diff --git a/.babelrc b/.babelrc
index e1122c2c6beb..62ffd16c8d2b 100644
--- a/.babelrc
+++ b/.babelrc
@@ -1,21 +1,16 @@
 {
   "presets": [
-    ["env", {
-      "targets": {
-        "browsers": [
-          "last 2 versions",
-          "IE >= 11"
-        ]
-      },
-      "useBuiltIns": true,
-      "modules": false,
-      "exclude": [
-        "transform-regenerator"
-      ]
-    }],
-    "react"
-  ],
-  "plugins": [
-    "transform-object-rest-spread"
+    [
+      "env",
+      {
+        "targets": {
+          "browsers": [
+            "last 2 versions",
+            "IE >= 11"
+          ]
+        },
+        "modules": "commonjs"
+      }
+    ]
   ]
 }
diff --git a/.eslintignore b/.eslintignore
index 7bec88e2cb3e..8277bea27284 100644
--- a/.eslintignore
+++ b/.eslintignore
@@ -58,3 +58,5 @@ common/lib/xmodule/xmodule/js/src/vertical/edit.js
 
 # This file is responsible for almost half of the repo's total issues.
 common/lib/xmodule/xmodule/js/src/capa/schematic.js
+
+!**/.eslintrc.js
diff --git a/common/static/common/js/karma.common.conf.js b/common/static/common/js/karma.common.conf.js
index ee9359fcd5ec..38ded3056d7c 100644
--- a/common/static/common/js/karma.common.conf.js
+++ b/common/static/common/js/karma.common.conf.js
@@ -40,6 +40,9 @@
 var path = require('path');
 var _ = require('underscore');
 var appRoot = path.join(__dirname, '../../../../');
+var webpackConfig = require(path.join(appRoot, 'webpack.config.js'));
+
+delete webpackConfig.entry;
 
 // Files which are needed by all lms/cms suites.
 var commonFiles = {
@@ -177,43 +180,32 @@ var defaultNormalizeFunc = function(appRoot, pattern) {
     return pattern;
 };
 
-var normalizePathsForCoverage = function(files, normalizeFunc) {
+var normalizePathsForCoverage = function(files, normalizeFunc, preprocessors) {
     var normalizeFn = normalizeFunc || defaultNormalizeFunc,
+        normalizedFile,
         filesForCoverage = {};
 
     files.forEach(function(file) {
         if (!file.ignoreCoverage) {
-            filesForCoverage[normalizeFn(appRoot, file.pattern)] = ['coverage'];
+            normalizedFile = normalizeFn(appRoot, file.pattern);
+            filesForCoverage[normalizedFile] = ['coverage'].concat(preprocessors[normalizedFile] || []);
         }
     });
 
     return filesForCoverage;
 };
 
-/**
- * Sets nocache on each file in the list.
- * @param {Object} files
- * @param {Bool} enable
- * @return {Object}
- */
-var setNocache = function(files, enable) {
-    files.forEach(function(f) {
-        if (_.isObject(f)) {
-            f.nocache = enable;
-        }
-    });
-    return files;
-};
-
 /**
  * Sets defaults for each file pattern.
+ * RequireJS files are excluded by default.
+ * Webpack files are included by default.
  * @param {Object} files
  * @return {Object}
  */
 var setDefaults = function(files) {
     return files.map(function(f) {
         var file = _.isObject(f) ? f : {pattern: f};
-        if (!file.included) {
+        if (!file.included && !file.webpack) {
             f.included = false;
         }
         return file;
@@ -281,6 +273,8 @@ var getBaseConfig = function(config, useRequireJs) {
             'karma-chrome-launcher',
             'karma-firefox-launcher',
             'karma-spec-reporter',
+            'karma-webpack',
+            'karma-sourcemap-loader',
             customPlugin
         ],
 
@@ -349,7 +343,9 @@ var getBaseConfig = function(config, useRequireJs) {
 
         client: {
             captureConsole: false
-        }
+        },
+
+        webpack: webpackConfig
     };
 };
 
@@ -382,11 +378,6 @@ var configure = function(config, options) {
     // We set it to false by default because RequireJS should be used instead.
     files = setDefaults(files);
 
-    // With nocache=true, Karma always serves the latest files from disk.
-    // However, that prevents coverage tracking from working.
-    // So we only set it if coverage tracking is off.
-    setNocache(files, !config.coverage);
-
     var filesForCoverage = _.flatten(
         _.map(
             ['sourceFiles', 'specFiles'],
@@ -399,7 +390,7 @@ var configure = function(config, options) {
     var preprocessors = _.extend(
         {},
         options.preprocessors,
-        normalizePathsForCoverage(filesForCoverage, options.normalizePathsForCoverageFunc)
+        normalizePathsForCoverage(filesForCoverage, options.normalizePathsForCoverageFunc, options.preprocessors)
     );
 
     config.set(_.extend(baseConfig, {
diff --git a/lms/static/karma_lms.conf.js b/lms/static/karma_lms.conf.js
index 388103836f6b..62ad5df5b905 100644
--- a/lms/static/karma_lms.conf.js
+++ b/lms/static/karma_lms.conf.js
@@ -28,7 +28,6 @@ var options = {
     sourceFiles: [
         {pattern: 'coffee/src/**/!(*spec).js'},
         {pattern: 'course_bookmarks/**/!(*spec).js'},
-        {pattern: 'course_experience/js/**/!(*spec).js'},
         {pattern: 'discussion/js/**/!(*spec).js'},
         {pattern: 'js/**/!(*spec|djangojs).js'},
         {pattern: 'lms/js/**/!(*spec).js'},
@@ -37,7 +36,8 @@ var options = {
     ],
 
     specFiles: [
-        {pattern: '../**/*spec.js'}
+        {pattern: '../**/*spec.js'},
+        {pattern: 'course_experience/js/**/*_spec.js', webpack: true}
     ],
 
     fixtureFiles: [
@@ -49,9 +49,17 @@ var options = {
 
     runFiles: [
         {pattern: 'lms/js/spec/main.js', included: true}
-    ]
+    ],
+
+    preprocessors: {}
 };
 
+options.specFiles
+    .filter(function(file) { return file.webpack; })
+    .forEach(function(file) {
+        options.preprocessors[file.pattern] = ['webpack', 'sourcemap'];
+    });
+
 module.exports = function(config) {
     configModule.configure(config, options);
 };
diff --git a/lms/static/lms/js/spec/main.js b/lms/static/lms/js/spec/main.js
index 2656462645c6..4ad059063aee 100644
--- a/lms/static/lms/js/spec/main.js
+++ b/lms/static/lms/js/spec/main.js
@@ -676,7 +676,6 @@
         'course_bookmarks/js/spec/bookmark_button_view_spec.js',
         'course_bookmarks/js/spec/bookmarks_list_view_spec.js',
         'course_bookmarks/js/spec/course_bookmarks_factory_spec.js',
-        'course_experience/js/spec/course_outline_factory_spec.js',
         'discussion/js/spec/discussion_board_factory_spec.js',
         'discussion/js/spec/discussion_profile_page_factory_spec.js',
         'discussion/js/spec/discussion_board_view_spec.js',
diff --git a/openedx/features/course_experience/.eslintrc.js b/openedx/features/course_experience/.eslintrc.js
new file mode 100644
index 000000000000..49519fe7263f
--- /dev/null
+++ b/openedx/features/course_experience/.eslintrc.js
@@ -0,0 +1,4 @@
+module.exports = {
+  extends: 'eslint-config-edx',
+  root: true,
+};
diff --git a/openedx/features/course_experience/static/course_experience/js/CourseOutline.js b/openedx/features/course_experience/static/course_experience/js/CourseOutline.js
index 88fca6904e20..53915daa91bf 100644
--- a/openedx/features/course_experience/static/course_experience/js/CourseOutline.js
+++ b/openedx/features/course_experience/static/course_experience/js/CourseOutline.js
@@ -1,5 +1,5 @@
 import * as constants from 'edx-ui-toolkit/src/js/utils/constants';
-import * as Logger from logger;
+import log from 'logger';
 
 export class CourseOutline {
   constructor(root) {
@@ -8,19 +8,19 @@ export class CourseOutline {
       const currentFocusIndex = focusable.indexOf(event.target);
 
       switch (event.keyCode) {  // eslint-disable-line default-case
-      case constants.keyCodes.down:
-        event.preventDefault();
-        focusable[Math.min(currentFocusIndex + 1, focusable.length - 1)].focus();
-        break;
-      case constants.keyCodes.up:
-        event.preventDefault();
-        focusable[Math.max(currentFocusIndex - 1, 0)].focus();
-        break;
+        case constants.keyCodes.down:
+          event.preventDefault();
+          focusable[Math.min(currentFocusIndex + 1, focusable.length - 1)].focus();
+          break;
+        case constants.keyCodes.up:
+          event.preventDefault();
+          focusable[Math.max(currentFocusIndex - 1, 0)].focus();
+          break;
       }
     });
 
     document.querySelectorAll('a:not([href^="#"])').addEventListener('click', (event) => {
-        Logger.log(
+        log(
             'edx.ui.lms.link_clicked',
             {
                 current_url: window.location.href,
diff --git a/openedx/features/course_experience/static/course_experience/js/spec/CourseOutline_spec.js b/openedx/features/course_experience/static/course_experience/js/spec/CourseOutline_spec.js
new file mode 100644
index 000000000000..a2376cf11a5a
--- /dev/null
+++ b/openedx/features/course_experience/static/course_experience/js/spec/CourseOutline_spec.js
@@ -0,0 +1,104 @@
+import * as constants from "edx-ui-toolkit/js/utils/constants";
+import log from 'logger';
+import { CourseOutline } from "../CourseOutline";
+
+describe('Course outline factory', () => {
+  describe('keyboard listener', () => {
+    const triggerKeyListener = (current, destination, keyCode) => {
+      current.focus();
+      spyOn(destination, 'focus');
+
+      $('.block-tree').trigger(
+        $.Event('keydown', {
+          keyCode,
+          target: current,
+        }),
+      );
+    };
+
+    beforeEach(() => {
+      loadFixtures('course_experience/fixtures/course-outline-fragment.html');
+      new CourseOutline('.block-tree');
+    });
+
+    describe('when the down arrow is pressed', () => {
+      it('moves focus from a subsection to the next subsection in the outline', () => {
+        const current = $('a.focusable:contains("Homework - Labs and Demos")')[0];
+        const destination = $('a.focusable:contains("Homework - Essays")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.down);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+
+      it('moves focus to the section list if at a section boundary', () => {
+        const current = $('li.focusable:contains("Example Week 3: Be Social")')[0];
+        const destination = $('ol.focusable:contains("Lesson 3 - Be Social")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.down);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+
+      it('moves focus to the next section if on the last subsection', () => {
+        const current = $('a.focusable:contains("Homework - Essays")')[0];
+        const destination = $('li.focusable:contains("Example Week 3: Be Social")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.down);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+    });
+
+    describe('when the up arrow is pressed', () => {
+      it('moves focus from a subsection to the previous subsection in the outline', () => {
+        const current = $('a.focusable:contains("Homework - Essays")')[0];
+        const destination = $('a.focusable:contains("Homework - Labs and Demos")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.up);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+
+      it('moves focus to the section group if at the first subsection', () => {
+        const current = $('a.focusable:contains("Lesson 3 - Be Social")')[0];
+        const destination = $('ol.focusable:contains("Lesson 3 - Be Social")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.up);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+
+      it('moves focus last subsection of the previous section if at a section boundary', () => {
+        const current = $('li.focusable:contains("Example Week 3: Be Social")')[0];
+        const destination = $('a.focusable:contains("Homework - Essays")')[0];
+
+        triggerKeyListener(current, destination, constants.keyCodes.up);
+
+        expect(destination.focus).toHaveBeenCalled();
+      });
+    });
+  });
+
+  describe("eventing", function() {
+    beforeEach(function() {
+      loadFixtures("course_experience/fixtures/course-outline-fragment.html");
+      CourseOutlineFactory(".block-tree");
+      spyOn(Logger, "log");
+    });
+
+    it("sends an event when an outline section is clicked", function() {
+      $('a.focusable:contains("Homework - Labs and Demos")').click();
+
+      expect(Logger.log).toHaveBeenCalledWith("edx.ui.lms.link_clicked", {
+        target_url: (
+          window.location.origin +
+            "/courses/course-v1:edX+DemoX+Demo_Course/jump_to/block-v1:edX+DemoX+Demo_Course+type" +
+            "@sequential+block@graded_simulations"
+        ),
+        current_url: window.location.toString()
+      });
+    });
+  });
+
+});
diff --git a/openedx/features/course_experience/static/course_experience/js/spec/course_outline_factory_spec.js b/openedx/features/course_experience/static/course_experience/js/spec/course_outline_factory_spec.js
deleted file mode 100644
index 649de3ccd354..000000000000
--- a/openedx/features/course_experience/static/course_experience/js/spec/course_outline_factory_spec.js
+++ /dev/null
@@ -1,106 +0,0 @@
-define([
-    'jquery',
-    'logger',
-    'edx-ui-toolkit/js/utils/constants',
-    'course_experience/js/course_outline_factory'
-],
-    function($, Logger, constants, CourseOutlineFactory) {
-        'use strict';
-
-        describe('Course outline factory', function() {
-            describe('keyboard listener', function() {
-                var triggerKeyListener = function(current, destination, keyCode) {
-                    current.focus();
-                    spyOn(destination, 'focus');
-
-                    $('.block-tree').trigger($.Event('keydown', {
-                        keyCode: keyCode,
-                        target: current
-                    }));
-                };
-
-                beforeEach(function() {
-                    loadFixtures('course_experience/fixtures/course-outline-fragment.html');
-                    CourseOutlineFactory('.block-tree');
-                });
-
-                describe('when the down arrow is pressed', function() {
-                    it('moves focus from a subsection to the next subsection in the outline', function() {
-                        var current = $('a.focusable:contains("Homework - Labs and Demos")')[0],
-                            destination = $('a.focusable:contains("Homework - Essays")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.down);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-
-                    it('moves focus to the section list if at a section boundary', function() {
-                        var current = $('li.focusable:contains("Example Week 3: Be Social")')[0],
-                            destination = $('ol.focusable:contains("Lesson 3 - Be Social")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.down);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-
-                    it('moves focus to the next section if on the last subsection', function() {
-                        var current = $('a.focusable:contains("Homework - Essays")')[0],
-                            destination = $('li.focusable:contains("Example Week 3: Be Social")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.down);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-                });
-
-                describe('when the up arrow is pressed', function() {
-                    it('moves focus from a subsection to the previous subsection in the outline', function() {
-                        var current = $('a.focusable:contains("Homework - Essays")')[0],
-                            destination = $('a.focusable:contains("Homework - Labs and Demos")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.up);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-
-                    it('moves focus to the section group if at the first subsection', function() {
-                        var current = $('a.focusable:contains("Lesson 3 - Be Social")')[0],
-                            destination = $('ol.focusable:contains("Lesson 3 - Be Social")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.up);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-
-                    it('moves focus last subsection of the previous section if at a section boundary', function() {
-                        var current = $('li.focusable:contains("Example Week 3: Be Social")')[0],
-                            destination = $('a.focusable:contains("Homework - Essays")')[0];
-
-                        triggerKeyListener(current, destination, constants.keyCodes.up);
-
-                        expect(destination.focus).toHaveBeenCalled();
-                    });
-                });
-            });
-
-            describe('eventing', function() {
-                beforeEach(function() {
-                    loadFixtures('course_experience/fixtures/course-outline-fragment.html');
-                    CourseOutlineFactory('.block-tree');
-                    spyOn(Logger, 'log');
-                });
-
-                it('sends an event when an outline section is clicked', function() {
-                    $('a.focusable:contains("Homework - Labs and Demos")').click();
-
-                    expect(Logger.log).toHaveBeenCalledWith('edx.ui.lms.link_clicked', {
-                        target_url: window.location.origin +
-                            '/courses/course-v1:edX+DemoX+Demo_Course/jump_to/block-v1:edX+DemoX+Demo_Course+type' +
-                            '@sequential+block@graded_simulations',
-                        current_url: window.location.toString()
-                    });
-                });
-            });
-        });
-    }
-);
diff --git a/package.json b/package.json
index 0f5fb8b8c7bb..b7ffea7ac6aa 100644
--- a/package.json
+++ b/package.json
@@ -22,13 +22,9 @@
   "devDependencies": {
     "babel-core": "^6.23.0",
     "babel-loader": "^6.4.0",
-    "babel-plugin-react": "^1.0.0",
-    "babel-plugin-transform-object-rest-spread": "^6.23.0",
-    "babel-polyfill": "^6.23.0",
     "babel-preset-env": "^1.2.1",
-    "babel-preset-react": "^6.23.0",
     "edx-custom-a11y-rules": "0.1.3",
-    "eslint-config-edx": "^2.0.0",
+    "eslint-config-edx": "^2.0.1",
     "eslint-config-edx-es5": "^2.0.0",
     "jasmine-core": "^2.4.1",
     "jasmine-jquery": "^2.1.1",
@@ -40,11 +36,13 @@
     "karma-jasmine-html-reporter": "^0.2.0",
     "karma-junit-reporter": "^0.4.1",
     "karma-requirejs": "^0.2.6",
+    "karma-sourcemap-loader": "^0.3.7",
     "karma-spec-reporter": "^0.0.20",
+    "karma-webpack": "^2.0.3",
     "pa11y": "4.0.1",
     "pa11y-reporter-json-oldnode": "1.0.0",
     "plato": "1.2.2",
-    "sinon": "1.17.3 || >1.17.4 <2.0.0",
+    "sinon": "^1.17.7",
     "squirejs": "^0.1.0",
     "webpack": "^2.2.1",
     "webpack-bundle-tracker": "^0.2.0"
diff --git a/webpack.config.js b/webpack.config.js
index 9a63338265ff..522a4221ab81 100644
--- a/webpack.config.js
+++ b/webpack.config.js
@@ -12,11 +12,13 @@ const wpconfig = {
   },
 
   output: {
-      path: path.resolve(__dirname, 'common/static/bundles'),
-      filename: '[name]-[hash].js',
-      libraryTarget: 'window',
+    path: path.resolve(__dirname, 'common/static/bundles'),
+    filename: '[name]-[hash].js',
+    libraryTarget: 'window',
   },
 
+  devtool: isProd ? false : 'cheap-eval-source-map',
+
   plugins: [
     new webpack.NoEmitOnErrorsPlugin(),
     new webpack.NamedModulesPlugin(),