diff --git a/packages/next/server/config-shared.ts b/packages/next/server/config-shared.ts
index 84c1f60be6bc5..4505fefc7b33f 100644
--- a/packages/next/server/config-shared.ts
+++ b/packages/next/server/config-shared.ts
@@ -218,7 +218,7 @@ export const defaultConfig: NextConfig = {
     disableOptimizedLoading: false,
     gzipSize: true,
     craCompat: false,
-    esmExternals: false,
+    esmExternals: true,
     staticPageGenerationTimeout: 60,
     // default to 50MB limit
     isrMemoryCacheSize: 50 * 1024 * 1024,
diff --git a/test/integration/externals/next.config.js b/test/integration/externals/next.config.js
deleted file mode 100644
index 826c3454030d2..0000000000000
--- a/test/integration/externals/next.config.js
+++ /dev/null
@@ -1,10 +0,0 @@
-module.exports = {
-  webpack(config) {
-    config.resolve.alias = {
-      ...config.resolve.alias,
-      'preact/compat': 'react',
-    }
-
-    return config
-  },
-}
diff --git a/test/integration/externals/node_modules/esm-package/correct.js b/test/integration/externals/node_modules/esm-package/correct.js
deleted file mode 100644
index cea6b73e3b7b1..0000000000000
--- a/test/integration/externals/node_modules/esm-package/correct.js
+++ /dev/null
@@ -1 +0,0 @@
-module.exports = 'World'
diff --git a/test/integration/externals/node_modules/esm-package/package.json b/test/integration/externals/node_modules/esm-package/package.json
deleted file mode 100644
index 307908751781d..0000000000000
--- a/test/integration/externals/node_modules/esm-package/package.json
+++ /dev/null
@@ -1,9 +0,0 @@
-{
-  "name": "esm-package",
-  "exports": {
-    "./entry": {
-      "import": "./wrong.mjs",
-      "require": "./correct.js"
-    }
-  }
-}
diff --git a/test/integration/externals/node_modules/esm-package/wrong.mjs b/test/integration/externals/node_modules/esm-package/wrong.mjs
deleted file mode 100644
index 61f4f6857e2f1..0000000000000
--- a/test/integration/externals/node_modules/esm-package/wrong.mjs
+++ /dev/null
@@ -1,3 +0,0 @@
-if(typeof window === "undefined")
-    throw new Error("This shouldn't be used on server-side")
-export default "World";
diff --git a/test/integration/externals/node_modules/module-package/correct.js b/test/integration/externals/node_modules/module-package/correct.js
deleted file mode 100644
index cea6b73e3b7b1..0000000000000
--- a/test/integration/externals/node_modules/module-package/correct.js
+++ /dev/null
@@ -1 +0,0 @@
-module.exports = 'World'
diff --git a/test/integration/externals/node_modules/module-package/package.json b/test/integration/externals/node_modules/module-package/package.json
deleted file mode 100644
index 0fb9324a02f50..0000000000000
--- a/test/integration/externals/node_modules/module-package/package.json
+++ /dev/null
@@ -1,10 +0,0 @@
-{
-  "name": "module-package",
-  "exports": {
-    ".": {
-      "module": "./wrong.mjs",
-      "import": "./wrong.mjs",
-      "require": "./correct.js"
-    }
-  }
-}
diff --git a/test/integration/externals/node_modules/module-package/wrong.mjs b/test/integration/externals/node_modules/module-package/wrong.mjs
deleted file mode 100644
index 61f4f6857e2f1..0000000000000
--- a/test/integration/externals/node_modules/module-package/wrong.mjs
+++ /dev/null
@@ -1,3 +0,0 @@
-if(typeof window === "undefined")
-    throw new Error("This shouldn't be used on server-side")
-export default "World";
diff --git a/test/integration/externals/node_modules/preact/compat.js b/test/integration/externals/node_modules/preact/compat.js
deleted file mode 100644
index 41152fe16598d..0000000000000
--- a/test/integration/externals/node_modules/preact/compat.js
+++ /dev/null
@@ -1 +0,0 @@
-throw new Error('Should not be executed')
diff --git a/test/integration/externals/pages/ssg.js b/test/integration/externals/pages/ssg.js
deleted file mode 100644
index 51e9724dd0627..0000000000000
--- a/test/integration/externals/pages/ssg.js
+++ /dev/null
@@ -1,17 +0,0 @@
-import React from 'preact/compat'
-import World1 from 'esm-package/entry'
-import World2 from 'module-package'
-
-export async function getStaticProps() {
-  return {
-    props: {},
-  }
-}
-
-export default function Index(props) {
-  return (
-    <div>
-      Hello {World1}+{World2}
-    </div>
-  )
-}
diff --git a/test/integration/externals/pages/ssr.js b/test/integration/externals/pages/ssr.js
deleted file mode 100644
index 99b6437c0035c..0000000000000
--- a/test/integration/externals/pages/ssr.js
+++ /dev/null
@@ -1,15 +0,0 @@
-import React from 'preact/compat'
-import World1 from 'esm-package/entry'
-import World2 from 'module-package'
-
-export function getServerSideProps() {
-  return {}
-}
-
-export default function Index(props) {
-  return (
-    <div>
-      Hello {World1}+{World2}
-    </div>
-  )
-}
diff --git a/test/integration/externals/pages/static.js b/test/integration/externals/pages/static.js
deleted file mode 100644
index d4cb310b28931..0000000000000
--- a/test/integration/externals/pages/static.js
+++ /dev/null
@@ -1,11 +0,0 @@
-import React from 'preact/compat'
-import World1 from 'esm-package/entry'
-import World2 from 'module-package'
-
-export default function Index(props) {
-  return (
-    <div>
-      Hello {World1}+{World2}
-    </div>
-  )
-}
diff --git a/test/integration/externals/test/index.test.js b/test/integration/externals/test/index.test.js
deleted file mode 100644
index cbf3798772d23..0000000000000
--- a/test/integration/externals/test/index.test.js
+++ /dev/null
@@ -1,42 +0,0 @@
-/* eslint-env jest */
-
-import fs from 'fs-extra'
-import { join } from 'path'
-import {
-  nextBuild,
-  findPort,
-  nextStart,
-  killApp,
-  renderViaHTTP,
-} from 'next-test-utils'
-
-const appDir = join(__dirname, '../')
-let appPort
-let app
-
-describe('Handle ESM externals', () => {
-  beforeAll(async () => {
-    await fs.remove(join(appDir, '.next'))
-    await nextBuild(appDir)
-    appPort = await findPort()
-    app = await nextStart(appDir, appPort)
-  })
-  afterAll(() => killApp(app))
-
-  const expected = /Hello <!-- -->World<!-- -->\+<!-- -->World/
-
-  it('should render the static page', async () => {
-    const html = await renderViaHTTP(appPort, '/static')
-    expect(html).toMatch(expected)
-  })
-
-  it('should render the ssr page', async () => {
-    const html = await renderViaHTTP(appPort, '/ssr')
-    expect(html).toMatch(expected)
-  })
-
-  it('should render the ssg page', async () => {
-    const html = await renderViaHTTP(appPort, '/ssg')
-    expect(html).toMatch(expected)
-  })
-})