diff --git a/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-all-output.txt b/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-all-output.txt
new file mode 100644
index 0000000000000..5633cf0b0f75a
--- /dev/null
+++ b/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-all-output.txt
@@ -0,0 +1,13 @@
+import { c as _c } from "react/compiler-runtime"; // 
+        @compilationMode(all)
+function nonReactFn() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = {};
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
\ No newline at end of file
diff --git a/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-infer-output.txt b/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-infer-output.txt
new file mode 100644
index 0000000000000..b50c37fc4e48f
--- /dev/null
+++ b/compiler/apps/playground/__tests__/e2e/__snapshots__/page.spec.ts/compilationMode-infer-output.txt
@@ -0,0 +1,4 @@
+// @compilationMode(infer)
+function nonReactFn() {
+  return {};
+}
\ No newline at end of file
diff --git a/compiler/apps/playground/__tests__/e2e/page.spec.ts b/compiler/apps/playground/__tests__/e2e/page.spec.ts
index 05fe96d4b9048..3ba082cf62972 100644
--- a/compiler/apps/playground/__tests__/e2e/page.spec.ts
+++ b/compiler/apps/playground/__tests__/e2e/page.spec.ts
@@ -79,6 +79,24 @@ function Foo() {
 // @flow
 function useFoo(propVal: {+baz: number}) {
   return <div>{(propVal.baz as number)}</div>;
+}
+    `,
+    noFormat: true,
+  },
+  {
+    name: 'compilationMode-infer',
+    input: `// @compilationMode(infer)
+function nonReactFn() {
+  return {};
+}
+    `,
+    noFormat: true,
+  },
+  {
+    name: 'compilationMode-all',
+    input: `// @compilationMode(all)
+function nonReactFn() {
+  return {};
 }
     `,
     noFormat: true,
diff --git a/compiler/apps/playground/components/Editor/EditorImpl.tsx b/compiler/apps/playground/components/Editor/EditorImpl.tsx
index 8c782efe54d4e..8c386116865af 100644
--- a/compiler/apps/playground/components/Editor/EditorImpl.tsx
+++ b/compiler/apps/playground/components/Editor/EditorImpl.tsx
@@ -20,7 +20,6 @@ import BabelPluginReactCompiler, {
   CompilerPipelineValue,
   parsePluginOptions,
 } from 'babel-plugin-react-compiler/src';
-import {type EnvironmentConfig} from 'babel-plugin-react-compiler/src/HIR/Environment';
 import clsx from 'clsx';
 import invariant from 'invariant';
 import {useSnackbar} from 'notistack';
@@ -69,23 +68,14 @@ function parseInput(
 function invokeCompiler(
   source: string,
   language: 'flow' | 'typescript',
-  environment: EnvironmentConfig,
-  logIR: (pipelineValue: CompilerPipelineValue) => void,
+  options: PluginOptions,
 ): CompilerTransformOutput {
-  const opts: PluginOptions = parsePluginOptions({
-    logger: {
-      debugLogIRs: logIR,
-      logEvent: () => {},
-    },
-    environment,
-    panicThreshold: 'all_errors',
-  });
   const ast = parseInput(source, language);
   let result = transformFromAstSync(ast, source, {
     filename: '_playgroundFile.js',
     highlightCode: false,
     retainLines: true,
-    plugins: [[BabelPluginReactCompiler, opts]],
+    plugins: [[BabelPluginReactCompiler, options]],
     ast: true,
     sourceType: 'module',
     configFile: false,
@@ -171,51 +161,59 @@ function compile(source: string): [CompilerOutput, 'flow' | 'typescript'] {
   try {
     // Extract the first line to quickly check for custom test directives
     const pragma = source.substring(0, source.indexOf('\n'));
-    const config = parseConfigPragmaForTests(pragma);
-
-    transformOutput = invokeCompiler(
-      source,
-      language,
-      {...config, customHooks: new Map([...COMMON_HOOKS])},
-      result => {
-        switch (result.kind) {
-          case 'ast': {
-            break;
-          }
-          case 'hir': {
-            upsert({
-              kind: 'hir',
-              fnName: result.value.id,
-              name: result.name,
-              value: printFunctionWithOutlined(result.value),
-            });
-            break;
-          }
-          case 'reactive': {
-            upsert({
-              kind: 'reactive',
-              fnName: result.value.id,
-              name: result.name,
-              value: printReactiveFunctionWithOutlined(result.value),
-            });
-            break;
-          }
-          case 'debug': {
-            upsert({
-              kind: 'debug',
-              fnName: null,
-              name: result.name,
-              value: result.value,
-            });
-            break;
-          }
-          default: {
-            const _: never = result;
-            throw new Error(`Unhandled result ${result}`);
-          }
+    const logIR = (result: CompilerPipelineValue): void => {
+      switch (result.kind) {
+        case 'ast': {
+          break;
+        }
+        case 'hir': {
+          upsert({
+            kind: 'hir',
+            fnName: result.value.id,
+            name: result.name,
+            value: printFunctionWithOutlined(result.value),
+          });
+          break;
+        }
+        case 'reactive': {
+          upsert({
+            kind: 'reactive',
+            fnName: result.value.id,
+            name: result.name,
+            value: printReactiveFunctionWithOutlined(result.value),
+          });
+          break;
         }
+        case 'debug': {
+          upsert({
+            kind: 'debug',
+            fnName: null,
+            name: result.name,
+            value: result.value,
+          });
+          break;
+        }
+        default: {
+          const _: never = result;
+          throw new Error(`Unhandled result ${result}`);
+        }
+      }
+    };
+    const parsedOptions = parseConfigPragmaForTests(pragma, {
+      compilationMode: 'infer',
+    });
+    const opts: PluginOptions = parsePluginOptions({
+      ...parsedOptions,
+      environment: {
+        ...parsedOptions.environment,
+        customHooks: new Map([...COMMON_HOOKS]),
       },
-    );
+      logger: {
+        debugLogIRs: logIR,
+        logEvent: () => {},
+      },
+    });
+    transformOutput = invokeCompiler(source, language, opts);
   } catch (err) {
     /**
      * error might be an invariant violation or other runtime error
diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
index f3f426df56e44..f1db567660ec9 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
@@ -9,7 +9,13 @@ import * as t from '@babel/types';
 import {ZodError, z} from 'zod';
 import {fromZodError} from 'zod-validation-error';
 import {CompilerError} from '../CompilerError';
-import {Logger} from '../Entrypoint';
+import {
+  CompilationMode,
+  Logger,
+  PanicThresholdOptions,
+  parsePluginOptions,
+  PluginOptions,
+} from '../Entrypoint';
 import {Err, Ok, Result} from '../Utils/Result';
 import {
   DEFAULT_GLOBALS,
@@ -683,7 +689,9 @@ const testComplexConfigDefaults: PartialEnvironmentConfig = {
 /**
  * For snap test fixtures and playground only.
  */
-export function parseConfigPragmaForTests(pragma: string): EnvironmentConfig {
+function parseConfigPragmaEnvironmentForTest(
+  pragma: string,
+): EnvironmentConfig {
   const maybeConfig: any = {};
   // Get the defaults to programmatically check for boolean properties
   const defaultConfig = EnvironmentConfigSchema.parse({});
@@ -749,6 +757,48 @@ export function parseConfigPragmaForTests(pragma: string): EnvironmentConfig {
     suggestions: null,
   });
 }
+export function parseConfigPragmaForTests(
+  pragma: string,
+  defaults: {
+    compilationMode: CompilationMode;
+  },
+): PluginOptions {
+  const environment = parseConfigPragmaEnvironmentForTest(pragma);
+  let compilationMode: CompilationMode = defaults.compilationMode;
+  let panicThreshold: PanicThresholdOptions = 'all_errors';
+  for (const token of pragma.split(' ')) {
+    if (!token.startsWith('@')) {
+      continue;
+    }
+    switch (token) {
+      case '@compilationMode(annotation)': {
+        compilationMode = 'annotation';
+        break;
+      }
+      case '@compilationMode(infer)': {
+        compilationMode = 'infer';
+        break;
+      }
+      case '@compilationMode(all)': {
+        compilationMode = 'all';
+        break;
+      }
+      case '@compilationMode(syntax)': {
+        compilationMode = 'syntax';
+        break;
+      }
+      case '@panicThreshold(none)': {
+        panicThreshold = 'none';
+        break;
+      }
+    }
+  }
+  return parsePluginOptions({
+    environment,
+    compilationMode,
+    panicThreshold,
+  });
+}
 
 export type PartialEnvironmentConfig = Partial<EnvironmentConfig>;
 
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/parseConfigPragma-test.ts b/compiler/packages/babel-plugin-react-compiler/src/__tests__/parseConfigPragma-test.ts
index dc4d5d25a47e2..903afe4c20b9f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/parseConfigPragma-test.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/parseConfigPragma-test.ts
@@ -6,6 +6,7 @@
  */
 
 import {parseConfigPragmaForTests, validateEnvironmentConfig} from '..';
+import {defaultOptions} from '../Entrypoint';
 
 describe('parseConfigPragmaForTests()', () => {
   it('parses flags in various forms', () => {
@@ -19,13 +20,18 @@ describe('parseConfigPragmaForTests()', () => {
 
     const config = parseConfigPragmaForTests(
       '@enableUseTypeAnnotations @validateNoSetStateInPassiveEffects:true @validateNoSetStateInRender:false',
+      {compilationMode: defaultOptions.compilationMode},
     );
     expect(config).toEqual({
-      ...defaultConfig,
-      enableUseTypeAnnotations: true,
-      validateNoSetStateInPassiveEffects: true,
-      validateNoSetStateInRender: false,
-      enableResetCacheOnSourceFileChanges: false,
+      ...defaultOptions,
+      panicThreshold: 'all_errors',
+      environment: {
+        ...defaultOptions.environment,
+        enableUseTypeAnnotations: true,
+        validateNoSetStateInPassiveEffects: true,
+        validateNoSetStateInRender: false,
+        enableResetCacheOnSourceFileChanges: false,
+      },
     });
   });
 });
diff --git a/compiler/packages/snap/src/compiler.ts b/compiler/packages/snap/src/compiler.ts
index a95c61450d840..6e59276c1cbb2 100644
--- a/compiler/packages/snap/src/compiler.ts
+++ b/compiler/packages/snap/src/compiler.ts
@@ -11,12 +11,9 @@ import {transformFromAstSync} from '@babel/core';
 import * as BabelParser from '@babel/parser';
 import {NodePath} from '@babel/traverse';
 import * as t from '@babel/types';
-import assert from 'assert';
 import type {
-  CompilationMode,
   Logger,
   LoggerEvent,
-  PanicThresholdOptions,
   PluginOptions,
   CompilerReactTarget,
   CompilerPipelineValue,
@@ -51,31 +48,13 @@ function makePluginOptions(
   ValueKindEnum: typeof ValueKind,
 ): [PluginOptions, Array<{filename: string | null; event: LoggerEvent}>] {
   let gating = null;
-  let compilationMode: CompilationMode = 'all';
-  let panicThreshold: PanicThresholdOptions = 'all_errors';
   let hookPattern: string | null = null;
   // TODO(@mofeiZ) rewrite snap fixtures to @validatePreserveExistingMemo:false
   let validatePreserveExistingMemoizationGuarantees = false;
   let customMacros: null | Array<Macro> = null;
   let validateBlocklistedImports = null;
-  let enableFire = false;
   let target: CompilerReactTarget = '19';
 
-  if (firstLine.indexOf('@compilationMode(annotation)') !== -1) {
-    assert(
-      compilationMode === 'all',
-      'Cannot set @compilationMode(..) more than once',
-    );
-    compilationMode = 'annotation';
-  }
-  if (firstLine.indexOf('@compilationMode(infer)') !== -1) {
-    assert(
-      compilationMode === 'all',
-      'Cannot set @compilationMode(..) more than once',
-    );
-    compilationMode = 'infer';
-  }
-
   if (firstLine.includes('@gating')) {
     gating = {
       source: 'ReactForgetFeatureFlag',
@@ -96,10 +75,6 @@ function makePluginOptions(
     }
   }
 
-  if (firstLine.includes('@panicThreshold(none)')) {
-    panicThreshold = 'none';
-  }
-
   let eslintSuppressionRules: Array<string> | null = null;
   const eslintSuppressionMatch = /@eslintSuppressionRules\(([^)]+)\)/.exec(
     firstLine,
@@ -130,10 +105,6 @@ function makePluginOptions(
     validatePreserveExistingMemoizationGuarantees = true;
   }
 
-  if (firstLine.includes('@enableFire')) {
-    enableFire = true;
-  }
-
   const hookPatternMatch = /@hookPattern:"([^"]+)"/.exec(firstLine);
   if (
     hookPatternMatch &&
@@ -199,10 +170,11 @@ function makePluginOptions(
     debugLogIRs: debugIRLogger,
   };
 
-  const config = parseConfigPragmaFn(firstLine);
+  const config = parseConfigPragmaFn(firstLine, {compilationMode: 'all'});
   const options = {
+    ...config,
     environment: {
-      ...config,
+      ...config.environment,
       moduleTypeProvider: makeSharedRuntimeTypeProvider({
         EffectEnum,
         ValueKindEnum,
@@ -212,12 +184,9 @@ function makePluginOptions(
       hookPattern,
       validatePreserveExistingMemoizationGuarantees,
       validateBlocklistedImports,
-      enableFire,
     },
-    compilationMode,
     logger,
     gating,
-    panicThreshold,
     noEmit: false,
     eslintSuppressionRules,
     flowSuppressions,