diff --git a/CHANGELOG.md b/CHANGELOG.md
index 88cc0354d2c1..c0abed449e6e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -40,6 +40,7 @@
 - `[jest-resolve]`: Migrate to TypeScript ([#7871](https://github.com/facebook/jest/pull/7871))
 - `[@jest/reporter]`: New package extracted from `jest-cli` ([#7902](https://github.com/facebook/jest/pull/7902))
 - `[jest-snapshot]`: Migrate to TypeScript ([#7899](https://github.com/facebook/jest/pull/7899))
+- `[@jest/transform]`: New package extracted from `jest-runtime` ([#7915](https://github.com/facebook/jest/pull/7915))
 
 ### Performance
 
diff --git a/packages/jest-cli/package.json b/packages/jest-cli/package.json
index c168519633fc..4267412020a5 100644
--- a/packages/jest-cli/package.json
+++ b/packages/jest-cli/package.json
@@ -5,6 +5,7 @@
   "main": "build/jest.js",
   "dependencies": {
     "@jest/reporters": "^24.1.0",
+    "@jest/transform": "^24.1.0",
     "ansi-escapes": "^3.0.0",
     "chalk": "^2.0.1",
     "exit": "^0.1.2",
diff --git a/packages/jest-cli/src/runGlobalHook.js b/packages/jest-cli/src/runGlobalHook.js
index 855d21df57e3..6c89f943f4f0 100644
--- a/packages/jest-cli/src/runGlobalHook.js
+++ b/packages/jest-cli/src/runGlobalHook.js
@@ -13,7 +13,7 @@ import type {Test} from 'types/TestRunner';
 import {extname} from 'path';
 import pEachSeries from 'p-each-series';
 import {addHook} from 'pirates';
-import Runtime from 'jest-runtime';
+import {ScriptTransformer} from '@jest/transform';
 
 // copied from https://github.com/babel/babel/blob/56044c7851d583d498f919e9546caddf8f80a72f/packages/babel-helpers/src/helpers.js#L558-L562
 function _interopRequireDefault(obj) {
@@ -52,7 +52,7 @@ export default ({
         : // Fallback to first config
           allTests[0].context.config;
 
-      const transformer = new Runtime.ScriptTransformer(projectConfig);
+      const transformer = new ScriptTransformer(projectConfig);
 
       // Load the transformer to avoid a cycle where we need to load a
       // transformer in order to transform it in the require hooks
diff --git a/packages/jest-reporters/package.json b/packages/jest-reporters/package.json
index ac961627707c..fceb1f9e0de0 100644
--- a/packages/jest-reporters/package.json
+++ b/packages/jest-reporters/package.json
@@ -4,10 +4,10 @@
   "version": "24.1.0",
   "main": "build/index.js",
   "dependencies": {
+    "@jest/transform": "^24.1.0",
     "chalk": "^2.0.1",
     "exit": "^0.1.2",
     "glob": "^7.1.2",
-    "jest-runtime": "^24.1.0",
     "istanbul-api": "^2.1.1",
     "istanbul-lib-coverage": "^2.0.2",
     "istanbul-lib-instrument": "^3.0.1",
diff --git a/packages/jest-reporters/src/__tests__/generateEmptyCoverage.test.js b/packages/jest-reporters/src/__tests__/generateEmptyCoverage.test.js
index 00e97f93a024..de5b901249fd 100644
--- a/packages/jest-reporters/src/__tests__/generateEmptyCoverage.test.js
+++ b/packages/jest-reporters/src/__tests__/generateEmptyCoverage.test.js
@@ -6,18 +6,19 @@
  *
  * @flow
  */
-'use strict';
 
 import istanbulCoverage from 'istanbul-lib-coverage';
 import libSourceMaps from 'istanbul-lib-source-maps';
 import generateEmptyCoverage from '../generateEmptyCoverage';
-import Runtime from 'jest-runtime';
 
-const path = require('path');
-const os = require('os');
-const {makeGlobalConfig, makeProjectConfig} = require('../../../../TestUtils');
+import path from 'path';
+import os from 'os';
+import {makeGlobalConfig, makeProjectConfig} from '../../../../TestUtils';
 
-jest.spyOn(Runtime, 'shouldInstrument').mockImplementation(() => true);
+jest.mock('@jest/transform', () => ({
+  ...jest.requireActual('@jest/transform'),
+  shouldInstrument: () => true,
+}));
 
 const src = `
 throw new Error('this should not be thrown');
diff --git a/packages/jest-reporters/src/generateEmptyCoverage.js b/packages/jest-reporters/src/generateEmptyCoverage.js
index d43f2de65dab..493d251646d6 100644
--- a/packages/jest-reporters/src/generateEmptyCoverage.js
+++ b/packages/jest-reporters/src/generateEmptyCoverage.js
@@ -11,7 +11,7 @@ import type {GlobalConfig, ProjectConfig, Path} from 'types/Config';
 
 import {readInitialCoverage} from 'istanbul-lib-instrument';
 import {classes} from 'istanbul-lib-coverage';
-import Runtime from 'jest-runtime';
+import {shouldInstrument, ScriptTransformer} from '@jest/transform';
 
 export type CoverageWorkerResult = {|
   coverage: any,
@@ -33,9 +33,9 @@ export default function(
     collectCoverageFrom: globalConfig.collectCoverageFrom,
     collectCoverageOnlyFrom: globalConfig.collectCoverageOnlyFrom,
   };
-  if (Runtime.shouldInstrument(filename, coverageOptions, config)) {
+  if (shouldInstrument(filename, coverageOptions, config)) {
     // Transform file with instrumentation to make sure initial coverage data is well mapped to original code.
-    const {code, mapCoverage, sourceMapPath} = new Runtime.ScriptTransformer(
+    const {code, mapCoverage, sourceMapPath} = new ScriptTransformer(
       config,
     ).transformSource(filename, source, true);
     const extracted = readInitialCoverage(code);
diff --git a/packages/jest-runtime/package.json b/packages/jest-runtime/package.json
index 8524b6900536..a4890ce50f79 100644
--- a/packages/jest-runtime/package.json
+++ b/packages/jest-runtime/package.json
@@ -9,12 +9,9 @@
   "license": "MIT",
   "main": "build/index.js",
   "dependencies": {
-    "@babel/core": "^7.1.0",
-    "babel-plugin-istanbul": "^5.1.0",
+    "@jest/transform": "^24.1.0",
     "chalk": "^2.0.1",
-    "convert-source-map": "^1.4.0",
     "exit": "^0.1.2",
-    "fast-json-stable-stringify": "^2.0.0",
     "glob": "^7.1.3",
     "graceful-fs": "^4.1.15",
     "jest-config": "^24.1.0",
@@ -25,24 +22,18 @@
     "jest-snapshot": "^24.1.0",
     "jest-util": "^24.0.0",
     "jest-validate": "^24.0.0",
-    "micromatch": "^3.1.10",
     "realpath-native": "^1.1.0",
     "slash": "^2.0.0",
     "strip-bom": "^3.0.0",
-    "write-file-atomic": "2.4.1",
     "yargs": "^12.0.2"
   },
   "devDependencies": {
-    "@types/babel__core": "^7.0.4",
-    "@types/convert-source-map": "^1.5.1",
     "@types/exit": "^0.1.30",
     "@types/glob": "^7.1.1",
     "@types/graceful-fs": "^4.1.2",
-    "@types/micromatch": "^3.1.0",
-    "@types/strip-bom": "3.0.0",
-    "@types/write-file-atomic": "^2.1.1",
+    "@types/slash": "^2.0.0",
+    "@types/strip-bom": "^3.0.0",
     "@types/yargs": "^12.0.2",
-    "jest-environment-jsdom": "^24.0.0",
     "jest-environment-node": "^24.0.0"
   },
   "bin": {
diff --git a/packages/jest-runtime/src/__tests__/instrumentation.test.js b/packages/jest-runtime/src/__tests__/instrumentation.test.js
index 8a6ce4be03d8..8f6188d86ca3 100644
--- a/packages/jest-runtime/src/__tests__/instrumentation.test.js
+++ b/packages/jest-runtime/src/__tests__/instrumentation.test.js
@@ -11,7 +11,7 @@
 import vm from 'vm';
 import path from 'path';
 import os from 'os';
-import ScriptTransformer from '../ScriptTransformer';
+import {ScriptTransformer} from '@jest/transform';
 
 jest.mock('vm');
 
diff --git a/packages/jest-runtime/src/helpers.js b/packages/jest-runtime/src/helpers.js
index c80f82755d4c..19265d836044 100644
--- a/packages/jest-runtime/src/helpers.js
+++ b/packages/jest-runtime/src/helpers.js
@@ -5,41 +5,9 @@
 import type {Path} from 'types/Config';
 
 import path from 'path';
-import chalk from 'chalk';
 import slash from 'slash';
 import glob from 'glob';
 
-const DOT = ' \u2022 ';
-
-export const enhanceUnexpectedTokenMessage = (e: Error) => {
-  e.stack =
-    `${chalk.bold.red('Jest encountered an unexpected token')}
-
-This usually means that you are trying to import a file which Jest cannot parse, e.g. it's not plain JavaScript.
-
-By default, if Jest sees a Babel config, it will use that to transform your files, ignoring "node_modules".
-
-Here's what you can do:
-${DOT}To have some of your "node_modules" files transformed, you can specify a custom ${chalk.bold(
-      '"transformIgnorePatterns"',
-    )} in your config.
-${DOT}If you need a custom transformation specify a ${chalk.bold(
-      '"transform"',
-    )} option in your config.
-${DOT}If you simply want to mock your non-JS modules (e.g. binary assets) you can stub them out with the ${chalk.bold(
-      '"moduleNameMapper"',
-    )} config option.
-
-You'll find more details and examples of these config options in the docs:
-${chalk.cyan('https://jestjs.io/docs/en/configuration.html')}
-
-${chalk.bold.red('Details:')}
-
-` + e.stack;
-
-  return e;
-};
-
 export const findSiblingsWithFileExtension = (
   moduleFileExtensions: Array<string>,
   from: Path,
diff --git a/packages/jest-runtime/src/index.js b/packages/jest-runtime/src/index.js
index 2f7290c73711..e6f393eef733 100644
--- a/packages/jest-runtime/src/index.js
+++ b/packages/jest-runtime/src/index.js
@@ -24,10 +24,9 @@ import Resolver from 'jest-resolve';
 import {createDirectory, deepCyclicCopy} from 'jest-util';
 import {escapePathForRegex} from 'jest-regex-util';
 import Snapshot from 'jest-snapshot';
+import {ScriptTransformer, shouldInstrument} from '@jest/transform';
 import fs from 'graceful-fs';
 import stripBOM from 'strip-bom';
-import ScriptTransformer from './ScriptTransformer';
-import shouldInstrument from './shouldInstrument';
 import {run as cliRun} from './cli';
 import {options as cliOptions} from './cli/args';
 import {findSiblingsWithFileExtension} from './helpers';
diff --git a/packages/jest-transform/.npmignore b/packages/jest-transform/.npmignore
new file mode 100644
index 000000000000..85e48fe7b0a4
--- /dev/null
+++ b/packages/jest-transform/.npmignore
@@ -0,0 +1,3 @@
+**/__mocks__/**
+**/__tests__/**
+src
diff --git a/packages/jest-transform/package.json b/packages/jest-transform/package.json
new file mode 100644
index 000000000000..345321986283
--- /dev/null
+++ b/packages/jest-transform/package.json
@@ -0,0 +1,37 @@
+{
+  "name": "@jest/transform",
+  "version": "24.1.0",
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/facebook/jest.git",
+    "directory": "packages/jest-transform"
+  },
+  "license": "MIT",
+  "main": "build/index.js",
+  "dependencies": {
+    "@babel/core": "^7.1.0",
+    "babel-plugin-istanbul": "^5.1.0",
+    "chalk": "^2.0.1",
+    "convert-source-map": "^1.4.0",
+    "fast-json-stable-stringify": "^2.0.0",
+    "graceful-fs": "^4.1.15",
+    "jest-haste-map": "^24.0.0",
+    "jest-regex-util": "^24.0.0",
+    "jest-util": "^24.0.0",
+    "micromatch": "^3.1.10",
+    "realpath-native": "^1.1.0",
+    "slash": "^2.0.0",
+    "write-file-atomic": "2.4.1"
+  },
+  "devDependencies": {
+    "@types/babel__core": "^7.0.4",
+    "@types/convert-source-map": "^1.5.1",
+    "@types/graceful-fs": "^4.1.2",
+    "@types/micromatch": "^3.1.0",
+    "@types/write-file-atomic": "^2.1.1"
+  },
+  "engines": {
+    "node": ">= 6"
+  },
+  "gitHead": "b16789230fd45056a7f2fa199bae06c7a1780deb"
+}
diff --git a/packages/jest-runtime/src/ScriptTransformer.js b/packages/jest-transform/src/ScriptTransformer.js
similarity index 97%
rename from packages/jest-runtime/src/ScriptTransformer.js
rename to packages/jest-transform/src/ScriptTransformer.js
index 72ba88f9fabd..44b5959fb39e 100644
--- a/packages/jest-runtime/src/ScriptTransformer.js
+++ b/packages/jest-transform/src/ScriptTransformer.js
@@ -7,13 +7,14 @@
  * @flow
  */
 
-import type {Glob, Path, ProjectConfig} from 'types/Config';
+import type {Path, ProjectConfig} from 'types/Config';
 import type {
   Transformer,
   TransformedSource,
   TransformResult,
 } from 'types/Transform';
 import type {ErrorWithCode} from 'types/Errors';
+import type {Options} from './types';
 
 import crypto from 'crypto';
 import path from 'path';
@@ -30,17 +31,7 @@ import {version as VERSION} from '../package.json';
 import shouldInstrument from './shouldInstrument';
 import writeFileAtomic from 'write-file-atomic';
 import {sync as realpath} from 'realpath-native';
-import {enhanceUnexpectedTokenMessage} from './helpers';
-
-export type Options = {|
-  changedFiles: ?Set<Path>,
-  collectCoverage: boolean,
-  collectCoverageFrom: Array<Glob>,
-  collectCoverageOnlyFrom: ?{[key: string]: boolean, __proto__: null},
-  extraGlobals?: Array<string>,
-  isCoreModule?: boolean,
-  isInternalModule?: boolean,
-|};
+import enhanceUnexpectedTokenMessage from './enhanceUnexpectedTokenMessage';
 
 type ProjectCache = {|
   configString: string,
@@ -175,7 +166,7 @@ export default class ScriptTransformer {
       auxiliaryCommentBefore: ' istanbul ignore next ',
       babelrc: false,
       caller: {
-        name: 'jest-runtime',
+        name: '@jest/transform',
         supportsStaticESM: false,
       },
       configFile: false,
diff --git a/packages/jest-runtime/src/__tests__/__snapshots__/script_transformer.test.js.snap b/packages/jest-transform/src/__tests__/__snapshots__/script_transformer.test.js.snap
similarity index 100%
rename from packages/jest-runtime/src/__tests__/__snapshots__/script_transformer.test.js.snap
rename to packages/jest-transform/src/__tests__/__snapshots__/script_transformer.test.js.snap
diff --git a/packages/jest-runtime/src/__tests__/script_transformer.test.js b/packages/jest-transform/src/__tests__/script_transformer.test.js
similarity index 99%
rename from packages/jest-runtime/src/__tests__/script_transformer.test.js
rename to packages/jest-transform/src/__tests__/script_transformer.test.js
index 7058e0f22f31..bc61eaa04b1b 100644
--- a/packages/jest-runtime/src/__tests__/script_transformer.test.js
+++ b/packages/jest-transform/src/__tests__/script_transformer.test.js
@@ -32,11 +32,10 @@ jest
   .mock('jest-haste-map', () => ({
     getCacheFilePath: (cacheDir, baseDir, version) => cacheDir + baseDir,
   }))
-  .mock('jest-util', () => {
-    const util = jest.requireActual('jest-util');
-    util.createDirectory = jest.fn();
-    return util;
-  })
+  .mock('jest-util', () => ({
+    ...jest.requireActual('jest-util'),
+    createDirectory: jest.fn(),
+  }))
   .mock('vm')
   .mock('path', () => jest.requireActual('path').posix);
 
diff --git a/packages/jest-runtime/src/__tests__/should_instrument.test.js b/packages/jest-transform/src/__tests__/should_instrument.test.js
similarity index 98%
rename from packages/jest-runtime/src/__tests__/should_instrument.test.js
rename to packages/jest-transform/src/__tests__/should_instrument.test.js
index dc3ba29e8ce3..c05dacc5677e 100644
--- a/packages/jest-runtime/src/__tests__/should_instrument.test.js
+++ b/packages/jest-transform/src/__tests__/should_instrument.test.js
@@ -6,20 +6,15 @@
  *
  */
 
-import {normalize} from 'jest-config';
 import shouldInstrument from '../shouldInstrument';
+import {makeGlobalConfig} from '../../../../TestUtils';
 
 describe('shouldInstrument', () => {
   const defaultFilename = 'source_file.test.js';
   const defaultOptions = {
     collectCoverage: true,
   };
-  const defaultConfig = normalize(
-    {
-      rootDir: '/',
-    },
-    {},
-  ).options;
+  const defaultConfig = makeGlobalConfig({rootDir: '/'});
 
   describe('should return true', () => {
     const testShouldInstrument = (
diff --git a/packages/jest-transform/src/enhanceUnexpectedTokenMessage.js b/packages/jest-transform/src/enhanceUnexpectedTokenMessage.js
new file mode 100644
index 000000000000..af941fa7cf53
--- /dev/null
+++ b/packages/jest-transform/src/enhanceUnexpectedTokenMessage.js
@@ -0,0 +1,36 @@
+// Copyright (c) Facebook, Inc. and its affiliates. All Rights Reserved.
+
+// @flow
+
+import chalk from 'chalk';
+
+const DOT = ' \u2022 ';
+
+export default function enhanceUnexpectedTokenMessage(e: Error) {
+  e.stack =
+    `${chalk.bold.red('Jest encountered an unexpected token')}
+
+This usually means that you are trying to import a file which Jest cannot parse, e.g. it's not plain JavaScript.
+
+By default, if Jest sees a Babel config, it will use that to transform your files, ignoring "node_modules".
+
+Here's what you can do:
+${DOT}To have some of your "node_modules" files transformed, you can specify a custom ${chalk.bold(
+      '"transformIgnorePatterns"',
+    )} in your config.
+${DOT}If you need a custom transformation specify a ${chalk.bold(
+      '"transform"',
+    )} option in your config.
+${DOT}If you simply want to mock your non-JS modules (e.g. binary assets) you can stub them out with the ${chalk.bold(
+      '"moduleNameMapper"',
+    )} config option.
+
+You'll find more details and examples of these config options in the docs:
+${chalk.cyan('https://jestjs.io/docs/en/configuration.html')}
+
+${chalk.bold.red('Details:')}
+
+` + e.stack;
+
+  return e;
+}
diff --git a/packages/jest-transform/src/index.js b/packages/jest-transform/src/index.js
new file mode 100644
index 000000000000..37cbb258b92a
--- /dev/null
+++ b/packages/jest-transform/src/index.js
@@ -0,0 +1,11 @@
+/**
+ * Copyright (c) Facebook, Inc. and its affiliates. All Rights Reserved.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow
+ */
+
+export {default as ScriptTransformer} from './ScriptTransformer';
+export {default as shouldInstrument} from './shouldInstrument';
diff --git a/packages/jest-runtime/src/shouldInstrument.js b/packages/jest-transform/src/shouldInstrument.js
similarity index 98%
rename from packages/jest-runtime/src/shouldInstrument.js
rename to packages/jest-transform/src/shouldInstrument.js
index ecfe24fb14f1..c0b869d4318b 100644
--- a/packages/jest-runtime/src/shouldInstrument.js
+++ b/packages/jest-transform/src/shouldInstrument.js
@@ -8,7 +8,7 @@
  */
 
 import type {Path, ProjectConfig} from 'types/Config';
-import type {Options} from './ScriptTransformer';
+import type {Options} from './types';
 
 import path from 'path';
 import {escapePathForRegex} from 'jest-regex-util';
diff --git a/packages/jest-transform/src/types.js b/packages/jest-transform/src/types.js
new file mode 100644
index 000000000000..00f577bdad80
--- /dev/null
+++ b/packages/jest-transform/src/types.js
@@ -0,0 +1,21 @@
+/**
+ * Copyright (c) Facebook, Inc. and its affiliates. All Rights Reserved.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow
+ */
+
+import type {Glob, Path} from 'types/Config';
+
+// TODO: Pick from `GlobalConfig`
+export type Options = {|
+  changedFiles: ?Set<Path>,
+  collectCoverage: boolean,
+  collectCoverageFrom: Array<Glob>,
+  collectCoverageOnlyFrom: ?{[key: string]: boolean, __proto__: null},
+  extraGlobals?: Array<string>,
+  isCoreModule?: boolean,
+  isInternalModule?: boolean,
+|};
diff --git a/yarn.lock b/yarn.lock
index d14756f8cfac..467177c5e637 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1801,7 +1801,7 @@
   resolved "https://registry.yarnpkg.com/@types/strip-ansi/-/strip-ansi-3.0.0.tgz#9b63d453a6b54aa849182207711a08be8eea48ae"
   integrity sha1-m2PUU6a1SqhJGCIHcRoIvo7qSK4=
 
-"@types/strip-bom@3.0.0":
+"@types/strip-bom@^3.0.0":
   version "3.0.0"
   resolved "https://registry.yarnpkg.com/@types/strip-bom/-/strip-bom-3.0.0.tgz#14a8ec3956c2e81edb7520790aecf21c290aebd2"
   integrity sha1-FKjsOVbC6B7bdSB5CuzyHCkK69I=