diff --git a/CHANGELOG.md b/CHANGELOG.md
index f2b7eb21d189..1173fdfe4ff2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,7 @@
 - `[jest-fake-timers]` `getTimerCount` not taking immediates and ticks into account ([#8139](https://github.com/facebook/jest/pull/8139))
 - `[jest-runtime]` Allow json file as manual mock ([#8159](https://github.com/facebook/jest/pull/8159))
 - `[pretty-format]` Print `BigInt` as a readable number instead of `{}` ([#8138](https://github.com/facebook/jest/pull/8138))
+- `[jest-core]` Fix ability to transform dependencies required from globalSetup script [#8143](https://github.com/facebook/jest/pull/8143)
 
 ### Chore & Maintenance
 
diff --git a/e2e/__tests__/globalSetup.test.ts b/e2e/__tests__/globalSetup.test.ts
index 4ed55175c4b2..021f6c4e5719 100644
--- a/e2e/__tests__/globalSetup.test.ts
+++ b/e2e/__tests__/globalSetup.test.ts
@@ -19,18 +19,21 @@ const customTransformDIR = path.join(
   os.tmpdir(),
   'jest-global-setup-custom-transform',
 );
+const nodeModulesDIR = path.join(os.tmpdir(), 'jest-global-setup-node-modules');
 
 beforeEach(() => {
   cleanup(DIR);
   cleanup(project1DIR);
   cleanup(project2DIR);
   cleanup(customTransformDIR);
+  cleanup(nodeModulesDIR);
 });
 afterAll(() => {
   cleanup(DIR);
   cleanup(project1DIR);
   cleanup(project2DIR);
   cleanup(customTransformDIR);
+  cleanup(nodeModulesDIR);
 });
 
 test('globalSetup is triggered once before all test suites', () => {
@@ -166,3 +169,9 @@ test('should not transpile the transformer', () => {
 
   expect(status).toBe(0);
 });
+
+test('should transform node_modules if configured by transformIgnorePatterns', () => {
+  const {status} = runJest('global-setup-node-modules', [`--no-cache`]);
+
+  expect(status).toBe(0);
+});
diff --git a/e2e/global-setup-node-modules/.gitignore b/e2e/global-setup-node-modules/.gitignore
new file mode 100644
index 000000000000..cf4bab9ddde9
--- /dev/null
+++ b/e2e/global-setup-node-modules/.gitignore
@@ -0,0 +1 @@
+!node_modules
diff --git a/e2e/global-setup-node-modules/__tests__/test.js b/e2e/global-setup-node-modules/__tests__/test.js
new file mode 100644
index 000000000000..059e2e2483e4
--- /dev/null
+++ b/e2e/global-setup-node-modules/__tests__/test.js
@@ -0,0 +1,20 @@
+/**
+ * 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.
+ */
+'use strict';
+
+const fs = require('fs');
+const os = require('os');
+const path = require('path');
+
+const DIR = path.join(os.tmpdir(), 'jest-global-setup-node-modules');
+
+test('should exist setup file', () => {
+  const files = fs.readdirSync(DIR);
+  expect(files).toHaveLength(1);
+  const setup = fs.readFileSync(path.join(DIR, files[0]), 'utf8');
+  expect(setup).toBe('hello world!');
+});
diff --git a/e2e/global-setup-node-modules/babel.config.js b/e2e/global-setup-node-modules/babel.config.js
new file mode 100644
index 000000000000..c3f9e017c09b
--- /dev/null
+++ b/e2e/global-setup-node-modules/babel.config.js
@@ -0,0 +1,18 @@
+/**
+ * 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.
+ */
+module.exports = {
+  presets: [
+    [
+      '@babel/preset-env',
+      {
+        targets: {
+          node: 'current',
+        },
+      },
+    ],
+  ],
+};
diff --git a/e2e/global-setup-node-modules/node_modules/example/index.js b/e2e/global-setup-node-modules/node_modules/example/index.js
new file mode 100644
index 000000000000..61bb580e9ce0
--- /dev/null
+++ b/e2e/global-setup-node-modules/node_modules/example/index.js
@@ -0,0 +1,9 @@
+/**
+ * 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.
+ */
+export default function example() {
+  return 'world!';
+}
diff --git a/e2e/global-setup-node-modules/package.json b/e2e/global-setup-node-modules/package.json
new file mode 100644
index 000000000000..dd05160ee540
--- /dev/null
+++ b/e2e/global-setup-node-modules/package.json
@@ -0,0 +1,8 @@
+{
+  "jest": {
+    "testEnvironment": "node",
+    "globalSetup": "<rootDir>/setup.js",
+    "transformIgnorePatterns": [
+    ]
+  }
+}
diff --git a/e2e/global-setup-node-modules/setup.js b/e2e/global-setup-node-modules/setup.js
new file mode 100644
index 000000000000..edea4d43a008
--- /dev/null
+++ b/e2e/global-setup-node-modules/setup.js
@@ -0,0 +1,23 @@
+/**
+ * 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.
+ */
+import example from './node_modules/example';
+const crypto = require('crypto');
+const fs = require('fs');
+const {createDirectory} = require('jest-util');
+const os = require('os');
+const path = require('path');
+
+const DIR = path.join(os.tmpdir(), 'jest-global-setup-node-modules');
+
+module.exports = function() {
+  return new Promise(resolve => {
+    createDirectory(DIR);
+    const fileId = crypto.randomBytes(20).toString('hex');
+    fs.writeFileSync(path.join(DIR, fileId), `hello ${example()}`);
+    resolve();
+  });
+};
diff --git a/e2e/global-setup-node-modules/yarn.lock b/e2e/global-setup-node-modules/yarn.lock
new file mode 100644
index 000000000000..6febeb67c34b
--- /dev/null
+++ b/e2e/global-setup-node-modules/yarn.lock
@@ -0,0 +1,8 @@
+# THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+# yarn lockfile v1
+
+
+lodash-es@^4.17.11:
+  version "4.17.11"
+  resolved "https://registry.yarnpkg.com/lodash-es/-/lodash-es-4.17.11.tgz#145ab4a7ac5c5e52a3531fb4f310255a152b4be0"
+  integrity sha512-DHb1ub+rMjjrxqlB3H56/6MXtm1lSksDp2rA2cNWjG8mlDUYFhUj3Di2Zn5IwSU87xLv8tNIQ7sSwE/YOX/D/Q==
diff --git a/packages/jest-core/src/runGlobalHook.ts b/packages/jest-core/src/runGlobalHook.ts
index 7b81a588d521..6b20792ba019 100644
--- a/packages/jest-core/src/runGlobalHook.ts
+++ b/packages/jest-core/src/runGlobalHook.ts
@@ -51,12 +51,28 @@ export default async ({
       // transformer in order to transform it in the require hooks
       transformer.preloadTransformer(modulePath);
 
+      let transforming = false;
       const revertHook = addHook(
-        (code, filename) =>
-          transformer.transformSource(filename, code, false).code || code,
+        (code, filename) => {
+          try {
+            transforming = true;
+            return (
+              transformer.transformSource(filename, code, false).code || code
+            );
+          } finally {
+            transforming = false;
+          }
+        },
         {
           exts: [extname(modulePath)],
-          matcher: transformer.shouldTransform.bind(transformer),
+          ignoreNodeModules: false,
+          matcher: (...args) => {
+            if (transforming) {
+              // Don't transform any dependency required by the transformer itself
+              return false;
+            }
+            return transformer.shouldTransform(...args);
+          },
         },
       );