diff --git a/.changeset/pink-steaks-lick.md b/.changeset/pink-steaks-lick.md
new file mode 100644
index 0000000000..3417499c6a
--- /dev/null
+++ b/.changeset/pink-steaks-lick.md
@@ -0,0 +1,5 @@
+---
+'@commercetools-frontend/eslint-config-mc-app': patch
+---
+
+Define the `BABEL_ENV` variable in the ESLint config, to ensure VSCode is able to parse the Babel config.
diff --git a/packages/eslint-config-mc-app/index.js b/packages/eslint-config-mc-app/index.js
index 3959a77333..e51a3b96d6 100644
--- a/packages/eslint-config-mc-app/index.js
+++ b/packages/eslint-config-mc-app/index.js
@@ -1,3 +1,5 @@
+process.env.BABEL_ENV = 'production';
+
 // This is a workaround for https://github.com/eslint/eslint/issues/3458
 require('@rushstack/eslint-patch/modern-module-resolution');