result = cb();
     detectChanges();
-    setImmediate(() => detectChanges());
-    return result;
+    return cb();
   }, options);
 }
 
diff --git a/projects/testing-library/tests/issues/issue-188.spec.ts b/projects/testing-library/tests/issues/issue-188.spec.ts
index cb430bb4..7b3d8263 100644
--- a/projects/testing-library/tests/issues/issue-188.spec.ts
+++ b/projects/testing-library/tests/issues/issue-188.spec.ts
@@ -17,7 +17,7 @@ class BugOnChangeComponent implements OnChanges {
   }
 }
 
-it('should output formatted name after rendering', async () => {
+test('should output formatted name after rendering', async () => {
   const { getByText } = await render(BugOnChangeComponent, { componentProperties: { name: 'name' } });
 
   getByText('Hello NAME');
diff --git a/projects/testing-library/tests/issues/issue-67.spec.ts b/projects/testing-library/tests/issues/issue-67.spec.ts
index 243dbf4d..642f394d 100644
--- a/projects/testing-library/tests/issues/issue-67.spec.ts
+++ b/projects/testing-library/tests/issues/issue-67.spec.ts
@@ -15,11 +15,11 @@ import { render } from '../../src/public_api';
 })
 class BugGetByLabelTextComponent {}
 
-it('first step to reproduce the bug: skip this test to avoid the error or remove the for attribute of label', async () => {
+test('first step to reproduce the bug: skip this test to avoid the error or remove the for attribute of label', async () => {
   expect(await render(BugGetByLabelTextComponent)).toBeDefined();
 });
 
-it('second step: bug happens :`(', async () => {
+test('second step: bug happens :`(', async () => {
   const { getByLabelText, getByTestId } = await render(BugGetByLabelTextComponent);
 
   const checkboxByTestId = getByTestId('checkbox');
diff --git a/projects/testing-library/tests/render.spec.ts b/projects/testing-library/tests/render.spec.ts
index aeac9789..fe2ae565 100644
--- a/projects/testing-library/tests/render.spec.ts
+++ b/projects/testing-library/tests/render.spec.ts
@@ -126,28 +126,19 @@ describe('Angular component life-cycle hooks', () => {
   });
 });
 
-test('Waits for angular app initialization before rendering components', (done) => {
-  let resolve;
+test('waits for angular app initialization before rendering components', async () => {
+  const mock = jest.fn();
 
-  const promise = new Promise((res) => {
-    resolve = res;
-  });
-
-  render(FixtureComponent, {
+  await render(FixtureComponent, {
     providers: [
       {
         provide: APP_INITIALIZER,
-        useFactory: () => () => promise,
+        useFactory: () => mock,
         multi: true,
       },
     ],
-  })
-    .then(() => {
-      expect(TestBed.inject(ApplicationInitStatus).done).toEqual(true);
-      done();
-    })
-    .catch(done);
-
-  // Wait a bit so the test will fail if render completes without us resolving the promise
-  setTimeout(resolve, 1000);
+  });
+
+  expect(TestBed.inject(ApplicationInitStatus).done).toEqual(true);
+  expect(mock).toHaveBeenCalled();
 });