diff --git a/.changeset/swc-jsx-development-mode.md b/.changeset/swc-jsx-development-mode.md
new file mode 100644
index 000000000..54e1691ec
--- /dev/null
+++ b/.changeset/swc-jsx-development-mode.md
@@ -0,0 +1,5 @@
+---
+"@callstack/repack": patch
+---
+
+Make SWC JSX development transforms follow the build mode. `getSwcLoaderOptions` (and `getJsTransformRules`) tied `jsc.transform.react.development` to the JSX runtime, so development builds with the default `automatic` runtime emitted `jsx` instead of `jsxDEV` and lost `__source` / `__self`, accurate component stacks and "open in editor", while `classic` production builds kept them. `getSwcLoaderOptions` no longer sets `jsc.transform.react.development` by default, so Rspack's `builtin:swc-loader` derives it from `mode`, and development builds with the `automatic` runtime now import `<importSource>/jsx-dev-runtime`. Both helpers accept a `development` option to override it, e.g. `getJsTransformRules({ swc: { development: false } })` when a custom `importSource` doesn't ship a `jsx-dev-runtime` entry.
diff --git a/packages/repack/src/utils/getJsTransformRules.ts b/packages/repack/src/utils/getJsTransformRules.ts
index 480d34754..f62000403 100644
--- a/packages/repack/src/utils/getJsTransformRules.ts
+++ b/packages/repack/src/utils/getJsTransformRules.ts
@@ -16,6 +16,8 @@ interface GetJsTransformRulesOptions {
     importSource?: string;
     /** The JSX runtime to use ('automatic' for React 17+ new JSX transform or 'classic' for traditional JSX transform) */
     jsxRuntime?: 'automatic' | 'classic';
+    /** Whether to apply JSX development transforms (defaults to the build `mode`, set by Rspack's `builtin:swc-loader`) */
+    development?: boolean;
     /** Enable lazy loading for all imports or specific modules */
     lazyImports?: boolean | string[];
   };
diff --git a/packages/repack/src/utils/getSwcLoaderOptions.ts b/packages/repack/src/utils/getSwcLoaderOptions.ts
index d337f8a31..d594f8810 100644
--- a/packages/repack/src/utils/getSwcLoaderOptions.ts
+++ b/packages/repack/src/utils/getSwcLoaderOptions.ts
@@ -52,12 +52,14 @@ function getParserOptions(syntax: 'js' | 'ts', jsx: boolean) {
 
 function getJSCTransformOptions(
   jsxRuntime: 'automatic' | 'classic',
-  importSource: string
+  importSource: string,
+  development?: boolean
 ) {
   return {
     react: {
       runtime: jsxRuntime,
-      development: jsxRuntime === 'classic',
+      // when omitted, Rspack's builtin:swc-loader sets it from `mode`
+      ...(development !== undefined && { development }),
       importSource,
     },
   };
@@ -109,6 +111,14 @@ interface MakeSwcLoaderConfigOptions {
    */
   jsxRuntime?: 'automatic' | 'classic';
 
+  /**
+   * Whether to apply JSX development transforms (`jsxDEV`, `__source`, `__self`).
+   * Defaults to the build `mode` (set by Rspack's `builtin:swc-loader` when omitted).
+   * See SWC `jsc.transform.react.development`:
+   * https://swc.rs/docs/configuration/compilation#jsctransformreactdevelopment
+   */
+  development?: boolean;
+
   /**
    * Whether to disable transformation of import/export statements.
    */
@@ -137,6 +147,7 @@ interface MakeSwcLoaderConfigOptions {
  * @param options.jsx Whether to enable JSX parsing and transformation
  * @param options.externalHelpers Whether to use external helpers for transformations (equivalent of `@babel/runtime`)
  * @param options.jsxRuntime The JSX runtime to use ('automatic' for React 17+ new JSX transform or 'classic' for traditional JSX transform)
+ * @param options.development Whether to apply JSX development transforms (defaults to the build `mode`, set by Rspack's `builtin:swc-loader`)
  * @param options.disableImportExportTransform Whether to disable transformation of import/export statements
  * @param options.importSource The source module for JSX runtime imports (defaults to 'react')
  * @param options.lazyImports Enable lazy loading for all imports or specific modules
@@ -148,6 +159,7 @@ export function getSwcLoaderOptions({
   jsx,
   externalHelpers = true,
   jsxRuntime = 'automatic',
+  development,
   disableImportExportTransform = false,
   importSource = 'react',
   lazyImports = false,
@@ -158,7 +170,7 @@ export function getSwcLoaderOptions({
       assumptions: getCompilerAssumptions(),
       externalHelpers: externalHelpers,
       parser: getParserOptions(syntax, jsx),
-      transform: getJSCTransformOptions(jsxRuntime, importSource),
+      transform: getJSCTransformOptions(jsxRuntime, importSource, development),
     },
     module: getModuleOptions(disableImportExportTransform, lazyImports),
   };
diff --git a/tests/integration/src/loaders/swc-jsx-development.test.ts b/tests/integration/src/loaders/swc-jsx-development.test.ts
new file mode 100644
index 000000000..a957fc7cc
--- /dev/null
+++ b/tests/integration/src/loaders/swc-jsx-development.test.ts
@@ -0,0 +1,98 @@
+import path from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { getJsTransformRules } from '@callstack/repack';
+import { describe, expect, inject, it } from 'vitest';
+import {
+  compile,
+  createCompiler,
+  createVirtualModulePlugin,
+} from '../helpers.js';
+
+const __dirname = path.dirname(fileURLToPath(import.meta.url));
+
+// JSX source info that development transforms add for the fixture
+// (`jsxDEV` source argument for automatic runtime, `__source` prop for classic)
+const SOURCE_INFO = /fileName: ".*App\.jsx"/;
+
+async function compileJsx(
+  mode: 'development' | 'production',
+  swc: NonNullable<Parameters<typeof getJsTransformRules>[0]>['swc']
+) {
+  const virtualPlugin = await createVirtualModulePlugin({
+    'App.jsx': 'export const App = () => <view title="hello" />;',
+  });
+
+  const compiler = await createCompiler({
+    context: __dirname,
+    mode,
+    devtool: false,
+    entry: './App.jsx',
+    output: { path: '/out' },
+    optimization: { minimize: false },
+    externals: {
+      react: 'commonjs react',
+      'react/jsx-runtime': 'commonjs react/jsx-runtime',
+      'react/jsx-dev-runtime': 'commonjs react/jsx-dev-runtime',
+    },
+    module: { rules: getJsTransformRules({ swc }) },
+    plugins: [virtualPlugin],
+  });
+
+  const { code } = await compile(compiler);
+  return code;
+}
+
+// builtin:swc-loader only exists in Rspack
+describe.runIf(inject('bundlerType') === 'rspack')(
+  'SWC JSX development transforms',
+  () => {
+    it('emits jsxDEV with source info for automatic runtime in development', async () => {
+      const code = await compileJsx('development', { jsxRuntime: 'automatic' });
+
+      expect(code).toContain('react/jsx-dev-runtime');
+      expect(code).toContain('jsxDEV');
+      expect(code).toMatch(SOURCE_INFO);
+    });
+
+    it('emits jsx without source info for automatic runtime in production', async () => {
+      const code = await compileJsx('production', { jsxRuntime: 'automatic' });
+
+      expect(code).toContain('react/jsx-runtime');
+      expect(code).not.toContain('jsx-dev-runtime');
+      expect(code).not.toContain('jsxDEV');
+      expect(code).not.toMatch(SOURCE_INFO);
+    });
+
+    it('adds __source for classic runtime in development', async () => {
+      const code = await compileJsx('development', { jsxRuntime: 'classic' });
+
+      expect(code).toContain('createElement');
+      expect(code).toContain('__source');
+      expect(code).toMatch(SOURCE_INFO);
+    });
+
+    it('omits __source for classic runtime in production', async () => {
+      const code = await compileJsx('production', { jsxRuntime: 'classic' });
+
+      expect(code).toContain('createElement');
+      expect(code).not.toContain('__source');
+      expect(code).not.toMatch(SOURCE_INFO);
+    });
+
+    it('respects an explicit development: false in development', async () => {
+      const code = await compileJsx('development', { development: false });
+
+      expect(code).toContain('react/jsx-runtime');
+      expect(code).not.toContain('jsxDEV');
+      expect(code).not.toMatch(SOURCE_INFO);
+    });
+
+    it('respects an explicit development: true in production', async () => {
+      const code = await compileJsx('production', { development: true });
+
+      expect(code).toContain('react/jsx-dev-runtime');
+      expect(code).toContain('jsxDEV');
+      expect(code).toMatch(SOURCE_INFO);
+    });
+  }
+);
diff --git a/website/src/latest/api/utils/get-js-transform-rules.md b/website/src/latest/api/utils/get-js-transform-rules.md
index 33bdeba7d..9f70fcda6 100644
--- a/website/src/latest/api/utils/get-js-transform-rules.md
+++ b/website/src/latest/api/utils/get-js-transform-rules.md
@@ -26,6 +26,7 @@ interface GetJsTransformRulesOptions {
     externalHelpers?: boolean;
     importSource?: string;
     jsxRuntime?: "automatic" | "classic";
+    development?: boolean;
     lazyImports?: boolean | string[];
   };
   flow?: {
diff --git a/website/src/latest/api/utils/get-swc-loader-options.md b/website/src/latest/api/utils/get-swc-loader-options.md
index c4cd34742..857783ea3 100644
--- a/website/src/latest/api/utils/get-swc-loader-options.md
+++ b/website/src/latest/api/utils/get-swc-loader-options.md
@@ -14,6 +14,7 @@ interface MakeSwcLoaderConfigOptions {
   jsx: boolean;
   externalHelpers?: boolean;
   jsxRuntime?: "automatic" | "classic";
+  development?: boolean;
   disableImportExportTransform?: boolean;
   importSource?: string;
   lazyImports?: boolean | string[];
@@ -58,6 +59,15 @@ The JSX runtime to use - 'automatic' for React 17+ new JSX transform or 'classic
 
 See [SWC `jsc.transform.react.runtime`](https://swc.rs/docs/configuration/compilation#jsctransformreactruntime).
 
+### options.development
+
+- Type: `boolean`
+- Default: the build `mode` when used with Rspack's `builtin:swc-loader`
+
+Whether to apply JSX development transforms (`jsxDEV`, `__source`, `__self`), which give accurate component stacks and "open in editor" during development. When omitted, Rspack's `builtin:swc-loader` sets it from `mode`: `true` in development, `false` in production. With the `automatic` runtime, development builds then import `<importSource>/jsx-dev-runtime`; set it to `false` if your `importSource` doesn't provide one.
+
+See [SWC `jsc.transform.react.development`](https://swc.rs/docs/configuration/compilation#jsctransformreactdevelopment).
+
 ### options.disableImportExportTransform
 
 - Type: `boolean`