diff --git a/README.md b/README.md
index 03bf8a38b..008f05c04 100644
--- a/README.md
+++ b/README.md
@@ -410,6 +410,7 @@ Options
   --onFailure           Run a command on a failed build
   --noClean             Don't clean the dist folder
   --transpileOnly       Skip type checking
+  --preserveModules     Preserve module structure; do not bundle
   -h, --help            Displays this message
 
 Examples
@@ -423,6 +424,7 @@ Examples
   $ tsdx watch --onSuccess "echo Successful build!"
   $ tsdx watch --onFailure "echo The build failed!"
   $ tsdx watch --transpileOnly
+  $ tsdx watch --preserveModules
 ```
 
 ### `tsdx build`
@@ -442,6 +444,7 @@ Options
   --extractErrors       Opt-in to extracting invariant error codes
   --tsconfig            Specify your custom tsconfig path (default <root-folder>/tsconfig.json)
   --transpileOnly       Skip type checking
+  --preserveModules     Preserve module structure; do not bundle
   -h, --help            Displays this message
 
 Examples
@@ -452,6 +455,7 @@ Examples
   $ tsdx build --extractErrors
   $ tsdx build --tsconfig ./tsconfig.foo.json
   $ tsdx build --transpileOnly
+  $ tsdx build --preserveModules
 ```
 
 ### `tsdx test`
diff --git a/src/createRollupConfig.ts b/src/createRollupConfig.ts
index 0092baf28..9fca8be5e 100644
--- a/src/createRollupConfig.ts
+++ b/src/createRollupConfig.ts
@@ -43,6 +43,18 @@ export async function createRollupConfig(
     .filter(Boolean)
     .join('.');
 
+  const outputDir = [
+    `${paths.appDist}/${opts.format}`,
+    opts.env,
+    shouldMinify ? 'min' : '',
+  ]
+    .filter(Boolean)
+    .join('/');
+
+  const output = opts.preserveModules
+    ? { dir: outputDir }
+    : { file: outputName };
+
   let tsconfigJSON;
   try {
     tsconfigJSON = await fs.readJSON(opts.tsconfig || paths.tsconfigJson);
@@ -79,10 +91,11 @@ export async function createRollupConfig(
       // Punchline....Don't use getters and setters
       propertyReadSideEffects: false,
     },
+    preserveModules: opts.preserveModules,
     // Establish Rollup output
     output: {
-      // Set filenames of the consumer's package
-      file: outputName,
+      // Set filenames or directories of the consumer's package
+      ...output,
       // Pass through the file format
       format: opts.format,
       // Do not let Rollup call Object.freeze() on namespace import objects
diff --git a/src/index.ts b/src/index.ts
index 58d8d6cf4..790a88af0 100755
--- a/src/index.ts
+++ b/src/index.ts
@@ -285,6 +285,8 @@ prog
   .example('build --transpileOnly')
   .option('--extractErrors', 'Extract invariant errors to ./errors/codes.json.')
   .example('build --extractErrors')
+  .option('--preserveModules', 'Preserve module structure; do not bundle')
+  .example('watch --preserveModules')
   .action(async (dirtyOpts: WatchOpts) => {
     const opts = await normalizeOpts(dirtyOpts);
     const buildConfigs = await createBuildConfigs(opts);
@@ -393,6 +395,8 @@ prog
   .example(
     'build --extractErrors=https://reactjs.org/docs/error-decoder.html?invariant='
   )
+  .option('--preserveModules', 'Preserve module structure; do not bundle')
+  .example('build --preserveModules')
   .action(async (dirtyOpts: BuildOpts) => {
     const opts = await normalizeOpts(dirtyOpts);
     const buildConfigs = await createBuildConfigs(opts);
diff --git a/src/types.ts b/src/types.ts
index e6878897e..936c2944b 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -1,4 +1,6 @@
 interface SharedOpts {
+  // Should preserve source structure? If true, files will not be bundled
+  preserveModules: false;
   // JS target
   target: 'node' | 'browser';
   // Path to tsconfig file
diff --git a/test/tests/tsdx-build.test.js b/test/tests/tsdx-build.test.js
index b91bc9808..28c79d578 100644
--- a/test/tests/tsdx-build.test.js
+++ b/test/tests/tsdx-build.test.js
@@ -102,6 +102,32 @@ describe('tsdx build', () => {
     expect(code).toBe(0);
   });
 
+  it('should preserve modules after compilation', () => {
+    util.setupStageWithFixture(stageName, 'build-default');
+
+    const output = shell.exec(
+      'node ../dist/index.js build --format esm,cjs --preserveModules'
+    );
+
+    // ESM build
+    expect(shell.test('-f', 'dist/esm/index.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/esm/foo.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/esm/index.d.ts')).toBeTruthy();
+    expect(shell.test('-f', 'dist/esm/foo.d.ts')).toBeTruthy();
+    // CJS dev build
+    expect(shell.test('-f', 'dist/cjs/development/index.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/development/foo.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/development/index.d.ts')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/development/foo.d.ts')).toBeTruthy();
+    // CJS prod build
+    expect(shell.test('-f', 'dist/cjs/production/min/index.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/production/min/foo.js')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/production/min/index.d.ts')).toBeTruthy();
+    expect(shell.test('-f', 'dist/cjs/production/min/foo.d.ts')).toBeTruthy();
+
+    expect(output.code).toBe(0);
+  });
+
   afterEach(() => {
     util.teardownStage(stageName);
   });