diff --git a/app/react/src/server/__mocks__/mockConfig.js b/app/react/src/server/__mocks__/mockConfig.js
index 509fd2c7cbfd..34b2b5df9687 100644
--- a/app/react/src/server/__mocks__/mockConfig.js
+++ b/app/react/src/server/__mocks__/mockConfig.js
@@ -8,6 +8,7 @@ export default {
     alias: {
       baseAlias: 'base-alias',
     },
+    modules: [],
   },
   module: {
     noParse: /jquery/,
diff --git a/app/react/src/server/__snapshots__/cra-config.test.js.snap b/app/react/src/server/__snapshots__/cra-config.test.js.snap
index 13c99b384187..73d95cb829ec 100644
--- a/app/react/src/server/__snapshots__/cra-config.test.js.snap
+++ b/app/react/src/server/__snapshots__/cra-config.test.js.snap
@@ -46,6 +46,7 @@ Object {
       ".js",
       ".jsx",
     ],
+    "modules": Array [],
   },
   "resolveLoader": Object {
     "modules": Array [
@@ -115,6 +116,7 @@ Object {
       ".ts",
       ".tsx",
     ],
+    "modules": Array [],
   },
   "resolveLoader": Object {
     "modules": Array [
diff --git a/app/react/src/server/cra-config.js b/app/react/src/server/cra-config.js
index 403458403e5b..15be0ff52571 100644
--- a/app/react/src/server/cra-config.js
+++ b/app/react/src/server/cra-config.js
@@ -5,6 +5,10 @@ import MiniCssExtractPlugin from 'mini-css-extract-plugin';
 import { normalizeCondition } from 'webpack/lib/RuleSet';
 import { logger } from '@storybook/node-logger';
 
+const JSCONFIG = 'jsconfig.json';
+const TSCONFIG = 'tsconfig.json';
+
+const appDirectory = fs.realpathSync(process.cwd());
 const cssExtensions = ['.css', '.scss', '.sass'];
 const cssModuleExtensions = ['.module.css', '.module.scss', '.module.sass'];
 const typeScriptExtensions = ['.ts', '.tsx'];
@@ -14,7 +18,6 @@ let reactScriptsPath;
 export function getReactScriptsPath({ noCache } = {}) {
   if (reactScriptsPath && !noCache) return reactScriptsPath;
 
-  const appDirectory = fs.realpathSync(process.cwd());
   let reactScriptsScriptPath = fs.realpathSync(
     path.join(appDirectory, '/node_modules/.bin/react-scripts')
   );
@@ -106,6 +109,23 @@ export const getTypeScriptRules = (webpackConfigRules, configDir) => {
   ];
 };
 
+export const getModulePath = () => {
+  // As with CRA, we only support `jsconfig.json` if `tsconfig.json` doesn't exist.
+  let configName;
+  if (fs.existsSync(path.join(appDirectory, TSCONFIG))) {
+    configName = TSCONFIG;
+  } else if (fs.existsSync(path.join(appDirectory, JSCONFIG))) {
+    configName = JSCONFIG;
+  }
+
+  if (configName) {
+    // eslint-disable-next-line import/no-dynamic-require,global-require
+    const config = require(path.join(appDirectory, configName));
+    return config.compilerOptions && config.compilerOptions.baseUrl;
+  }
+  return false;
+};
+
 function mergePlugins(basePlugins, additionalPlugins) {
   return [...basePlugins, ...additionalPlugins].reduce((plugins, plugin) => {
     if (
@@ -146,6 +166,10 @@ export function applyCRAWebpackConfig(baseConfig, configDir) {
   const tsExtensions = hasTsSupport ? typeScriptExtensions : [];
   const extensions = [...cssExtensions, ...tsExtensions];
 
+  // Support for this was added in `react-scripts@3.0.0`.
+  // https://github.com/facebook/create-react-app/pull/6656
+  const modulePath = isReactScriptsInstalled('3.0.0') && getModulePath();
+
   // Remove any rules from baseConfig that test true for any one of the extensions
   const filteredBaseRules = baseConfig.module.rules.filter(
     rule => !rule.test || !extensions.some(normalizeCondition(rule.test))
@@ -175,6 +199,7 @@ export function applyCRAWebpackConfig(baseConfig, configDir) {
     resolve: {
       ...baseConfig.resolve,
       extensions: [...baseConfig.resolve.extensions, ...tsExtensions],
+      modules: baseConfig.resolve.modules.concat(modulePath || []),
     },
     resolveLoader: {
       modules: ['node_modules', path.join(getReactScriptsPath(), 'node_modules')],
diff --git a/app/react/src/server/cra-config.test.js b/app/react/src/server/cra-config.test.js
index 659b632ac1d6..f7afea9a12e8 100644
--- a/app/react/src/server/cra-config.test.js
+++ b/app/react/src/server/cra-config.test.js
@@ -1,13 +1,18 @@
 import fs from 'fs';
 import path from 'path';
-import { getReactScriptsPath, getTypeScriptRules, applyCRAWebpackConfig } from './cra-config';
+import {
+  applyCRAWebpackConfig,
+  getModulePath,
+  getReactScriptsPath,
+  getTypeScriptRules,
+} from './cra-config';
 import mockRules from './__mocks__/mockRules';
 import mockConfig from './__mocks__/mockConfig';
 
 jest.mock('fs', () => ({
-  realpathSync: jest.fn(),
+  realpathSync: jest.fn(() => '/test-project'),
   readFileSync: jest.fn(),
-  existsSync: () => true,
+  existsSync: jest.fn(() => true),
 }));
 jest.mock('mini-css-extract-plugin', () => {});
 
@@ -16,11 +21,6 @@ const SCRIPT_PATH = '.bin/react-scripts';
 const stripCwd = loaderPath => loaderPath.replace(process.cwd(), '');
 
 describe('cra-config', () => {
-  beforeEach(() => {
-    fs.realpathSync.mockReset();
-    fs.realpathSync.mockImplementationOnce(() => '/test-project');
-  });
-
   describe('when used with the default react-scripts package', () => {
     beforeEach(() => {
       fs.realpathSync.mockImplementationOnce(filePath =>
@@ -94,6 +94,21 @@ exit $ret`
       const rules = getTypeScriptRules(mockRules, './.storybook');
       expect(rules[0].include.findIndex(string => string.includes('.storybook'))).toEqual(1);
     });
+
+    it('should get the baseUrl from a tsconfig.json', () => {
+      jest.spyOn(path, 'join').mockImplementation(() => 'project/tsconfig.json');
+      jest.mock(
+        'project/tsconfig.json',
+        () => ({
+          compilerOptions: {
+            baseUrl: 'src',
+          },
+        }),
+        { virtual: true }
+      );
+      expect(getModulePath()).toEqual('src');
+      path.join.mockRestore();
+    });
   });
 
   describe('when used with react-scripts < 2.1.0', () => {
diff --git a/examples/cra-ts-kitchen-sink/.env b/examples/cra-ts-kitchen-sink/.env
index e70a111949cd..34d70579f45a 100644
--- a/examples/cra-ts-kitchen-sink/.env
+++ b/examples/cra-ts-kitchen-sink/.env
@@ -1,2 +1,2 @@
 SKIP_PREFLIGHT_CHECK=true
-NODE_PATH=src
\ No newline at end of file
+NODE_PATH=src