diff --git a/README.md b/README.md
index 16d362b5..43162e80 100644
--- a/README.md
+++ b/README.md
@@ -193,6 +193,37 @@ In the case one of your dependencies is installing `babel` and you cannot uninst
   }
 ```
 
+## Customize config based on webpack target
+
+Webpack supports bundling multiple [targets](https://webpack.js.org/concepts/targets/). For cases where you may want different Babel configurations for each target (like `web` _and_ `node`), this loader provides a `target` property via Babel's [caller](https://babeljs.io/docs/en/config-files#apicallercb) API.
+
+For example, to change the environment targets passed to `@babel/preset-env` based on the webpack target:
+
+```javascript
+// babel.config.js
+
+module.exports = api => {
+  return {
+    plugins: [
+      "@babel/plugin-proposal-nullish-coalescing-operator",
+      "@babel/plugin-proposal-optional-chaining"
+    ],
+    presets: [
+      [
+        "@babel/preset-env",
+        {
+          useBuiltIns: "entry",
+          // caller.target will be the same as the target option from webpack
+          targets: api.caller(caller => caller && caller.target === "node")
+            ? { node: "current" }
+            : { chrome: "58", ie: "11" }
+        }
+      ]
+    ]
+  }
+}
+```
+
 ## Customized Loader
 
 `babel-loader` exposes a loader-builder utility that allows users to add custom handling
diff --git a/src/index.js b/src/index.js
index 2209bc65..51d93da3 100644
--- a/src/index.js
+++ b/src/index.js
@@ -158,7 +158,9 @@ async function loader(source, inputSourceMap, overrides) {
     );
   }
 
-  const config = babel.loadPartialConfig(injectCaller(programmaticOptions));
+  const config = babel.loadPartialConfig(
+    injectCaller(programmaticOptions, this.target),
+  );
   if (config) {
     let options = config.options;
     if (overrides && overrides.config) {
diff --git a/src/injectCaller.js b/src/injectCaller.js
index 9ee10e03..d0e09750 100644
--- a/src/injectCaller.js
+++ b/src/injectCaller.js
@@ -1,6 +1,6 @@
 const babel = require("@babel/core");
 
-module.exports = function injectCaller(opts) {
+module.exports = function injectCaller(opts, target) {
   if (!supportsCallerOption()) return opts;
 
   return Object.assign({}, opts, {
@@ -8,6 +8,10 @@ module.exports = function injectCaller(opts) {
       {
         name: "babel-loader",
 
+        // Provide plugins with insight into webpack target.
+        // https://github.com/babel/babel-loader/issues/787
+        target,
+
         // Webpack >= 2 supports ESM and dynamic import.
         supportsStaticESM: true,
         supportsDynamicImport: true,