diff --git a/packages/gatsby-cli/package.json b/packages/gatsby-cli/package.json
index f955444270293..33beaeed664f3 100644
--- a/packages/gatsby-cli/package.json
+++ b/packages/gatsby-cli/package.json
@@ -25,6 +25,7 @@
     "opentracing": "^0.14.3",
     "pretty-error": "^2.1.1",
     "resolve-cwd": "^2.0.0",
+    "semver": "^5.6.0",
     "source-map": "^0.5.7",
     "stack-trace": "^0.0.10",
     "update-notifier": "^2.3.0",
diff --git a/packages/gatsby-cli/src/create-cli.js b/packages/gatsby-cli/src/create-cli.js
index 1d9fbc654a38e..c06ccbe8656ba 100644
--- a/packages/gatsby-cli/src/create-cli.js
+++ b/packages/gatsby-cli/src/create-cli.js
@@ -298,10 +298,16 @@ module.exports = (argv, handlers) => {
     .command({
       command: `new [rootPath] [starter]`,
       desc: `Create new Gatsby project.`,
+      builder: _ =>
+        _.option(`use-pnp`, {
+          default: false,
+          type: `boolean`,
+          describe: `Turn on to use Yarn Plug'n'Play`,
+        }),
       handler: handlerP(
-        ({ rootPath, starter = `gatsbyjs/gatsby-starter-default` }) => {
+        ({ rootPath, starter = `gatsbyjs/gatsby-starter-default`, usePnp }) => {
           const initStarter = require(`./init-starter`)
-          return initStarter(starter, { rootPath })
+          return initStarter(starter, { rootPath, usePnp })
         }
       ),
     })
diff --git a/packages/gatsby-cli/src/init-starter.js b/packages/gatsby-cli/src/init-starter.js
index 285d736b71dc6..45c500a7cde81 100644
--- a/packages/gatsby-cli/src/init-starter.js
+++ b/packages/gatsby-cli/src/init-starter.js
@@ -7,6 +7,7 @@ const sysPath = require(`path`)
 const report = require(`./reporter`)
 const url = require(`url`)
 const existsSync = require(`fs-exists-cached`).sync
+const semver = require(`semver`)
 
 const spawn = (cmd: string) => {
   const [file, ...args] = cmd.split(/\s+/)
@@ -27,15 +28,56 @@ const shouldUseYarn = () => {
   }
 }
 
+const checkYarnVersion = () => {
+  let hasMinYarnPnp = false
+  let yarnVersion = null
+  try {
+    yarnVersion = execSync(`yarnpkg --version`)
+      .toString()
+      .trim()
+    hasMinYarnPnp = semver.gte(yarnVersion, `1.12.0`)
+  } catch (err) {
+    // ignore
+  }
+  return {
+    hasMinYarnPnp: hasMinYarnPnp,
+    yarnVersion: yarnVersion,
+  }
+}
+
 // Executes `npm install` or `yarn install` in rootPath.
-const install = async rootPath => {
+const install = async ({ rootPath, usePnp }: Options) => {
   const prevDir = process.cwd()
 
   report.info(`Installing packages...`)
   process.chdir(rootPath)
 
   try {
-    let cmd = shouldUseYarn() ? spawn(`yarnpkg`) : spawn(`npm install`)
+    let cmd
+    if (shouldUseYarn()) {
+      const yarnInfo = checkYarnVersion()
+      const args = []
+      if (usePnp) {
+        if (!yarnInfo.hasMinYarnPnp) {
+          if (yarnInfo.yarnVersion) {
+            report.warn(
+              `You are using Yarn ${
+                yarnInfo.yarnVersion
+              } together with the --use-pnp flag, but Plug'n'Play is only supported starting from the 1.12 release.\n\n` +
+                `Please update to Yarn 1.12 or higher for a better, fully supported experience.\n`
+            )
+          }
+          // 1.11 had an issue with webpack-dev-middleware, so better not use PnP with it (never reached stable, but still)
+        } else {
+          args.push(`--enable-pnp`)
+        }
+      }
+
+      cmd = execa(`yarnpkg`, args, { stdio: `inherit` })
+    } else {
+      cmd = spawn(`npm install`)
+    }
+
     await cmd
   } finally {
     process.chdir(prevDir)
@@ -44,8 +86,13 @@ const install = async rootPath => {
 
 const ignored = path => !/^\.(git|hg)$/.test(sysPath.basename(path))
 
+type Options = {
+  rootPath: string,
+  usePnp: boolean,
+}
+
 // Copy starter from file system.
-const copy = async (starterPath: string, rootPath: string) => {
+const copy = async (starterPath: string, { rootPath, usePnp }: Options) => {
   // Chmod with 755.
   // 493 = parseInt('755', 8)
   await fs.mkdirp(rootPath, { mode: 493 })
@@ -71,13 +118,13 @@ const copy = async (starterPath: string, rootPath: string) => {
 
   report.success(`Created starter directory layout`)
 
-  await install(rootPath)
+  await install({ rootPath, usePnp })
 
   return true
 }
 
 // Clones starter from URI.
-const clone = async (hostInfo: any, rootPath: string) => {
+const clone = async (hostInfo: any, { rootPath, usePnp }: Options) => {
   let url
   // Let people use private repos accessed over SSH.
   if (hostInfo.getDefaultRepresentation() === `sshurl`) {
@@ -97,11 +144,12 @@ const clone = async (hostInfo: any, rootPath: string) => {
 
   await fs.remove(sysPath.join(rootPath, `.git`))
 
-  await install(rootPath)
+  await install({ rootPath, usePnp })
 }
 
 type InitOptions = {
   rootPath?: string,
+  usePnp?: boolean,
 }
 
 /**
@@ -109,6 +157,7 @@ type InitOptions = {
  */
 module.exports = async (starter: string, options: InitOptions = {}) => {
   const rootPath = options.rootPath || process.cwd()
+  const usePnp = options.usePnp || false
 
   const urlObject = url.parse(rootPath)
   if (urlObject.protocol && urlObject.host) {
@@ -124,6 +173,6 @@ module.exports = async (starter: string, options: InitOptions = {}) => {
   }
 
   const hostedInfo = hostedGitInfo.fromUrl(starter)
-  if (hostedInfo) await clone(hostedInfo, rootPath)
-  else await copy(starter, rootPath)
+  if (hostedInfo) await clone(hostedInfo, { rootPath, usePnp })
+  else await copy(starter, { rootPath, usePnp })
 }
diff --git a/packages/gatsby/package.json b/packages/gatsby/package.json
index a759d7c2b3116..215282f7c8479 100644
--- a/packages/gatsby/package.json
+++ b/packages/gatsby/package.json
@@ -17,6 +17,7 @@
     "@babel/runtime": "^7.0.0",
     "@babel/traverse": "^7.0.0",
     "@reach/router": "^1.1.1",
+    "address": "^1.0.3",
     "autoprefixer": "^8.6.5",
     "babel-core": "7.0.0-bridge.0",
     "babel-eslint": "^8.2.2",
@@ -25,6 +26,7 @@
     "babel-plugin-dynamic-import-node": "^1.2.0",
     "babel-plugin-remove-graphql-queries": "^2.5.1",
     "babel-preset-gatsby": "^0.1.3",
+    "babel-traverse": "^6.26.0",
     "better-queue": "^3.8.6",
     "bluebird": "^3.5.0",
     "cache-manager": "^2.9.0",
@@ -57,6 +59,7 @@
     "file-loader": "^1.1.11",
     "flat": "^4.0.0",
     "friendly-errors-webpack-plugin": "^1.6.1",
+    "fs-exists-cached": "^1.0.0",
     "fs-extra": "^5.0.0",
     "gatsby-cli": "^2.4.5",
     "gatsby-link": "^2.0.6",
@@ -93,6 +96,7 @@
     "optimize-css-assets-webpack-plugin": "^5.0.1",
     "parse-filepath": "^1.0.1",
     "physical-cpu-count": "^2.0.0",
+    "pnp-webpack-plugin": "^1.2.0",
     "postcss-flexbugs-fixes": "^3.0.0",
     "postcss-loader": "^2.1.3",
     "raw-loader": "^0.5.1",
diff --git a/packages/gatsby/src/utils/webpack.config.js b/packages/gatsby/src/utils/webpack.config.js
index 6e6d60f7de3fa..968ddda1190d9 100644
--- a/packages/gatsby/src/utils/webpack.config.js
+++ b/packages/gatsby/src/utils/webpack.config.js
@@ -4,6 +4,7 @@ const fs = require(`fs-extra`)
 const path = require(`path`)
 const dotenv = require(`dotenv`)
 const FriendlyErrorsWebpackPlugin = require(`friendly-errors-webpack-plugin`)
+const PnpWebpackPlugin = require(`pnp-webpack-plugin`)
 const { store } = require(`../redux`)
 const { actions } = require(`../redux/actions`)
 const debug = require(`debug`)(`gatsby:webpack-config`)
@@ -350,6 +351,11 @@ module.exports = async (
   function getResolve() {
     const { program } = store.getState()
     return {
+      plugins: [
+        // Adds support for installing with Plug'n'Play, leading to faster installs and adding
+        // guards against forgotten dependencies and such.
+        PnpWebpackPlugin,
+      ],
       // Use the program's extension list (generated via the
       // 'resolvableExtensions' API hook).
       extensions: [...program.extensions],
@@ -392,6 +398,11 @@ module.exports = async (
     }
 
     return {
+      plugins: [
+        // Also related to Plug'n'Play, but this time it tells Webpack to load its loaders
+        // from the current package.
+        PnpWebpackPlugin.moduleLoader(module),
+      ],
       modules: [...root, path.join(__dirname, `../loaders`), `node_modules`],
     }
   }
diff --git a/packages/graphql-skip-limit/package.json b/packages/graphql-skip-limit/package.json
index e467ca056bff2..73193aca66e28 100644
--- a/packages/graphql-skip-limit/package.json
+++ b/packages/graphql-skip-limit/package.json
@@ -16,6 +16,9 @@
     "cross-env": "^5.1.4",
     "graphql": "^0.13.2"
   },
+  "peerDependencies": {
+    "graphql": "^0.13.2"
+  },
   "homepage": "https://github.com/gatsbyjs/gatsby/tree/master/packages/graphql-skip-limit#readme",
   "keywords": [
     "gatsby",
diff --git a/yarn.lock b/yarn.lock
index 3404d92419ea6..cb12e69bb7327 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1991,7 +1991,7 @@ add-stream@^1.0.0:
   resolved "https://registry.yarnpkg.com/add-stream/-/add-stream-1.0.0.tgz#6a7990437ca736d5e1288db92bd3266d5f5cb2aa"
   integrity sha1-anmQQ3ynNtXhKI25K9MmbV9csqo=
 
-address@1.0.3, address@^1.0.1:
+address@1.0.3, address@^1.0.1, address@^1.0.3:
   version "1.0.3"
   resolved "https://registry.yarnpkg.com/address/-/address-1.0.3.tgz#b5f50631f8d6cec8bd20c963963afb55e06cbce9"
   integrity sha512-z55ocwKBRLryBs394Sm3ushTtBeg6VAeuku7utSoSnsJKvKcnXFIyC6vh27n3rXyxSgkJBBCAvyOn7gSUcTYjg==
@@ -14665,6 +14665,13 @@ pngquant-bin@^5.0.0:
     execa "^0.10.0"
     logalot "^2.0.0"
 
+pnp-webpack-plugin@^1.2.0:
+  version "1.2.0"
+  resolved "https://registry.yarnpkg.com/pnp-webpack-plugin/-/pnp-webpack-plugin-1.2.0.tgz#a85338bc313b8a0469c1d8c5c5d016873be47cb2"
+  integrity sha512-cCaqL7SZCqeJoCEL5GhSGU9CFJOMcDIEAS83X+0m2q25vtt9IqrMJ5dObm8WyqnM4CHRaIn0VVkn7RXdZ0C6Kg==
+  dependencies:
+    ts-pnp "^1.0.0"
+
 portfinder@^1.0.9:
   version "1.0.17"
   resolved "https://registry.yarnpkg.com/portfinder/-/portfinder-1.0.17.tgz#a8a1691143e46c4735edefcf4fbcccedad26456a"
@@ -16882,6 +16889,11 @@ semver@^4.0.3:
   resolved "https://registry.yarnpkg.com/semver/-/semver-4.3.6.tgz#300bc6e0e86374f7ba61068b5b1ecd57fc6532da"
   integrity sha1-MAvG4OhjdPe6YQaLWx7NV/xlMto=
 
+semver@^5.6.0:
+  version "5.6.0"
+  resolved "https://registry.yarnpkg.com/semver/-/semver-5.6.0.tgz#7e74256fbaa49c75aa7c7a205cc22799cac80004"
+  integrity sha512-RS9R6R35NYgQn++fkDWaOmqGoj4Ek9gGs+DPxNUZKuwE183xjJroKvyo1IzVFeXvUrvmALy6FWD5xrdJT25gMg==
+
 semver@~5.3.0:
   version "5.3.0"
   resolved "https://registry.yarnpkg.com/semver/-/semver-5.3.0.tgz#9b2ce5d3de02d17c6012ad326aa6b4d0cf54f94f"
@@ -18659,6 +18671,11 @@ trough@^1.0.0:
   resolved "https://registry.yarnpkg.com/trough/-/trough-1.0.3.tgz#e29bd1614c6458d44869fc28b255ab7857ef7c24"
   integrity sha512-fwkLWH+DimvA4YCy+/nvJd61nWQQ2liO/nF/RjkTpiOGi+zxZzVkhb1mvbHIIW4b/8nDsYI8uTmAlc0nNkRMOw==
 
+ts-pnp@^1.0.0:
+  version "1.0.0"
+  resolved "https://registry.yarnpkg.com/ts-pnp/-/ts-pnp-1.0.0.tgz#44a3a9e8c13fcb711bcda75d7b576c21af120c9d"
+  integrity sha512-qgwM7eBrxFvZSXLtSvjf3c2mXwJOOGD49VlE+KocUGX95DuMdLc/psZHBnPpZL5b2NU7VtQGHRCWF3cNfe5kxQ==
+
 tsickle@^0.27.2:
   version "0.27.5"
   resolved "https://registry.yarnpkg.com/tsickle/-/tsickle-0.27.5.tgz#41e1a41a5acf971cbb2b0558a9590779234d591f"