diff --git a/package-lock.json b/package-lock.json
index 457ec5da..95338564 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -50,6 +50,10 @@
         "wp-types": "^3.65.0"
       }
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       "resolved": "projects/library",
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+      },
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+        },
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+          "optional": true
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+        "terser": {
+          "optional": true
+        }
+      }
+    },
+    "packages/build/node_modules/ws": {
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+      "resolved": "https://registry.npmjs.org/ws/-/ws-8.19.0.tgz",
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+      "license": "MIT",
+      "engines": {
+        "node": ">=10.0.0"
+      },
+      "peerDependencies": {
+        "bufferutil": "^4.0.1",
+        "utf-8-validate": ">=5.0.2"
+      },
+      "peerDependenciesMeta": {
+        "bufferutil": {
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+        },
+        "utf-8-validate": {
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     "packages/eslint-config": {
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diff --git a/packages/build/.gitignore b/packages/build/.gitignore
new file mode 100644
index 00000000..dcf59413
--- /dev/null
+++ b/packages/build/.gitignore
@@ -0,0 +1,9 @@
+# Build output
+dist/
+
+# Test output directories
+tests/fixtures/*/dist/
+tests/fixtures/*/dist-snapshots/
+
+# Node modules
+node_modules/
diff --git a/packages/build/README.md b/packages/build/README.md
new file mode 100644
index 00000000..3f3acf4e
--- /dev/null
+++ b/packages/build/README.md
@@ -0,0 +1,682 @@
+# @10up/build
+
+> **WARNING: This is pre-release alpha software. APIs may change without notice. Use at your own risk in production environments.**
+
+> Fast esbuild-powered build tool for WordPress block development
+
+## Overview
+
+`@10up/build` is a modern build tool that provides **10-100x faster builds** than webpack-based alternatives. It's designed as a drop-in replacement for 10up-toolkit's build system, using the same configuration schema while leveraging esbuild's speed.
+
+### Key Features
+
+- **Lightning Fast** - ~150ms builds vs 15-30s with webpack
+- **WordPress Native** - Full support for block.json, script modules, and dependency extraction
+- **Drop-in Compatible** - Uses same `package.json["10up-toolkit"]` configuration
+- **Modern CSS Pipeline** - SCSS + PostCSS + lightningcss
+- **Hot Module Replacement** - React Fast Refresh support for development
+
+## Installation
+
+```bash
+npm install @10up/build --save-dev
+```
+
+## Quick Start
+
+```bash
+# Production build
+npx 10up-build build
+
+# Development with watch mode + HMR
+npx 10up-build start
+
+# Watch mode only (no HMR server)
+npx 10up-build watch
+```
+
+Or add scripts to your `package.json`:
+
+```json
+{
+  "scripts": {
+    "build": "10up-build build",
+    "start": "10up-build start",
+    "watch": "10up-build watch"
+  }
+}
+```
+
+## Configuration
+
+Configuration is read from `package.json` under the `10up-toolkit` field, maintaining full compatibility with existing 10up-toolkit projects.
+
+### Basic Configuration
+
+```json
+{
+  "10up-toolkit": {
+    "entry": {
+      "admin": "./assets/js/admin/admin.js",
+      "frontend": "./assets/js/frontend/frontend.js"
+    },
+    "paths": {
+      "blocksDir": "./includes/blocks/",
+      "srcDir": "./assets/",
+      "copyAssetsDir": "./assets/"
+    },
+    "useBlockAssets": true,
+    "wpDependencyExternals": true
+  }
+}
+```
+
+### Configuration Options
+
+| Option | Type | Default | Description |
+|--------|------|---------|-------------|
+| `entry` | `object` | `{}` | Entry points for scripts and styles |
+| `moduleEntry` | `object` | `{}` | Entry points for ES modules |
+| `paths.blocksDir` | `string` | `"./includes/blocks/"` | Directory containing block.json files |
+| `paths.srcDir` | `string` | `"./assets/"` | Source directory for assets |
+| `paths.copyAssetsDir` | `string` | `"./assets/"` | Directory for static assets to copy |
+| `paths.globalStylesDir` | `string` | `"./assets/css/globals/"` | Directory for global CSS custom properties |
+| `paths.globalMixinsDir` | `string` | `"./assets/css/mixins/"` | Directory for PostCSS mixins |
+| `paths.blocksStyles` | `string` | `"./assets/css/blocks/"` | Directory for block-specific styles |
+| `useBlockAssets` | `boolean` | `false` | Auto-detect entries from block.json files |
+| `useScriptModules` | `boolean` | `false` | Enable ES module output |
+| `wpDependencyExternals` | `boolean` | `true` | Externalize @wordpress/* packages and generate .asset.php |
+| `loadBlockSpecificStyles` | `boolean` | `false` | Auto-enqueue block-specific stylesheets |
+| `hot` | `boolean` | `false` | Enable Hot Module Replacement |
+| `devServerPort` | `number` | `8887` | Port for HMR WebSocket server |
+| `sourcemap` | `boolean` | `false` | Generate source maps (always on in development) |
+| `externalNamespaces` | `object` | `{}` | Custom package namespaces to externalize |
+
+### Configuration Files
+
+The build tool respects these configuration files in your project root:
+
+| File | Purpose |
+|------|---------|
+| `buildfiles.config.js` | Entry point configuration (alternative to package.json) |
+| `postcss.config.js` | Custom PostCSS configuration |
+| `tsconfig.json` | TypeScript configuration (used by esbuild) |
+
+#### buildfiles.config.js
+
+```javascript
+module.exports = {
+  admin: './assets/js/admin/admin.js',
+  frontend: './assets/js/frontend/frontend.js',
+  'admin-style': './assets/css/admin/admin-style.scss',
+};
+```
+
+## Block Development
+
+### Automatic Entry Detection
+
+When `useBlockAssets: true` is enabled, the build tool automatically detects entry points from `block.json` files:
+
+```json
+{
+  "name": "my-plugin/my-block",
+  "editorScript": "file:./index.js",
+  "editorStyle": "file:./editor.css",
+  "style": "file:./style.css",
+  "viewScript": "file:./view.js",
+  "viewScriptModule": "file:./view-module.js"
+}
+```
+
+The tool will:
+1. Find source files (`.ts`, `.tsx`, `.scss` variants)
+2. Compile them to the appropriate output format
+3. Transform the `block.json` to reference compiled files
+4. Generate `.asset.php` files with dependencies
+
+### Supported block.json Fields
+
+| Field | Output Format | Asset PHP |
+|-------|---------------|-----------|
+| `script` | IIFE (.js) | Yes |
+| `editorScript` | IIFE (.js) | Yes |
+| `viewScript` | IIFE (.js) | Yes |
+| `scriptModule` | ESM (.js) | Yes (type: module) |
+| `viewScriptModule` | ESM (.js) | Yes (type: module) |
+| `style` | CSS (.css) | No |
+| `editorStyle` | CSS (.css) | No |
+| `viewStyle` | CSS (.css) | No |
+
+### block.json Transformation
+
+Source files are automatically transformed:
+- `.ts` / `.tsx` → `.js`
+- `.scss` / `.sass` → `.css`
+- A `version` hash is added for cache busting
+
+## WordPress Dependency Extraction
+
+The build tool intelligently handles WordPress packages - some are externalized (loaded from WordPress globals), while others are bundled directly.
+
+### How It Works
+
+1. **Detection**: Imports from `@wordpress/*` packages are detected during bundling
+2. **Decision**: Each package is checked for its `wpScript` flag to determine handling:
+   - `wpScript: true` → Externalized (loaded from WordPress globals)
+   - `wpScript: false` → Bundled into your output (e.g., `@wordpress/icons`, `@wordpress/dataviews`)
+3. **Virtual Modules**: For IIFE builds, externalized packages use virtual modules to avoid `require()` calls
+4. **Asset Generation**: `.asset.php` files are created with dependency arrays
+5. **Subpath Support**: Subpath exports like `@wordpress/dataviews/wp` inherit their parent package's behavior
+
+### Cache File
+
+For CI environments or when packages aren't installed locally, you can use a `.wp-scripts-cache.json` file:
+
+```bash
+# Generate the cache file
+10up-build cache-wp-scripts
+```
+
+This creates a cache mapping each `@wordpress/*` package to its `wpScript` value, allowing the build to work without optional dependencies installed.
+
+### Output Format
+
+**Regular Scripts (IIFE):**
+```php
+<?php return array(
+  'dependencies' => array('wp-blocks', 'wp-element', 'wp-i18n'),
+  'version' => 'a1b2c3d4e5f6'
+);
+```
+
+**ES Modules:**
+```php
+<?php return array(
+  'dependencies' => array('@wordpress/interactivity'),
+  'version' => 'a1b2c3d4e5f6',
+  'type' => 'module'
+);
+```
+
+### Vendor Externals
+
+These packages are always externalized:
+
+| Package | Global | Handle |
+|---------|--------|--------|
+| `react` | `React` | `react` |
+| `react-dom` | `ReactDOM` | `react-dom` |
+| `react/jsx-runtime` | `ReactJSXRuntime` | `react-jsx-runtime` |
+| `lodash` | `lodash` | `lodash` |
+| `lodash-es` | `lodash` | `lodash` |
+| `moment` | `moment` | `moment` |
+| `jquery` | `jQuery` | `jquery` |
+
+### Custom External Namespaces
+
+Externalize custom package namespaces (e.g., WooCommerce):
+
+```json
+{
+  "10up-toolkit": {
+    "externalNamespaces": {
+      "@woocommerce": {
+        "global": "wc",
+        "handlePrefix": "wc"
+      },
+      "@my-plugin": {
+        "global": "myPlugin",
+        "handlePrefix": "my-plugin"
+      }
+    }
+  }
+}
+```
+
+This transforms:
+- `@woocommerce/components` → `wc.components` (global) / `wc-components` (handle)
+- `@my-plugin/utils` → `myPlugin.utils` (global) / `my-plugin-utils` (handle)
+
+## CSS Pipeline
+
+The CSS pipeline combines multiple tools for maximum compatibility and performance:
+
+```
+SCSS → Sass → PostCSS → lightningcss → Output
+```
+
+### SCSS Support
+
+Full Sass/SCSS support with:
+- `@import` and `@use` statements
+- Nested selectors
+- Variables and mixins
+- All Sass features
+
+### PostCSS Plugins
+
+The following PostCSS plugins are applied:
+
+1. **postcss-import** - Inline `@import` statements
+2. **@csstools/postcss-global-data** - Inject global CSS custom properties
+3. **postcss-custom-media** - Transform custom media queries
+4. **postcss-mixins** - CSS mixins support
+
+### Global Styles
+
+Place global CSS files (custom properties, custom media queries) in `assets/css/globals/`:
+
+```css
+/* assets/css/globals/breakpoints.css */
+@custom-media --bp-small (min-width: 600px);
+@custom-media --bp-medium (min-width: 900px);
+@custom-media --bp-large (min-width: 1200px);
+
+:root {
+  --color-primary: #0073aa;
+  --spacing-unit: 8px;
+}
+```
+
+These are automatically injected into all stylesheets.
+
+### CSS Mixins
+
+Place mixin files in `assets/css/mixins/`:
+
+```css
+/* assets/css/mixins/typography.css */
+@define-mixin heading {
+  font-family: var(--font-heading);
+  font-weight: 700;
+  line-height: 1.2;
+}
+```
+
+Use in your stylesheets:
+
+```css
+.title {
+  @mixin heading;
+  font-size: 2rem;
+}
+```
+
+### lightningcss
+
+Final CSS processing with lightningcss provides:
+- CSS minification (production only)
+- Vendor prefixing
+- Modern CSS syntax transformation
+- Optimized output
+
+## Development Mode
+
+### Watch Mode
+
+```bash
+10up-build start
+```
+
+Features:
+- Fast incremental rebuilds (~50ms)
+- WebSocket server for HMR notifications
+- Automatic browser refresh on changes
+- React Fast Refresh support (placeholder)
+
+### HMR Configuration
+
+```json
+{
+  "10up-toolkit": {
+    "hot": true,
+    "devServerPort": 8887
+  }
+}
+```
+
+## CLI Reference
+
+### Commands
+
+| Command | Description |
+|---------|-------------|
+| `10up-build build` | Production build (default) |
+| `10up-build start` | Development mode with HMR |
+| `10up-build watch` | Watch mode without HMR |
+| `10up-build sync-wp-deps` | Scan source files and install @wordpress/* as optional dependencies |
+| `10up-build update-wp-deps` | Update all @wordpress/* optional dependencies to a new version tag |
+| `10up-build list-wp-deps` | List installed @wordpress/* dependencies |
+
+### Options
+
+| Option | Description |
+|--------|-------------|
+| `--help`, `-h` | Show help message |
+| `--version`, `-v` | Show version number |
+| `--hot` | Enable hot reload |
+| `--port=<port>` | HMR server port |
+| `--tag=<tag>` | WordPress version tag for dependency commands (auto-detects latest if not specified) |
+| `--dry-run` | Show what would be done without making changes |
+
+## WordPress Dependency Management
+
+The build tool includes commands to manage `@wordpress/*` packages as optional dependencies. This provides better TypeScript support and IDE autocompletion while keeping the packages external at runtime (loaded from WordPress globals).
+
+### Why Optional Dependencies?
+
+When `@wordpress/*` packages are installed as optional dependencies:
+- **TypeScript/IDE support**: Full type definitions and autocompletion
+- **No bundle bloat**: Packages are still externalized (loaded from WordPress)
+- **Version alignment**: Match your target WordPress version exactly
+- **Dependency tracking**: Clear visibility of which packages your code uses
+
+### Syncing Dependencies
+
+Scan your source files for `@wordpress/*` imports and install them:
+
+```bash
+# Auto-detect latest WordPress version from API
+10up-build sync-wp-deps
+
+# Use a specific WordPress version tag
+10up-build sync-wp-deps --tag=wp-6.8
+
+# Preview changes without installing
+10up-build sync-wp-deps --dry-run
+```
+
+**Example output:**
+```
+10up-build - Sync WordPress Dependencies
+
+Fetching latest WordPress version...
+Using tag: wp-6.9
+
+Scanning for @wordpress/* imports...
+Found 7 @wordpress packages:
+
+  • @wordpress/block-editor
+  • @wordpress/blocks
+  • @wordpress/components
+  • @wordpress/data
+  • @wordpress/i18n
+  • @wordpress/icons
+  • @wordpress/interactivity
+
+Packages to install with tag wp-6.9:
+  + @wordpress/icons@wp-6.9
+  + @wordpress/interactivity@wp-6.9
+
+Already installed (5 packages):
+  • @wordpress/block-editor@^15.6.8
+  ...
+```
+
+### Monorepo Support
+
+For monorepos, use `--workspace-scan` to scan all workspaces and install dependencies at the root level. This is much faster than installing in each workspace individually:
+
+```bash
+# From anywhere in the monorepo
+10up-build sync-wp-deps --workspace-scan
+
+# With a specific tag
+10up-build sync-wp-deps --workspace-scan --tag=wp-6.8
+
+# Preview what would be installed
+10up-build sync-wp-deps --workspace-scan --dry-run
+```
+
+**Example output:**
+```
+10up-build - Sync WordPress Dependencies
+
+Fetching latest WordPress version...
+Using tag: wp-6.9
+
+Monorepo root: /path/to/monorepo
+
+Scanning 15 workspaces for @wordpress/* imports...
+
+  • plugins/my-plugin: 7 packages
+  • plugins/another-plugin: 5 packages
+  • themes/my-theme: 3 packages
+
+Found 12 unique @wordpress packages:
+
+  • @wordpress/block-editor
+  • @wordpress/blocks
+  • @wordpress/components
+  ...
+
+Installing at monorepo root: /path/to/monorepo
+
+Installing 12 packages...
+✓ WordPress dependencies synced successfully!
+```
+
+### Updating Dependencies
+
+Update all `@wordpress/*` optional dependencies to a new WordPress version:
+
+```bash
+# Update to WordPress 6.9
+10up-build update-wp-deps --tag=wp-6.9
+
+# Preview changes
+10up-build update-wp-deps --tag=wp-7.0 --dry-run
+```
+
+**Note:** WordPress npm tags follow the pattern `wp-X.Y` (major.minor only). Patch releases don't get new npm tags, so `wp-6.9` covers 6.9.0, 6.9.1, 6.9.2, etc.
+
+### Listing Dependencies
+
+View currently installed `@wordpress/*` packages and check for missing imports:
+
+```bash
+10up-build list-wp-deps
+```
+
+**Example output:**
+```
+10up-build - WordPress Dependencies
+
+Installed @wordpress packages (5):
+
+  • @wordpress/block-editor@^15.6.8
+  • @wordpress/blocks@^15.6.2
+  • @wordpress/components@^30.6.4
+  • @wordpress/data@^10.33.1
+  • @wordpress/i18n@^6.6.1
+
+Scanning source files for imports...
+
+Missing packages (2):
+  ! @wordpress/icons
+  ! @wordpress/interactivity
+
+Run 10up-build sync-wp-deps to install missing packages.
+```
+
+### Version Tags
+
+WordPress packages on npm are tagged by WordPress version:
+
+| WordPress Version | npm Tag |
+|-------------------|---------|
+| 6.9.x | `wp-6.9` |
+| 6.8.x | `wp-6.8` |
+| 6.7.x | `wp-6.7` |
+
+When no `--tag` is specified, `sync-wp-deps` automatically fetches the latest WordPress version from the WordPress.org API.
+
+## Output Structure
+
+```
+dist/
+├── js/
+│   ├── admin.js
+│   ├── admin.asset.php
+│   ├── frontend.js
+│   └── frontend.asset.php
+├── css/
+│   ├── admin-style.css
+│   └── frontend-style.css
+├── blocks/
+│   └── my-block/
+│       ├── block.json
+│       ├── index.js
+│       ├── index.asset.php
+│       ├── editor.css
+│       ├── style.css
+│       ├── view.js
+│       ├── view.asset.php
+│       ├── view-module.js
+│       └── view-module.asset.php
+└── images/
+    └── (copied static assets)
+```
+
+## TypeScript Support
+
+TypeScript is supported out of the box via esbuild:
+
+- `.ts` and `.tsx` files are automatically compiled
+- Type checking is NOT performed (use `tsc --noEmit` separately)
+- `tsconfig.json` paths and settings are respected
+
+### Recommended tsconfig.json
+
+```json
+{
+  "compilerOptions": {
+    "target": "ES2020",
+    "module": "ESNext",
+    "moduleResolution": "bundler",
+    "jsx": "react-jsx",
+    "strict": true,
+    "esModuleInterop": true,
+    "skipLibCheck": true,
+    "types": ["@wordpress/blocks", "@types/react"]
+  },
+  "include": ["assets/**/*", "includes/**/*"]
+}
+```
+
+## Migration from 10up-toolkit
+
+### Step 1: Install
+
+```bash
+npm install @10up/build --save-dev
+```
+
+### Step 2: Update Scripts
+
+```json
+{
+  "scripts": {
+    "build": "10up-build build",
+    "start": "10up-build start"
+  }
+}
+```
+
+### Step 3: Verify Configuration
+
+Your existing `10up-toolkit` configuration in `package.json` will work as-is.
+
+### Key Differences
+
+| Feature | 10up-toolkit | @10up/build |
+|---------|--------------|-------------|
+| Bundler | webpack | esbuild |
+| Build Speed | 15-30s | ~150ms |
+| HMR | webpack-dev-server | WebSocket |
+| CSS Processing | PostCSS | Sass + PostCSS + lightningcss |
+| Bundle Analysis | Built-in | Not yet supported |
+
+## Troubleshooting
+
+### "Could not resolve @wordpress/*"
+
+Ensure `wpDependencyExternals` is enabled:
+
+```json
+{
+  "10up-toolkit": {
+    "wpDependencyExternals": true
+  }
+}
+```
+
+### "Custom media query --bp-* is not defined"
+
+Place your custom media definitions in `assets/css/globals/`:
+
+```css
+@custom-media --bp-small (min-width: 600px);
+```
+
+### Source maps not working
+
+Enable source maps explicitly:
+
+```json
+{
+  "10up-toolkit": {
+    "sourcemap": true
+  }
+}
+```
+
+### TypeScript errors not shown
+
+esbuild doesn't perform type checking. Run TypeScript separately:
+
+```bash
+tsc --noEmit
+```
+
+## API Reference
+
+### Programmatic Usage
+
+```javascript
+import { build, watch, loadConfig } from '@10up/build';
+
+// Load configuration
+const config = loadConfig();
+
+// Run production build
+const result = await build();
+console.log(`Built in ${result.duration}ms`);
+
+// Start watch mode
+await watch({ hot: true, port: 8887 });
+```
+
+### Build Result
+
+```typescript
+interface BuildResult {
+  success: boolean;
+  duration: number;
+  entries: {
+    scripts: number;
+    modules: number;
+    styles: number;
+  };
+  errors?: string[];
+}
+```
+
+## Contributing
+
+See the main [10up-toolkit repository](https://github.com/10up/10up-toolkit) for contribution guidelines.
+
+## License
+
+MIT
diff --git a/packages/build/bin/10up-build.js b/packages/build/bin/10up-build.js
new file mode 100755
index 00000000..63cc5008
--- /dev/null
+++ b/packages/build/bin/10up-build.js
@@ -0,0 +1,11 @@
+#!/usr/bin/env node
+
+/**
+ * 10up-build CLI
+ *
+ * esbuild-powered WordPress build tool
+ */
+
+import('../dist/cli.js').then(({ cli }) => {
+	cli(process.argv.slice(2));
+});
diff --git a/packages/build/config/postcss.config.js b/packages/build/config/postcss.config.js
new file mode 100644
index 00000000..7fad1a2e
--- /dev/null
+++ b/packages/build/config/postcss.config.js
@@ -0,0 +1,36 @@
+/**
+ * Default PostCSS configuration for 10up-build
+ */
+
+import { sync as glob } from 'fast-glob';
+import { resolve } from 'node:path';
+
+export default ({ env }) => {
+	const globalStylesDir = resolve(process.cwd(), 'assets/css/globals');
+	const globalMixinsDir = resolve(process.cwd(), 'assets/css/mixins');
+
+	const globalCssFiles = glob(`${globalStylesDir}/**/*.css`.replace(/\\/g, '/'));
+	const globalMixinFiles = glob(`${globalMixinsDir}/**/*.css`.replace(/\\/g, '/'));
+
+	const config = {
+		plugins: {
+			'postcss-import': {},
+		},
+	};
+
+	// Add global data plugin if files exist
+	if (globalCssFiles.length > 0) {
+		config.plugins['@csstools/postcss-global-data'] = {
+			files: globalCssFiles,
+		};
+	}
+
+	// Add mixins plugin if files exist
+	if (globalMixinFiles.length > 0) {
+		config.plugins['postcss-mixins'] = {
+			mixinsFiles: globalMixinFiles,
+		};
+	}
+
+	return config;
+};
diff --git a/packages/build/package.json b/packages/build/package.json
new file mode 100644
index 00000000..c5748b2a
--- /dev/null
+++ b/packages/build/package.json
@@ -0,0 +1,73 @@
+{
+	"name": "@10up/build",
+	"version": "1.0.0-alpha.20",
+	"description": "esbuild-powered WordPress build tool - fast builds for WordPress block development",
+	"keywords": [
+		"wordpress",
+		"esbuild",
+		"build",
+		"blocks",
+		"gutenberg"
+	],
+	"homepage": "https://github.com/10up/10up-toolkit#readme",
+	"bugs": {
+		"url": "https://github.com/10up/10up-toolkit/issues"
+	},
+	"repository": {
+		"type": "git",
+		"url": "git+https://github.com/10up/10up-toolkit.git",
+		"directory": "packages/build"
+	},
+	"license": "MIT",
+	"author": "10up",
+	"type": "module",
+	"exports": {
+		".": "./dist/index.js",
+		"./config": "./dist/config.js"
+	},
+	"main": "./dist/index.js",
+	"types": "./dist/index.d.ts",
+	"bin": {
+		"10up-build": "bin/10up-build.js"
+	},
+	"files": [
+		"bin",
+		"dist",
+		"config"
+	],
+	"scripts": {
+		"build": "tsc",
+		"dev": "tsc --watch",
+		"test": "vitest run",
+		"test:watch": "vitest",
+		"test:coverage": "vitest run --coverage",
+		"prepublishOnly": "npm run build"
+	},
+	"dependencies": {
+		"@csstools/postcss-global-data": "^3.0.0",
+		"esbuild": "^0.24.0",
+		"fast-glob": "^3.3.2",
+		"lightningcss": "^1.28.0",
+		"picocolors": "^1.1.1",
+		"postcss": "^8.4.49",
+		"postcss-custom-media": "^11.0.6",
+		"postcss-import": "^16.1.0",
+		"postcss-mixins": "^11.0.3",
+		"react-refresh": "^0.14.2",
+		"sass": "^1.82.0",
+		"ws": "^8.18.0"
+	},
+	"devDependencies": {
+		"@types/node": "^22.10.2",
+		"@types/ws": "^8.5.13",
+		"@vitest/coverage-v8": "^2.1.8",
+		"typescript": "^5.7.2",
+		"vitest": "^2.1.8"
+	},
+	"engines": {
+		"node": ">=18.0.0"
+	},
+	"publishConfig": {
+		"access": "public"
+	}
+}
diff --git a/packages/build/src/build.ts b/packages/build/src/build.ts
new file mode 100644
index 00000000..5ad5231b
--- /dev/null
+++ b/packages/build/src/build.ts
@@ -0,0 +1,402 @@
+/**
+ * Main build orchestration for 10up-build
+ */
+
+import { mkdirSync, rmSync, existsSync } from 'node:fs';
+// path imports used in type annotations
+import * as esbuild from 'esbuild';
+import pc from 'picocolors';
+import { loadConfig, getOutputDir, isProduction } from './config.js';
+import { detectEntries, getBlockSpecificStyles } from './utils/entry-detection.js';
+import { wpDependencyExtractionPlugin, clearDependencies } from './plugins/wp-dependency-extraction.js';
+import { sassPlugin } from './plugins/sass-plugin.js';
+import { processBlockJsonFiles } from './plugins/block-json.js';
+import { copyStaticAssets } from './plugins/copy-assets.js';
+import type { BuildConfig, BuildResult, DetectedEntries } from './types.js';
+
+import { getExternalPatterns } from './utils/externals.js';
+
+/**
+ * Profiling data for build phases
+ */
+interface BuildProfile {
+	configLoad: number;
+	entryDetection: number;
+	cleanOutput: number;
+	scripts: number;
+	modules: number;
+	styles: number;
+	blockJson: number;
+	assetCopy: number;
+	total: number;
+}
+
+/**
+ * Profile enabled via environment variable
+ */
+const PROFILE_ENABLED = process.env.BUILD_PROFILE === '1' || process.env.BUILD_PROFILE === 'true';
+
+/**
+ * Get common esbuild options
+ */
+function getCommonOptions(config: BuildConfig, outputDir: string, isProd: boolean): esbuild.BuildOptions {
+	// Get external patterns for WordPress and vendor packages
+	const external = config.wpDependencyExternals ? getExternalPatterns(config) : [];
+
+	return {
+		bundle: true,
+		metafile: true,
+		sourcemap: config.sourcemap || !isProd,
+		minify: isProd,
+		target: ['es2020'],
+		external,
+		loader: {
+			'.js': 'jsx',
+			'.ts': 'tsx',
+			'.tsx': 'tsx',
+			'.jsx': 'jsx',
+		},
+		jsx: 'automatic',
+		logLevel: 'warning',
+		outdir: outputDir,
+		// Set working directory explicitly to ensure consistent path resolution
+		absWorkingDir: process.cwd(),
+	};
+}
+
+/**
+ * Build JavaScript/TypeScript entries
+ */
+async function buildScripts(
+	entries: Record<string, string>,
+	config: BuildConfig,
+	outputDir: string,
+	isProd: boolean,
+): Promise<esbuild.BuildResult | null> {
+	if (Object.keys(entries).length === 0) {
+		return null;
+	}
+
+	// Clear previous dependency tracking
+	clearDependencies();
+
+	const result = await esbuild.build({
+		...getCommonOptions(config, outputDir, isProd),
+		entryPoints: entries,
+		format: 'iife',
+		globalName: '__tenupBuild',
+		plugins: [
+			wpDependencyExtractionPlugin(config),
+			sassPlugin(config, isProd),
+		],
+		outExtension: { '.js': '.js' },
+		entryNames: '[dir]/[name]',
+		chunkNames: 'js/chunks/[name]-[hash]',
+		assetNames: 'assets/[name]-[hash]',
+		write: true,
+	});
+
+	return result;
+}
+
+/**
+ * Build ES Module entries
+ */
+async function buildModules(
+	entries: Record<string, string>,
+	config: BuildConfig,
+	outputDir: string,
+	isProd: boolean,
+): Promise<esbuild.BuildResult | null> {
+	if (Object.keys(entries).length === 0) {
+		return null;
+	}
+
+	// Clear previous dependency tracking
+	clearDependencies();
+
+	const result = await esbuild.build({
+		...getCommonOptions(config, outputDir, isProd),
+		entryPoints: entries,
+		format: 'esm',
+		splitting: true,
+		plugins: [
+			wpDependencyExtractionPlugin(config, { isModule: true }),
+			sassPlugin(config, isProd),
+		],
+		outExtension: { '.js': '.js' },
+		entryNames: '[dir]/[name]',
+		chunkNames: 'js/chunks/[name]-[hash]',
+		assetNames: 'assets/[name]-[hash]',
+		write: true,
+	});
+
+	return result;
+}
+
+/**
+ * Build standalone CSS entries
+ */
+async function buildStyles(
+	entries: Record<string, string>,
+	config: BuildConfig,
+	outputDir: string,
+	isProd: boolean,
+): Promise<esbuild.BuildResult | null> {
+	if (Object.keys(entries).length === 0) {
+		return null;
+	}
+
+	const result = await esbuild.build({
+		...getCommonOptions(config, outputDir, isProd),
+		entryPoints: entries,
+		plugins: [sassPlugin(config, isProd)],
+		outExtension: { '.js': '.js', '.css': '.css' },
+		entryNames: '[dir]/[name]',
+		write: true,
+		// CSS-only builds still create empty JS files, we'll clean them up
+		bundle: true,
+	});
+
+	return result;
+}
+
+/**
+ * Clean output directory
+ */
+function cleanOutputDir(outputDir: string): void {
+	if (existsSync(outputDir)) {
+		rmSync(outputDir, { recursive: true, force: true });
+	}
+	mkdirSync(outputDir, { recursive: true });
+}
+
+/**
+ * Format duration for display
+ */
+function formatDuration(ms: number): string {
+	if (ms < 1000) {
+		return `${ms.toFixed(0)}ms`;
+	}
+	return `${(ms / 1000).toFixed(2)}s`;
+}
+
+/**
+ * Format profile duration with padding for alignment
+ */
+function formatProfileDuration(ms: number, total: number): string {
+	const percentage = total > 0 ? ((ms / total) * 100).toFixed(1) : '0.0';
+	const duration = formatDuration(ms);
+	return `${duration.padStart(8)} ${pc.dim(`(${percentage.padStart(5)}%)`)}`;
+}
+
+/**
+ * Print build profile report
+ */
+function printProfile(profile: BuildProfile): void {
+	console.log(pc.cyan('\n┌─ Build Profile ─────────────────────────┐'));
+
+	const phases: Array<{ name: string; time: number; entries?: number }> = [
+		{ name: 'Config loading', time: profile.configLoad },
+		{ name: 'Entry detection', time: profile.entryDetection },
+		{ name: 'Clean output', time: profile.cleanOutput },
+		{ name: 'Scripts (IIFE)', time: profile.scripts },
+		{ name: 'Modules (ESM)', time: profile.modules },
+		{ name: 'Styles (CSS)', time: profile.styles },
+		{ name: 'Block JSON', time: profile.blockJson },
+		{ name: 'Asset copy', time: profile.assetCopy },
+	];
+
+	for (const phase of phases) {
+		if (phase.time > 0) {
+			const bar = getProgressBar(phase.time, profile.total, 15);
+			console.log(
+				pc.dim('│ ') +
+					phase.name.padEnd(16) +
+					formatProfileDuration(phase.time, profile.total) +
+					' ' +
+					bar,
+			);
+		}
+	}
+
+	console.log(pc.dim('├──────────────────────────────────────────┤'));
+	console.log(pc.dim('│ ') + pc.bold('Total'.padEnd(16)) + formatProfileDuration(profile.total, profile.total));
+	console.log(pc.cyan('└──────────────────────────────────────────┘\n'));
+}
+
+/**
+ * Generate a simple progress bar
+ */
+function getProgressBar(value: number, total: number, width: number): string {
+	const percentage = total > 0 ? value / total : 0;
+	const filled = Math.round(percentage * width);
+	const empty = width - filled;
+	return pc.cyan('█'.repeat(filled)) + pc.dim('░'.repeat(empty));
+}
+
+/**
+ * Main build function
+ */
+export async function build(customConfig?: Partial<BuildConfig>): Promise<BuildResult> {
+	const startTime = performance.now();
+	const profile: BuildProfile = {
+		configLoad: 0,
+		entryDetection: 0,
+		cleanOutput: 0,
+		scripts: 0,
+		modules: 0,
+		styles: 0,
+		blockJson: 0,
+		assetCopy: 0,
+		total: 0,
+	};
+
+	// Config loading
+	let phaseStart = performance.now();
+	const config = { ...loadConfig(), ...customConfig };
+	const outputDir = getOutputDir(config);
+	const isProd = isProduction();
+	profile.configLoad = performance.now() - phaseStart;
+
+	console.log(pc.cyan('\n10up-build') + pc.dim(` v1.0.0`));
+	console.log(pc.dim(`Mode: ${isProd ? 'production' : 'development'}\n`));
+
+	try {
+		// Clean output directory
+		phaseStart = performance.now();
+		cleanOutputDir(outputDir);
+		profile.cleanOutput = performance.now() - phaseStart;
+
+		// Detect all entry points
+		phaseStart = performance.now();
+		const entries: DetectedEntries = await detectEntries(config);
+
+		// Add block-specific styles if enabled
+		if (config.loadBlockSpecificStyles) {
+			const blockStyles = getBlockSpecificStyles(config);
+			Object.assign(entries.styles, blockStyles);
+		}
+		profile.entryDetection = performance.now() - phaseStart;
+
+		const totalEntries =
+			Object.keys(entries.scripts).length +
+			Object.keys(entries.modules).length +
+			Object.keys(entries.styles).length;
+
+		if (totalEntries === 0) {
+			console.log(pc.yellow('No entry points found.'));
+			return {
+				success: true,
+				duration: performance.now() - startTime,
+				entries: { scripts: 0, modules: 0, styles: 0 },
+			};
+		}
+
+		console.log(pc.dim(`Building ${totalEntries} entries...\n`));
+
+		// Build in parallel, tracking individual times
+		const buildPromises: Promise<void>[] = [];
+
+		// Scripts
+		if (Object.keys(entries.scripts).length > 0) {
+			buildPromises.push(
+				(async () => {
+					const start = performance.now();
+					await buildScripts(entries.scripts, config, outputDir, isProd);
+					profile.scripts = performance.now() - start;
+				})(),
+			);
+		}
+
+		// Modules
+		if (Object.keys(entries.modules).length > 0) {
+			buildPromises.push(
+				(async () => {
+					const start = performance.now();
+					await buildModules(entries.modules, config, outputDir, isProd);
+					profile.modules = performance.now() - start;
+				})(),
+			);
+		}
+
+		// Styles
+		if (Object.keys(entries.styles).length > 0) {
+			buildPromises.push(
+				(async () => {
+					const start = performance.now();
+					await buildStyles(entries.styles, config, outputDir, isProd);
+					profile.styles = performance.now() - start;
+				})(),
+			);
+		}
+
+		await Promise.all(buildPromises);
+
+		// Process block.json files
+		phaseStart = performance.now();
+		if (config.useBlockAssets) {
+			await processBlockJsonFiles(config, outputDir);
+		}
+		profile.blockJson = performance.now() - phaseStart;
+
+		// Copy static assets
+		phaseStart = performance.now();
+		const assetCount = await copyStaticAssets(config, outputDir);
+		profile.assetCopy = performance.now() - phaseStart;
+
+		// Report results
+		const scriptsCount = Object.keys(entries.scripts).length;
+		const modulesCount = Object.keys(entries.modules).length;
+		const stylesCount = Object.keys(entries.styles).length;
+
+		if (scriptsCount > 0) {
+			console.log(pc.green('✓') + pc.dim(` Scripts: ${scriptsCount} entries`));
+		}
+		if (modulesCount > 0) {
+			console.log(pc.green('✓') + pc.dim(` Modules: ${modulesCount} entries`));
+		}
+		if (stylesCount > 0) {
+			console.log(pc.green('✓') + pc.dim(` Styles: ${stylesCount} entries`));
+		}
+		if (assetCount > 0) {
+			console.log(pc.green('✓') + pc.dim(` Assets: ${assetCount} files copied`));
+		}
+
+		const duration = performance.now() - startTime;
+		profile.total = duration;
+
+		console.log(pc.green(`\n✓ Done in ${formatDuration(duration)}`));
+
+		// Print profile if enabled
+		if (PROFILE_ENABLED) {
+			printProfile(profile);
+		}
+
+		return {
+			success: true,
+			duration,
+			entries: {
+				scripts: scriptsCount,
+				modules: modulesCount,
+				styles: stylesCount,
+			},
+		};
+	} catch (error) {
+		const duration = performance.now() - startTime;
+		console.error(pc.red('\n✗ Build failed'));
+
+		if (error instanceof Error) {
+			console.error(pc.red(error.message));
+		}
+
+		return {
+			success: false,
+			duration,
+			entries: { scripts: 0, modules: 0, styles: 0 },
+			errors: [error instanceof Error ? error.message : String(error)],
+		};
+	}
+}
+
+export { loadConfig, getOutputDir, isProduction };
diff --git a/packages/build/src/cli.ts b/packages/build/src/cli.ts
new file mode 100644
index 00000000..50d976a0
--- /dev/null
+++ b/packages/build/src/cli.ts
@@ -0,0 +1,180 @@
+/**
+ * CLI for 10up-build
+ */
+
+import pc from 'picocolors';
+import { build } from './build.js';
+import { watch } from './watch.js';
+import { syncWpDeps, updateWpDeps, listWpDeps, cacheWpScripts } from './wp-deps.js';
+import type { Commands } from './types.js';
+
+/**
+ * Parse CLI arguments
+ */
+function parseArgs(args: string[]): { command: string; flags: Record<string, string | boolean> } {
+	const flags: Record<string, string | boolean> = {};
+	let command = 'build';
+
+	for (const arg of args) {
+		if (arg.startsWith('--')) {
+			const [key, value] = arg.slice(2).split('=');
+			flags[key] = value ?? true;
+		} else if (arg.startsWith('-')) {
+			flags[arg.slice(1)] = true;
+		} else if (!command || command === 'build') {
+			// First non-flag argument is the command
+			command = arg;
+		}
+	}
+
+	return { command, flags };
+}
+
+/**
+ * Show help message
+ */
+function showHelp(): void {
+	console.log(`
+${pc.cyan('10up-build')} - Fast WordPress build tool powered by esbuild
+
+${pc.bold('Usage:')}
+  10up-build <command> [options]
+
+${pc.bold('Commands:')}
+  build            Build for production (default)
+  start            Start development mode with watch and hot reload
+  watch            Watch for changes without hot reload
+  sync-wp-deps     Scan source files and install @wordpress/* as optional deps
+  update-wp-deps   Update all @wordpress/* optional deps to a new version tag
+  list-wp-deps     List installed @wordpress/* dependencies
+  cache-wp-scripts Cache wpScript flags for CI (use with --omit=optional)
+
+${pc.bold('Options:')}
+  --help, -h         Show this help message
+  --version, -v      Show version number
+  --hot              Enable hot reload (default in start mode)
+  --port=<port>      HMR server port (default: 8887)
+  --tag=<tag>        WordPress version tag (auto-detects latest if not specified)
+  --dry-run          Show what would be done without making changes
+  --workspace-scan   Scan all workspaces and install at monorepo root
+
+${pc.bold('Configuration:')}
+  Configure via package.json "10up-toolkit" field.
+  See documentation for all options.
+
+${pc.bold('Examples:')}
+  10up-build                            # Production build
+  10up-build start                      # Development with hot reload
+  10up-build watch                      # Watch without hot reload
+  10up-build sync-wp-deps               # Install @wordpress deps (auto-detects latest WP)
+  10up-build sync-wp-deps --tag=wp-6.8  # Use specific WP version tag
+  10up-build sync-wp-deps --workspace-scan  # Scan all workspaces, install at root
+  10up-build update-wp-deps --tag=wp-6.9  # Update to new WP version
+  10up-build list-wp-deps               # Show installed @wordpress deps
+  10up-build cache-wp-scripts           # Cache wpScript flags for CI
+`);
+}
+
+/**
+ * Show version
+ */
+function showVersion(): void {
+	console.log('10up-build v1.0.0-alpha.7');
+}
+
+/**
+ * Command handlers
+ */
+const commands: Commands = {
+	build: async (_args: string[]) => {
+		process.env.NODE_ENV = process.env.NODE_ENV || 'production';
+		const result = await build();
+		process.exit(result.success ? 0 : 1);
+	},
+
+	start: async (args: string[]) => {
+		process.env.NODE_ENV = 'development';
+		const { flags } = parseArgs(['start', ...args]);
+		await watch({
+			hot: true,
+			port: flags.port ? parseInt(String(flags.port), 10) : undefined,
+		});
+	},
+
+	watch: async (args: string[]) => {
+		process.env.NODE_ENV = 'development';
+		const { flags } = parseArgs(['watch', ...args]);
+		await watch({
+			hot: flags.hot === true,
+			port: flags.port ? parseInt(String(flags.port), 10) : undefined,
+		});
+	},
+
+	'sync-wp-deps': async (args: string[]) => {
+		const { flags } = parseArgs(['sync-wp-deps', ...args]);
+		await syncWpDeps({
+			tag: flags.tag ? String(flags.tag) : undefined,
+			dryRun: flags['dry-run'] === true,
+			workspaceScan: flags['workspace-scan'] === true,
+		});
+	},
+
+	'update-wp-deps': async (args: string[]) => {
+		const { flags } = parseArgs(['update-wp-deps', ...args]);
+		if (!flags.tag) {
+			console.error(pc.red('Error: --tag is required for update-wp-deps'));
+			console.log(pc.dim('Example: 10up-build update-wp-deps --tag=wp-6.9'));
+			process.exit(1);
+		}
+		await updateWpDeps({
+			tag: String(flags.tag),
+			dryRun: flags['dry-run'] === true,
+		});
+	},
+
+	'list-wp-deps': async () => {
+		await listWpDeps();
+	},
+
+	'cache-wp-scripts': async (args: string[]) => {
+		const { flags } = parseArgs(['cache-wp-scripts', ...args]);
+		await cacheWpScripts({
+			output: flags.output ? String(flags.output) : undefined,
+		});
+	},
+};
+
+/**
+ * Main CLI entry point
+ */
+export async function cli(args: string[]): Promise<void> {
+	const { command, flags } = parseArgs(args);
+
+	// Handle help flag
+	if (flags.help || flags.h) {
+		showHelp();
+		return;
+	}
+
+	// Handle version flag
+	if (flags.version || flags.v) {
+		showVersion();
+		return;
+	}
+
+	// Get command handler
+	const handler = commands[command as keyof Commands];
+
+	if (!handler) {
+		console.error(pc.red(`Unknown command: ${command}`));
+		console.log(pc.dim('Run "10up-build --help" for usage information.'));
+		process.exit(1);
+	}
+
+	try {
+		await handler(args.slice(1));
+	} catch (error) {
+		console.error(pc.red('Error:'), error instanceof Error ? error.message : error);
+		process.exit(1);
+	}
+}
diff --git a/packages/build/src/config.ts b/packages/build/src/config.ts
new file mode 100644
index 00000000..16c650a7
--- /dev/null
+++ b/packages/build/src/config.ts
@@ -0,0 +1,255 @@
+/**
+ * Configuration loading for @10up/build
+ *
+ * This module handles loading and merging configuration from multiple sources:
+ * 1. Default configuration values
+ * 2. `package.json["10up-toolkit"]` field
+ * 3. Configuration files (buildfiles.config.js, postcss.config.js)
+ *
+ * @packageDocumentation
+ * @module config
+ */
+
+import { readFileSync, existsSync } from 'node:fs';
+import { resolve } from 'node:path';
+import { fromProjectRoot, fromPackageRoot } from './utils/paths.js';
+import type { BuildConfig, PathsConfig, FilenamesConfig, PostCSSConfig } from './types.js';
+
+/**
+ * Default paths configuration.
+ *
+ * These defaults follow the 10up-toolkit convention for WordPress
+ * theme and plugin development.
+ */
+const defaultPaths: PathsConfig = {
+	blocksDir: './includes/blocks/',
+	distDir: './dist/',
+	srcDir: './assets/',
+	copyAssetsDir: './assets/',
+	blocksStyles: './assets/css/blocks/',
+	globalStylesDir: './assets/css/globals/',
+	globalMixinsDir: './assets/css/mixins/',
+};
+
+/**
+ * Default filenames configuration.
+ *
+ * Uses esbuild-style placeholders for output naming.
+ */
+const defaultFilenames: FilenamesConfig = {
+	js: 'js/[name].js',
+	jsChunk: 'js/[name].[contenthash].chunk.js',
+	css: 'css/[name].css',
+	block: 'blocks/[name].js',
+	blockCSS: 'blocks/[name].css',
+};
+
+/**
+ * Default configuration values.
+ *
+ * These values are used when not overridden by user configuration.
+ * The configuration schema is designed to be compatible with
+ * 10up-toolkit's configuration format.
+ *
+ * @example
+ * ```typescript
+ * import { defaultConfig } from '@10up/build/config';
+ * console.log(defaultConfig.wpDependencyExternals); // true
+ * ```
+ */
+export const defaultConfig: BuildConfig = {
+	// Entry points
+	entry: {},
+	moduleEntry: {},
+
+	// Paths
+	paths: defaultPaths,
+
+	// Output filenames
+	filenames: defaultFilenames,
+
+	// Features
+	useBlockAssets: false,
+	useScriptModules: false,
+	wpDependencyExternals: true,
+	loadBlockSpecificStyles: false,
+
+	// Development
+	hot: false,
+	devServerPort: 8887,
+	devURL: '',
+
+	// Build options
+	sourcemap: false,
+	publicPath: '/dist/',
+
+	// External namespaces for custom packages
+	externalNamespaces: {},
+};
+
+/**
+ * Load and merge configuration from all sources.
+ *
+ * Configuration is loaded in the following order (later sources override earlier):
+ * 1. Default configuration
+ * 2. `package.json["10up-toolkit"]` field
+ * 3. PostCSS configuration file detection
+ *
+ * @returns Merged build configuration
+ *
+ * @example
+ * ```typescript
+ * import { loadConfig } from '@10up/build';
+ *
+ * const config = loadConfig();
+ * console.log(config.paths.blocksDir); // "./includes/blocks/"
+ * ```
+ */
+export function loadConfig(): BuildConfig {
+	const projectPackageJson = loadProjectPackageJson();
+	const toolkitConfig = (projectPackageJson?.['10up-toolkit'] || {}) as Partial<BuildConfig>;
+
+	// Deep merge paths
+	const paths: PathsConfig = {
+		...defaultPaths,
+		...(toolkitConfig.paths || {}),
+	};
+
+	// Deep merge filenames
+	const filenames: FilenamesConfig = {
+		...defaultFilenames,
+		...(toolkitConfig.filenames || {}),
+	};
+
+	// Merge all config
+	const config: BuildConfig = {
+		...defaultConfig,
+		...toolkitConfig,
+		paths,
+		filenames,
+	};
+
+	// Load additional config files
+	config.postcss = loadPostcssConfig(config);
+
+	return config;
+}
+
+/**
+ * Load the project's package.json file.
+ *
+ * Reads and parses the package.json from the current working directory.
+ *
+ * @returns Parsed package.json content, or null if not found/invalid
+ *
+ * @internal
+ */
+function loadProjectPackageJson(): Record<string, unknown> | null {
+	const packageJsonPath = fromProjectRoot('package.json');
+
+	if (!existsSync(packageJsonPath)) {
+		return null;
+	}
+
+	try {
+		return JSON.parse(readFileSync(packageJsonPath, 'utf8'));
+	} catch {
+		return null;
+	}
+}
+
+/**
+ * Load PostCSS configuration.
+ *
+ * Checks for a postcss.config.js in the project root.
+ * If not found, uses the default configuration with global styles and mixins.
+ *
+ * @param config - Current build configuration (for path resolution)
+ * @returns PostCSS configuration object
+ *
+ * @internal
+ */
+function loadPostcssConfig(config: BuildConfig): PostCSSConfig {
+	// Check for project postcss.config.js
+	const projectPostcssPath = fromProjectRoot('postcss.config.js');
+
+	if (existsSync(projectPostcssPath)) {
+		return { configPath: projectPostcssPath };
+	}
+
+	// Use default postcss config
+	return {
+		configPath: fromPackageRoot('config/postcss.config.js'),
+		globalStylesDir: resolve(process.cwd(), config.paths.globalStylesDir),
+		globalMixinsDir: resolve(process.cwd(), config.paths.globalMixinsDir),
+	};
+}
+
+/**
+ * Check if a configuration file exists in the project root.
+ *
+ * @param filename - Name of the configuration file to check
+ * @returns True if the file exists
+ *
+ * @example
+ * ```typescript
+ * if (hasConfigFile('postcss.config.js')) {
+ *   console.log('Using custom PostCSS configuration');
+ * }
+ * ```
+ */
+export function hasConfigFile(filename: string): boolean {
+	return existsSync(fromProjectRoot(filename));
+}
+
+/**
+ * Get the output directory path.
+ *
+ * Returns the absolute path to the dist directory where
+ * compiled assets will be written.
+ *
+ * @param config - Build configuration
+ * @returns Absolute path to the output directory
+ *
+ * @example
+ * ```typescript
+ * const outputDir = getOutputDir(config);
+ * console.log(outputDir); // "/path/to/project/dist"
+ * ```
+ */
+export function getOutputDir(config: BuildConfig): string {
+	return fromProjectRoot(config.paths.distDir);
+}
+
+/**
+ * Check if the build is running in production mode.
+ *
+ * Production mode is determined by `NODE_ENV=production`.
+ * In production mode:
+ * - Output is minified
+ * - Source maps are disabled (unless explicitly enabled)
+ * - Console output is optimized
+ *
+ * @returns True if NODE_ENV is "production"
+ *
+ * @example
+ * ```typescript
+ * if (isProduction()) {
+ *   console.log('Building for production...');
+ * }
+ * ```
+ */
+export function isProduction(): boolean {
+	return process.env.NODE_ENV === 'production';
+}
+
+/**
+ * Check if the build is running in watch mode.
+ *
+ * Watch mode is detected from command-line arguments.
+ *
+ * @returns True if --watch flag is present or command is "start"
+ */
+export function isWatchMode(): boolean {
+	return process.argv.includes('--watch') || process.argv.includes('start');
+}
diff --git a/packages/build/src/index.ts b/packages/build/src/index.ts
new file mode 100644
index 00000000..dd4106b6
--- /dev/null
+++ b/packages/build/src/index.ts
@@ -0,0 +1,50 @@
+/**
+ * 10up-build - esbuild-powered WordPress build tool
+ *
+ * @packageDocumentation
+ */
+
+// Main exports
+export { build } from './build.js';
+export { watch } from './watch.js';
+export { cli } from './cli.js';
+export { loadConfig, defaultConfig, isProduction, isWatchMode } from './config.js';
+
+// Type exports
+export type {
+	BuildConfig,
+	PathsConfig,
+	FilenamesConfig,
+	ExternalNamespaceConfig,
+	PostCSSConfig,
+	DetectedEntries,
+	BuildResult,
+	WatchOptions,
+	BlockMetadata,
+	DependencyInfo,
+} from './types.js';
+
+// Utility exports
+export { detectEntries, getBlockSpecificStyles } from './utils/entry-detection.js';
+export {
+	resolveExternal,
+	isWpScriptPackage,
+	wpPackageToHandle,
+	wpPackageToGlobal,
+	vendorExternals,
+} from './utils/externals.js';
+export {
+	fromProjectRoot,
+	fromPackageRoot,
+	hasProjectFile,
+	fileExists,
+	getContentHash,
+	getFileContentHash,
+	normalizePath,
+} from './utils/paths.js';
+
+// Plugin exports
+export { wpDependencyExtractionPlugin } from './plugins/wp-dependency-extraction.js';
+export { sassPlugin } from './plugins/sass-plugin.js';
+export { transformBlockJson, processBlockJsonFiles } from './plugins/block-json.js';
+export { copyStaticAssets } from './plugins/copy-assets.js';
diff --git a/packages/build/src/plugins/block-json.ts b/packages/build/src/plugins/block-json.ts
new file mode 100644
index 00000000..a697b138
--- /dev/null
+++ b/packages/build/src/plugins/block-json.ts
@@ -0,0 +1,208 @@
+/**
+ * Block JSON Plugin for esbuild
+ *
+ * Transforms and copies block.json files to the output directory.
+ * - Converts .ts/.tsx references to .js
+ * - Converts .scss/.sass references to .css
+ * - Adds version hash for cache busting
+ */
+
+import { readFileSync, writeFileSync, mkdirSync, copyFileSync, existsSync } from 'node:fs';
+import { dirname, join, resolve } from 'node:path';
+import fastGlob from 'fast-glob';
+const glob = fastGlob.sync;
+import { normalizePath, getFileContentHash } from '../utils/paths.js';
+import type { BuildConfig, BlockMetadata } from '../types.js';
+
+/**
+ * Asset keys for standard JavaScript files (IIFE format)
+ */
+const JS_ASSET_KEYS: (keyof BlockMetadata)[] = [
+	'script',
+	'editorScript',
+	'viewScript',
+];
+
+/**
+ * Asset keys for ES module files
+ */
+const MODULE_ASSET_KEYS: (keyof BlockMetadata)[] = ['scriptModule', 'viewScriptModule'];
+
+/**
+ * Asset keys for CSS files
+ */
+const CSS_ASSET_KEYS: (keyof BlockMetadata)[] = ['style', 'editorStyle', 'viewStyle'];
+
+/**
+ * Transform TypeScript asset paths to JavaScript (.js)
+ */
+function transformTSAsset(asset: string | string[]): string | string[] {
+	const transform = (filePath: string): string => {
+		if (!filePath.startsWith('file:')) {
+			return filePath;
+		}
+		return filePath.replace(/\.tsx?$/, '.js').replace(/\.js$/, '.js');
+	};
+
+	return Array.isArray(asset) ? asset.map(transform) : transform(asset);
+}
+
+/**
+ * Transform TypeScript/JS asset paths to JavaScript (.js)
+ * ES modules use .js extension (not .mjs) for better server compatibility
+ */
+function transformModuleAsset(asset: string | string[]): string | string[] {
+	const transform = (filePath: string): string => {
+		if (!filePath.startsWith('file:')) {
+			return filePath;
+		}
+		// Convert .ts/.tsx to .js (ES modules use .js extension)
+		return filePath.replace(/\.tsx?$/, '.js');
+	};
+
+	return Array.isArray(asset) ? asset.map(transform) : transform(asset);
+}
+
+/**
+ * Transform SASS/SCSS asset paths to CSS
+ */
+function transformSassAsset(asset: string | string[]): string | string[] {
+	const transform = (filePath: string): string => {
+		if (!filePath.startsWith('file:')) {
+			return filePath;
+		}
+		return filePath.replace(/\.s[ac]ss$/, '.css');
+	};
+
+	return Array.isArray(asset) ? asset.map(transform) : transform(asset);
+}
+
+/**
+ * Calculate version hash from style files
+ */
+function calculateStyleVersion(
+	metadata: BlockMetadata,
+	blockDir: string,
+): string {
+	const styleArrays: (string | string[])[] = [];
+
+	if (metadata.style) styleArrays.push(metadata.style);
+	if (metadata.viewStyle) styleArrays.push(metadata.viewStyle);
+
+	let combinedHash = '';
+
+	for (const styleField of styleArrays) {
+		const styles = Array.isArray(styleField) ? styleField : [styleField];
+
+		for (const rawStylePath of styles) {
+			if (!rawStylePath.startsWith('file:')) {
+				continue;
+			}
+
+			const stylePath = rawStylePath.replace('file:', '');
+			const absoluteStylePath = join(blockDir, stylePath);
+
+			if (existsSync(absoluteStylePath)) {
+				combinedHash += getFileContentHash(absoluteStylePath);
+			}
+		}
+	}
+
+	return combinedHash ? combinedHash.slice(0, 8) : '';
+}
+
+/**
+ * Transform block.json content
+ */
+export function transformBlockJson(content: string, absoluteFilename: string): string {
+	if (!content || content.trim() === '') {
+		return content;
+	}
+
+	try {
+		const metadata: BlockMetadata = JSON.parse(content);
+		const blockDir = dirname(absoluteFilename);
+
+		const newMetadata: BlockMetadata = { ...metadata };
+
+		// Add version hash if not present and has file: style references
+		if (!metadata.version) {
+			const versionHash = calculateStyleVersion(metadata, blockDir);
+			if (versionHash) {
+				newMetadata.version = versionHash;
+			}
+		}
+
+		// Transform standard JS asset paths
+		for (const key of JS_ASSET_KEYS) {
+			const asset = metadata[key];
+			if (asset) {
+				(newMetadata as Record<string, unknown>)[key] = transformTSAsset(asset);
+			}
+		}
+
+		// Transform ES module asset paths
+		for (const key of MODULE_ASSET_KEYS) {
+			const asset = metadata[key];
+			if (asset) {
+				(newMetadata as Record<string, unknown>)[key] = transformModuleAsset(asset);
+			}
+		}
+
+		// Transform CSS asset paths
+		for (const key of CSS_ASSET_KEYS) {
+			const asset = metadata[key];
+			if (asset) {
+				(newMetadata as Record<string, unknown>)[key] = transformSassAsset(asset);
+			}
+		}
+
+		return JSON.stringify(newMetadata, null, '\t');
+	} catch {
+		// Return original content if parsing fails
+		return content;
+	}
+}
+
+/**
+ * Copy and transform all block.json files to output directory
+ */
+export async function processBlockJsonFiles(config: BuildConfig, outputDir: string): Promise<void> {
+	const blocksDir = resolve(process.cwd(), config.paths.blocksDir);
+
+	if (!existsSync(blocksDir)) {
+		return;
+	}
+
+	// Find all block.json files
+	const blockJsonFiles = glob(normalizePath(`${blocksDir}/**/block.json`), {
+		absolute: true,
+	});
+
+	for (const blockJsonPath of blockJsonFiles) {
+		// Calculate relative path from blocks directory
+		const relativePath = blockJsonPath.replace(blocksDir, '').replace(/^[/\\]/, '');
+		const outputPath = join(outputDir, 'blocks', relativePath);
+
+		// Ensure output directory exists
+		mkdirSync(dirname(outputPath), { recursive: true });
+
+		// Read, transform, and write
+		const content = readFileSync(blockJsonPath, 'utf8');
+		const transformed = transformBlockJson(content, blockJsonPath);
+		writeFileSync(outputPath, transformed, 'utf8');
+	}
+
+	// Also copy any PHP files from blocks directory
+	const phpFiles = glob(normalizePath(`${blocksDir}/**/*.php`), {
+		absolute: true,
+	});
+
+	for (const phpPath of phpFiles) {
+		const relativePath = phpPath.replace(blocksDir, '').replace(/^[/\\]/, '');
+		const outputPath = join(outputDir, 'blocks', relativePath);
+
+		mkdirSync(dirname(outputPath), { recursive: true });
+		copyFileSync(phpPath, outputPath);
+	}
+}
diff --git a/packages/build/src/plugins/copy-assets.ts b/packages/build/src/plugins/copy-assets.ts
new file mode 100644
index 00000000..7295583e
--- /dev/null
+++ b/packages/build/src/plugins/copy-assets.ts
@@ -0,0 +1,73 @@
+/**
+ * Copy Assets Plugin
+ *
+ * Copies static assets (images, fonts, etc.) to the output directory.
+ */
+
+import { copyFileSync, mkdirSync, existsSync } from 'node:fs';
+import { dirname, join, resolve } from 'node:path';
+import fastGlob from 'fast-glob';
+const glob = fastGlob.sync;
+import { normalizePath } from '../utils/paths.js';
+import type { BuildConfig } from '../types.js';
+
+/**
+ * Asset file extensions to copy
+ */
+const ASSET_EXTENSIONS = [
+	'jpg',
+	'jpeg',
+	'png',
+	'gif',
+	'webp',
+	'avif',
+	'ico',
+	'svg',
+	'eot',
+	'ttf',
+	'woff',
+	'woff2',
+	'otf',
+];
+
+/**
+ * Copy static assets to output directory
+ */
+export async function copyStaticAssets(config: BuildConfig, outputDir: string): Promise<number> {
+	const assetsDir = resolve(process.cwd(), config.paths.copyAssetsDir);
+
+	if (!existsSync(assetsDir)) {
+		return 0;
+	}
+
+	const pattern = `**/*.{${ASSET_EXTENSIONS.join(',')}}`;
+	const assetFiles = glob(normalizePath(`${assetsDir}/${pattern}`), {
+		absolute: true,
+		ignore: ['**/node_modules/**'],
+	});
+
+	let copiedCount = 0;
+
+	for (const assetPath of assetFiles) {
+		// Calculate relative path from assets directory
+		const relativePath = assetPath.replace(assetsDir, '').replace(/^[/\\]/, '');
+		const outputPath = join(outputDir, relativePath);
+
+		// Ensure output directory exists
+		mkdirSync(dirname(outputPath), { recursive: true });
+
+		// Copy file
+		copyFileSync(assetPath, outputPath);
+		copiedCount++;
+	}
+
+	return copiedCount;
+}
+
+/**
+ * Check if a file is a static asset
+ */
+export function isAssetFile(filePath: string): boolean {
+	const ext = filePath.split('.').pop()?.toLowerCase();
+	return ext ? ASSET_EXTENSIONS.includes(ext) : false;
+}
diff --git a/packages/build/src/plugins/sass-plugin.ts b/packages/build/src/plugins/sass-plugin.ts
new file mode 100644
index 00000000..c55638f0
--- /dev/null
+++ b/packages/build/src/plugins/sass-plugin.ts
@@ -0,0 +1,190 @@
+/**
+ * SASS/SCSS Plugin for esbuild
+ *
+ * Compiles SCSS files using the sass package,
+ * then processes with PostCSS and lightningcss.
+ */
+
+import { readFileSync } from 'node:fs';
+import { dirname, resolve, extname } from 'node:path';
+import * as sass from 'sass';
+import postcss from 'postcss';
+// @ts-expect-error - postcss-import doesn't have types
+import postcssImport from 'postcss-import';
+// @ts-expect-error - postcss-mixins doesn't have types
+import postcssMixins from 'postcss-mixins';
+// @ts-ignore - @csstools/postcss-global-data doesn't have types
+import postcssGlobalData from '@csstools/postcss-global-data';
+// @ts-ignore - postcss-custom-media doesn't have types
+import postcssCustomMedia from 'postcss-custom-media';
+import { transform, browserslistToTargets } from 'lightningcss';
+import fastGlob from 'fast-glob';
+const glob = fastGlob.sync;
+import type { Plugin, OnLoadArgs, OnLoadResult } from 'esbuild';
+import { normalizePath } from '../utils/paths.js';
+import type { BuildConfig } from '../types.js';
+
+/**
+ * Default browser targets for lightningcss
+ */
+const defaultTargets = browserslistToTargets([
+	'> 1%',
+	'last 2 versions',
+	'Firefox ESR',
+	'not dead',
+]);
+
+/**
+ * Create the SASS plugin for esbuild
+ */
+export function sassPlugin(config: BuildConfig, isProduction: boolean): Plugin {
+	return {
+		name: 'sass',
+
+		setup(build) {
+			// Handle .scss and .sass files
+			build.onLoad({ filter: /\.s[ac]ss$/ }, async (args: OnLoadArgs): Promise<OnLoadResult> => {
+				try {
+					// Compile SCSS to CSS
+					const sassResult = sass.compile(args.path, {
+						loadPaths: [dirname(args.path), 'node_modules'],
+						sourceMap: !isProduction,
+						style: isProduction ? 'compressed' : 'expanded',
+					});
+
+					let css = sassResult.css;
+
+					// Process with PostCSS
+					css = await processWithPostCSS(css, args.path, config);
+
+					// Process with lightningcss for modern CSS features and minification
+					css = processWithLightningCSS(css, args.path, isProduction);
+
+					return {
+						contents: css,
+						loader: 'css',
+						watchFiles: sassResult.loadedUrls
+							.filter((url) => url.protocol === 'file:')
+							.map((url) => url.pathname),
+					};
+				} catch (error) {
+					return {
+						errors: [
+							{
+								text: error instanceof Error ? error.message : String(error),
+								location: { file: args.path },
+							},
+						],
+					};
+				}
+			});
+
+			// Handle regular .css files (also process with PostCSS and lightningcss)
+			build.onLoad({ filter: /\.css$/ }, async (args: OnLoadArgs): Promise<OnLoadResult> => {
+				// Skip if this is a CSS module or already processed
+				if (args.path.includes('.module.') || args.namespace !== 'file') {
+					return { loader: 'css' };
+				}
+
+				try {
+					let css = readFileSync(args.path, 'utf8');
+
+					// Process with PostCSS
+					css = await processWithPostCSS(css, args.path, config);
+
+					// Process with lightningcss
+					css = processWithLightningCSS(css, args.path, isProduction);
+
+					return {
+						contents: css,
+						loader: 'css',
+					};
+				} catch (error) {
+					return {
+						errors: [
+							{
+								text: error instanceof Error ? error.message : String(error),
+								location: { file: args.path },
+							},
+						],
+					};
+				}
+			});
+		},
+	};
+}
+
+/**
+ * Process CSS with PostCSS plugins
+ */
+async function processWithPostCSS(
+	css: string,
+	filePath: string,
+	config: BuildConfig,
+): Promise<string> {
+	const plugins: postcss.AcceptedPlugin[] = [postcssImport()];
+
+	// Add global data plugin if global styles exist
+	const globalStylesDir = resolve(process.cwd(), config.paths.globalStylesDir);
+	const globalCssFiles = glob(normalizePath(`${globalStylesDir}/**/*.css`));
+
+	if (globalCssFiles.length > 0) {
+		plugins.push(postcssGlobalData({ files: globalCssFiles }));
+	}
+
+	// Add custom media plugin to transform @custom-media queries
+	// This must come after postcssGlobalData which makes the definitions available
+	plugins.push(postcssCustomMedia());
+
+	// Add mixins plugin if mixin files exist
+	const globalMixinsDir = resolve(process.cwd(), config.paths.globalMixinsDir);
+	const globalMixinFiles = glob(normalizePath(`${globalMixinsDir}/**/*.css`));
+
+	if (globalMixinFiles.length > 0) {
+		plugins.push(postcssMixins({ mixinsFiles: globalMixinFiles }));
+	}
+
+	const result = await postcss(plugins).process(css, {
+		from: filePath,
+		to: filePath,
+	});
+
+	return result.css;
+}
+
+/**
+ * Process CSS with lightningcss for modern features and minification
+ */
+function processWithLightningCSS(css: string, filePath: string, isProduction: boolean): string {
+	// Handle empty CSS (or CSS with only comments/whitespace)
+	const trimmed = css.replace(/\/\*[\s\S]*?\*\//g, '').trim();
+	if (!trimmed) {
+		return isProduction ? '' : '/* empty */';
+	}
+
+	try {
+		const { code } = transform({
+			filename: filePath,
+			code: Buffer.from(css),
+			minify: isProduction,
+			sourceMap: !isProduction,
+			targets: defaultTargets,
+			// Note: customMedia is handled by postcss-custom-media in the PostCSS phase
+		});
+
+		return code.toString();
+	} catch (error) {
+		// If lightningcss fails, return the original CSS
+		// This can happen with certain edge cases
+		console.warn(`Warning: lightningcss failed for ${filePath}, using original CSS`);
+		return css;
+	}
+}
+
+/**
+ * Get file extension
+ */
+export function isStyleFile(filePath: string): boolean {
+	const ext = extname(filePath).toLowerCase();
+	return ['.css', '.scss', '.sass'].includes(ext);
+}
diff --git a/packages/build/src/plugins/wp-dependency-extraction.ts b/packages/build/src/plugins/wp-dependency-extraction.ts
new file mode 100644
index 00000000..120e2819
--- /dev/null
+++ b/packages/build/src/plugins/wp-dependency-extraction.ts
@@ -0,0 +1,429 @@
+/**
+ * WordPress Dependency Extraction Plugin for esbuild
+ *
+ * Tracks @wordpress/* and vendor imports, externalizes them,
+ * and generates .asset.php files with dependency metadata.
+ *
+ * For ES Modules, generates a different format:
+ * <?php return array('dependencies' => array('@wordpress/interactivity'), 'version' => 'xxx', 'type' => 'module');
+ */
+
+import { writeFileSync, readFileSync, mkdirSync } from 'node:fs';
+import { dirname, resolve } from 'node:path';
+import pc from 'picocolors';
+import type { Plugin, OnResolveArgs, OnResolveResult, OnEndResult } from 'esbuild';
+import { resolveExternal, vendorExternals } from '../utils/externals.js';
+import { getContentHash } from '../utils/paths.js';
+import type { BuildConfig, DependencyInfo } from '../types.js';
+
+/**
+ * Track which packages we've already warned about to avoid duplicate warnings
+ */
+const warnedPackages = new Set<string>();
+
+/**
+ * Warn about uninstalled @wordpress packages
+ *
+ * While packages will still be externalized (since they're available in WordPress),
+ * installing them provides TypeScript types and allows for better dependency tracking.
+ *
+ * @param packageName - The @wordpress/* package name
+ */
+function warnUninstalledPackage(packageName: string): void {
+	if (warnedPackages.has(packageName)) {
+		return;
+	}
+	warnedPackages.add(packageName);
+
+	// Only warn once per build
+	if (warnedPackages.size === 1) {
+		console.log(
+			pc.yellow('\nNote: ') +
+				pc.dim('Some @wordpress packages are not installed locally.'),
+		);
+		console.log(
+			pc.dim('For better TypeScript support and dependency tracking, consider installing them:'),
+		);
+		console.log(pc.dim('npm install --save-optional @wordpress/blocks @wordpress/i18n ...\n'));
+	}
+}
+
+/**
+ * Generate PHP array syntax for dependencies (IIFE/classic scripts)
+ */
+function generatePhpArray(deps: string[]): string {
+	if (deps.length === 0) {
+		return 'array()';
+	}
+	const items = deps.map((d) => `'${d}'`).join(', ');
+	return `array(${items})`;
+}
+
+/**
+ * Generate .asset.php file content for classic scripts (IIFE)
+ */
+function generateAssetPhp(dependencies: string[], version: string): string {
+	return `<?php return array('dependencies' => ${generatePhpArray(dependencies)}, 'version' => '${version}');
+`;
+}
+
+/**
+ * Generate .asset.php file content for ES Modules
+ * ES Modules use the package name directly (e.g., '@wordpress/interactivity')
+ * rather than the wp-handle format
+ */
+function generateModuleAssetPhp(dependencies: string[], version: string): string {
+	if (dependencies.length === 0) {
+		return `<?php return array('dependencies' => array(), 'version' => '${version}', 'type' => 'module');
+`;
+	}
+	// For modules, dependencies are the actual package names
+	const items = dependencies.map((d) => `'${d}'`).join(', ');
+	return `<?php return array('dependencies' => array(${items}), 'version' => '${version}', 'type' => 'module');
+`;
+}
+
+/**
+ * Convert a handle back to package name for ES modules
+ * wp-interactivity -> @wordpress/interactivity
+ */
+function handleToPackageName(handle: string): string {
+	if (handle.startsWith('wp-')) {
+		return `@wordpress/${handle.slice(3)}`;
+	}
+	// For vendor packages, return as-is (react, lodash, etc.)
+	return handle;
+}
+
+/**
+ * Normalize path for comparison (resolve and lowercase on Windows)
+ */
+function normalizePath(p: string): string {
+	return resolve(p).replace(/\\/g, '/');
+}
+
+/**
+ * Plugin options
+ */
+interface PluginOptions {
+	/** Whether this build is for ES modules (affects asset.php format) */
+	isModule?: boolean;
+}
+
+/**
+ * Create the WordPress Dependency Extraction plugin
+ * Each plugin instance has its own dependency tracking state
+ */
+export function wpDependencyExtractionPlugin(config: BuildConfig, options: PluginOptions = {}): Plugin {
+	const { isModule = false } = options;
+
+	// Track dependencies per importer file (not per entry)
+	// This allows us to collect transitive dependencies from bundled packages
+	const fileDependencies = new Map<string, Set<string>>();
+
+	/**
+	 * Track a dependency for a specific file
+	 */
+	function trackDependency(importer: string, handle: string): void {
+		// Always resolve to absolute path for consistent matching with metafile
+		const normalizedImporter = normalizePath(resolve(importer));
+		let deps = fileDependencies.get(normalizedImporter);
+		if (!deps) {
+			deps = new Set();
+			fileDependencies.set(normalizedImporter, deps);
+		}
+		deps.add(handle);
+	}
+
+	return {
+		name: 'wp-dependency-extraction',
+
+		setup(build) {
+
+			// Handle @wordpress/* imports
+			build.onResolve(
+				{ filter: /^@wordpress\// },
+				(args: OnResolveArgs): OnResolveResult | undefined => {
+					const external = resolveExternal(args.path, config) as
+						| (ReturnType<typeof resolveExternal> & { _isInstalled?: boolean })
+						| null;
+
+					if (external) {
+						// Warn if package is not installed locally
+						if (external._isInstalled === false) {
+							warnUninstalledPackage(args.path);
+						}
+
+						// Track the dependency for this importer file
+						if (args.importer) {
+							trackDependency(args.importer, external.handle);
+						}
+
+						// For ES modules, use native external (import statements work)
+						// For IIFE, use virtual module to access global (avoid require())
+						if (isModule) {
+							return {
+								path: args.path,
+								external: true,
+							};
+						}
+
+						return {
+							path: args.path,
+							namespace: 'wp-external',
+						};
+					}
+
+					return undefined;
+				},
+			);
+
+			// For IIFE builds: provide virtual modules that access WordPress globals
+			// This avoids generating require() calls which don't work in browsers
+			build.onLoad(
+				{ filter: /.*/, namespace: 'wp-external' },
+				(args): { contents: string; loader: 'js' } => {
+					const external = resolveExternal(args.path, config);
+					const globalVar = external?.global || 'undefined';
+					return {
+						contents: `module.exports = ${globalVar};`,
+						loader: 'js',
+					};
+				},
+			);
+
+			// Handle vendor externals (react, lodash, etc.)
+			const vendorFilter = new RegExp(
+				`^(${Object.keys(vendorExternals)
+					.map((k) => k.replace(/[.*+?^${}()|[\]\\]/g, '\\$&'))
+					.join('|')})$`,
+			);
+
+			build.onResolve(
+				{ filter: vendorFilter },
+				(args: OnResolveArgs): OnResolveResult | undefined => {
+					const external = vendorExternals[args.path];
+
+					if (external) {
+						// Track the dependency
+						if (args.importer) {
+							trackDependency(args.importer, external.handle);
+						}
+
+						// For ES modules, use native external
+						// For IIFE, use virtual module to access global
+						if (isModule) {
+							return {
+								path: args.path,
+								external: true,
+							};
+						}
+
+						return {
+							path: args.path,
+							namespace: 'vendor-external',
+						};
+					}
+
+					return undefined;
+				},
+			);
+
+			// For IIFE builds: provide virtual modules for vendor externals
+			build.onLoad(
+				{ filter: /.*/, namespace: 'vendor-external' },
+				(args): { contents: string; loader: 'js' } => {
+					const external = vendorExternals[args.path];
+					const globalVar = external?.global || 'undefined';
+					return {
+						contents: `module.exports = ${globalVar};`,
+						loader: 'js',
+					};
+				},
+			);
+
+			// Handle custom namespace externals
+			if (config.externalNamespaces && Object.keys(config.externalNamespaces).length > 0) {
+				for (const [namespace, mapping] of Object.entries(config.externalNamespaces)) {
+					const namespaceFilter = new RegExp(
+						`^${namespace.replace(/[.*+?^${}()|[\]\\]/g, '\\$&')}/`,
+					);
+
+					build.onResolve(
+						{ filter: namespaceFilter },
+						(args: OnResolveArgs): OnResolveResult | undefined => {
+							const packageName = args.path.replace(`${namespace}/`, '');
+							const handle = `${mapping.handlePrefix}-${packageName}`;
+
+							// Track the dependency
+							if (args.importer) {
+								trackDependency(args.importer, handle);
+							}
+
+							// For ES modules, use native external
+							// For IIFE, use virtual module to access global
+							if (isModule) {
+								return {
+									path: args.path,
+									external: true,
+								};
+							}
+
+							return {
+								path: args.path,
+								namespace: `custom-external-${namespace}`,
+							};
+						},
+					);
+
+					// For IIFE builds: provide virtual modules for custom namespace externals
+					build.onLoad(
+						{ filter: /.*/, namespace: `custom-external-${namespace}` },
+						(args): { contents: string; loader: 'js' } => {
+							const packageName = args.path.replace(`${namespace}/`, '');
+							// Convert to camelCase for global access
+							const camelName = packageName.replace(/-([a-z])/g, (_: string, letter: string) => letter.toUpperCase());
+							const globalVar = `${mapping.global}.${camelName}`;
+							return {
+								contents: `module.exports = ${globalVar};`,
+								loader: 'js',
+							};
+						},
+					);
+				}
+			}
+
+			// Generate .asset.php files at the end of build
+			// Uses metafile to collect ALL dependencies from ALL input files in each bundle
+			// This properly handles transitive dependencies from bundled packages
+			build.onEnd(async (result): Promise<OnEndResult | undefined> => {
+				if (result.errors.length > 0) {
+					return undefined;
+				}
+
+				const metafile = result.metafile;
+
+				if (!metafile) {
+					return undefined;
+				}
+
+				// Process each output that has an entry point
+				for (const [outputPath, outputMeta] of Object.entries(metafile.outputs)) {
+					if (!outputMeta.entryPoint) {
+						continue;
+					}
+
+					// Skip chunks
+					if (outputPath.includes('/chunks/')) {
+						continue;
+					}
+
+					// Collect ALL dependencies from ALL input files in this bundle
+					// This catches transitive deps from bundled packages like @10up/block-components
+					const allDeps = new Set<string>();
+
+					for (const inputPath of Object.keys(outputMeta.inputs)) {
+						// Normalize input path to match our tracking
+						const normalizedInput = normalizePath(resolve(inputPath));
+						const deps = fileDependencies.get(normalizedInput);
+						if (deps) {
+							for (const dep of deps) {
+								allDeps.add(dep);
+							}
+						}
+					}
+
+					// Read output file content for version hash AND to scan for WP globals
+					let content = '';
+					try {
+						content = readFileSync(outputPath, 'utf8');
+					} catch {
+						// File might not exist yet, use empty content
+					}
+					const version = getContentHash(content);
+
+					// Scan the output for WordPress dependencies from pre-bundled packages
+					// This catches deps from webpack-bundled packages like @10up/block-components
+					if (content) {
+						// 1. Match wp.packageName global accesses (e.g., wp.blocks, wp.blockEditor)
+						const wpGlobalPattern = /(?:=|,|\()\s*wp\.([a-zA-Z][a-zA-Z0-9]*)/g;
+						let match;
+						while ((match = wpGlobalPattern.exec(content)) !== null) {
+							const globalName = match[1];
+							// Convert camelCase to kebab-case for handle (e.g., blockEditor -> block-editor)
+							const handle = 'wp-' + globalName.replace(/([A-Z])/g, '-$1').toLowerCase();
+							allDeps.add(handle);
+						}
+
+						// 2. Match webpack require patterns: __webpack_require__("@wordpress/...")
+						// or __webpack_require__(/*! @wordpress/... */ "@wordpress/...")
+						// Use [^"]* to skip the comment and match the actual module ID
+						const webpackRequirePattern = /__webpack_require__\([^"]*"@wordpress\/([^"]+)"/g;
+						while ((match = webpackRequirePattern.exec(content)) !== null) {
+							const packageName = match[1];
+							const handle = 'wp-' + packageName;
+							allDeps.add(handle);
+						}
+
+						// 3. Also match __webpack_require__.n() wrappers that reference WP externals
+						// e.g., __webpack_require__.n(_wordpress_element__WEBPACK_IMPORTED_MODULE_0__)
+						// We need to find the variable declarations that map to @wordpress packages
+						const wpModuleVarPattern = /var\s+(_wordpress_[a-zA-Z0-9_]+)__WEBPACK_IMPORTED_MODULE_\d+__\s*=\s*__webpack_require__\([^"]*"@wordpress\/([^"]+)"/g;
+						while ((match = wpModuleVarPattern.exec(content)) !== null) {
+							const packageName = match[2];
+							const handle = 'wp-' + packageName;
+							allDeps.add(handle);
+						}
+					}
+
+					// Also scan for vendor globals (React, ReactDOM, lodash, jQuery, moment)
+					if (content) {
+						if (/(?:=|,|\()\s*React[^a-zA-Z]/.test(content)) allDeps.add('react');
+						if (/(?:=|,|\()\s*ReactDOM[^a-zA-Z]/.test(content)) allDeps.add('react-dom');
+						if (/(?:=|,|\()\s*ReactJSXRuntime[^a-zA-Z]/.test(content)) allDeps.add('react-jsx-runtime');
+						if (/(?:=|,|\()\s*lodash[^a-zA-Z]/.test(content)) allDeps.add('lodash');
+						if (/(?:=|,|\()\s*jQuery[^a-zA-Z]/.test(content)) allDeps.add('jquery');
+						if (/(?:=|,|\()\s*moment[^a-zA-Z]/.test(content)) allDeps.add('moment');
+					}
+
+					// Generate .asset.php with appropriate format
+					const assetPhpPath = outputPath.replace(/\.(m?js)$/, '.asset.php');
+					const sortedDeps = Array.from(allDeps).sort();
+
+					let assetPhpContent: string;
+					if (isModule) {
+						// For ES modules, convert handles back to package names
+						const packageDeps = sortedDeps.map(handleToPackageName);
+						assetPhpContent = generateModuleAssetPhp(packageDeps, version);
+					} else {
+						assetPhpContent = generateAssetPhp(sortedDeps, version);
+					}
+
+					// Ensure directory exists
+					mkdirSync(dirname(assetPhpPath), { recursive: true });
+
+					// Write asset file
+					writeFileSync(assetPhpPath, assetPhpContent, 'utf8');
+				}
+
+				return undefined;
+			});
+		},
+	};
+}
+
+/**
+ * Get all tracked dependencies (for testing/debugging)
+ * Note: This returns empty map since dependencies are now instance-specific
+ */
+export function getDependencies(): Map<string, DependencyInfo> {
+	return new Map();
+}
+
+/**
+ * Clear all tracked dependencies (for testing)
+ * Note: This is now a no-op since dependencies are instance-specific
+ */
+export function clearDependencies(): void {
+	// No-op - dependencies are now cleared per plugin instance
+}
diff --git a/packages/build/src/types.ts b/packages/build/src/types.ts
new file mode 100644
index 00000000..628f0146
--- /dev/null
+++ b/packages/build/src/types.ts
@@ -0,0 +1,607 @@
+/**
+ * Type definitions for @10up/build
+ *
+ * This module contains all TypeScript interfaces and types used throughout
+ * the build tool. These types define the configuration schema, build results,
+ * and internal data structures.
+ *
+ * @packageDocumentation
+ * @module types
+ */
+
+import type { Plugin } from 'esbuild';
+
+/**
+ * Path configuration for source and output directories.
+ *
+ * These paths are relative to the project root (where package.json is located).
+ *
+ * @example
+ * ```json
+ * {
+ *   "paths": {
+ *     "blocksDir": "./includes/blocks/",
+ *     "srcDir": "./assets/",
+ *     "copyAssetsDir": "./assets/",
+ *     "blocksStyles": "./assets/css/blocks/",
+ *     "globalStylesDir": "./assets/css/globals/",
+ *     "globalMixinsDir": "./assets/css/mixins/"
+ *   }
+ * }
+ * ```
+ */
+export interface PathsConfig {
+	/**
+	 * Directory containing block.json files for WordPress blocks.
+	 * The build tool recursively searches this directory for block metadata.
+	 * @default "./includes/blocks/"
+	 */
+	blocksDir: string;
+
+	/**
+	 * Output directory for compiled assets.
+	 * @default "./dist/"
+	 */
+	distDir: string;
+
+	/**
+	 * Source directory for JavaScript, TypeScript, and CSS assets.
+	 * @default "./assets/"
+	 */
+	srcDir: string;
+
+	/**
+	 * Directory containing static assets (images, fonts, etc.) to copy to output.
+	 * Files with extensions like .jpg, .png, .svg, .woff2 are automatically copied.
+	 * @default "./assets/"
+	 */
+	copyAssetsDir: string;
+
+	/**
+	 * Directory containing block-specific stylesheets for auto-enqueue feature.
+	 * Used when `loadBlockSpecificStyles` is enabled.
+	 * @default "./assets/css/blocks/"
+	 */
+	blocksStyles: string;
+
+	/**
+	 * Directory containing global CSS files with custom properties and custom media queries.
+	 * These files are injected into all stylesheets via postcss-global-data.
+	 * @default "./assets/css/globals/"
+	 */
+	globalStylesDir: string;
+
+	/**
+	 * Directory containing PostCSS mixin definition files.
+	 * Mixins defined here can be used in any stylesheet with `@mixin name;`.
+	 * @default "./assets/css/mixins/"
+	 */
+	globalMixinsDir: string;
+}
+
+/**
+ * Output filename patterns for generated assets.
+ *
+ * Supports placeholders:
+ * - `[name]` - Entry point name
+ * - `[dir]` - Directory structure from entry
+ * - `[hash]` - Content hash for cache busting
+ * - `[contenthash]` - Content-based hash
+ *
+ * @example
+ * ```json
+ * {
+ *   "filenames": {
+ *     "js": "js/[name].js",
+ *     "css": "css/[name].css"
+ *   }
+ * }
+ * ```
+ */
+export interface FilenamesConfig {
+	/**
+	 * Pattern for JavaScript output files.
+	 * @default "js/[name].js"
+	 */
+	js: string;
+
+	/**
+	 * Pattern for JavaScript chunk files (code splitting).
+	 * @default "js/[name].[contenthash].chunk.js"
+	 */
+	jsChunk: string;
+
+	/**
+	 * Pattern for CSS output files.
+	 * @default "css/[name].css"
+	 */
+	css: string;
+
+	/**
+	 * Pattern for block JavaScript files.
+	 * @default "blocks/[name].js"
+	 */
+	block: string;
+
+	/**
+	 * Pattern for block CSS files.
+	 * @default "blocks/[name].css"
+	 */
+	blockCSS: string;
+}
+
+/**
+ * Configuration for externalizing custom package namespaces.
+ *
+ * This allows you to externalize packages from custom npm scopes
+ * (like @woocommerce/* or @your-plugin/*) similar to how @wordpress/*
+ * packages are handled.
+ *
+ * @example
+ * ```json
+ * {
+ *   "externalNamespaces": {
+ *     "@woocommerce": {
+ *       "global": "wc",
+ *       "handlePrefix": "wc"
+ *     }
+ *   }
+ * }
+ * ```
+ *
+ * This would transform:
+ * - `import { Button } from '@woocommerce/components'`
+ * - To use global: `wc.components`
+ * - With script handle: `wc-components`
+ */
+export interface ExternalNamespaceConfig {
+	/**
+	 * The global variable prefix where the package is available at runtime.
+	 * For `@woocommerce/components`, if global is "wc", the runtime reference
+	 * will be `wc.components`.
+	 */
+	global: string;
+
+	/**
+	 * The prefix for WordPress script handles.
+	 * For `@woocommerce/components`, if handlePrefix is "wc", the handle
+	 * will be `wc-components`.
+	 */
+	handlePrefix: string;
+}
+
+/**
+ * Main build configuration object.
+ *
+ * This interface defines all configuration options available for the build tool.
+ * Configuration is typically read from `package.json["10up-toolkit"]`.
+ *
+ * @example
+ * ```json
+ * {
+ *   "10up-toolkit": {
+ *     "entry": {
+ *       "admin": "./assets/js/admin/admin.js"
+ *     },
+ *     "useBlockAssets": true,
+ *     "wpDependencyExternals": true
+ *   }
+ * }
+ * ```
+ */
+export interface BuildConfig {
+	/**
+	 * Entry points for scripts and styles.
+	 * Keys become output filenames, values are source file paths.
+	 *
+	 * @example
+	 * ```json
+	 * {
+	 *   "admin": "./assets/js/admin/admin.js",
+	 *   "frontend": "./assets/js/frontend/frontend.js",
+	 *   "admin-style": "./assets/css/admin/admin-style.scss"
+	 * }
+	 * ```
+	 */
+	entry: Record<string, string>;
+
+	/**
+	 * Entry points for ES modules.
+	 * These are built with `format: 'esm'` and support code splitting.
+	 *
+	 * @example
+	 * ```json
+	 * {
+	 *   "interactivity-module": "./assets/js/interactivity/module.ts"
+	 * }
+	 * ```
+	 */
+	moduleEntry: Record<string, string>;
+
+	/**
+	 * Path configuration for source and output directories.
+	 * @see {@link PathsConfig}
+	 */
+	paths: PathsConfig;
+
+	/**
+	 * Output filename patterns.
+	 * @see {@link FilenamesConfig}
+	 */
+	filenames: FilenamesConfig;
+
+	/**
+	 * Enable automatic entry detection from block.json files.
+	 * When enabled, the build tool scans `paths.blocksDir` for block.json
+	 * files and automatically creates entries for script/style assets.
+	 * @default false
+	 */
+	useBlockAssets: boolean;
+
+	/**
+	 * Enable ES module output for script modules.
+	 * When enabled, entries in `moduleEntry` are built as ES modules.
+	 * @default false
+	 */
+	useScriptModules: boolean;
+
+	/**
+	 * Enable WordPress dependency externalization.
+	 * When enabled:
+	 * - @wordpress/* imports are externalized to WordPress globals
+	 * - .asset.php files are generated with dependency arrays
+	 * - Vendor packages (react, lodash, etc.) are also externalized
+	 * @default true
+	 */
+	wpDependencyExternals: boolean;
+
+	/**
+	 * Enable automatic loading of block-specific stylesheets.
+	 * Scans `paths.blocksStyles` for stylesheets matching core block names.
+	 * @default false
+	 */
+	loadBlockSpecificStyles: boolean;
+
+	/**
+	 * Enable Hot Module Replacement in watch mode.
+	 * Starts a WebSocket server for live reload notifications.
+	 * @default false
+	 */
+	hot: boolean;
+
+	/**
+	 * Port for the HMR WebSocket server.
+	 * @default 8887
+	 */
+	devServerPort: number;
+
+	/**
+	 * Development URL for the WordPress site.
+	 * Used for proxy configuration in development mode.
+	 * @default ""
+	 */
+	devURL: string;
+
+	/**
+	 * Generate source maps for debugging.
+	 * Always enabled in development mode regardless of this setting.
+	 * @default false
+	 */
+	sourcemap: boolean;
+
+	/**
+	 * Public path for assets (used in generated URLs).
+	 * @default "/dist/"
+	 */
+	publicPath: string;
+
+	/**
+	 * Custom package namespaces to externalize.
+	 * @see {@link ExternalNamespaceConfig}
+	 */
+	externalNamespaces: Record<string, ExternalNamespaceConfig>;
+
+	/**
+	 * PostCSS configuration (auto-detected).
+	 * @see {@link PostCSSConfig}
+	 */
+	postcss?: PostCSSConfig;
+}
+
+/**
+ * PostCSS configuration options.
+ *
+ * The build tool automatically detects postcss.config.js in the project root.
+ * If not found, it uses the default configuration with global styles and mixins.
+ */
+export interface PostCSSConfig {
+	/**
+	 * Path to the PostCSS configuration file.
+	 * If not specified, uses the default configuration.
+	 */
+	configPath?: string;
+
+	/**
+	 * Directory containing global CSS files.
+	 * Overrides the default from paths.globalStylesDir.
+	 */
+	globalStylesDir?: string;
+
+	/**
+	 * Directory containing mixin definition files.
+	 * Overrides the default from paths.globalMixinsDir.
+	 */
+	globalMixinsDir?: string;
+}
+
+/**
+ * Detected entry points categorized by type.
+ *
+ * The entry detection process scans:
+ * 1. `buildfiles.config.js` or `config.entry`
+ * 2. `config.moduleEntry` for ES modules
+ * 3. block.json files (if `useBlockAssets` is enabled)
+ */
+export interface DetectedEntries {
+	/**
+	 * Regular JavaScript/TypeScript entries (IIFE output).
+	 * Key is the output name, value is the source file path.
+	 */
+	scripts: Record<string, string>;
+
+	/**
+	 * ES Module entries.
+	 * Key is the output name, value is the source file path.
+	 */
+	modules: Record<string, string>;
+
+	/**
+	 * Standalone CSS/SCSS entries.
+	 * Key is the output name, value is the source file path.
+	 */
+	styles: Record<string, string>;
+}
+
+/**
+ * Result of resolving an external package.
+ *
+ * Used by the dependency extraction plugin to determine how to
+ * externalize a package and track it as a dependency.
+ */
+export interface ExternalResolution {
+	/**
+	 * The global variable path where the package is available.
+	 * For @wordpress/blocks, this would be "wp.blocks".
+	 */
+	global: string;
+
+	/**
+	 * The WordPress script handle for the package.
+	 * For @wordpress/blocks, this would be "wp-blocks".
+	 */
+	handle: string;
+}
+
+/**
+ * Dependency information for a single entry point.
+ *
+ * Used internally to track which WordPress packages are imported
+ * by each entry point, for .asset.php generation.
+ */
+export interface DependencyInfo {
+	/**
+	 * Set of WordPress script handles that this entry depends on.
+	 * Example: Set(['wp-blocks', 'wp-element', 'wp-i18n'])
+	 */
+	dependencies: Set<string>;
+
+	/**
+	 * Content hash for cache busting.
+	 * Generated from the output file content.
+	 */
+	version: string;
+}
+
+/**
+ * Result returned from the build function.
+ *
+ * Contains information about the build success, timing, and any errors.
+ *
+ * @example
+ * ```typescript
+ * const result = await build();
+ * if (result.success) {
+ *   console.log(`Built in ${result.duration}ms`);
+ * } else {
+ *   console.error('Build failed:', result.errors);
+ * }
+ * ```
+ */
+export interface BuildResult {
+	/**
+	 * Whether the build completed successfully.
+	 */
+	success: boolean;
+
+	/**
+	 * Build duration in milliseconds.
+	 */
+	duration: number;
+
+	/**
+	 * Count of entries built by type.
+	 */
+	entries: {
+		/** Number of IIFE script entries built */
+		scripts: number;
+		/** Number of ES module entries built */
+		modules: number;
+		/** Number of stylesheet entries built */
+		styles: number;
+	};
+
+	/**
+	 * Error messages if the build failed.
+	 * Only present when `success` is false.
+	 */
+	errors?: string[];
+}
+
+/**
+ * Options for watch mode.
+ *
+ * @example
+ * ```typescript
+ * await watch({
+ *   hot: true,
+ *   port: 8887,
+ *   onRebuild: (result) => {
+ *     console.log('Rebuilt:', result.success);
+ *   }
+ * });
+ * ```
+ */
+export interface WatchOptions {
+	/**
+	 * Enable Hot Module Replacement.
+	 * When enabled, starts a WebSocket server for live reload.
+	 * @default false (uses config.hot)
+	 */
+	hot?: boolean;
+
+	/**
+	 * Port for the HMR WebSocket server.
+	 * @default 8887 (uses config.devServerPort)
+	 */
+	port?: number;
+
+	/**
+	 * Callback invoked after each rebuild.
+	 * Useful for custom notifications or logging.
+	 */
+	onRebuild?: (result: BuildResult) => void;
+}
+
+/**
+ * CLI command handler function type.
+ *
+ * Each CLI command (build, start, watch) is implemented as a handler
+ * that receives command-line arguments and returns a Promise.
+ *
+ * @param args - Command-line arguments (excluding the command name)
+ */
+export type CommandHandler = (args: string[]) => Promise<void>;
+
+/**
+ * Map of CLI commands to their handlers.
+ *
+ * @see {@link CommandHandler}
+ */
+export interface Commands {
+	/** Production build command */
+	build: CommandHandler;
+	/** Development mode with HMR */
+	start: CommandHandler;
+	/** Watch mode without HMR */
+	watch: CommandHandler;
+	/** Sync @wordpress dependencies from source imports */
+	'sync-wp-deps': CommandHandler;
+	/** Update @wordpress dependencies to a new version tag */
+	'update-wp-deps': CommandHandler;
+	/** List installed @wordpress dependencies */
+	'list-wp-deps': CommandHandler;
+	/** Cache wpScript flags for CI environments */
+	'cache-wp-scripts': CommandHandler;
+}
+
+/**
+ * WordPress block.json metadata structure.
+ *
+ * This interface represents the relevant fields from block.json
+ * that the build tool uses for entry detection and transformation.
+ *
+ * @see {@link https://developer.wordpress.org/block-editor/reference-guides/block-api/block-metadata/}
+ *
+ * @example
+ * ```json
+ * {
+ *   "name": "my-plugin/my-block",
+ *   "editorScript": "file:./index.js",
+ *   "editorStyle": "file:./editor.css",
+ *   "style": "file:./style.css",
+ *   "viewScript": "file:./view.js",
+ *   "viewScriptModule": "file:./view-module.js"
+ * }
+ * ```
+ */
+export interface BlockMetadata {
+	/**
+	 * Block name in namespace/block-name format.
+	 */
+	name?: string;
+
+	/**
+	 * Block version for cache busting.
+	 * Auto-generated from style file hashes if not provided.
+	 */
+	version?: string;
+
+	/**
+	 * Script loaded on both editor and frontend.
+	 * Can be a handle, URL, or file: path.
+	 */
+	script?: string | string[];
+
+	/**
+	 * Script loaded only in the editor.
+	 * Typically the main block registration script.
+	 */
+	editorScript?: string | string[];
+
+	/**
+	 * Script loaded only on the frontend.
+	 * For interactive functionality.
+	 */
+	viewScript?: string | string[];
+
+	/**
+	 * ES Module loaded on both editor and frontend.
+	 * Used for WordPress Script Modules API.
+	 */
+	scriptModule?: string | string[];
+
+	/**
+	 * ES Module loaded only on the frontend.
+	 * For WordPress Interactivity API usage.
+	 */
+	viewScriptModule?: string | string[];
+
+	/**
+	 * Stylesheet loaded on both editor and frontend.
+	 */
+	style?: string | string[];
+
+	/**
+	 * Stylesheet loaded only in the editor.
+	 */
+	editorStyle?: string | string[];
+
+	/**
+	 * Stylesheet loaded only on the frontend.
+	 */
+	viewStyle?: string | string[];
+}
+
+/**
+ * Extended esbuild plugin interface with dependency tracking.
+ *
+ * Used by the WordPress dependency extraction plugin to expose
+ * tracked dependencies for testing and debugging.
+ */
+export interface DependencyExtractionPlugin extends Plugin {
+	/**
+	 * Get all tracked dependencies across entry points.
+	 * @returns Map of entry point paths to their dependency info
+	 */
+	getDependencies: () => Map<string, DependencyInfo>;
+}
diff --git a/packages/build/src/utils/entry-detection.ts b/packages/build/src/utils/entry-detection.ts
new file mode 100644
index 00000000..51a44051
--- /dev/null
+++ b/packages/build/src/utils/entry-detection.ts
@@ -0,0 +1,275 @@
+/**
+ * Entry point detection for WordPress blocks and build files
+ */
+
+import { readFileSync, existsSync } from 'node:fs';
+import { dirname, extname, join, resolve } from 'node:path';
+import fastGlob from 'fast-glob';
+const glob = fastGlob.sync;
+import { fromProjectRoot, normalizePath } from './paths.js';
+import type { BuildConfig, DetectedEntries, BlockMetadata } from '../types.js';
+
+/**
+ * Asset keys from block.json for scripts
+ */
+const JS_ASSET_KEYS: (keyof BlockMetadata)[] = ['script', 'editorScript', 'viewScript'];
+
+/**
+ * Asset keys from block.json for script modules
+ */
+const MODULE_ASSET_KEYS: (keyof BlockMetadata)[] = ['scriptModule', 'viewScriptModule'];
+
+/**
+ * Asset keys from block.json for styles
+ */
+const CSS_ASSET_KEYS: (keyof BlockMetadata)[] = ['style', 'editorStyle', 'viewStyle'];
+
+/**
+ * Detect all entry points for the build
+ */
+export async function detectEntries(config: BuildConfig): Promise<DetectedEntries> {
+	const entries: DetectedEntries = {
+		scripts: {},
+		modules: {},
+		styles: {},
+	};
+
+	// 1. Load entries from buildfiles.config.js or config.entry
+	const buildFileEntries = await loadBuildFileEntries(config);
+	Object.assign(entries.scripts, buildFileEntries.scripts);
+	Object.assign(entries.styles, buildFileEntries.styles);
+
+	// 2. Load module entries from config.moduleEntry
+	if (config.moduleEntry && Object.keys(config.moduleEntry).length > 0) {
+		Object.assign(entries.modules, filterExistingEntries(config.moduleEntry));
+	}
+
+	// 3. Detect block.json entries if useBlockAssets is enabled
+	if (config.useBlockAssets) {
+		const blockEntries = detectBlockEntries(config);
+		Object.assign(entries.scripts, blockEntries.scripts);
+		Object.assign(entries.modules, blockEntries.modules);
+		Object.assign(entries.styles, blockEntries.styles);
+	}
+
+	return entries;
+}
+
+/**
+ * Load entries from buildfiles.config.js or config.entry
+ */
+async function loadBuildFileEntries(
+	config: BuildConfig,
+): Promise<{ scripts: Record<string, string>; styles: Record<string, string> }> {
+	const result: { scripts: Record<string, string>; styles: Record<string, string> } = {
+		scripts: {},
+		styles: {},
+	};
+
+	// Try buildfiles.config.js first
+	const buildFilesConfigPath = fromProjectRoot('buildfiles.config.js');
+	let entries: Record<string, string> = {};
+
+	if (existsSync(buildFilesConfigPath)) {
+		try {
+			const buildFilesModule = await import(`file://${buildFilesConfigPath}`);
+			entries = buildFilesModule.default || buildFilesModule;
+		} catch (error) {
+			console.warn(
+				'Warning: Could not load buildfiles.config.js:',
+				error instanceof Error ? error.message : error,
+			);
+		}
+	} else if (config.entry && Object.keys(config.entry).length > 0) {
+		// Use config.entry as fallback
+		entries = config.entry;
+	}
+
+	// Separate JS and CSS entries, adding js/ and css/ prefixes for output organization
+	for (const [name, filePath] of Object.entries(entries)) {
+		const resolvedPath = fromProjectRoot(filePath);
+
+		if (!existsSync(resolvedPath)) {
+			continue;
+		}
+
+		const ext = extname(filePath).toLowerCase();
+
+		if (['.css', '.scss', '.sass'].includes(ext)) {
+			// CSS entries go to css/ subdirectory
+			result.styles[`css/${name}`] = resolvedPath;
+		} else {
+			// JS entries go to js/ subdirectory
+			result.scripts[`js/${name}`] = resolvedPath;
+		}
+	}
+
+	return result;
+}
+
+/**
+ * Filter entries to only include existing files, adding js/ prefix for output organization
+ */
+function filterExistingEntries(entries: Record<string, string>): Record<string, string> {
+	const result: Record<string, string> = {};
+
+	for (const [name, filePath] of Object.entries(entries)) {
+		const resolvedPath = fromProjectRoot(filePath);
+		if (existsSync(resolvedPath)) {
+			// Add js/ prefix for module entries
+			result[`js/${name}`] = resolvedPath;
+		}
+	}
+
+	return result;
+}
+
+/**
+ * Detect entries from block.json files
+ */
+function detectBlockEntries(config: BuildConfig): DetectedEntries {
+	const result: DetectedEntries = { scripts: {}, modules: {}, styles: {} };
+
+	const blocksDir = resolve(process.cwd(), config.paths.blocksDir);
+
+	if (!existsSync(blocksDir)) {
+		return result;
+	}
+
+	// Find all block.json files
+	const blockMetadataFiles = glob(normalizePath(`${blocksDir}/**/block.json`), {
+		absolute: true,
+	});
+
+	for (const blockMetadataFile of blockMetadataFiles) {
+		try {
+			const metadata: BlockMetadata = JSON.parse(readFileSync(blockMetadataFile, 'utf8'));
+			const blockDir = dirname(blockMetadataFile);
+
+			// Process script assets
+			for (const key of JS_ASSET_KEYS) {
+				const asset = metadata[key];
+				if (asset) {
+					const entries = processAssetField(asset, blockDir, blocksDir, false);
+					Object.assign(result.scripts, entries);
+				}
+			}
+
+			// Process script module assets
+			for (const key of MODULE_ASSET_KEYS) {
+				const asset = metadata[key];
+				if (asset) {
+					const entries = processAssetField(asset, blockDir, blocksDir, false);
+					Object.assign(result.modules, entries);
+				}
+			}
+
+			// Process style assets
+			for (const key of CSS_ASSET_KEYS) {
+				const asset = metadata[key];
+				if (asset) {
+					const entries = processAssetField(asset, blockDir, blocksDir, true);
+					Object.assign(result.styles, entries);
+				}
+			}
+		} catch (error) {
+			// Skip malformed block.json files
+			console.warn(
+				`Warning: Could not parse ${blockMetadataFile}:`,
+				error instanceof Error ? error.message : error,
+			);
+		}
+	}
+
+	return result;
+}
+
+/**
+ * Process an asset field from block.json
+ */
+function processAssetField(
+	asset: string | string[],
+	blockDir: string,
+	blocksDir: string,
+	isStyle: boolean,
+): Record<string, string> {
+	const result: Record<string, string> = {};
+	const assets = Array.isArray(asset) ? asset : [asset];
+
+	for (const rawFilepath of assets) {
+		// Only process file: prefixed paths
+		if (!rawFilepath || !rawFilepath.startsWith('file:')) {
+			continue;
+		}
+
+		const relativePath = rawFilepath.replace('file:', '');
+		const targetPath = join(blockDir, relativePath);
+
+		// Generate entry name from path
+		const entryName = targetPath
+			.replace(extname(targetPath), '')
+			.replace(blocksDir, '')
+			.replace(/^[/\\]/, '');
+
+		// Find the actual source file (might be .ts, .tsx, .scss, etc.)
+		const sourceFile = findSourceFile(targetPath, isStyle);
+
+		if (sourceFile) {
+			result[`blocks/${normalizePath(entryName)}`] = sourceFile;
+		}
+	}
+
+	return result;
+}
+
+/**
+ * Find the actual source file for a target path
+ */
+function findSourceFile(targetPath: string, isStyle: boolean): string | null {
+	const dir = dirname(targetPath);
+	const baseName = targetPath
+		.replace(extname(targetPath), '')
+		.replace(dir, '')
+		.replace(/^[/\\]/, '');
+
+	const extensions = isStyle ? ['.css', '.scss', '.sass'] : ['.js', '.jsx', '.ts', '.tsx'];
+
+	for (const ext of extensions) {
+		const sourcePath = join(dir, `${baseName}${ext}`);
+		if (existsSync(sourcePath)) {
+			return sourcePath;
+		}
+	}
+
+	// Try the exact path
+	if (existsSync(targetPath)) {
+		return targetPath;
+	}
+
+	return null;
+}
+
+/**
+ * Get block-specific style entries (for loadBlockSpecificStyles option)
+ */
+export function getBlockSpecificStyles(config: BuildConfig): Record<string, string> {
+	const result: Record<string, string> = {};
+
+	const stylesDir = resolve(process.cwd(), config.paths.blocksStyles);
+
+	if (!existsSync(stylesDir)) {
+		return result;
+	}
+
+	const stylesheets = glob(normalizePath(`${stylesDir}/**/*.{css,scss,sass}`), {
+		absolute: true,
+	});
+
+	for (const filePath of stylesheets) {
+		const blockName = filePath.replace(`${stylesDir}/`, '').replace(extname(filePath), '');
+
+		result[`autoenqueue/${normalizePath(blockName)}`] = filePath;
+	}
+
+	return result;
+}
diff --git a/packages/build/src/utils/externals.ts b/packages/build/src/utils/externals.ts
new file mode 100644
index 00000000..8b95ab04
--- /dev/null
+++ b/packages/build/src/utils/externals.ts
@@ -0,0 +1,305 @@
+/**
+ * WordPress and vendor externals handling
+ *
+ * Uses dynamic detection via wpScript flag in package.json
+ * instead of maintaining a hardcoded list.
+ *
+ * Supports a cache file (.wp-scripts-cache.json) for CI environments
+ * where optional dependencies are not installed.
+ */
+
+import { readFileSync, existsSync } from 'node:fs';
+import { createRequire } from 'node:module';
+import { join, dirname } from 'node:path';
+import type { BuildConfig, ExternalResolution } from '../types.js';
+
+const require = createRequire(import.meta.url);
+
+/**
+ * Vendor externals - these don't have wpScript flag
+ * so we maintain them as a hardcoded list
+ */
+export const vendorExternals: Record<string, ExternalResolution> = {
+	react: { global: 'React', handle: 'react' },
+	'react-dom': { global: 'ReactDOM', handle: 'react-dom' },
+	'react-dom/client': { global: 'ReactDOM', handle: 'react-dom' },
+	'react/jsx-runtime': { global: 'ReactJSXRuntime', handle: 'react-jsx-runtime' },
+	lodash: { global: 'lodash', handle: 'lodash' },
+	'lodash-es': { global: 'lodash', handle: 'lodash' },
+	moment: { global: 'moment', handle: 'moment' },
+	jquery: { global: 'jQuery', handle: 'jquery' },
+};
+
+/**
+ * Cache file name for wpScript lookups
+ */
+export const WP_SCRIPTS_CACHE_FILE = '.wp-scripts-cache.json';
+
+/**
+ * Cache for package.json wpScript lookups (runtime cache)
+ */
+const wpScriptCache = new Map<string, boolean>();
+
+/**
+ * File-based cache loaded from .wp-scripts-cache.json
+ */
+let fileCache: Record<string, boolean> | null = null;
+let fileCacheLoaded = false;
+
+/**
+ * Find the cache file by searching up the directory tree.
+ * This allows workspace packages in a monorepo to find the cache
+ * file at the monorepo root.
+ */
+function findCacheFile(startDir: string): string | null {
+	let dir = startDir;
+
+	while (dir !== dirname(dir)) {
+		const cachePath = join(dir, WP_SCRIPTS_CACHE_FILE);
+		if (existsSync(cachePath)) {
+			return cachePath;
+		}
+		dir = dirname(dir);
+	}
+
+	return null;
+}
+
+/**
+ * Load the wpScript cache from file if it exists.
+ * Searches up the directory tree to find the cache file,
+ * supporting monorepo setups where the cache is at the root.
+ */
+function loadFileCache(): Record<string, boolean> | null {
+	if (fileCacheLoaded) {
+		return fileCache;
+	}
+
+	fileCacheLoaded = true;
+
+	const cachePath = findCacheFile(process.cwd());
+	if (cachePath) {
+		try {
+			const cacheData = JSON.parse(readFileSync(cachePath, 'utf8'));
+			if (cacheData && typeof cacheData.packages === 'object') {
+				fileCache = cacheData.packages;
+				return fileCache;
+			}
+		} catch {
+			// Invalid cache file, ignore
+		}
+	}
+
+	return null;
+}
+
+/**
+ * Result of checking a WordPress package
+ */
+interface WpPackageCheckResult {
+	/** Whether the package should be externalized */
+	isExternal: boolean;
+	/** Whether the package was found/installed locally */
+	isInstalled: boolean;
+}
+
+/**
+ * Check if a @wordpress/* package has wpScript: true
+ * Returns:
+ * - isExternal: true if package should be externalized (wpScript: true or not installed)
+ * - isInstalled: true if package was found in node_modules
+ *
+ * This ensures we externalize all @wordpress/* imports, even if
+ * the package isn't a direct dependency of the project.
+ *
+ * Resolution order:
+ * 1. Runtime cache (fastest)
+ * 2. File-based cache (.wp-scripts-cache.json) - for CI without optional deps
+ * 3. Package.json lookup (when package is installed)
+ * 4. Default to true (externalize) if package not found
+ *
+ * @param packageName - The @wordpress/* package name to check
+ * @returns Object with isExternal and isInstalled flags
+ */
+export function isWpScriptPackage(packageName: string): WpPackageCheckResult {
+	// 1. Check runtime cache first
+	const cached = wpScriptCache.get(packageName);
+	if (cached !== undefined) {
+		// For cached results, we can't determine isInstalled from boolean
+		// So we need to try resolving again
+	}
+
+	// 2. Try to resolve from installed package
+	try {
+		const pkgJsonPath = require.resolve(`${packageName}/package.json`);
+		const pkgJson = JSON.parse(readFileSync(pkgJsonPath, 'utf8'));
+
+		// If wpScript is explicitly set, use that value
+		if (typeof pkgJson.wpScript === 'boolean') {
+			wpScriptCache.set(packageName, pkgJson.wpScript);
+			return { isExternal: pkgJson.wpScript, isInstalled: true };
+		}
+
+		// wpScript is undefined - check file cache for authoritative answer
+		const fileCacheData = loadFileCache();
+		if (fileCacheData && packageName in fileCacheData) {
+			const hasWpScript = fileCacheData[packageName];
+			wpScriptCache.set(packageName, hasWpScript);
+			return { isExternal: hasWpScript, isInstalled: true };
+		}
+
+		// Not in cache either - default to NOT externalizing installed packages without wpScript
+		wpScriptCache.set(packageName, false);
+		return { isExternal: false, isInstalled: true };
+	} catch {
+		// Package not installed or subpath export - check file cache and parent package
+	}
+
+	// 3. Check file-based cache (.wp-scripts-cache.json)
+	const fileCacheData = loadFileCache();
+	if (fileCacheData && packageName in fileCacheData) {
+		const hasWpScript = fileCacheData[packageName];
+		wpScriptCache.set(packageName, hasWpScript);
+		return { isExternal: hasWpScript, isInstalled: false };
+	}
+
+	// 4. For subpath exports like @wordpress/dataviews/wp, check the parent package
+	const parts = packageName.replace('@wordpress/', '').split('/');
+	if (parts.length > 1) {
+		const parentPackage = `@wordpress/${parts[0]}`;
+
+		// Check parent in file cache
+		if (fileCacheData && parentPackage in fileCacheData) {
+			const parentHasWpScript = fileCacheData[parentPackage];
+			wpScriptCache.set(packageName, parentHasWpScript);
+			return { isExternal: parentHasWpScript, isInstalled: false };
+		}
+
+		// Try to resolve parent package
+		try {
+			const parentPkgJsonPath = require.resolve(`${parentPackage}/package.json`);
+			const parentPkgJson = JSON.parse(readFileSync(parentPkgJsonPath, 'utf8'));
+			const parentHasWpScript = typeof parentPkgJson.wpScript === 'boolean'
+				? parentPkgJson.wpScript
+				: false;
+			wpScriptCache.set(packageName, parentHasWpScript);
+			return { isExternal: parentHasWpScript, isInstalled: true };
+		} catch {
+			// Parent also not found
+		}
+	}
+
+	// 5. Package not installed and not in cache - assume it should be externalized
+	// since all @wordpress/* packages with wpScript=true are
+	// available as WordPress globals at runtime
+	wpScriptCache.set(packageName, true);
+	return { isExternal: true, isInstalled: false };
+}
+
+/**
+ * Convert a string to camelCase
+ */
+function camelCase(str: string): string {
+	return str.replace(/-([a-z])/g, (_, letter: string) => letter.toUpperCase());
+}
+
+/**
+ * Convert @wordpress/* package name to WP script handle
+ * @example '@wordpress/blocks' -> 'wp-blocks'
+ */
+export function wpPackageToHandle(packageName: string): string {
+	return packageName.replace('@wordpress/', 'wp-');
+}
+
+/**
+ * Convert @wordpress/* package name to global variable path
+ * @example '@wordpress/blocks' -> 'wp.blocks'
+ */
+export function wpPackageToGlobal(packageName: string): string {
+	const name = packageName.replace('@wordpress/', '');
+	return `wp.${camelCase(name)}`;
+}
+
+/**
+ * Resolve external configuration for a package
+ *
+ * @param packageName - The package name to resolve
+ * @param config - Build configuration with external namespaces
+ * @returns External resolution with global and handle, or null if not external
+ */
+export function resolveExternal(
+	packageName: string,
+	config: Partial<BuildConfig> = {},
+): ExternalResolution | null {
+	// 1. Check @wordpress/* packages (read wpScript from package.json)
+	if (packageName.startsWith('@wordpress/')) {
+		const checkResult = isWpScriptPackage(packageName);
+		if (checkResult.isExternal) {
+			return {
+				global: wpPackageToGlobal(packageName),
+				handle: wpPackageToHandle(packageName),
+				// Include installation status for warning purposes
+				_isInstalled: checkResult.isInstalled,
+			} as ExternalResolution & { _isInstalled: boolean };
+		}
+		// Not a wpScript package, don't externalize
+		return null;
+	}
+
+	// 2. Check custom namespaces from config
+	const externalNamespaces = config.externalNamespaces || {};
+	for (const [namespace, mapping] of Object.entries(externalNamespaces)) {
+		if (packageName.startsWith(`${namespace}/`)) {
+			const name = packageName.replace(`${namespace}/`, '');
+			return {
+				global: `${mapping.global}.${camelCase(name)}`,
+				handle: `${mapping.handlePrefix}-${name}`,
+			};
+		}
+	}
+
+	// 3. Check vendor externals
+	if (vendorExternals[packageName]) {
+		return vendorExternals[packageName];
+	}
+
+	return null;
+}
+
+/**
+ * Get all external patterns for esbuild
+ *
+ * IMPORTANT: We return an empty array because ALL externalization is handled
+ * by the wp-dependency-extraction plugin's onResolve hooks.
+ *
+ * Why? esbuild's `external` option has HIGHER priority than plugins - if a path
+ * matches an external pattern, onResolve callbacks are NOT run at all.
+ *
+ * Our plugin needs to run for ALL packages to:
+ * - Decide per-package whether to externalize or bundle (wpScript flag)
+ * - Provide virtual modules for IIFE builds (avoid require() calls in browser)
+ * - Track dependencies for .asset.php generation
+ */
+export function getExternalPatterns(_config: Partial<BuildConfig> = {}): string[] {
+	// Return empty - let the wp-dependency-extraction plugin handle all externals
+	return [];
+}
+
+/**
+ * Create esbuild global mappings for externals
+ */
+export function createGlobalMappings(
+	dependencies: Set<string>,
+	config: Partial<BuildConfig> = {},
+): Record<string, string> {
+	const mappings: Record<string, string> = {};
+
+	for (const dep of dependencies) {
+		const external = resolveExternal(dep, config);
+		if (external) {
+			mappings[dep] = external.global;
+		}
+	}
+
+	return mappings;
+}
diff --git a/packages/build/src/utils/paths.ts b/packages/build/src/utils/paths.ts
new file mode 100644
index 00000000..8ed2a14b
--- /dev/null
+++ b/packages/build/src/utils/paths.ts
@@ -0,0 +1,79 @@
+/**
+ * Path utilities for 10up-build
+ */
+
+import { existsSync, readFileSync } from 'node:fs';
+import { resolve, dirname } from 'node:path';
+import { createHash } from 'node:crypto';
+import { fileURLToPath } from 'node:url';
+
+const __filename = fileURLToPath(import.meta.url);
+const __dirname = dirname(__filename);
+
+/**
+ * Get the project root directory (where package.json is)
+ */
+export function getProjectRoot(): string {
+	return process.cwd();
+}
+
+/**
+ * Resolve a path from the project root
+ */
+export function fromProjectRoot(relativePath: string): string {
+	return resolve(getProjectRoot(), relativePath);
+}
+
+/**
+ * Resolve a path from the package root (where this package is installed)
+ */
+export function fromPackageRoot(relativePath: string): string {
+	return resolve(__dirname, '..', '..', relativePath);
+}
+
+/**
+ * Check if a file exists in the project
+ */
+export function hasProjectFile(relativePath: string): boolean {
+	return existsSync(fromProjectRoot(relativePath));
+}
+
+/**
+ * Check if a file exists
+ */
+export function fileExists(absolutePath: string): boolean {
+	return existsSync(absolutePath);
+}
+
+/**
+ * Get a content-based hash of a file
+ */
+export function getFileContentHash(filePath: string): string {
+	try {
+		const content = readFileSync(filePath);
+		return createHash('sha256').update(content).digest('hex').slice(0, 8);
+	} catch {
+		return '';
+	}
+}
+
+/**
+ * Get a content-based hash from a string or buffer
+ */
+export function getContentHash(content: string | Buffer): string {
+	return createHash('sha256').update(content).digest('hex').slice(0, 20);
+}
+
+/**
+ * Normalize a path to use forward slashes (for glob patterns)
+ */
+export function normalizePath(filePath: string): string {
+	return filePath.replace(/\\/g, '/');
+}
+
+/**
+ * Remove dist folder prefix from a path
+ */
+export function removeDistFolder(file: string): string {
+	return file.replace(/(^\.\/dist\/)|^dist\//, '');
+}
diff --git a/packages/build/src/watch.ts b/packages/build/src/watch.ts
new file mode 100644
index 00000000..2798c0f4
--- /dev/null
+++ b/packages/build/src/watch.ts
@@ -0,0 +1,252 @@
+/**
+ * Watch mode with React Fast Refresh support
+ */
+
+import { mkdirSync, rmSync, existsSync } from 'node:fs';
+import * as esbuild from 'esbuild';
+import { WebSocketServer, WebSocket } from 'ws';
+import pc from 'picocolors';
+import { loadConfig, getOutputDir } from './config.js';
+import { getExternalPatterns } from './utils/externals.js';
+import { detectEntries, getBlockSpecificStyles } from './utils/entry-detection.js';
+import { wpDependencyExtractionPlugin } from './plugins/wp-dependency-extraction.js';
+import { sassPlugin } from './plugins/sass-plugin.js';
+import { processBlockJsonFiles } from './plugins/block-json.js';
+import { copyStaticAssets } from './plugins/copy-assets.js';
+import type { BuildConfig, WatchOptions } from './types.js';
+
+let wsServer: WebSocketServer | null = null;
+let clients: Set<WebSocket> = new Set();
+
+/**
+ * Send message to all connected clients
+ */
+function broadcast(message: object): void {
+	const data = JSON.stringify(message);
+	for (const client of clients) {
+		if (client.readyState === WebSocket.OPEN) {
+			client.send(data);
+		}
+	}
+}
+
+/**
+ * Notify clients of rebuild (exported for future use)
+ */
+export function notifyRebuild(success: boolean): void {
+	broadcast({
+		type: success ? 'reload' : 'error',
+		timestamp: Date.now(),
+	});
+}
+
+/**
+ * Create React Fast Refresh runtime injection plugin
+ */
+function reactRefreshPlugin(): esbuild.Plugin {
+	return {
+		name: 'react-refresh',
+		setup(_build) {
+			// Placeholder for React Fast Refresh implementation
+			// In a complete implementation, this would inject the refresh runtime
+			// and handle HMR updates for React components
+		},
+	};
+}
+
+/**
+ * Start WebSocket server for HMR
+ */
+function startWebSocketServer(port: number): void {
+	if (wsServer) {
+		return;
+	}
+
+	wsServer = new WebSocketServer({ port });
+
+	wsServer.on('connection', (ws) => {
+		clients.add(ws);
+		ws.on('close', () => {
+			clients.delete(ws);
+		});
+	});
+
+	console.log(pc.dim(`HMR server running on ws://localhost:${port}`));
+}
+
+/**
+ * Stop WebSocket server
+ */
+function stopWebSocketServer(): void {
+	if (wsServer) {
+		for (const client of clients) {
+			client.close();
+		}
+		clients.clear();
+		wsServer.close();
+		wsServer = null;
+	}
+}
+
+/**
+ * Create esbuild context for watch mode
+ */
+async function createWatchContext(
+	entries: Record<string, string>,
+	config: BuildConfig,
+	outputDir: string,
+	isModule: boolean,
+): Promise<esbuild.BuildContext | null> {
+	if (Object.keys(entries).length === 0) {
+		return null;
+	}
+
+	const plugins: esbuild.Plugin[] = [
+		wpDependencyExtractionPlugin(config, { isModule }),
+		sassPlugin(config, false),
+	];
+
+	if (config.hot && !isModule) {
+		plugins.push(reactRefreshPlugin());
+	}
+
+	const external = config.wpDependencyExternals ? getExternalPatterns(config) : [];
+
+	const context = await esbuild.context({
+		entryPoints: entries,
+		bundle: true,
+		metafile: true,
+		sourcemap: true,
+		minify: false,
+		target: ['es2020'],
+		format: isModule ? 'esm' : 'iife',
+		splitting: isModule,
+		outdir: outputDir,
+		external,
+		outExtension: { '.js': '.js' },
+		entryNames: '[dir]/[name]',
+		chunkNames: 'js/chunks/[name]-[hash]',
+		plugins,
+		loader: {
+			'.js': 'jsx',
+			'.ts': 'tsx',
+			'.tsx': 'tsx',
+			'.jsx': 'jsx',
+		},
+		jsx: 'automatic',
+		logLevel: 'warning',
+		define: config.hot
+			? { __HMR_PORT__: String(config.devServerPort) }
+			: {},
+	});
+
+	return context;
+}
+
+/**
+ * Clean output directory
+ */
+function cleanOutputDir(outputDir: string): void {
+	if (existsSync(outputDir)) {
+		rmSync(outputDir, { recursive: true, force: true });
+	}
+	mkdirSync(outputDir, { recursive: true });
+}
+
+/**
+ * Watch mode entry point
+ */
+export async function watch(options: WatchOptions = {}): Promise<void> {
+	const config = loadConfig();
+	const outputDir = getOutputDir(config);
+	const hot = options.hot ?? config.hot;
+	const port = options.port ?? config.devServerPort;
+
+	console.log(pc.cyan('\n10up-build') + pc.dim(' v1.0.0 (watch mode)'));
+	console.log(pc.dim(`Hot reload: ${hot ? 'enabled' : 'disabled'}\n`));
+
+	// Clean output directory
+	cleanOutputDir(outputDir);
+
+	// Detect entries
+	const entries = await detectEntries(config);
+
+	if (config.loadBlockSpecificStyles) {
+		const blockStyles = getBlockSpecificStyles(config);
+		Object.assign(entries.styles, blockStyles);
+	}
+
+	const totalEntries =
+		Object.keys(entries.scripts).length +
+		Object.keys(entries.modules).length +
+		Object.keys(entries.styles).length;
+
+	if (totalEntries === 0) {
+		console.log(pc.yellow('No entry points found.'));
+		return;
+	}
+
+	console.log(pc.dim(`Watching ${totalEntries} entries...\n`));
+
+	// Start HMR server if hot reload is enabled
+	if (hot) {
+		startWebSocketServer(port);
+	}
+
+	// Create watch contexts
+	const [scriptsContext, modulesContext] = await Promise.all([
+		createWatchContext(entries.scripts, config, outputDir, false),
+		createWatchContext(entries.modules, config, outputDir, true),
+	]);
+
+	// Build styles once (no watch needed for now - could add chokidar later)
+	if (Object.keys(entries.styles).length > 0) {
+		try {
+			await esbuild.build({
+				entryPoints: entries.styles,
+				bundle: true,
+				outdir: outputDir,
+				plugins: [sassPlugin(config, false)],
+				entryNames: '[dir]/[name]',
+				logLevel: 'warning',
+			});
+			console.log(pc.green('✓') + pc.dim(` Styles built`));
+		} catch (error) {
+			console.error(pc.red('✗ Style build failed'));
+		}
+	}
+
+	// Process block.json files
+	if (config.useBlockAssets) {
+		await processBlockJsonFiles(config, outputDir);
+	}
+
+	// Copy static assets
+	await copyStaticAssets(config, outputDir);
+
+	// Start watching
+	if (scriptsContext) {
+		await scriptsContext.watch();
+		console.log(pc.green('✓') + pc.dim(` Watching ${Object.keys(entries.scripts).length} script entries`));
+	}
+
+	if (modulesContext) {
+		await modulesContext.watch();
+		console.log(pc.green('✓') + pc.dim(` Watching ${Object.keys(entries.modules).length} module entries`));
+	}
+
+	console.log(pc.cyan('\nWatching for changes...'));
+	console.log(pc.dim('Press Ctrl+C to stop\n'));
+
+	// Handle graceful shutdown
+	const cleanup = async () => {
+		console.log(pc.dim('\nStopping watch mode...'));
+		stopWebSocketServer();
+		if (scriptsContext) await scriptsContext.dispose();
+		if (modulesContext) await modulesContext.dispose();
+		process.exit(0);
+	};
+
+	process.on('SIGINT', cleanup);
+	process.on('SIGTERM', cleanup);
+}
diff --git a/packages/build/src/wp-deps.ts b/packages/build/src/wp-deps.ts
new file mode 100644
index 00000000..47dadcca
--- /dev/null
+++ b/packages/build/src/wp-deps.ts
@@ -0,0 +1,569 @@
+/**
+ * WordPress dependency management utilities
+ *
+ * Provides commands to sync and update @wordpress/* dependencies
+ */
+
+import { execSync } from 'child_process';
+import { readFileSync, writeFileSync, existsSync } from 'fs';
+import { join, dirname } from 'path';
+import pc from 'picocolors';
+import fg from 'fast-glob';
+import { WP_SCRIPTS_CACHE_FILE } from './utils/externals.js';
+
+const WP_VERSION_API = 'https://api.wordpress.org/core/version-check/1.7/';
+
+interface WPVersionResponse {
+	offers: Array<{
+		response: string;
+		version: string;
+		current: string;
+	}>;
+}
+
+/**
+ * Fetch the latest WordPress version from the API
+ * and convert it to an npm tag (e.g., "6.9.3" -> "wp-6.9")
+ */
+async function getLatestWpTag(): Promise<string> {
+	try {
+		const response = await fetch(WP_VERSION_API);
+		if (!response.ok) {
+			throw new Error(`HTTP ${response.status}`);
+		}
+		const data = (await response.json()) as WPVersionResponse;
+
+		// Get the first offer which is the latest version
+		const latestVersion = data.offers?.[0]?.version;
+		if (!latestVersion) {
+			throw new Error('No version found in API response');
+		}
+
+		// Convert version to tag: "6.9.3" -> "wp-6.9" (only major.minor)
+		const [major, minor] = latestVersion.split('.');
+		return `wp-${major}.${minor}`;
+	} catch (error) {
+		console.warn(
+			pc.yellow(`\nWarning: Could not fetch latest WordPress version from API.`),
+		);
+		console.warn(pc.dim(`Using fallback: wp-6.8\n`));
+		return 'wp-6.8';
+	}
+}
+
+/**
+ * Known @wordpress packages that are available on npm
+ * This list includes packages commonly used in WordPress block development
+ */
+const KNOWN_WP_PACKAGES = new Set([
+	'@wordpress/a11y',
+	'@wordpress/annotations',
+	'@wordpress/api-fetch',
+	'@wordpress/autop',
+	'@wordpress/blob',
+	'@wordpress/block-directory',
+	'@wordpress/block-editor',
+	'@wordpress/block-library',
+	'@wordpress/block-serialization-default-parser',
+	'@wordpress/blocks',
+	'@wordpress/commands',
+	'@wordpress/components',
+	'@wordpress/compose',
+	'@wordpress/core-commands',
+	'@wordpress/core-data',
+	'@wordpress/data',
+	'@wordpress/data-controls',
+	'@wordpress/dataviews',
+	'@wordpress/date',
+	'@wordpress/deprecated',
+	'@wordpress/dom',
+	'@wordpress/dom-ready',
+	'@wordpress/edit-post',
+	'@wordpress/edit-site',
+	'@wordpress/edit-widgets',
+	'@wordpress/editor',
+	'@wordpress/element',
+	'@wordpress/escape-html',
+	'@wordpress/format-library',
+	'@wordpress/hooks',
+	'@wordpress/html-entities',
+	'@wordpress/i18n',
+	'@wordpress/icons',
+	'@wordpress/interactivity',
+	'@wordpress/interactivity-router',
+	'@wordpress/interface',
+	'@wordpress/is-shallow-equal',
+	'@wordpress/keyboard-shortcuts',
+	'@wordpress/keycodes',
+	'@wordpress/list-reusable-blocks',
+	'@wordpress/media-utils',
+	'@wordpress/notices',
+	'@wordpress/nux',
+	'@wordpress/patterns',
+	'@wordpress/plugins',
+	'@wordpress/preferences',
+	'@wordpress/preferences-persistence',
+	'@wordpress/primitives',
+	'@wordpress/priority-queue',
+	'@wordpress/private-apis',
+	'@wordpress/redux-routine',
+	'@wordpress/reusable-blocks',
+	'@wordpress/rich-text',
+	'@wordpress/router',
+	'@wordpress/server-side-render',
+	'@wordpress/shortcode',
+	'@wordpress/style-engine',
+	'@wordpress/token-list',
+	'@wordpress/url',
+	'@wordpress/viewport',
+	'@wordpress/warning',
+	'@wordpress/widgets',
+	'@wordpress/wordcount',
+]);
+
+/**
+ * Scan source files for @wordpress/* imports
+ */
+async function scanForWordPressImports(cwd: string): Promise<Set<string>> {
+	const imports = new Set<string>();
+
+	// Find all JS/TS source files, excluding node_modules and dist
+	const files = await fg(['**/*.{js,jsx,ts,tsx}'], {
+		cwd,
+		ignore: ['**/node_modules/**', '**/dist/**', '**/build/**', '**/vendor/**'],
+		absolute: true,
+	});
+
+	// Regex patterns to match imports
+	const importPatterns = [
+		/import\s+.*?from\s+['"](@wordpress\/[^'"\/]+)/g,
+		/import\s*\(\s*['"](@wordpress\/[^'"\/]+)/g,
+		/require\s*\(\s*['"](@wordpress\/[^'"\/]+)/g,
+	];
+
+	for (const file of files) {
+		try {
+			const content = readFileSync(file, 'utf-8');
+
+			for (const pattern of importPatterns) {
+				let match;
+				while ((match = pattern.exec(content)) !== null) {
+					const packageName = match[1];
+					if (KNOWN_WP_PACKAGES.has(packageName)) {
+						imports.add(packageName);
+					}
+				}
+			}
+		} catch {
+			// Skip files that can't be read
+		}
+	}
+
+	return imports;
+}
+
+/**
+ * Read package.json from the current directory
+ */
+function readPackageJson(cwd: string): Record<string, unknown> {
+	const packageJsonPath = join(cwd, 'package.json');
+	try {
+		return JSON.parse(readFileSync(packageJsonPath, 'utf-8'));
+	} catch {
+		throw new Error(`Could not read package.json at ${packageJsonPath}`);
+	}
+}
+
+/**
+ * Get existing @wordpress packages from optionalDependencies
+ */
+function getExistingWpDeps(packageJson: Record<string, unknown>): Map<string, string> {
+	const deps = new Map<string, string>();
+	const optionalDeps = (packageJson.optionalDependencies || {}) as Record<string, string>;
+
+	for (const [name, version] of Object.entries(optionalDeps)) {
+		if (name.startsWith('@wordpress/')) {
+			deps.set(name, version);
+		}
+	}
+
+	return deps;
+}
+
+/**
+ * Find the monorepo root by looking for package.json with workspaces field
+ */
+function findMonorepoRoot(startDir: string): string | null {
+	let dir = startDir;
+	while (dir !== dirname(dir)) {
+		const packageJsonPath = join(dir, 'package.json');
+		if (existsSync(packageJsonPath)) {
+			try {
+				const packageJson = JSON.parse(readFileSync(packageJsonPath, 'utf-8'));
+				if (packageJson.workspaces) {
+					return dir;
+				}
+			} catch {
+				// Continue searching
+			}
+		}
+		dir = dirname(dir);
+	}
+	return null;
+}
+
+/**
+ * Get workspace directories from monorepo root
+ */
+async function getWorkspaceDirectories(rootDir: string): Promise<string[]> {
+	const packageJson = readPackageJson(rootDir);
+	const workspaces = packageJson.workspaces as string[] | { packages: string[] } | undefined;
+
+	if (!workspaces) {
+		return [];
+	}
+
+	// Handle both array format and object format { packages: [...] }
+	const patterns = Array.isArray(workspaces) ? workspaces : workspaces.packages || [];
+
+	// Expand glob patterns to find actual workspace directories
+	const directories: string[] = [];
+
+	for (const pattern of patterns) {
+		// Find directories matching the pattern that contain package.json
+		const matches = await fg([`${pattern}/package.json`], {
+			cwd: rootDir,
+			absolute: true,
+			onlyFiles: true,
+		});
+
+		for (const match of matches) {
+			directories.push(dirname(match));
+		}
+	}
+
+	return directories;
+}
+
+/**
+ * Scan all workspaces for @wordpress/* imports
+ */
+async function scanWorkspacesForWordPressImports(
+	rootDir: string,
+	workspaceDirs: string[],
+): Promise<Set<string>> {
+	const allImports = new Set<string>();
+
+	console.log(`Scanning ${pc.bold(String(workspaceDirs.length))} workspaces for @wordpress/* imports...\n`);
+
+	for (const dir of workspaceDirs) {
+		const imports = await scanForWordPressImports(dir);
+		if (imports.size > 0) {
+			const relativePath = dir.replace(rootDir + '/', '');
+			console.log(`  ${pc.dim('•')} ${relativePath}: ${imports.size} packages`);
+			for (const pkg of imports) {
+				allImports.add(pkg);
+			}
+		}
+	}
+
+	return allImports;
+}
+
+/**
+ * Sync @wordpress dependencies
+ *
+ * Scans source files for @wordpress/* imports and installs them
+ * as optional dependencies using the specified WordPress version tag.
+ *
+ * With --workspace-scan, scans all workspaces in a monorepo and installs
+ * dependencies at the root level for better performance.
+ */
+export async function syncWpDeps(
+	options: { tag?: string; dryRun?: boolean; workspaceScan?: boolean } = {},
+): Promise<void> {
+	const cwd = process.cwd();
+	const dryRun = options.dryRun || false;
+	const workspaceScan = options.workspaceScan || false;
+
+	console.log(pc.cyan('\n10up-build') + ' - Sync WordPress Dependencies\n');
+
+	// Get tag from options or fetch latest from WordPress API
+	let tag = options.tag;
+	if (!tag) {
+		console.log(`Fetching latest WordPress version...`);
+		tag = await getLatestWpTag();
+		console.log(`Using tag: ${pc.cyan(tag)}\n`);
+	}
+
+	let foundImports: Set<string>;
+	let installDir: string;
+
+	if (workspaceScan) {
+		// Find monorepo root
+		const monorepoRoot = findMonorepoRoot(cwd);
+		if (!monorepoRoot) {
+			console.error(pc.red('Error: Could not find monorepo root (no package.json with workspaces field).'));
+			console.log(pc.dim('Run from within a monorepo or use without --workspace-scan.'));
+			process.exit(1);
+		}
+
+		console.log(`Monorepo root: ${pc.dim(monorepoRoot)}\n`);
+		installDir = monorepoRoot;
+
+		// Get all workspace directories
+		const workspaceDirs = await getWorkspaceDirectories(monorepoRoot);
+		if (workspaceDirs.length === 0) {
+			console.error(pc.red('Error: No workspaces found in monorepo.'));
+			process.exit(1);
+		}
+
+		// Scan all workspaces
+		foundImports = await scanWorkspacesForWordPressImports(monorepoRoot, workspaceDirs);
+	} else {
+		console.log(`Scanning for @wordpress/* imports...`);
+		foundImports = await scanForWordPressImports(cwd);
+		installDir = cwd;
+	}
+
+	if (foundImports.size === 0) {
+		console.log(pc.yellow('\nNo @wordpress/* imports found in source files.'));
+		return;
+	}
+
+	console.log(`\nFound ${pc.bold(String(foundImports.size))} unique @wordpress packages:\n`);
+
+	// Sort for consistent output
+	const sortedImports = Array.from(foundImports).sort();
+	for (const pkg of sortedImports) {
+		console.log(`  ${pc.dim('•')} ${pkg}`);
+	}
+
+	// Read package.json from install directory
+	const packageJson = readPackageJson(installDir);
+	const existingDeps = getExistingWpDeps(packageJson);
+
+	// Determine what needs to be installed
+	const toInstall: string[] = [];
+	const alreadyInstalled: string[] = [];
+
+	for (const pkg of sortedImports) {
+		if (existingDeps.has(pkg)) {
+			alreadyInstalled.push(pkg);
+		} else {
+			toInstall.push(pkg);
+		}
+	}
+
+	if (toInstall.length === 0) {
+		console.log(pc.green('\nAll @wordpress packages are already installed as optional dependencies.'));
+		return;
+	}
+
+	console.log(`\nPackages to install with tag ${pc.cyan(tag)}:`);
+	for (const pkg of toInstall) {
+		console.log(`  ${pc.green('+')} ${pkg}@${tag}`);
+	}
+
+	if (alreadyInstalled.length > 0) {
+		console.log(`\nAlready installed (${alreadyInstalled.length} packages):`);
+		for (const pkg of alreadyInstalled) {
+			console.log(`  ${pc.dim('•')} ${pkg}@${existingDeps.get(pkg)}`);
+		}
+	}
+
+	if (workspaceScan) {
+		console.log(`\n${pc.dim('Installing at monorepo root:')} ${installDir}`);
+	}
+
+	if (dryRun) {
+		console.log(pc.yellow('\nDry run - no changes made.'));
+		console.log(`Run without --dry-run to install packages.`);
+		return;
+	}
+
+	// Install packages
+	console.log(`\nInstalling ${toInstall.length} packages...`);
+
+	const installCmd = `npm install --save-optional ${toInstall.map(p => `${p}@${tag}`).join(' ')}`;
+
+	try {
+		execSync(installCmd, { cwd: installDir, stdio: 'inherit' });
+		console.log(pc.green('\n✓ WordPress dependencies synced successfully!'));
+	} catch (error) {
+		throw new Error('Failed to install packages. Check npm output above.');
+	}
+}
+
+/**
+ * Update @wordpress dependencies to a new tag
+ *
+ * Updates all @wordpress/* packages in optionalDependencies
+ * to the specified WordPress version tag.
+ */
+export async function updateWpDeps(options: { tag: string; dryRun?: boolean }): Promise<void> {
+	const cwd = process.cwd();
+	const { tag, dryRun = false } = options;
+
+	console.log(pc.cyan('\n10up-build') + ' - Update WordPress Dependencies\n');
+
+	// Read current package.json
+	const packageJson = readPackageJson(cwd);
+	const existingDeps = getExistingWpDeps(packageJson);
+
+	if (existingDeps.size === 0) {
+		console.log(pc.yellow('No @wordpress packages found in optionalDependencies.'));
+		console.log(`Run ${pc.cyan('10up-build sync-wp-deps')} first to add WordPress dependencies.`);
+		return;
+	}
+
+	console.log(`Found ${pc.bold(String(existingDeps.size))} @wordpress packages to update:\n`);
+
+	const sortedDeps = Array.from(existingDeps.entries()).sort((a, b) => a[0].localeCompare(b[0]));
+
+	for (const [pkg, currentVersion] of sortedDeps) {
+		console.log(`  ${pkg}: ${pc.dim(currentVersion)} → ${pc.green(tag)}`);
+	}
+
+	if (dryRun) {
+		console.log(pc.yellow('\nDry run - no changes made.'));
+		console.log(`Run without --dry-run to update packages.`);
+		return;
+	}
+
+	// Update packages
+	console.log(`\nUpdating to ${pc.cyan(tag)}...`);
+
+	const packages = sortedDeps.map(([pkg]) => `${pkg}@${tag}`);
+	const installCmd = `npm install --save-optional ${packages.join(' ')}`;
+
+	try {
+		execSync(installCmd, { cwd, stdio: 'inherit' });
+		console.log(pc.green('\n✓ WordPress dependencies updated successfully!'));
+	} catch (error) {
+		throw new Error('Failed to update packages. Check npm output above.');
+	}
+}
+
+/**
+ * List current @wordpress dependencies
+ */
+export async function listWpDeps(): Promise<void> {
+	const cwd = process.cwd();
+
+	console.log(pc.cyan('\n10up-build') + ' - WordPress Dependencies\n');
+
+	// Read current package.json
+	const packageJson = readPackageJson(cwd);
+	const existingDeps = getExistingWpDeps(packageJson);
+
+	if (existingDeps.size === 0) {
+		console.log(pc.yellow('No @wordpress packages found in optionalDependencies.'));
+		console.log(`Run ${pc.cyan('10up-build sync-wp-deps')} to add WordPress dependencies.`);
+		return;
+	}
+
+	console.log(`Installed @wordpress packages (${existingDeps.size}):\n`);
+
+	const sortedDeps = Array.from(existingDeps.entries()).sort((a, b) => a[0].localeCompare(b[0]));
+
+	for (const [pkg, version] of sortedDeps) {
+		console.log(`  ${pc.dim('•')} ${pkg}@${pc.cyan(version)}`);
+	}
+
+	// Also scan for imports and show any missing
+	console.log(`\nScanning source files for imports...`);
+	const foundImports = await scanForWordPressImports(cwd);
+
+	const missing = Array.from(foundImports).filter(pkg => !existingDeps.has(pkg)).sort();
+
+	if (missing.length > 0) {
+		console.log(pc.yellow(`\nMissing packages (${missing.length}):`));
+		for (const pkg of missing) {
+			console.log(`  ${pc.red('!')} ${pkg}`);
+		}
+		console.log(`\nRun ${pc.cyan('10up-build sync-wp-deps')} to install missing packages.`);
+	} else {
+		console.log(pc.green('\nAll imported @wordpress packages are installed.'));
+	}
+}
+
+/**
+ * Cache wpScript values from installed @wordpress/* packages
+ *
+ * Scans all installed @wordpress/* packages in node_modules and caches
+ * their wpScript boolean values to a JSON file. This allows CI environments
+ * to skip installing optional dependencies while still having accurate
+ * wpScript information for the build.
+ *
+ * The cache file should be committed to the repository so it's available
+ * in CI environments that use --omit=optional.
+ */
+export async function cacheWpScripts(options: { output?: string } = {}): Promise<void> {
+	const cwd = process.cwd();
+	const outputPath = options.output || join(cwd, WP_SCRIPTS_CACHE_FILE);
+
+	console.log(pc.cyan('\n10up-build') + ' - Cache WordPress Script Flags\n');
+
+	// Find all installed @wordpress/* packages
+	const wpPackagesDir = join(cwd, 'node_modules', '@wordpress');
+
+	if (!existsSync(wpPackagesDir)) {
+		console.error(pc.red('Error: No @wordpress packages found in node_modules.'));
+		console.log(pc.dim('Install @wordpress/* packages first, then run this command.'));
+		process.exit(1);
+	}
+
+	// Get all package directories
+	const packageDirs = await fg(['*'], {
+		cwd: wpPackagesDir,
+		onlyDirectories: true,
+		absolute: false,
+	});
+
+	if (packageDirs.length === 0) {
+		console.error(pc.red('Error: No @wordpress packages found in node_modules/@wordpress.'));
+		process.exit(1);
+	}
+
+	console.log(`Found ${pc.bold(String(packageDirs.length))} @wordpress packages in node_modules.\n`);
+
+	const cache: Record<string, boolean> = {};
+	let withWpScript = 0;
+	let withoutWpScript = 0;
+
+	for (const dir of packageDirs.sort()) {
+		const packageName = `@wordpress/${dir}`;
+		const pkgJsonPath = join(wpPackagesDir, dir, 'package.json');
+
+		try {
+			const pkgJson = JSON.parse(readFileSync(pkgJsonPath, 'utf8'));
+			const hasWpScript = pkgJson.wpScript === true;
+			cache[packageName] = hasWpScript;
+
+			if (hasWpScript) {
+				withWpScript++;
+				console.log(`  ${pc.green('✓')} ${packageName} ${pc.dim('(wpScript: true)')}`);
+			} else {
+				withoutWpScript++;
+				console.log(`  ${pc.dim('•')} ${packageName}`);
+			}
+		} catch {
+			console.log(`  ${pc.yellow('?')} ${packageName} ${pc.dim('(could not read package.json)')}`);
+		}
+	}
+
+	// Write cache file
+	const cacheData = {
+		_comment: 'Auto-generated by 10up-build cache-wp-scripts. Do not edit manually.',
+		packages: cache,
+	};
+
+	writeFileSync(outputPath, JSON.stringify(cacheData, null, 2) + '\n');
+
+	console.log(`\n${pc.bold('Summary:')}`);
+	console.log(`  ${pc.green(String(withWpScript))} packages with wpScript: true`);
+	console.log(`  ${pc.dim(String(withoutWpScript))} packages without wpScript`);
+	console.log(`\n${pc.green('✓')} Cache written to ${pc.cyan(outputPath)}`);
+	console.log(pc.dim('\nCommit this file to your repository so CI can use it with --omit=optional.'));
+}
diff --git a/packages/build/tests/__snapshots__/snapshots.test.ts.snap b/packages/build/tests/__snapshots__/snapshots.test.ts.snap
new file mode 100644
index 00000000..97ccd3c9
--- /dev/null
+++ b/packages/build/tests/__snapshots__/snapshots.test.ts.snap
@@ -0,0 +1,116 @@
+// Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
+
+exports[`Build Output Snapshots > basic-project > should produce correct admin.asset.php output > admin.asset.php 1`] = `
+"<?php return array('dependencies' => array('react', 'react-jsx-runtime', 'wp-blocks', 'wp-i18n'), 'version' => '[HASH]');
+"
+`;
+
+exports[`Build Output Snapshots > basic-project > should produce correct admin.js output > admin.js 1`] = `
+""use strict";var __tenupBuild=(()=>{var _=Object.create;var i=Object.defineProperty;var b=Object.getOwnPropertyDescriptor;var y=Object.getOwnPropertyNames;var B=Object.getPrototypeOf,C=Object.prototype.hasOwnProperty;var m=(o,e)=>()=>(e||o((e={exports:{}}).exports,e),e.exports),J=(o,e)=>{for(var t in e)i(o,t,{get:e[t],enumerable:!0})},c=(o,e,t,d)=>{if(e&&typeof e=="object"||typeof e=="function")for(let r of y(e))!C.call(o,r)&&r!==t&&i(o,r,{get:()=>e[r],enumerable:!(d=b(e,r))||d.enumerable});return o};var p=(o,e,t)=>(t=o!=null?_(B(o)):{},c(e||!o||!o.__esModule?i(t,"default",{value:o,enumerable:!0}):t,o)),S=o=>c(i({},"__esModule",{value:!0}),o);var s=m((h,l)=>{l.exports=wp.blocks});var a=m((q,f)=>{f.exports=wp.i18n});var R=m((z,x)=>{x.exports=React});var n=m((D,u)=>{u.exports=ReactJSXRuntime});var T={};J(T,{default:()=>v});var A=p(s()),g=p(a()),k=p(R()),w=p(n());console.log("Admin loaded",A.registerBlockType,g.__,k.default);function v(){return(0,w.jsx)("div",{children:"Admin Component"})}return S(T);})();
+"
+`;
+
+exports[`Build Output Snapshots > basic-project > should produce correct frontend.asset.php output > frontend.asset.php 1`] = `
+"<?php return array('dependencies' => array('wp-dom-ready'), 'version' => '[HASH]');
+"
+`;
+
+exports[`Build Output Snapshots > basic-project > should produce correct frontend.js output > frontend.js 1`] = `
+""use strict";var __tenupBuild=(()=>{var t=Object.create;var a=Object.defineProperty;var s=Object.getOwnPropertyDescriptor;var y=Object.getOwnPropertyNames;var R=Object.getPrototypeOf,c=Object.prototype.hasOwnProperty;var f=(d,o)=>()=>(o||d((o={exports:{}}).exports,o),o.exports);var g=(d,o,e,r)=>{if(o&&typeof o=="object"||typeof o=="function")for(let m of y(o))!c.call(d,m)&&m!==e&&a(d,m,{get:()=>o[m],enumerable:!(r=s(o,m))||r.enumerable});return d};var i=(d,o,e)=>(e=d!=null?t(R(d)):{},g(o||!d||!d.__esModule?a(e,"default",{value:d,enumerable:!0}):e,d));var n=f((x,l)=>{l.exports=wp.domReady});var p=i(n());(0,p.default)(()=>{console.log("Frontend loaded")});})();
+"
+`;
+
+exports[`Build Output Snapshots > basic-project > should produce correct style.css output > style.css 1`] = `
+":root{--primary-color:#0073aa;--max-width:1200px}body{color:var(--primary-color);font-family:sans-serif;.container{max-width:var(--max-width);margin:0 auto}}
+"
+`;
+
+exports[`Build Output Snapshots > basic-project > should produce expected output files > output-files 1`] = `
+[
+  "css/style.css",
+  "js/admin.asset.php",
+  "js/admin.js",
+  "js/frontend.asset.php",
+  "js/frontend.js",
+]
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct block.json output > block.json 1`] = `
+{
+  "apiVersion": 3,
+  "category": "common",
+  "editorScript": "file:./index.js",
+  "editorStyle": "file:./editor.css",
+  "name": "test/test-block",
+  "style": "file:./style.css",
+  "title": "Test Block",
+  "version": "fb8b156d",
+  "viewScript": "file:./view.js",
+  "viewScriptModule": "file:./view-module.js",
+}
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct editor.css output > editor.css 1`] = `
+".wp-block-test-test-block{outline:2px dashed #0073aa}
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct index.asset.php output > index.asset.php 1`] = `
+"<?php return array('dependencies' => array('react-jsx-runtime', 'wp-block-editor', 'wp-blocks', 'wp-i18n'), 'version' => '[HASH]');
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct index.js (editor script) output > index.js 1`] = `
+""use strict";var __tenupBuild=(()=>{var x=Object.create;var d=Object.defineProperty;var P=Object.getOwnPropertyDescriptor;var a=Object.getOwnPropertyNames;var R=Object.getPrototypeOf,_=Object.prototype.hasOwnProperty;var p=(o,t)=>()=>(t||o((t={exports:{}}).exports,t),t.exports);var g=(o,t,e,k)=>{if(t&&typeof t=="object"||typeof t=="function")for(let s of a(t))!_.call(o,s)&&s!==e&&d(o,s,{get:()=>t[s],enumerable:!(k=P(t,s))||k.enumerable});return o};var r=(o,t,e)=>(e=o!=null?x(R(o)):{},g(t||!o||!o.__esModule?d(e,"default",{value:o,enumerable:!0}):e,o));var v=p((E,m)=>{m.exports=wp.blocks});var n=p((J,b)=>{b.exports=wp.blockEditor});var T=p((S,B)=>{B.exports=wp.i18n});var c=p((X,f)=>{f.exports=ReactJSXRuntime});var u=r(v()),i=r(n()),w=r(T()),l=r(c());(0,u.registerBlockType)("test/test-block",{title:(0,w.__)("Test Block","test"),edit:()=>{let o=(0,i.useBlockProps)();return(0,l.jsx)("div",{...o,children:"Test Block"})},save:()=>{let o=i.useBlockProps.save();return(0,l.jsx)("div",{...o,children:"Test Block"})}});})();
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct style.css output > style.css 1`] = `
+".wp-block-test-test-block{border:1px solid #ccc;border-radius:4px;padding:20px}
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct view.asset.php output > view.asset.php 1`] = `
+"<?php return array('dependencies' => array('wp-dom-ready'), 'version' => '[HASH]');
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct view.js output > view.js 1`] = `
+""use strict";var __tenupBuild=(()=>{var m=Object.create;var d=Object.defineProperty;var n=Object.getOwnPropertyDescriptor;var a=Object.getOwnPropertyNames;var b=Object.getPrototypeOf,i=Object.prototype.hasOwnProperty;var p=(c,o)=>()=>(o||c((o={exports:{}}).exports,o),o.exports);var y=(c,o,e,t)=>{if(o&&typeof o=="object"||typeof o=="function")for(let l of a(o))!i.call(c,l)&&l!==e&&d(c,l,{get:()=>o[l],enumerable:!(t=n(o,l))||t.enumerable});return c};var f=(c,o,e)=>(e=c!=null?m(b(c)):{},y(o||!c||!c.__esModule?d(e,"default",{value:c,enumerable:!0}):e,c));var k=p((w,s)=>{s.exports=wp.domReady});var r=f(k());(0,r.default)(()=>{document.querySelectorAll(".wp-block-test-test-block").forEach(o=>{o.addEventListener("click",()=>{console.log("Block clicked")})})});})();
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct view-module.asset.php output > view-module.asset.php 1`] = `
+"<?php return array('dependencies' => array('@wordpress/interactivity'), 'version' => '[HASH]', 'type' => 'module');
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce correct view-module.js (ES module) output > view-module.js 1`] = `
+"import{store as e,getContext as o}from"@wordpress/interactivity";e("test/test-block",{actions:{toggle(){let t=o();t.isOpen=!t.isOpen}}});
+"
+`;
+
+exports[`Build Output Snapshots > block-project > should produce expected output files > output-files 1`] = `
+[
+  "blocks/test-block/block.json",
+  "blocks/test-block/editor.css",
+  "blocks/test-block/index.asset.php",
+  "blocks/test-block/index.js",
+  "blocks/test-block/style.css",
+  "blocks/test-block/view-module.asset.php",
+  "blocks/test-block/view-module.js",
+  "blocks/test-block/view.asset.php",
+  "blocks/test-block/view.js",
+]
+`;
+
+exports[`Build Output Snapshots > postcss-project > should produce correct style.css with PostCSS processing > style.css 1`] = `
+".header{background-color:var(--global-primary);padding:var(--global-spacing)}.main-container{max-width:var(--global-max-width);padding-inline:var(--global-spacing);margin-inline:auto}@media (width>=768px){.header{padding:calc(var(--global-spacing)*2)}}
+"
+`;
+
+exports[`Build Output Snapshots > postcss-project > should produce expected output files > output-files 1`] = `
+[
+  "css/style.css",
+]
+`;
diff --git a/packages/build/tests/block-json.test.ts b/packages/build/tests/block-json.test.ts
new file mode 100644
index 00000000..4d15dad7
--- /dev/null
+++ b/packages/build/tests/block-json.test.ts
@@ -0,0 +1,158 @@
+/**
+ * Tests for block.json transformation
+ */
+import { describe, it, expect } from 'vitest';
+import { transformBlockJson } from '../src/plugins/block-json.js';
+
+describe('Block JSON Transformation', () => {
+	describe('transformBlockJson', () => {
+		it('should transform TypeScript paths to JavaScript', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				editorScript: 'file:./index.ts',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.editorScript).toBe('file:./index.js');
+		});
+
+		it('should transform TSX paths to JavaScript', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				editorScript: 'file:./index.tsx',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.editorScript).toBe('file:./index.js');
+		});
+
+		it('should transform SCSS paths to CSS', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				style: 'file:./style.scss',
+				editorStyle: 'file:./editor.scss',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.style).toBe('file:./style.css');
+			expect(result.editorStyle).toBe('file:./editor.css');
+		});
+
+		it('should transform SASS paths to CSS', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				style: 'file:./style.sass',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.style).toBe('file:./style.css');
+		});
+
+		it('should handle array asset fields', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				editorScript: ['file:./index.ts', 'file:./utils.tsx'],
+				style: ['file:./style.scss', 'file:./additional.sass'],
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.editorScript).toEqual(['file:./index.js', 'file:./utils.js']);
+			expect(result.style).toEqual(['file:./style.css', 'file:./additional.css']);
+		});
+
+		it('should not transform non-file: paths', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				editorScript: 'wp-block-editor',
+				style: 'https://example.com/style.css',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.editorScript).toBe('wp-block-editor');
+			expect(result.style).toBe('https://example.com/style.css');
+		});
+
+		it('should preserve existing version', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				version: '1.0.0',
+				editorScript: 'file:./index.ts',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.version).toBe('1.0.0');
+		});
+
+		it('should handle all script asset fields', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				script: 'file:./script.ts',
+				editorScript: 'file:./editor.tsx',
+				viewScript: 'file:./view.ts',
+				scriptModule: 'file:./module.ts',
+				viewScriptModule: 'file:./view-module.tsx',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.script).toBe('file:./script.js');
+			expect(result.editorScript).toBe('file:./editor.js');
+			expect(result.viewScript).toBe('file:./view.js');
+			// ES modules also output as .js for better server compatibility
+			expect(result.scriptModule).toBe('file:./module.js');
+			expect(result.viewScriptModule).toBe('file:./view-module.js');
+		});
+
+		it('should handle all style asset fields', () => {
+			const input = JSON.stringify({
+				name: 'test/block',
+				style: 'file:./style.scss',
+				editorStyle: 'file:./editor.scss',
+				viewStyle: 'file:./view.scss',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.style).toBe('file:./style.css');
+			expect(result.editorStyle).toBe('file:./editor.css');
+			expect(result.viewStyle).toBe('file:./view.css');
+		});
+
+		it('should preserve other block.json properties', () => {
+			const input = JSON.stringify({
+				apiVersion: 3,
+				name: 'test/block',
+				title: 'Test Block',
+				category: 'common',
+				icon: 'smiley',
+				description: 'A test block',
+				supports: {
+					html: false,
+					align: true,
+				},
+				attributes: {
+					content: { type: 'string' },
+				},
+				editorScript: 'file:./index.ts',
+			});
+
+			const result = JSON.parse(transformBlockJson(input, '/path/to/block.json'));
+			expect(result.apiVersion).toBe(3);
+			expect(result.name).toBe('test/block');
+			expect(result.title).toBe('Test Block');
+			expect(result.category).toBe('common');
+			expect(result.icon).toBe('smiley');
+			expect(result.supports).toEqual({ html: false, align: true });
+			expect(result.attributes).toEqual({ content: { type: 'string' } });
+		});
+
+		it('should return original content for invalid JSON', () => {
+			const input = 'not valid json';
+			const result = transformBlockJson(input, '/path/to/block.json');
+			expect(result).toBe(input);
+		});
+
+		it('should return empty content as-is', () => {
+			expect(transformBlockJson('', '/path/to/block.json')).toBe('');
+			expect(transformBlockJson('   ', '/path/to/block.json')).toBe('   ');
+		});
+	});
+});
diff --git a/packages/build/tests/build.test.ts b/packages/build/tests/build.test.ts
new file mode 100644
index 00000000..f3737f42
--- /dev/null
+++ b/packages/build/tests/build.test.ts
@@ -0,0 +1,483 @@
+/**
+ * Integration tests for the build process
+ */
+import { describe, it, expect, beforeEach, afterEach } from 'vitest';
+import { resolve, join } from 'node:path';
+import { existsSync, readFileSync, rmSync } from 'node:fs';
+import { build } from '../src/build.js';
+import { defaultConfig } from '../src/config.js';
+import type { BuildConfig } from '../src/types.js';
+
+// Store original cwd and env
+const originalCwd = process.cwd();
+const originalEnv = process.env.NODE_ENV;
+
+describe('Build Process', () => {
+	beforeEach(() => {
+		process.chdir(originalCwd);
+		process.env.NODE_ENV = 'production';
+	});
+
+	afterEach(() => {
+		process.chdir(originalCwd);
+		process.env.NODE_ENV = originalEnv;
+	});
+
+	describe('build with basic project', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+		const distDir = join(fixtureDir, 'dist');
+
+		beforeEach(() => {
+			// Clean dist directory before each test
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		afterEach(() => {
+			// Clean up after tests
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should build JavaScript entries', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+					frontend: './assets/js/frontend.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.entries.scripts).toBe(2);
+
+			// Check output files exist in js/ subdirectory
+			expect(existsSync(join(distDir, 'js/admin.js'))).toBe(true);
+			expect(existsSync(join(distDir, 'js/frontend.js'))).toBe(true);
+		});
+
+		it('should generate .asset.php files', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			// Check .asset.php exists in js/ subdirectory
+			const assetPhpPath = join(distDir, 'js/admin.asset.php');
+			expect(existsSync(assetPhpPath)).toBe(true);
+
+			// Check .asset.php content
+			const assetPhpContent = readFileSync(assetPhpPath, 'utf8');
+			expect(assetPhpContent).toContain('<?php return array');
+			expect(assetPhpContent).toContain('dependencies');
+			expect(assetPhpContent).toContain('version');
+		});
+
+		it('should track WordPress dependencies in .asset.php', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			const assetPhpContent = readFileSync(join(distDir, 'js/admin.asset.php'), 'utf8');
+
+			// admin.js imports @wordpress/blocks and @wordpress/i18n
+			expect(assetPhpContent).toContain('wp-blocks');
+			expect(assetPhpContent).toContain('wp-i18n');
+		});
+
+		it('should track React dependencies in .asset.php', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			const assetPhpContent = readFileSync(join(distDir, 'js/admin.asset.php'), 'utf8');
+
+			// admin.js imports React
+			expect(assetPhpContent).toContain('react');
+		});
+
+		it('should build CSS entries with PostCSS', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.entries.styles).toBe(1);
+
+			// Check CSS output exists in css/ subdirectory
+			expect(existsSync(join(distDir, 'css/style.css'))).toBe(true);
+
+			// Check CSS content is compiled
+			const cssContent = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			expect(cssContent).toContain('font-family');
+			// CSS custom property should be preserved
+			expect(cssContent).toContain('#0073aa');
+		});
+
+		it('should minify CSS in production', async () => {
+			process.chdir(fixtureDir);
+			process.env.NODE_ENV = 'production';
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			const cssContent = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			// Minified CSS should not have unnecessary whitespace
+			expect(cssContent).not.toMatch(/\n\s+\n/);
+		});
+
+		it('should return build timing info', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.duration).toBeGreaterThan(0);
+			expect(result.duration).toBeLessThan(10000); // Should be fast!
+		});
+	});
+
+	describe('build with block project', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+		const distDir = join(fixtureDir, 'dist');
+
+		beforeEach(() => {
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		afterEach(() => {
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should build block entries from block.json', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: true,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.entries.scripts).toBeGreaterThan(0);
+		});
+
+		it('should copy and transform block.json files', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: true,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			// Check transformed block.json exists
+			const blockJsonPath = join(distDir, 'blocks/test-block/block.json');
+			expect(existsSync(blockJsonPath)).toBe(true);
+
+			// Check block.json content is transformed
+			const blockJson = JSON.parse(readFileSync(blockJsonPath, 'utf8'));
+			expect(blockJson.editorScript).toBe('file:./index.js'); // .tsx -> .js
+			expect(blockJson.editorStyle).toBe('file:./editor.css');
+			expect(blockJson.style).toBe('file:./style.css');
+		});
+
+		it('should generate ES module .asset.php with type: module', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: true,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.entries.modules).toBeGreaterThan(0);
+
+			// Find the ES module .asset.php
+			const moduleAssetPath = join(distDir, 'blocks/test-block/view-module.asset.php');
+			if (existsSync(moduleAssetPath)) {
+				const assetContent = readFileSync(moduleAssetPath, 'utf8');
+				expect(assetContent).toContain("'type' => 'module'");
+				// ES modules use package names, not handles
+				expect(assetContent).toContain('@wordpress/interactivity');
+			}
+		});
+	});
+
+	describe('build error handling', () => {
+		it('should return error result for invalid entry', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			// Clean dist first
+			const distDir = join(fixtureDir, 'dist');
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					broken: './nonexistent/file.js',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			// With no valid entries, build should complete but with 0 entries
+			const result = await build(config);
+			expect(result.entries.scripts).toBe(0);
+		});
+	});
+
+	describe('build performance', () => {
+		it('should complete build in under 5 seconds', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			// Clean dist first
+			const distDir = join(fixtureDir, 'dist');
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+
+			const config: Partial<BuildConfig> = {
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: true,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.duration).toBeLessThan(5000);
+		});
+	});
+
+	describe('build with PostCSS configuration', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/postcss-project');
+		const distDir = join(fixtureDir, 'dist');
+
+		beforeEach(() => {
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		afterEach(() => {
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should process CSS with globalStylesDir custom properties', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+					globalStylesDir: './assets/css/globals/',
+					globalMixinsDir: './assets/css/mixins/',
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+			expect(result.entries.styles).toBe(1);
+
+			// Check CSS output exists in css/ subdirectory
+			expect(existsSync(join(distDir, 'css/style.css'))).toBe(true);
+
+			// Check CSS uses global custom properties
+			const cssContent = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			expect(cssContent).toContain('--global-primary');
+			expect(cssContent).toContain('--global-spacing');
+		});
+
+		it('should process CSS with globalMixinsDir mixins', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+					globalStylesDir: './assets/css/globals/',
+					globalMixinsDir: './assets/css/mixins/',
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			const cssContent = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			// Mixin should be expanded - check for mixin content
+			expect(cssContent).toContain('max-width');
+			expect(cssContent).toContain('margin-inline');
+		});
+
+		it('should process custom media queries from globalStylesDir', async () => {
+			process.chdir(fixtureDir);
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+					globalStylesDir: './assets/css/globals/',
+					globalMixinsDir: './assets/css/mixins/',
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			const result = await build(config);
+
+			expect(result.success).toBe(true);
+
+			const cssContent = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			// Custom media should be transformed to standard media query
+			expect(cssContent).toContain('@media');
+			expect(cssContent).toContain('768px');
+		});
+	});
+});
diff --git a/packages/build/tests/config.test.ts b/packages/build/tests/config.test.ts
new file mode 100644
index 00000000..4f193594
--- /dev/null
+++ b/packages/build/tests/config.test.ts
@@ -0,0 +1,176 @@
+/**
+ * Tests for configuration loading
+ */
+import { describe, it, expect, beforeEach, afterEach, vi } from 'vitest';
+import { resolve } from 'node:path';
+import { defaultConfig } from '../src/config.js';
+
+// Store original cwd
+const originalCwd = process.cwd();
+
+describe('Configuration Loading', () => {
+	beforeEach(() => {
+		// Reset to original directory before each test
+		process.chdir(originalCwd);
+	});
+
+	afterEach(() => {
+		process.chdir(originalCwd);
+		vi.resetModules();
+	});
+
+	describe('defaultConfig', () => {
+		it('should have correct default paths', () => {
+			expect(defaultConfig.paths.blocksDir).toBe('./includes/blocks/');
+			expect(defaultConfig.paths.srcDir).toBe('./assets/');
+			expect(defaultConfig.paths.copyAssetsDir).toBe('./assets/');
+			expect(defaultConfig.paths.blocksStyles).toBe('./assets/css/blocks/');
+			expect(defaultConfig.paths.globalStylesDir).toBe('./assets/css/globals/');
+			expect(defaultConfig.paths.globalMixinsDir).toBe('./assets/css/mixins/');
+		});
+
+		it('should have correct default filenames', () => {
+			expect(defaultConfig.filenames.js).toBe('js/[name].js');
+			expect(defaultConfig.filenames.jsChunk).toBe('js/[name].[contenthash].chunk.js');
+			expect(defaultConfig.filenames.css).toBe('css/[name].css');
+			expect(defaultConfig.filenames.block).toBe('blocks/[name].js');
+			expect(defaultConfig.filenames.blockCSS).toBe('blocks/[name].css');
+		});
+
+		it('should have wpDependencyExternals enabled by default', () => {
+			expect(defaultConfig.wpDependencyExternals).toBe(true);
+		});
+
+		it('should have useBlockAssets disabled by default', () => {
+			expect(defaultConfig.useBlockAssets).toBe(false);
+		});
+
+		it('should have hot reload disabled by default', () => {
+			expect(defaultConfig.hot).toBe(false);
+		});
+
+		it('should have correct default dev server port', () => {
+			expect(defaultConfig.devServerPort).toBe(8887);
+		});
+
+		it('should have empty entry points by default', () => {
+			expect(defaultConfig.entry).toEqual({});
+			expect(defaultConfig.moduleEntry).toEqual({});
+		});
+
+		it('should have empty external namespaces by default', () => {
+			expect(defaultConfig.externalNamespaces).toEqual({});
+		});
+	});
+
+	describe('loadConfig', () => {
+		it('should load config from basic project', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			// Re-import to get fresh module with new cwd
+			const { loadConfig } = await import('../src/config.js');
+			const config = loadConfig();
+
+			expect(config.entry).toEqual({
+				admin: './assets/js/admin.js',
+				frontend: './assets/js/frontend.js',
+				style: './assets/css/style.scss',
+			});
+			expect(config.wpDependencyExternals).toBe(true);
+			expect(config.useBlockAssets).toBe(false);
+		});
+
+		it('should load config from block project', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const { loadConfig } = await import('../src/config.js');
+			const config = loadConfig();
+
+			expect(config.entry).toEqual({});
+			expect(config.useBlockAssets).toBe(true);
+			expect(config.wpDependencyExternals).toBe(true);
+		});
+
+		it('should merge paths with defaults', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const { loadConfig } = await import('../src/config.js');
+			const config = loadConfig();
+
+			// Custom path from fixture
+			expect(config.paths.blocksDir).toBe('./includes/blocks/');
+			// Default path (not overridden)
+			expect(config.paths.globalStylesDir).toBe('./assets/css/globals/');
+		});
+	});
+
+	describe('isProduction', () => {
+		const originalEnv = process.env.NODE_ENV;
+
+		afterEach(() => {
+			process.env.NODE_ENV = originalEnv;
+		});
+
+		it('should return true when NODE_ENV is production', async () => {
+			process.env.NODE_ENV = 'production';
+			const { isProduction } = await import('../src/config.js');
+			expect(isProduction()).toBe(true);
+		});
+
+		it('should return false when NODE_ENV is development', async () => {
+			process.env.NODE_ENV = 'development';
+			const { isProduction } = await import('../src/config.js');
+			expect(isProduction()).toBe(false);
+		});
+
+		it('should return false when NODE_ENV is not set', async () => {
+			delete process.env.NODE_ENV;
+			const { isProduction } = await import('../src/config.js');
+			expect(isProduction()).toBe(false);
+		});
+	});
+
+	describe('getOutputDir', () => {
+		it('should return dist directory path', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const { loadConfig, getOutputDir } = await import('../src/config.js');
+			const config = loadConfig();
+			const outputDir = getOutputDir(config);
+
+			expect(outputDir).toBe(resolve(fixtureDir, 'dist'));
+		});
+	});
+
+	describe('Configuration with externalNamespaces', () => {
+		it('should support custom external namespaces', async () => {
+			// Create a temp config with external namespaces
+			const config = {
+				...defaultConfig,
+				externalNamespaces: {
+					'@woocommerce': {
+						global: 'wc',
+						handlePrefix: 'wc',
+					},
+					'@my-plugin': {
+						global: 'myPlugin',
+						handlePrefix: 'my-plugin',
+					},
+				},
+			};
+
+			expect(config.externalNamespaces['@woocommerce']).toEqual({
+				global: 'wc',
+				handlePrefix: 'wc',
+			});
+			expect(config.externalNamespaces['@my-plugin']).toEqual({
+				global: 'myPlugin',
+				handlePrefix: 'my-plugin',
+			});
+		});
+	});
+});
diff --git a/packages/build/tests/entry-detection.test.ts b/packages/build/tests/entry-detection.test.ts
new file mode 100644
index 00000000..b9034e18
--- /dev/null
+++ b/packages/build/tests/entry-detection.test.ts
@@ -0,0 +1,237 @@
+/**
+ * Tests for entry point detection
+ */
+import { describe, it, expect, beforeEach, afterEach } from 'vitest';
+import { resolve } from 'node:path';
+import { detectEntries } from '../src/utils/entry-detection.js';
+import { defaultConfig } from '../src/config.js';
+import type { BuildConfig } from '../src/types.js';
+
+// Store original cwd
+const originalCwd = process.cwd();
+
+describe('Entry Detection', () => {
+	beforeEach(() => {
+		process.chdir(originalCwd);
+	});
+
+	afterEach(() => {
+		process.chdir(originalCwd);
+	});
+
+	describe('detectEntries with basic project', () => {
+		it('should detect entries from config.entry', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {
+					admin: './assets/js/admin.js',
+					frontend: './assets/js/frontend.js',
+					style: './assets/css/style.css',
+				},
+				useBlockAssets: false,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Should have 2 script entries and 1 style entry
+			expect(Object.keys(entries.scripts)).toHaveLength(2);
+			expect(Object.keys(entries.styles)).toHaveLength(1);
+			expect(Object.keys(entries.modules)).toHaveLength(0);
+
+			// Check script entries (prefixed with js/)
+			expect(entries.scripts['js/admin']).toContain('admin.js');
+			expect(entries.scripts['js/frontend']).toContain('frontend.js');
+
+			// Check style entries (prefixed with css/)
+			expect(entries.styles['css/style']).toContain('style.css');
+		});
+
+		it('should separate JS and CSS entries', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {
+					admin: './assets/js/admin.js',
+					style: './assets/css/style.css',
+				},
+				useBlockAssets: false,
+			};
+
+			const entries = await detectEntries(config);
+
+			expect(entries.scripts['js/admin']).toBeDefined();
+			expect(entries.scripts['js/style']).toBeUndefined();
+			expect(entries.styles['css/style']).toBeDefined();
+			expect(entries.styles['css/admin']).toBeUndefined();
+		});
+
+		it('should skip non-existent files', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {
+					admin: './assets/js/admin.js',
+					nonexistent: './assets/js/does-not-exist.js',
+				},
+				useBlockAssets: false,
+			};
+
+			const entries = await detectEntries(config);
+
+			expect(entries.scripts['js/admin']).toBeDefined();
+			expect(entries.scripts['js/nonexistent']).toBeUndefined();
+		});
+	});
+
+	describe('detectEntries with block project', () => {
+		it('should detect entries from block.json files', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+				},
+				useBlockAssets: true,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Should detect editorScript, viewScript from block.json
+			expect(Object.keys(entries.scripts).length).toBeGreaterThan(0);
+
+			// Should detect viewScriptModule
+			expect(Object.keys(entries.modules).length).toBeGreaterThan(0);
+
+			// Should detect style, editorStyle
+			expect(Object.keys(entries.styles).length).toBeGreaterThan(0);
+		});
+
+		it('should find TypeScript source files for JS references', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+				},
+				useBlockAssets: true,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Should find index.tsx for editorScript: "file:./index.tsx"
+			const indexEntry = Object.entries(entries.scripts).find(([key]) =>
+				key.includes('test-block/index'),
+			);
+			expect(indexEntry).toBeDefined();
+			expect(indexEntry?.[1]).toContain('.tsx');
+		});
+
+		it('should find CSS source files for CSS references', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+				},
+				useBlockAssets: true,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Should find style.css for style: "file:./style.css"
+			const styleEntry = Object.entries(entries.styles).find(([key]) =>
+				key.includes('test-block/style'),
+			);
+			expect(styleEntry).toBeDefined();
+			expect(styleEntry?.[1]).toContain('.css');
+		});
+
+		it('should detect ES module entries', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+				},
+				useBlockAssets: true,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Should detect viewScriptModule
+			const moduleEntry = Object.entries(entries.modules).find(([key]) =>
+				key.includes('view-module'),
+			);
+			expect(moduleEntry).toBeDefined();
+		});
+	});
+
+	describe('detectEntries with moduleEntry config', () => {
+		it('should detect module entries from config.moduleEntry', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				moduleEntry: {
+					'custom-module': './includes/blocks/test-block/view-module.js',
+				},
+				useBlockAssets: false,
+			};
+
+			const entries = await detectEntries(config);
+
+			// Module entries are prefixed with js/
+			expect(entries.modules['js/custom-module']).toBeDefined();
+			expect(entries.modules['js/custom-module']).toContain('view-module.js');
+		});
+	});
+
+	describe('detectEntries with empty config', () => {
+		it('should return empty entries when no sources found', async () => {
+			const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+			process.chdir(fixtureDir);
+
+			const config: BuildConfig = {
+				...defaultConfig,
+				entry: {},
+				moduleEntry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './nonexistent-blocks/',
+				},
+				useBlockAssets: true,
+			};
+
+			const entries = await detectEntries(config);
+
+			expect(Object.keys(entries.scripts)).toHaveLength(0);
+			expect(Object.keys(entries.modules)).toHaveLength(0);
+			expect(Object.keys(entries.styles)).toHaveLength(0);
+		});
+	});
+});
diff --git a/packages/build/tests/externals.test.ts b/packages/build/tests/externals.test.ts
new file mode 100644
index 00000000..7968db21
--- /dev/null
+++ b/packages/build/tests/externals.test.ts
@@ -0,0 +1,322 @@
+/**
+ * Tests for WordPress externals handling
+ */
+import { describe, it, expect } from 'vitest';
+import {
+	vendorExternals,
+	wpPackageToHandle,
+	wpPackageToGlobal,
+	resolveExternal,
+	getExternalPatterns,
+} from '../src/utils/externals.js';
+import type { BuildConfig } from '../src/types.js';
+
+describe('WordPress Externals', () => {
+	describe('vendorExternals', () => {
+		it('should include React packages', () => {
+			expect(vendorExternals.react).toEqual({ global: 'React', handle: 'react' });
+			expect(vendorExternals['react-dom']).toEqual({ global: 'ReactDOM', handle: 'react-dom' });
+			expect(vendorExternals['react/jsx-runtime']).toEqual({
+				global: 'ReactJSXRuntime',
+				handle: 'react-jsx-runtime',
+			});
+		});
+
+		it('should include lodash packages', () => {
+			expect(vendorExternals.lodash).toEqual({ global: 'lodash', handle: 'lodash' });
+			expect(vendorExternals['lodash-es']).toEqual({ global: 'lodash', handle: 'lodash' });
+		});
+
+		it('should include moment', () => {
+			expect(vendorExternals.moment).toEqual({ global: 'moment', handle: 'moment' });
+		});
+
+		it('should include jQuery', () => {
+			expect(vendorExternals.jquery).toEqual({ global: 'jQuery', handle: 'jquery' });
+		});
+	});
+
+	describe('wpPackageToHandle', () => {
+		it('should convert @wordpress/blocks to wp-blocks', () => {
+			expect(wpPackageToHandle('@wordpress/blocks')).toBe('wp-blocks');
+		});
+
+		it('should convert @wordpress/element to wp-element', () => {
+			expect(wpPackageToHandle('@wordpress/element')).toBe('wp-element');
+		});
+
+		it('should convert @wordpress/i18n to wp-i18n', () => {
+			expect(wpPackageToHandle('@wordpress/i18n')).toBe('wp-i18n');
+		});
+
+		it('should convert @wordpress/block-editor to wp-block-editor', () => {
+			expect(wpPackageToHandle('@wordpress/block-editor')).toBe('wp-block-editor');
+		});
+
+		it('should convert @wordpress/interactivity to wp-interactivity', () => {
+			expect(wpPackageToHandle('@wordpress/interactivity')).toBe('wp-interactivity');
+		});
+	});
+
+	describe('wpPackageToGlobal', () => {
+		it('should convert @wordpress/blocks to wp.blocks', () => {
+			expect(wpPackageToGlobal('@wordpress/blocks')).toBe('wp.blocks');
+		});
+
+		it('should convert @wordpress/element to wp.element', () => {
+			expect(wpPackageToGlobal('@wordpress/element')).toBe('wp.element');
+		});
+
+		it('should convert @wordpress/block-editor to wp.blockEditor (camelCase)', () => {
+			expect(wpPackageToGlobal('@wordpress/block-editor')).toBe('wp.blockEditor');
+		});
+
+		it('should convert @wordpress/dom-ready to wp.domReady (camelCase)', () => {
+			expect(wpPackageToGlobal('@wordpress/dom-ready')).toBe('wp.domReady');
+		});
+	});
+
+	describe('resolveExternal', () => {
+		const baseConfig: Partial<BuildConfig> = {
+			externalNamespaces: {},
+		};
+
+		it('should resolve vendor externals', () => {
+			expect(resolveExternal('react', baseConfig)).toEqual({
+				global: 'React',
+				handle: 'react',
+			});
+			expect(resolveExternal('react-dom', baseConfig)).toEqual({
+				global: 'ReactDOM',
+				handle: 'react-dom',
+			});
+			expect(resolveExternal('lodash', baseConfig)).toEqual({
+				global: 'lodash',
+				handle: 'lodash',
+			});
+		});
+
+		it('should resolve @wordpress packages', () => {
+			const result = resolveExternal('@wordpress/blocks', baseConfig);
+			// Use toMatchObject to ignore _isInstalled which is an implementation detail
+			expect(result).toMatchObject({
+				global: 'wp.blocks',
+				handle: 'wp-blocks',
+			});
+		});
+
+		it('should resolve @wordpress/block-editor with camelCase', () => {
+			const result = resolveExternal('@wordpress/block-editor', baseConfig);
+			expect(result).toMatchObject({
+				global: 'wp.blockEditor',
+				handle: 'wp-block-editor',
+			});
+		});
+
+		it('should return null for unknown packages', () => {
+			expect(resolveExternal('some-random-package', baseConfig)).toBeNull();
+			expect(resolveExternal('@unknown/package', baseConfig)).toBeNull();
+		});
+
+		describe('with custom external namespaces', () => {
+			const configWithNamespaces: Partial<BuildConfig> = {
+				externalNamespaces: {
+					'@woocommerce': {
+						global: 'wc',
+						handlePrefix: 'wc',
+					},
+					'@my-plugin': {
+						global: 'myPlugin',
+						handlePrefix: 'my-plugin',
+					},
+				},
+			};
+
+			it('should resolve @woocommerce packages', () => {
+				const result = resolveExternal('@woocommerce/components', configWithNamespaces);
+				expect(result).toEqual({
+					global: 'wc.components',
+					handle: 'wc-components',
+				});
+			});
+
+			it('should resolve @woocommerce/data with camelCase', () => {
+				const result = resolveExternal('@woocommerce/csv-export', configWithNamespaces);
+				expect(result).toEqual({
+					global: 'wc.csvExport',
+					handle: 'wc-csv-export',
+				});
+			});
+
+			it('should resolve custom plugin namespace', () => {
+				const result = resolveExternal('@my-plugin/utils', configWithNamespaces);
+				expect(result).toEqual({
+					global: 'myPlugin.utils',
+					handle: 'my-plugin-utils',
+				});
+			});
+
+			it('should still resolve @wordpress packages with custom namespaces', () => {
+				const result = resolveExternal('@wordpress/blocks', configWithNamespaces);
+				expect(result).toMatchObject({
+					global: 'wp.blocks',
+					handle: 'wp-blocks',
+				});
+			});
+
+			it('should resolve packages with multiple hyphens correctly', () => {
+				const result = resolveExternal(
+					'@woocommerce/product-editor-component',
+					configWithNamespaces,
+				);
+				expect(result).toEqual({
+					global: 'wc.productEditorComponent',
+					handle: 'wc-product-editor-component',
+				});
+			});
+
+			it('should resolve single-word package names', () => {
+				const result = resolveExternal('@woocommerce/data', configWithNamespaces);
+				expect(result).toEqual({
+					global: 'wc.data',
+					handle: 'wc-data',
+				});
+			});
+
+			it('should not resolve bare namespace without sub-package', () => {
+				const result = resolveExternal('@woocommerce', configWithNamespaces);
+				expect(result).toBeNull();
+			});
+
+			it('should not resolve packages from unregistered namespaces', () => {
+				const result = resolveExternal('@unregistered/package', configWithNamespaces);
+				expect(result).toBeNull();
+			});
+
+			it('should still resolve vendor externals with custom namespaces', () => {
+				expect(resolveExternal('react', configWithNamespaces)).toEqual({
+					global: 'React',
+					handle: 'react',
+				});
+				expect(resolveExternal('lodash', configWithNamespaces)).toEqual({
+					global: 'lodash',
+					handle: 'lodash',
+				});
+			});
+		});
+
+		describe('with agency namespace configuration', () => {
+			const agencyConfig: Partial<BuildConfig> = {
+				externalNamespaces: {
+					'@10up': {
+						global: 'tenUp',
+						handlePrefix: '10up',
+					},
+					'@developer': {
+						global: 'dev',
+						handlePrefix: 'developer',
+					},
+				},
+			};
+
+			it('should resolve @10up packages with numeric prefix', () => {
+				const result = resolveExternal('@10up/block-components', agencyConfig);
+				expect(result).toEqual({
+					global: 'tenUp.blockComponents',
+					handle: '10up-block-components',
+				});
+			});
+
+			it('should resolve multiple packages from same namespace', () => {
+				const utils = resolveExternal('@10up/utils', agencyConfig);
+				const hooks = resolveExternal('@10up/hooks', agencyConfig);
+				const components = resolveExternal('@10up/components', agencyConfig);
+
+				expect(utils).toEqual({ global: 'tenUp.utils', handle: '10up-utils' });
+				expect(hooks).toEqual({ global: 'tenUp.hooks', handle: '10up-hooks' });
+				expect(components).toEqual({ global: 'tenUp.components', handle: '10up-components' });
+			});
+
+			it('should handle different global naming conventions', () => {
+				const result = resolveExternal('@developer/api-client', agencyConfig);
+				expect(result).toEqual({
+					global: 'dev.apiClient',
+					handle: 'developer-api-client',
+				});
+			});
+		});
+
+		describe('edge cases for external namespaces', () => {
+			it('should handle empty externalNamespaces object', () => {
+				const result = resolveExternal('@custom/package', { externalNamespaces: {} });
+				expect(result).toBeNull();
+			});
+
+			it('should handle undefined externalNamespaces', () => {
+				const result = resolveExternal('@custom/package', {});
+				expect(result).toBeNull();
+			});
+
+			it('should prioritize @wordpress over custom namespaces', () => {
+				const configWithWordPressOverride: Partial<BuildConfig> = {
+					externalNamespaces: {
+						'@wordpress': {
+							global: 'customWp',
+							handlePrefix: 'custom-wp',
+						},
+					},
+				};
+				// @wordpress packages should still use the built-in resolution
+				const result = resolveExternal('@wordpress/blocks', configWithWordPressOverride);
+				expect(result).toMatchObject({
+					global: 'wp.blocks',
+					handle: 'wp-blocks',
+				});
+			});
+
+			it('should handle namespace with trailing slash in package name', () => {
+				const config: Partial<BuildConfig> = {
+					externalNamespaces: {
+						'@test': { global: 'test', handlePrefix: 'test' },
+					},
+				};
+				// This tests internal handling - the slash after namespace is expected
+				const result = resolveExternal('@test/my-component', config);
+				expect(result).toEqual({
+					global: 'test.myComponent',
+					handle: 'test-my-component',
+				});
+			});
+		});
+	});
+
+	describe('getExternalPatterns', () => {
+		it('should return an empty array', () => {
+			// All externalization is now handled by the wp-dependency-extraction plugin
+			// to support per-package decisions and virtual modules for IIFE builds
+			const patterns = getExternalPatterns();
+			expect(patterns).toEqual([]);
+		});
+
+		it('should return empty array even with custom namespaces', () => {
+			// Custom namespaces are also handled by the plugin's onResolve hooks
+			const patterns = getExternalPatterns({
+				externalNamespaces: {
+					'@woocommerce': { global: 'wc', handlePrefix: 'wc' },
+					'@my-plugin': { global: 'myPlugin', handlePrefix: 'my-plugin' },
+				},
+			});
+			expect(patterns).toEqual([]);
+		});
+	});
+
+	describe('subpath exports', () => {
+		it('should convert @wordpress/dataviews/wp to wp-dataviews/wp handle', () => {
+			expect(wpPackageToHandle('@wordpress/dataviews/wp')).toBe('wp-dataviews/wp');
+		});
+
+		it('should convert @wordpress/dataviews/wp to wp.dataviews/wp global', () => {
+			expect(wpPackageToGlobal('@wordpress/dataviews/wp')).toBe('wp.dataviews/wp');
+		});
+	});
+});
diff --git a/packages/build/tests/fixtures/basic-project/assets/css/style.css b/packages/build/tests/fixtures/basic-project/assets/css/style.css
new file mode 100644
index 00000000..6300255b
--- /dev/null
+++ b/packages/build/tests/fixtures/basic-project/assets/css/style.css
@@ -0,0 +1,17 @@
+/**
+ * Test stylesheet with PostCSS features
+ */
+:root {
+	--primary-color: #0073aa;
+	--max-width: 1200px;
+}
+
+body {
+	font-family: sans-serif;
+	color: var(--primary-color);
+
+	& .container {
+		max-width: var(--max-width);
+		margin: 0 auto;
+	}
+}
diff --git a/packages/build/tests/fixtures/basic-project/assets/js/admin.js b/packages/build/tests/fixtures/basic-project/assets/js/admin.js
new file mode 100644
index 00000000..6b9448c2
--- /dev/null
+++ b/packages/build/tests/fixtures/basic-project/assets/js/admin.js
@@ -0,0 +1,12 @@
+/**
+ * Admin script for testing
+ */
+import { registerBlockType } from '@wordpress/blocks';
+import { __ } from '@wordpress/i18n';
+import React from 'react';
+
+console.log('Admin loaded', registerBlockType, __, React);
+
+export default function Admin() {
+	return <div>Admin Component</div>;
+}
diff --git a/packages/build/tests/fixtures/basic-project/assets/js/frontend.js b/packages/build/tests/fixtures/basic-project/assets/js/frontend.js
new file mode 100644
index 00000000..2a0f80e7
--- /dev/null
+++ b/packages/build/tests/fixtures/basic-project/assets/js/frontend.js
@@ -0,0 +1,8 @@
+/**
+ * Frontend script for testing
+ */
+import domReady from '@wordpress/dom-ready';
+
+domReady(() => {
+	console.log('Frontend loaded');
+});
diff --git a/packages/build/tests/fixtures/basic-project/package.json b/packages/build/tests/fixtures/basic-project/package.json
new file mode 100644
index 00000000..bf4d63e4
--- /dev/null
+++ b/packages/build/tests/fixtures/basic-project/package.json
@@ -0,0 +1,18 @@
+{
+	"name": "test-basic-project",
+	"version": "1.0.0",
+	"10up-toolkit": {
+		"entry": {
+			"admin": "./assets/js/admin.js",
+			"frontend": "./assets/js/frontend.js",
+			"style": "./assets/css/style.scss"
+		},
+		"paths": {
+			"blocksDir": "./includes/blocks/",
+			"srcDir": "./assets/",
+			"copyAssetsDir": "./assets/"
+		},
+		"wpDependencyExternals": true,
+		"useBlockAssets": false
+	}
+}
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/block.json b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/block.json
new file mode 100644
index 00000000..12b86598
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/block.json
@@ -0,0 +1,11 @@
+{
+	"apiVersion": 3,
+	"name": "test/test-block",
+	"title": "Test Block",
+	"category": "common",
+	"editorScript": "file:./index.tsx",
+	"editorStyle": "file:./editor.css",
+	"style": "file:./style.css",
+	"viewScript": "file:./view.js",
+	"viewScriptModule": "file:./view-module.js"
+}
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/editor.css b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/editor.css
new file mode 100644
index 00000000..8d55ee06
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/editor.css
@@ -0,0 +1,3 @@
+.wp-block-test-test-block {
+	outline: 2px dashed #0073aa;
+}
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/index.tsx b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/index.tsx
new file mode 100644
index 00000000..316cfc57
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/index.tsx
@@ -0,0 +1,18 @@
+/**
+ * Test block editor script
+ */
+import { registerBlockType } from '@wordpress/blocks';
+import { useBlockProps } from '@wordpress/block-editor';
+import { __ } from '@wordpress/i18n';
+
+registerBlockType('test/test-block', {
+	title: __('Test Block', 'test'),
+	edit: () => {
+		const blockProps = useBlockProps();
+		return <div {...blockProps}>Test Block</div>;
+	},
+	save: () => {
+		const blockProps = useBlockProps.save();
+		return <div {...blockProps}>Test Block</div>;
+	},
+});
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/style.css b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/style.css
new file mode 100644
index 00000000..8c3e9350
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/style.css
@@ -0,0 +1,5 @@
+.wp-block-test-test-block {
+	padding: 20px;
+	border: 1px solid #ccc;
+	border-radius: 4px;
+}
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view-module.js b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view-module.js
new file mode 100644
index 00000000..7069d0d2
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view-module.js
@@ -0,0 +1,13 @@
+/**
+ * Test block view script module (ES Module)
+ */
+import { store, getContext } from '@wordpress/interactivity';
+
+store('test/test-block', {
+	actions: {
+		toggle() {
+			const context = getContext();
+			context.isOpen = !context.isOpen;
+		},
+	},
+});
diff --git a/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view.js b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view.js
new file mode 100644
index 00000000..2ec26401
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/includes/blocks/test-block/view.js
@@ -0,0 +1,13 @@
+/**
+ * Test block view script
+ */
+import domReady from '@wordpress/dom-ready';
+
+domReady(() => {
+	const blocks = document.querySelectorAll('.wp-block-test-test-block');
+	blocks.forEach((block) => {
+		block.addEventListener('click', () => {
+			console.log('Block clicked');
+		});
+	});
+});
diff --git a/packages/build/tests/fixtures/block-project/package.json b/packages/build/tests/fixtures/block-project/package.json
new file mode 100644
index 00000000..e7badf50
--- /dev/null
+++ b/packages/build/tests/fixtures/block-project/package.json
@@ -0,0 +1,14 @@
+{
+	"name": "test-block-project",
+	"version": "1.0.0",
+	"10up-toolkit": {
+		"entry": {},
+		"paths": {
+			"blocksDir": "./includes/blocks/",
+			"srcDir": "./assets/",
+			"copyAssetsDir": "./assets/"
+		},
+		"wpDependencyExternals": true,
+		"useBlockAssets": true
+	}
+}
diff --git a/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-media.css b/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-media.css
new file mode 100644
index 00000000..2e007024
--- /dev/null
+++ b/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-media.css
@@ -0,0 +1,7 @@
+/**
+ * Custom media queries
+ * These are available in all stylesheets via postcss-custom-media
+ */
+@custom-media --viewport-small (min-width: 480px);
+@custom-media --viewport-medium (min-width: 768px);
+@custom-media --viewport-large (min-width: 1024px);
diff --git a/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-properties.css b/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-properties.css
new file mode 100644
index 00000000..a45230e0
--- /dev/null
+++ b/packages/build/tests/fixtures/postcss-project/assets/css/globals/custom-properties.css
@@ -0,0 +1,9 @@
+/**
+ * Global CSS custom properties
+ * These are available in all stylesheets via postcss-global-data
+ */
+:root {
+	--global-primary: #ff6600;
+	--global-spacing: 16px;
+	--global-max-width: 1200px;
+}
diff --git a/packages/build/tests/fixtures/postcss-project/assets/css/mixins/spacing.css b/packages/build/tests/fixtures/postcss-project/assets/css/mixins/spacing.css
new file mode 100644
index 00000000..8a4469a5
--- /dev/null
+++ b/packages/build/tests/fixtures/postcss-project/assets/css/mixins/spacing.css
@@ -0,0 +1,9 @@
+/**
+ * Spacing mixin
+ * Available via postcss-mixins
+ */
+@define-mixin container {
+	max-width: var(--global-max-width);
+	margin-inline: auto;
+	padding-inline: var(--global-spacing);
+}
diff --git a/packages/build/tests/fixtures/postcss-project/assets/css/style.css b/packages/build/tests/fixtures/postcss-project/assets/css/style.css
new file mode 100644
index 00000000..11e4975d
--- /dev/null
+++ b/packages/build/tests/fixtures/postcss-project/assets/css/style.css
@@ -0,0 +1,17 @@
+/**
+ * Main stylesheet using global styles and mixins
+ */
+.header {
+	background-color: var(--global-primary);
+	padding: var(--global-spacing);
+}
+
+.main-container {
+	@mixin container;
+}
+
+@media (--viewport-medium) {
+	.header {
+		padding: calc(var(--global-spacing) * 2);
+	}
+}
diff --git a/packages/build/tests/fixtures/postcss-project/package.json b/packages/build/tests/fixtures/postcss-project/package.json
new file mode 100644
index 00000000..e511d782
--- /dev/null
+++ b/packages/build/tests/fixtures/postcss-project/package.json
@@ -0,0 +1,11 @@
+{
+	"name": "postcss-project",
+	"version": "1.0.0",
+	"private": true,
+	"10up-toolkit": {
+		"paths": {
+			"globalStylesDir": "./assets/css/globals/",
+			"globalMixinsDir": "./assets/css/mixins/"
+		}
+	}
+}
diff --git a/packages/build/tests/snapshots.test.ts b/packages/build/tests/snapshots.test.ts
new file mode 100644
index 00000000..10e901af
--- /dev/null
+++ b/packages/build/tests/snapshots.test.ts
@@ -0,0 +1,275 @@
+/**
+ * Snapshot tests for build outputs
+ *
+ * These tests verify the actual content of built files remains consistent
+ */
+import { describe, it, expect, beforeAll, afterAll } from 'vitest';
+import { resolve, join } from 'node:path';
+import { existsSync, readFileSync, rmSync, readdirSync, statSync } from 'node:fs';
+import { build } from '../src/build.js';
+import { defaultConfig } from '../src/config.js';
+import type { BuildConfig } from '../src/types.js';
+
+// Store original cwd
+const originalCwd = process.cwd();
+const originalEnv = process.env.NODE_ENV;
+
+/**
+ * Helper to get all files in a directory recursively
+ */
+function getAllFiles(dir: string, files: string[] = []): string[] {
+	if (!existsSync(dir)) return files;
+
+	const entries = readdirSync(dir);
+	for (const entry of entries) {
+		const fullPath = join(dir, entry);
+		if (statSync(fullPath).isDirectory()) {
+			getAllFiles(fullPath, files);
+		} else {
+			files.push(fullPath);
+		}
+	}
+	return files;
+}
+
+/**
+ * Helper to normalize JS content for snapshot comparison
+ * Removes content hashes that change between builds
+ */
+function normalizeJsContent(content: string): string {
+	return content
+		// Remove source map comments
+		.replace(/\/\/# sourceMappingURL=.+$/gm, '//# sourceMappingURL=[removed]')
+		// Normalize line endings
+		.replace(/\r\n/g, '\n');
+}
+
+/**
+ * Helper to normalize PHP asset file content
+ * Replaces dynamic version hashes with placeholder
+ */
+function normalizeAssetPhp(content: string): string {
+	return content
+		// Replace version hash with placeholder
+		.replace(/'version' => '[a-f0-9]+'/, "'version' => '[HASH]'")
+		// Normalize line endings
+		.replace(/\r\n/g, '\n');
+}
+
+/**
+ * Helper to normalize CSS content
+ */
+function normalizeCssContent(content: string): string {
+	return content
+		// Normalize line endings
+		.replace(/\r\n/g, '\n');
+}
+
+describe('Build Output Snapshots', () => {
+	describe('basic-project', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/basic-project');
+		const distDir = join(fixtureDir, 'dist-snapshots');
+
+		beforeAll(async () => {
+			process.chdir(fixtureDir);
+			process.env.NODE_ENV = 'production';
+
+			// Clean and build
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					admin: './assets/js/admin.js',
+					frontend: './assets/js/frontend.js',
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			await build(config);
+		});
+
+		afterAll(() => {
+			process.chdir(originalCwd);
+			process.env.NODE_ENV = originalEnv;
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should produce expected output files', () => {
+			const files = getAllFiles(distDir).map((f) => f.replace(distDir, '').replace(/^\//, ''));
+			expect(files.sort()).toMatchSnapshot('output-files');
+		});
+
+		it('should produce correct admin.js output', () => {
+			const content = readFileSync(join(distDir, 'js/admin.js'), 'utf8');
+			expect(normalizeJsContent(content)).toMatchSnapshot('admin.js');
+		});
+
+		it('should produce correct admin.asset.php output', () => {
+			const content = readFileSync(join(distDir, 'js/admin.asset.php'), 'utf8');
+			expect(normalizeAssetPhp(content)).toMatchSnapshot('admin.asset.php');
+		});
+
+		it('should produce correct frontend.js output', () => {
+			const content = readFileSync(join(distDir, 'js/frontend.js'), 'utf8');
+			expect(normalizeJsContent(content)).toMatchSnapshot('frontend.js');
+		});
+
+		it('should produce correct frontend.asset.php output', () => {
+			const content = readFileSync(join(distDir, 'js/frontend.asset.php'), 'utf8');
+			expect(normalizeAssetPhp(content)).toMatchSnapshot('frontend.asset.php');
+		});
+
+		it('should produce correct style.css output', () => {
+			const content = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			expect(normalizeCssContent(content)).toMatchSnapshot('style.css');
+		});
+	});
+
+	describe('block-project', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/block-project');
+		const distDir = join(fixtureDir, 'dist-snapshots');
+
+		beforeAll(async () => {
+			process.chdir(fixtureDir);
+			process.env.NODE_ENV = 'production';
+
+			// Clean and build
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+
+			const config: Partial<BuildConfig> = {
+				entry: {},
+				paths: {
+					...defaultConfig.paths,
+					blocksDir: './includes/blocks/',
+					distDir: distDir,
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: true,
+			};
+
+			await build(config);
+		});
+
+		afterAll(() => {
+			process.chdir(originalCwd);
+			process.env.NODE_ENV = originalEnv;
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should produce expected output files', () => {
+			const files = getAllFiles(distDir).map((f) => f.replace(distDir, '').replace(/^\//, ''));
+			expect(files.sort()).toMatchSnapshot('output-files');
+		});
+
+		it('should produce correct block.json output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/block.json'), 'utf8');
+			expect(JSON.parse(content)).toMatchSnapshot('block.json');
+		});
+
+		it('should produce correct index.js (editor script) output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/index.js'), 'utf8');
+			expect(normalizeJsContent(content)).toMatchSnapshot('index.js');
+		});
+
+		it('should produce correct index.asset.php output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/index.asset.php'), 'utf8');
+			expect(normalizeAssetPhp(content)).toMatchSnapshot('index.asset.php');
+		});
+
+		it('should produce correct view.js output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/view.js'), 'utf8');
+			expect(normalizeJsContent(content)).toMatchSnapshot('view.js');
+		});
+
+		it('should produce correct view.asset.php output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/view.asset.php'), 'utf8');
+			expect(normalizeAssetPhp(content)).toMatchSnapshot('view.asset.php');
+		});
+
+		it('should produce correct view-module.js (ES module) output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/view-module.js'), 'utf8');
+			expect(normalizeJsContent(content)).toMatchSnapshot('view-module.js');
+		});
+
+		it('should produce correct view-module.asset.php output', () => {
+			const content = readFileSync(
+				join(distDir, 'blocks/test-block/view-module.asset.php'),
+				'utf8',
+			);
+			expect(normalizeAssetPhp(content)).toMatchSnapshot('view-module.asset.php');
+		});
+
+		it('should produce correct editor.css output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/editor.css'), 'utf8');
+			expect(normalizeCssContent(content)).toMatchSnapshot('editor.css');
+		});
+
+		it('should produce correct style.css output', () => {
+			const content = readFileSync(join(distDir, 'blocks/test-block/style.css'), 'utf8');
+			expect(normalizeCssContent(content)).toMatchSnapshot('style.css');
+		});
+	});
+
+	describe('postcss-project', () => {
+		const fixtureDir = resolve(__dirname, 'fixtures/postcss-project');
+		const distDir = join(fixtureDir, 'dist-snapshots');
+
+		beforeAll(async () => {
+			process.chdir(fixtureDir);
+			process.env.NODE_ENV = 'production';
+
+			// Clean and build
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+
+			const config: Partial<BuildConfig> = {
+				entry: {
+					style: './assets/css/style.css',
+				},
+				paths: {
+					...defaultConfig.paths,
+					distDir: distDir,
+					globalStylesDir: './assets/css/globals/',
+					globalMixinsDir: './assets/css/mixins/',
+				},
+				wpDependencyExternals: true,
+				useBlockAssets: false,
+			};
+
+			await build(config);
+		});
+
+		afterAll(() => {
+			process.chdir(originalCwd);
+			process.env.NODE_ENV = originalEnv;
+			if (existsSync(distDir)) {
+				rmSync(distDir, { recursive: true, force: true });
+			}
+		});
+
+		it('should produce expected output files', () => {
+			const files = getAllFiles(distDir).map((f) => f.replace(distDir, '').replace(/^\//, ''));
+			expect(files.sort()).toMatchSnapshot('output-files');
+		});
+
+		it('should produce correct style.css with PostCSS processing', () => {
+			const content = readFileSync(join(distDir, 'css/style.css'), 'utf8');
+			expect(normalizeCssContent(content)).toMatchSnapshot('style.css');
+		});
+	});
+});
diff --git a/packages/build/tsconfig.json b/packages/build/tsconfig.json
new file mode 100644
index 00000000..3772cdbe
--- /dev/null
+++ b/packages/build/tsconfig.json
@@ -0,0 +1,25 @@
+{
+	"compilerOptions": {
+		"target": "ES2022",
+		"module": "NodeNext",
+		"moduleResolution": "NodeNext",
+		"lib": ["ES2022"],
+		"outDir": "./dist",
+		"rootDir": "./src",
+		"strict": true,
+		"esModuleInterop": true,
+		"skipLibCheck": true,
+		"forceConsistentCasingInFileNames": true,
+		"declaration": true,
+		"declarationMap": true,
+		"sourceMap": true,
+		"resolveJsonModule": true,
+		"isolatedModules": true,
+		"noUnusedLocals": true,
+		"noUnusedParameters": true,
+		"noImplicitReturns": true,
+		"noFallthroughCasesInSwitch": true
+	},
+	"include": ["src/**/*"],
+	"exclude": ["node_modules", "dist"]
+}
diff --git a/packages/build/vitest.config.ts b/packages/build/vitest.config.ts
new file mode 100644
index 00000000..ddc1f45b
--- /dev/null
+++ b/packages/build/vitest.config.ts
@@ -0,0 +1,17 @@
+import { defineConfig } from 'vitest/config';
+
+export default defineConfig({
+	test: {
+		globals: true,
+		environment: 'node',
+		include: ['src/**/*.test.ts', 'tests/**/*.test.ts'],
+		coverage: {
+			provider: 'v8',
+			reporter: ['text', 'html', 'lcov'],
+			include: ['src/**/*.ts'],
+			exclude: ['src/**/*.test.ts', 'src/types.ts'],
+		},
+		// Longer timeout for build tests
+		testTimeout: 30000,
+	},
+});