diff --git a/webpack.config.cli.dev.js b/webpack.config.cli.dev.js
index f1a8f3e..d390941 100644
--- a/webpack.config.cli.dev.js
+++ b/webpack.config.cli.dev.js
@@ -22,6 +22,7 @@ const buildConfig = (stripesConfig) => {
 
   const base = buildBaseConfig(allModulePaths);
   const devConfig = Object.assign({}, base, cli, {
+    name: 'development',
     devtool: 'inline-source-map',
     mode: 'development',
     cache: {
@@ -36,19 +37,12 @@ const buildConfig = (stripesConfig) => {
   });
 
   // Override filename to remove the hash in development due to memory issues (STCOR-296)
-  devConfig.output.filename = '[name].js';
-  devConfig.entry =
-  {
-    css: devConfig.entry.css,
-    main: [
-      'webpack-hot-middleware/client',
-      '@folio/stripes-ui',
-    ],
-    'service-worker': {
-      import: '@folio/stripes-core/src/service-worker.js',
-      filename: 'service-worker.js',
-    }
-  };
+  devConfig.output.filename = 'bundle.js';
+  devConfig.entry = [
+    'webpack-hot-middleware/client',
+    ...devConfig.entry.css,
+    '@folio/stripes-ui',
+  ];
 
   // in dev-mode when react-refresh-webpack-plugin (hot reload) is in play
   // and there are multiple entry points on a single page (as there are now
diff --git a/webpack.config.service.worker.js b/webpack.config.service.worker.js
new file mode 100644
index 0000000..9199e10
--- /dev/null
+++ b/webpack.config.service.worker.js
@@ -0,0 +1,31 @@
+const path = require('path');
+
+const config = {
+  name: 'service-worker',
+  mode: 'development',
+  target: 'web',
+  entry: {
+    'service-worker': {
+      import: '@folio/stripes-core/src/service-worker.js',
+      filename: 'service-worker.js',
+    }
+  },
+  output: {
+    path: path.join(__dirname, 'dist'),
+    filename: 'service-worker.js',
+    publicPath: '/',
+  },
+  module: {
+    rules: [
+      {
+        test: /\.js$/,
+        loader: 'esbuild-loader',
+        options: {
+          target: 'es2015'
+        }
+      },
+    ]
+  }
+};
+
+module.exports = config;
diff --git a/webpack/serve.js b/webpack/serve.js
index f3d60d6..0344cb9 100644
--- a/webpack/serve.js
+++ b/webpack/serve.js
@@ -9,6 +9,7 @@ const applyWebpackOverrides = require('./apply-webpack-overrides');
 const logger = require('./logger')();
 const buildConfig = require('../webpack.config.cli.dev');
 const sharedStylesConfig = require('../webpack.config.cli.shared.styles');
+const serviceWorkerConfig = require('../webpack.config.service.worker');
 
 const cwd = path.resolve();
 const platformModulePath = path.join(cwd, 'node_modules');
@@ -39,8 +40,10 @@ module.exports = function serve(stripesConfig, options) {
     config = applyWebpackOverrides(options.webpackOverrides, config);
 
     logger.log('assign final webpack config', config);
-    const compiler = webpack(config);
-    compiler.hooks.done.tap('StripesCoreServe', stats => resolve(stats));
+    const compiler = webpack([serviceWorkerConfig, config]);
+    const [swCompiler, stripesCompiler] = compiler.compilers;
+
+    stripesCompiler.hooks.done.tap('StripesCoreServe', stats => resolve(stats));
 
     const port = options.port || process.env.STRIPES_PORT || 3000;
     const host = options.host || process.env.STRIPES_HOST || 'localhost';
@@ -49,6 +52,14 @@ module.exports = function serve(stripesConfig, options) {
 
     app.use(staticFileMiddleware);
 
+    // To handle rewrites without the dot rule, we should include the static middleware twice
+    // https://github.com/bripkens/connect-history-api-fallback/blob/master/examples/static-files-and-index-rewrite
+    app.use(staticFileMiddleware);
+
+    app.use(webpackDevMiddleware(swCompiler, {
+      publicPath: serviceWorkerConfig.output.publicPath,
+    }));
+
     // Process index rewrite before webpack-dev-middleware
     // to respond with webpack's dist copy of index.html
     app.use(connectHistoryApiFallback({
@@ -56,16 +67,13 @@ module.exports = function serve(stripesConfig, options) {
       htmlAcceptHeaders: ['text/html', 'application/xhtml+xml'],
     }));
 
-    // To handle rewrites without the dot rule, we should include the static middleware twice
-    // https://github.com/bripkens/connect-history-api-fallback/blob/master/examples/static-files-and-index-rewrite
-    app.use(staticFileMiddleware);
-
-    app.use(webpackDevMiddleware(compiler, {
-      stats: 'errors-only',
+    app.use(webpackDevMiddleware(stripesCompiler, {
       publicPath: config.output.publicPath,
     }));
 
-    app.use(webpackHotMiddleware(compiler));
+
+
+    app.use(webpackHotMiddleware(stripesCompiler));
 
     app.listen(port, host, (err) => {
       if (err) {