diff --git a/src/cjs/index.ts b/src/cjs/index.ts
index f2ab5fe37..e119ec7d6 100644
--- a/src/cjs/index.ts
+++ b/src/cjs/index.ts
@@ -11,6 +11,7 @@ import type { TransformOptions } from 'esbuild';
 import { installSourceMapSupport } from '../source-map';
 import { transformSync, transformDynamicImport } from '../utils/transform';
 import { resolveTsPath } from '../utils/resolve-ts-path';
+import { isESM } from '../utils/esm-pattern';
 
 const isRelativePathPattern = /^\.{1,2}\//;
 const isTsFilePatten = /\.[cm]?tsx?$/;
@@ -33,29 +34,25 @@ const applySourceMap = installSourceMapSupport();
 const extensions = Module._extensions;
 const defaultLoader = extensions['.js'];
 
-const transformExtensions = [
-	'.js',
-	'.cjs',
+const typescriptExtensions = [
 	'.cts',
-	'.mjs',
 	'.mts',
 	'.ts',
 	'.tsx',
 	'.jsx',
 ];
 
+const transformExtensions = [
+	'.js',
+	'.cjs',
+	'.mjs',
+];
+
 const transformer = (
 	module: Module,
 	filePath: string,
 ) => {
-	const shouldTransformFile = transformExtensions.some(extension => filePath.endsWith(extension));
-	if (!shouldTransformFile) {
-		return defaultLoader(module, filePath);
-	}
-
-	/**
-	 * For tracking dependencies in watch mode
-	 */
+	// For tracking dependencies in watch mode
 	if (process.send) {
 		process.send({
 			type: 'dependency',
@@ -63,14 +60,25 @@ const transformer = (
 		});
 	}
 
-	let code = fs.readFileSync(filePath, 'utf8');
+	const transformTs = typescriptExtensions.some(extension => filePath.endsWith(extension));
+	const transformJs = transformExtensions.some(extension => filePath.endsWith(extension));
+	if (!transformTs && !transformJs) {
+		return defaultLoader(module, filePath);
+	}
 
+	let code = fs.readFileSync(filePath, 'utf8');
 	if (filePath.endsWith('.cjs')) {
+		// Contains native ESM check
 		const transformed = transformDynamicImport(filePath, code);
 		if (transformed) {
 			code = applySourceMap(transformed, filePath);
 		}
-	} else {
+	} else if (
+		transformTs
+
+		// CommonJS file but uses ESM import/export
+		|| isESM(code)
+	) {
 		const transformed = transformSync(
 			code,
 			filePath,
diff --git a/src/esm/loaders.ts b/src/esm/loaders.ts
index 6bde3ea38..d32239ef5 100644
--- a/src/esm/loaders.ts
+++ b/src/esm/loaders.ts
@@ -248,6 +248,10 @@ export const load: LoadHook = async function (
 	context,
 	defaultLoad,
 ) {
+	/*
+	Filter out node:*
+	Maybe only handle files that start with file://
+	*/
 	if (sendToParent) {
 		sendToParent({
 			type: 'dependency',
@@ -264,6 +268,7 @@ export const load: LoadHook = async function (
 
 	const loaded = await defaultLoad(url, context);
 
+	// CommonJS and Internal modules (e.g. node:*)
 	if (!loaded.source) {
 		return loaded;
 	}
diff --git a/src/utils/debug.ts b/src/utils/debug.ts
new file mode 100644
index 000000000..4fb70d6a4
--- /dev/null
+++ b/src/utils/debug.ts
@@ -0,0 +1,36 @@
+export const time = <Argument>(
+	name: string,
+	_function: (...args: Argument[]) => unknown,
+) => function (
+		this: unknown,
+		...args: Argument[]
+	) {
+		const timeStart = Date.now();
+		const logTimeElapsed = () => {
+			const elapsed = Date.now() - timeStart;
+
+			if (elapsed > 10) {
+			// console.log({
+			// 	name,
+			// 	args,
+			// 	elapsed,
+			// });
+			}
+		};
+
+		const result = Reflect.apply(_function, this, args);
+		if (
+			result
+		&& typeof result === 'object'
+		&& 'then' in result
+		) {
+			(result as Promise<unknown>).then(
+				logTimeElapsed,
+				// Ignore error in this chain
+				() => {},
+			);
+		} else {
+			logTimeElapsed();
+		}
+		return result;
+	};
diff --git a/src/utils/esm-pattern.ts b/src/utils/esm-pattern.ts
new file mode 100644
index 000000000..03541e1a1
--- /dev/null
+++ b/src/utils/esm-pattern.ts
@@ -0,0 +1,24 @@
+import { parseEsm } from './es-module-lexer';
+/*
+TODO: Add tests
+Catches:
+import a from 'b'
+import 'b';
+import('b');
+export{a};
+export default a;
+
+Doesn't catch:
+EXPORT{a}
+exports.a = 1
+module.exports = 1
+ */
+const esmPattern = /\b(?:import|export)\b/;
+
+export const isESM = (code: string) => {
+	if (esmPattern.test(code)) {
+		const [imports, exports] = parseEsm(code);
+		return imports.length > 0 || exports.length > 0;
+	}
+	return false;
+};
diff --git a/src/utils/transform/transform-dynamic-import.ts b/src/utils/transform/transform-dynamic-import.ts
index 7bc18bf17..682d56db2 100644
--- a/src/utils/transform/transform-dynamic-import.ts
+++ b/src/utils/transform/transform-dynamic-import.ts
@@ -2,25 +2,33 @@ import MagicString from 'magic-string';
 import type { RawSourceMap } from '../../source-map';
 import { parseEsm } from '../es-module-lexer';
 
-const checkEsModule = `.then((mod)=>{
-	const exports = Object.keys(mod);
-	if(
-		exports.length===1&&exports[0]==='default'&&mod.default&&mod.default.__esModule
-	){
-		return mod.default
+const handlerName = '___tsxInteropDynamicImport';
+const handleEsModuleFunction = `function ${handlerName}${(function (imported: Record<string, unknown>) {
+	const d = 'default';
+	const exports = Object.keys(imported);
+	if (
+		exports.length === 1
+		&& exports[0] === d
+		&& imported[d]
+		&& typeof imported[d] === 'object'
+		&& '__esModule' in imported[d]
+	) {
+		return imported[d];
 	}
-	return mod
-})`
-	// replaceAll is not supported in Node 12
-	// eslint-disable-next-line unicorn/prefer-string-replace-all
-	.replace(/[\n\t]+/g, '');
 
-export function transformDynamicImport(
+	return imported;
+}).toString().slice('function'.length)}`;
+
+const handleDynamicImport = `.then(${handlerName})`;
+
+const esmImportPattern = /\bimport\b/;
+
+export const transformDynamicImport = (
 	filePath: string,
 	code: string,
-) {
+) => {
 	// Naive check
-	if (!code.includes('import')) {
+	if (!esmImportPattern.test(code)) {
 		return;
 	}
 
@@ -33,14 +41,25 @@ export function transformDynamicImport(
 	const magicString = new MagicString(code);
 
 	for (const dynamicImport of dynamicImports) {
-		magicString.appendRight(dynamicImport.se, checkEsModule);
+		magicString.appendRight(dynamicImport.se, handleDynamicImport);
 	}
 
+	magicString.append(handleEsModuleFunction);
+
+	const newCode = magicString.toString();
+	const newMap = magicString.generateMap({
+		source: filePath,
+		includeContent: false,
+
+		/**
+		 * The performance hit on this is very high
+		 * Since we're only transforming import()s, I think this may be overkill
+		 */
+		// hires: 'boundary',
+	}) as unknown as RawSourceMap;
+
 	return {
-		code: magicString.toString(),
-		map: magicString.generateMap({
-			source: filePath,
-			hires: true,
-		}) as unknown as RawSourceMap,
+		code: newCode,
+		map: newMap,
 	};
-}
+};