diff --git a/src/compile-support/babel.js b/src/compile-support/babel.js
index 36ffe828a..52bafcee5 100644
--- a/src/compile-support/babel.js
+++ b/src/compile-support/babel.js
@@ -2,7 +2,6 @@
 
 var crypto = require('crypto')
 var path = require('path')
-var defaultOptions = require('../../static/babelrc.json')
 
 var babel = null
 var babelVersionDirectory = null
@@ -12,6 +11,14 @@ var babelVersionDirectory = null
 // babel-polyfill.
 require('babel-regenerator-runtime');
 
+// We run babel with lots of different working directories (like plugin folders).
+// To make sure presets always resolve to the correct path inside N1, resolve
+// them to their absolute paths ahead of time.
+var defaultOptions = require('../../static/babelrc.json')
+defaultOptions.presets = defaultOptions.presets.map((modulename) =>
+  require.resolve(`babel-preset-${modulename}`)
+);
+
 exports.shouldCompile = function (sourceCode, filePath) {
   return (filePath.endsWith('.es6') || filePath.endsWith('.jsx'))
 }