diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/input/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/input/next.config.js
new file mode 100644
index 0000000000000..06217557737ac
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/input/next.config.js
@@ -0,0 +1,21 @@
+/**
+ * @type {import('next').NextConfig}
+ */
+module.exports = {
+  reactStrictMode: true,
+
+  images: {
+    loader: "cloudinary",
+    path: "https://example.com/"
+  },
+
+  async redirects() {
+    return [
+      {
+        source: '/source',
+        destination: '/dest',
+        permanent: true,
+      },
+    ];
+  },
+}
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/cloudinary-loader.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/cloudinary-loader.js
new file mode 100644
index 0000000000000..f0ac0c3209d6b
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/cloudinary-loader.js
@@ -0,0 +1,6 @@
+const normalizeSrc = (src) => src[0] === '/' ? src.slice(1) : src
+export default function cloudinaryLoader({ src, width, quality }) {
+const params = ['f_auto', 'c_limit', 'w_' + width, 'q_' + (quality || 'auto')]
+const paramsString = params.join(',') + '/'
+return 'https://example.com/' + paramsString + normalizeSrc(src)
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/next.config.js
new file mode 100644
index 0000000000000..9430e62d4e6e0
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/many-keys/output/next.config.js
@@ -0,0 +1,21 @@
+/**
+ * @type {import('next').NextConfig}
+ */
+module.exports = {
+  reactStrictMode: true,
+
+  images: {
+    loader: "custom",
+    loaderFile: "./cloudinary-loader.js"
+  },
+
+  async redirects() {
+    return [
+      {
+        source: '/source',
+        destination: '/dest',
+        permanent: true,
+      },
+    ];
+  },
+}
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app1/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app1/next.config.js
new file mode 100644
index 0000000000000..0a5810c97c6b3
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app1/next.config.js
@@ -0,0 +1,6 @@
+module.exports = {
+  images: {
+    loader: "imgix",
+    path: "https://example.com/"
+  },
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app2/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app2/next.config.js
new file mode 100644
index 0000000000000..eba596451330a
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/input/app2/next.config.js
@@ -0,0 +1,6 @@
+module.exports = {
+  images: {
+    loader: "cloudinary",
+    path: "https://example.com/"
+  },
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/imgix-loader.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/imgix-loader.js
new file mode 100644
index 0000000000000..22468f5a87f5d
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/imgix-loader.js
@@ -0,0 +1,10 @@
+const normalizeSrc = (src) => src[0] === '/' ? src.slice(1) : src
+export default function imgixLoader({ src, width, quality }) {
+const url = new URL('https://example.com/' + normalizeSrc(src))
+const params = url.searchParams
+params.set('auto', params.getAll('auto').join(',') || 'format')
+params.set('fit', params.get('fit') || 'max')
+params.set('w', params.get('w') || width.toString())
+if (quality) { params.set('q', quality.toString()) }
+return url.href
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/next.config.js
new file mode 100644
index 0000000000000..28ec52518cef4
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app1/next.config.js
@@ -0,0 +1,6 @@
+module.exports = {
+  images: {
+    loader: "custom",
+    loaderFile: "./imgix-loader.js"
+  },
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/cloudinary-loader.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/cloudinary-loader.js
new file mode 100644
index 0000000000000..f0ac0c3209d6b
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/cloudinary-loader.js
@@ -0,0 +1,6 @@
+const normalizeSrc = (src) => src[0] === '/' ? src.slice(1) : src
+export default function cloudinaryLoader({ src, width, quality }) {
+const params = ['f_auto', 'c_limit', 'w_' + width, 'q_' + (quality || 'auto')]
+const paramsString = params.join(',') + '/'
+return 'https://example.com/' + paramsString + normalizeSrc(src)
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/next.config.js b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/next.config.js
new file mode 100644
index 0000000000000..28175db3e45c9
--- /dev/null
+++ b/packages/next-codemod/transforms/__testfixtures__/next-image-experimental-loader/monorepo/output/app2/next.config.js
@@ -0,0 +1,6 @@
+module.exports = {
+  images: {
+    loader: "custom",
+    loaderFile: "./cloudinary-loader.js"
+  },
+}
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/__tests__/next-image-experimental-loader.test.js b/packages/next-codemod/transforms/__tests__/next-image-experimental-loader.test.js
index a80f8c5bc1b94..cb1bb262b5594 100644
--- a/packages/next-codemod/transforms/__tests__/next-image-experimental-loader.test.js
+++ b/packages/next-codemod/transforms/__tests__/next-image-experimental-loader.test.js
@@ -1,36 +1,46 @@
 /* global jest */
 jest.autoMockOff()
 const Runner = require('jscodeshift/dist/Runner');
-const { cp, mkdir, rm, readdir, readFile } = require('fs/promises')
+const { cp, mkdir, mkdtemp, rm, readdir, readFile, stat } = require('fs/promises')
 const { readdirSync } = require('fs')
+const { tmpdir } = require('os')
 const { join } = require('path')
 
 const fixtureDir = join(__dirname, '..', '__testfixtures__', 'next-image-experimental-loader')
 const transform = join(__dirname, '..', 'next-image-experimental.js')
-const opts = { recursive: true }
+const opts = { recursive: true, force: true }
 
 async function toObj(dir) {
   const obj = {}
   const files = await readdir(dir)
   for (const file of files) {
-    obj[file] = await readFile(join(dir, file), 'utf8')
+    const filePath = join(dir, file)
+    const s = await stat(filePath)
+    if (s.isDirectory()) {
+      obj[file] = await toObj(filePath)
+    } else {
+      obj[file] = await readFile(filePath, 'utf8')
+    }
   }
   return obj
 }
 
 it.each(readdirSync(fixtureDir))('should transform loader %s', async (loader) => {
+  const tmp = await mkdtemp(join(tmpdir(), `next-image-experimental-${loader}-`))
+  const originalCwd = process.cwd()
   try {
-    await mkdir(join(fixtureDir, 'tmp'), opts)
-    await cp(join(fixtureDir, loader, 'input'), join(fixtureDir, 'tmp'), opts)
-    process.chdir(join(fixtureDir, 'tmp'))
+    await mkdir(tmp, opts)
+    await cp(join(fixtureDir, loader, 'input'), tmp, opts)
+    process.chdir(tmp)
     const result = await Runner.run(transform, [`.`], {})
     expect(result.error).toBe(0)
     expect(
-      await toObj(join(fixtureDir, 'tmp'))
+      await toObj(tmp)
     ).toStrictEqual(
       await toObj(join(fixtureDir, loader, 'output'))
     )
   } finally {
-    await rm(join(fixtureDir, 'tmp'), opts)
+    await rm(tmp, opts)
+    process.chdir(originalCwd)
   }
 })
\ No newline at end of file
diff --git a/packages/next-codemod/transforms/next-image-experimental.ts b/packages/next-codemod/transforms/next-image-experimental.ts
index c26d471001b22..96bdd384f1ca9 100644
--- a/packages/next-codemod/transforms/next-image-experimental.ts
+++ b/packages/next-codemod/transforms/next-image-experimental.ts
@@ -1,3 +1,4 @@
+import { join, parse } from 'path'
 import { writeFileSync } from 'fs'
 import type {
   API,
@@ -148,56 +149,65 @@ function findAndReplaceProps(
     })
 }
 
-function nextConfigTransformer(j: JSCodeshift, root: Collection) {
+function nextConfigTransformer(
+  j: JSCodeshift,
+  root: Collection,
+  appDir: string
+) {
   let pathPrefix = ''
   let loaderType = ''
   root.find(j.ObjectExpression).forEach((o) => {
-    const [images] = o.value.properties || []
-    if (
-      images.type === 'ObjectProperty' &&
-      images.key.type === 'Identifier' &&
-      images.key.name === 'images' &&
-      images.value.type === 'ObjectExpression' &&
-      images.value.properties
-    ) {
-      const properties = images.value.properties.filter((p) => {
-        if (
-          p.type === 'ObjectProperty' &&
-          p.key.type === 'Identifier' &&
-          p.key.name === 'loader' &&
-          'value' in p.value
-        ) {
+    ;(o.value.properties || []).forEach((images) => {
+      if (
+        images.type === 'ObjectProperty' &&
+        images.key.type === 'Identifier' &&
+        images.key.name === 'images' &&
+        images.value.type === 'ObjectExpression' &&
+        images.value.properties
+      ) {
+        const properties = images.value.properties.filter((p) => {
           if (
-            p.value.value === 'imgix' ||
-            p.value.value === 'cloudinary' ||
-            p.value.value === 'akamai'
+            p.type === 'ObjectProperty' &&
+            p.key.type === 'Identifier' &&
+            p.key.name === 'loader' &&
+            'value' in p.value
           ) {
-            loaderType = p.value.value
-            p.value.value = 'custom'
+            if (
+              p.value.value === 'imgix' ||
+              p.value.value === 'cloudinary' ||
+              p.value.value === 'akamai'
+            ) {
+              loaderType = p.value.value
+              p.value.value = 'custom'
+            }
           }
-        }
-        if (
-          p.type === 'ObjectProperty' &&
-          p.key.type === 'Identifier' &&
-          p.key.name === 'path' &&
-          'value' in p.value
-        ) {
-          pathPrefix = String(p.value.value)
-          return false
-        }
-        return true
-      })
-      if (loaderType && pathPrefix) {
-        let filename = `./${loaderType}-loader.js`
-        properties.push(
-          j.property('init', j.identifier('loaderFile'), j.literal(filename))
-        )
-        images.value.properties = properties
-        const normalizeSrc = `const normalizeSrc = (src) => src[0] === '/' ? src.slice(1) : src`
-        if (loaderType === 'imgix') {
-          writeFileSync(
-            filename,
-            `${normalizeSrc}
+          if (
+            p.type === 'ObjectProperty' &&
+            p.key.type === 'Identifier' &&
+            p.key.name === 'path' &&
+            'value' in p.value
+          ) {
+            pathPrefix = String(p.value.value)
+            return false
+          }
+          return true
+        })
+        if (loaderType && pathPrefix) {
+          const importSpecifier = `./${loaderType}-loader.js`
+          const filePath = join(appDir, importSpecifier)
+          properties.push(
+            j.property(
+              'init',
+              j.identifier('loaderFile'),
+              j.literal(importSpecifier)
+            )
+          )
+          images.value.properties = properties
+          const normalizeSrc = `const normalizeSrc = (src) => src[0] === '/' ? src.slice(1) : src`
+          if (loaderType === 'imgix') {
+            writeFileSync(
+              filePath,
+              `${normalizeSrc}
             export default function imgixLoader({ src, width, quality }) {
               const url = new URL('${pathPrefix}' + normalizeSrc(src))
               const params = url.searchParams
@@ -207,37 +217,38 @@ function nextConfigTransformer(j: JSCodeshift, root: Collection) {
               if (quality) { params.set('q', quality.toString()) }
               return url.href
             }`
-              .split('\n')
-              .map((l) => l.trim())
-              .join('\n')
-          )
-        } else if (loaderType === 'cloudinary') {
-          writeFileSync(
-            filename,
-            `${normalizeSrc}
+                .split('\n')
+                .map((l) => l.trim())
+                .join('\n')
+            )
+          } else if (loaderType === 'cloudinary') {
+            writeFileSync(
+              filePath,
+              `${normalizeSrc}
             export default function cloudinaryLoader({ src, width, quality }) {
               const params = ['f_auto', 'c_limit', 'w_' + width, 'q_' + (quality || 'auto')]
               const paramsString = params.join(',') + '/'
               return '${pathPrefix}' + paramsString + normalizeSrc(src)
             }`
-              .split('\n')
-              .map((l) => l.trim())
-              .join('\n')
-          )
-        } else if (loaderType === 'akamai') {
-          writeFileSync(
-            filename,
-            `${normalizeSrc}
+                .split('\n')
+                .map((l) => l.trim())
+                .join('\n')
+            )
+          } else if (loaderType === 'akamai') {
+            writeFileSync(
+              filePath,
+              `${normalizeSrc}
             export default function akamaiLoader({ src, width, quality }) {
               return '${pathPrefix}' + normalizeSrc(src) + '?imwidth=' + width
             }`
-              .split('\n')
-              .map((l) => l.trim())
-              .join('\n')
-          )
+                .split('\n')
+                .map((l) => l.trim())
+                .join('\n')
+            )
+          }
         }
       }
-    }
+    })
   })
   return root
 }
@@ -250,14 +261,15 @@ export default function transformer(
   const j = api.jscodeshift.withParser('tsx')
   const root = j(file.source)
 
+  const parsed = parse(file.path || '/')
   const isConfig =
-    file.path === 'next.config.js' ||
-    file.path === 'next.config.ts' ||
-    file.path === 'next.config.mjs' ||
-    file.path === 'next.config.cjs'
+    parsed.base === 'next.config.js' ||
+    parsed.base === 'next.config.ts' ||
+    parsed.base === 'next.config.mjs' ||
+    parsed.base === 'next.config.cjs'
 
   if (isConfig) {
-    const result = nextConfigTransformer(j, root)
+    const result = nextConfigTransformer(j, root, parsed.dir)
     return result.toSource()
   }