diff --git a/examples/styled-components/src/App.js b/examples/styled-components/src/App.js
index 0c28c5ee1..d76d87737 100644
--- a/examples/styled-components/src/App.js
+++ b/examples/styled-components/src/App.js
@@ -25,7 +25,7 @@ const indirect = {
 
 const indirectStyled = {
   DS: styled.div`
-    border: px solid #f00;
+    border: 2px solid #f00;
   `,
   DE: emoStyled('div')`border: 1px solid #F00`,
 };
@@ -39,10 +39,17 @@ const OtherComponent = () => <span>test</span>;
 const Context = React.createContext();
 
 const Hook = () => {
-  const [state] = React.useState({ x: 4 });
+  const [state, setState] = React.useState({ x: 2 });
+  React.useEffect(
+    () =>
+      setState(state => ({
+        x: state.x + 1,
+      })),
+    [],
+  );
   return (
     <div>
-      hook state: {state.x}
+      hook state 1: {state.x}
       <Counter />
     </div>
   );
@@ -128,6 +135,7 @@ const App = () => <InApp />;
 
 setConfig({
   logLevel: 'debug',
+  hotHooks: true,
 });
 
 //   return App;
diff --git a/examples/styled-components/webpack.config.babel.js b/examples/styled-components/webpack.config.babel.js
index b66bdf995..86f5ba2b1 100644
--- a/examples/styled-components/webpack.config.babel.js
+++ b/examples/styled-components/webpack.config.babel.js
@@ -6,7 +6,7 @@ const HtmlWebpackPlugin = require('html-webpack-plugin');
 module.exports = {
   entry: ['./src/index'],
   mode: process.env.NODE_ENV || 'development',
-  devtool: 'eval-source-map',
+  devtool: false,
   output: {
     path: path.join(__dirname, 'dist'),
     filename: 'bundle.js',
diff --git a/index.js b/index.js
index 2ac074c13..98dde5a8a 100644
--- a/index.js
+++ b/index.js
@@ -8,8 +8,9 @@ if (process.env.NODE_ENV === 'production') {
   // this is just server environment
   module.exports = require('./dist/react-hot-loader.production.min.js');
 } else if (!module.hot) {
-  console.error('React-Hot-Loader: Hot Module Replacement is not enabled');
   module.exports = require('./dist/react-hot-loader.production.min.js');
+  module.exports.AppContainer.warnAboutHMRDisabled = true;
+  module.exports.hot.shouldWrapWithAppContainer = true;
 } else {
   var evalAllowed = false;
   try {
diff --git a/root.js b/root.js
index 6f4cec538..65b702932 100644
--- a/root.js
+++ b/root.js
@@ -1,28 +1,30 @@
-if (module.hot) {
+if (process.env.NODE_ENV !== 'production') {
   var hot = require('./index').hot;
-  var cache = require.cache;
+  if (module.hot) {
+    var cache = require.cache;
 
-  if (!module.parents || module.parents.length === 0) {
-    throw new Error(
-      'React-Hot-Loader: `react-hot-loader/root` is not supported on your system. ' +
+    if (!module.parents || module.parents.length === 0) {
+      throw new Error(
+        'React-Hot-Loader: `react-hot-loader/root` is not supported on your system. ' +
         'Please use `import {hot} from "react-hot-loader"` instead'
-    );
-  }
-  // access parent
-  var parent = cache[module.parents[0]];
-  if (!parent) {
-    throw new Error(
-      'React-Hot-Loader: `react-hot-loader/root` is not supported on your system. ' +
+      );
+    }
+    // access parent
+    var parent = cache[module.parents[0]];
+    if (!parent) {
+      throw new Error(
+        'React-Hot-Loader: `react-hot-loader/root` is not supported on your system. ' +
         'Please use `import {hot} from "react-hot-loader"` instead'
-    );
+      );
+    }
+    // remove self from a cache
+    delete cache[module.id];
   }
-  // remove self from a cache
-  delete cache[module.id];
   // setup hot for caller
   exports.hot = hot(parent);
 } else {
   // prod mode
-  exports.hot = function(a) {
+  exports.hot = function (a) {
     return a;
   };
 }
diff --git a/src/AppContainer.prod.js b/src/AppContainer.prod.js
index 1bb8acc91..c797f616d 100644
--- a/src/AppContainer.prod.js
+++ b/src/AppContainer.prod.js
@@ -3,7 +3,16 @@
 import React from 'react';
 
 function AppContainer(props) {
+  if (AppContainer.warnAboutHMRDisabled) {
+    AppContainer.warnAboutHMRDisabled = true;
+    console.error(
+      'React-Hot-Loader: misconfiguration detected, using production version in not production environment.',
+    );
+    console.error('React-Hot-Loader: Hot Module Replacement is not enabled.');
+  }
   return React.Children.only(props.children);
 }
 
+AppContainer.warnAboutHMRDisabled = false;
+
 export default AppContainer;
diff --git a/src/babel.prod.js b/src/babel.prod.js
index 42681f209..5b6166fb2 100644
--- a/src/babel.prod.js
+++ b/src/babel.prod.js
@@ -1,4 +1,6 @@
 const RHLPackage = 'react-hot-loader';
+const RHLRootPackage = 'react-hot-loader/root';
+const RHLPackages = [RHLPackage, RHLRootPackage];
 
 function isImportedFromRHL(path, name) {
   const binding = path.scope.getBinding(name);
@@ -6,7 +8,7 @@ function isImportedFromRHL(path, name) {
 
   if (bindingType === 'ImportSpecifier' || bindingType === 'ImportNamespaceSpecifier') {
     const bindingParent = binding.path.parent;
-    return bindingParent.source.value === RHLPackage;
+    return RHLPackages.includes(bindingParent.source.value);
   }
 
   return false;
@@ -20,7 +22,7 @@ function getRHLContext(file) {
     const bodyItem = body[i];
     const { source, specifiers } = bodyItem;
 
-    if (bodyItem.type !== 'ImportDeclaration' || source.value !== RHLPackage) {
+    if (bodyItem.type !== 'ImportDeclaration' || !RHLPackages.includes(source.value)) {
       continue;
     }
 
@@ -58,6 +60,7 @@ export default function plugin() {
       const specifier = this.rhlContext[i];
 
       if (specifier.kind === 'named') {
+        // replaces hot(module)(App)
         if (
           path.node.callee.name === specifier.local &&
           // ensure that this is `hot` from RHL
@@ -69,7 +72,21 @@ export default function plugin() {
           path.parentPath.replaceWith(path.parent.arguments[0]);
           break;
         }
+
+        // replaces hot(App)
+        if (
+          path.node.callee.name === specifier.local &&
+          // ensure that this is `hot` from RHL
+          isImportedFromRHL(path, specifier.local) &&
+          path.type === 'CallExpression' &&
+          path.node.arguments[0] &&
+          path.node.arguments[0].type === 'Identifier'
+        ) {
+          path.replaceWith(path.node.arguments[0]);
+          break;
+        }
       } else if (specifier.kind === 'namespace') {
+        // replaces RHL.hot(module)(App)
         if (
           path.node.callee.callee &&
           path.node.callee.callee.type === 'MemberExpression' &&
diff --git a/src/hot.prod.js b/src/hot.prod.js
index 7f8a68356..fd1e64c48 100644
--- a/src/hot.prod.js
+++ b/src/hot.prod.js
@@ -1 +1,17 @@
-export default () => Component => Component;
+import React from 'react';
+import AppContainer from './AppContainer.prod';
+
+const hot = () => {
+  if (hot.shouldWrapWithAppContainer) {
+    return Component => props => (
+      <AppContainer>
+        <Component {...props} />
+      </AppContainer>
+    );
+  }
+  return Component => Component;
+};
+
+hot.shouldWrapWithAppContainer = false;
+
+export default hot;
diff --git a/test/__babel_fixtures__/drop-hot.prod.js b/test/__babel_fixtures__/drop-hot.prod.js
index 13a729add..486487916 100644
--- a/test/__babel_fixtures__/drop-hot.prod.js
+++ b/test/__babel_fixtures__/drop-hot.prod.js
@@ -1,6 +1,7 @@
 import React from 'react'
 import { hot, foo } from 'react-hot-loader'
 import { hot as namedHot, foo as namedFoo } from 'react-hot-loader'
+import { hot as rootHot } from 'react-hot-loader/root'
 import { hot as namedHot2 } from 'react-hot-loader'
 import { hot as notRHLHot } from 'not-react-hot-loader'
 import * as RHL from 'react-hot-loader'
@@ -10,6 +11,7 @@ import * as NOTRHL from 'not-react-hot-loader'
 const App = () => <div>Hello World!</div>
 
 const a = hot(module)(App);
+const z = rootHot(App);
 const b = namedHot(module)(App);
 const c = namedHot2(module)(App);
 const d = RHL.hot(module)(App);
@@ -21,4 +23,4 @@ namedFoo(module)(App);
 RHL.foo(module)(App);
 NOTRHL.hot(module)(App);
 
-export { a, b, c, d, e };
+export { a, b, c, d, e, z };
diff --git a/test/__snapshots__/babel.test.js.snap b/test/__snapshots__/babel.test.js.snap
index b46f621d6..05f476cb2 100644
--- a/test/__snapshots__/babel.test.js.snap
+++ b/test/__snapshots__/babel.test.js.snap
@@ -1007,7 +1007,7 @@ exports[`babel Targetting "es2015" tags potential React components drop hot.prod
 Object.defineProperty(exports, \\"__esModule\\", {
   value: true
 });
-exports.e = exports.d = exports.c = exports.b = exports.a = undefined;
+exports.z = exports.e = exports.d = exports.c = exports.b = exports.a = undefined;
 
 var _react = require('react');
 
@@ -1019,6 +1019,8 @@ var RHL = _interopRequireWildcard(_reactHotLoader);
 
 var RHL2 = _interopRequireWildcard(_reactHotLoader);
 
+var _root = require('react-hot-loader/root');
+
 var _notReactHotLoader = require('not-react-hot-loader');
 
 var NOTRHL = _interopRequireWildcard(_notReactHotLoader);
@@ -1036,6 +1038,7 @@ var App = function App() {
 };
 
 var a = App;
+var z = App;
 var b = App;
 var c = App;
 var d = App;
@@ -1051,7 +1054,8 @@ exports.a = a;
 exports.b = b;
 exports.c = c;
 exports.d = d;
-exports.e = e;"
+exports.e = e;
+exports.z = z;"
 `;
 
 exports[`babel Targetting "es2015" tags potential React components issue 246.js 1`] = `
@@ -1883,7 +1887,7 @@ exports[`babel Targetting "modern" tags potential React components drop hot.prod
 Object.defineProperty(exports, \\"__esModule\\", {
   value: true
 });
-exports.e = exports.d = exports.c = exports.b = exports.a = undefined;
+exports.z = exports.e = exports.d = exports.c = exports.b = exports.a = undefined;
 
 var _react = require('react');
 
@@ -1895,6 +1899,8 @@ var RHL = _interopRequireWildcard(_reactHotLoader);
 
 var RHL2 = _interopRequireWildcard(_reactHotLoader);
 
+var _root = require('react-hot-loader/root');
+
 var _notReactHotLoader = require('not-react-hot-loader');
 
 var NOTRHL = _interopRequireWildcard(_notReactHotLoader);
@@ -1910,6 +1916,7 @@ const App = () => _react2.default.createElement(
 );
 
 const a = App;
+const z = App;
 const b = App;
 const c = App;
 const d = App;
@@ -1925,7 +1932,8 @@ exports.a = a;
 exports.b = b;
 exports.c = c;
 exports.d = d;
-exports.e = e;"
+exports.e = e;
+exports.z = z;"
 `;
 
 exports[`babel Targetting "modern" tags potential React components issue 246.js 1`] = `