diff --git a/packages/toolkit/config/webpack.config.js b/packages/toolkit/config/webpack.config.js
index 17251ce8..32a2c6cb 100644
--- a/packages/toolkit/config/webpack.config.js
+++ b/packages/toolkit/config/webpack.config.js
@@ -49,13 +49,10 @@ const config = {
 	defaultTargets,
 };
 
-module.exports = {
+const baseConfig = {
 	devtool: !isProduction || projectConfig.sourcemap ? 'source-map' : false,
 	mode,
 	devServer: getDevServer(config),
-	// using a function here in order to re-evaluate
-	// the entrypoints whenever something changes
-	entry: () => getEntryPoints(config),
 	output: getOutput(config),
 	target: getTarget(config),
 	resolve: getResolve(config),
@@ -69,3 +66,33 @@ module.exports = {
 		outputModule: packageConfig.packageType === 'module',
 	},
 };
+
+const scriptsConfig = {
+	...baseConfig,
+	entry: () => getEntryPoints({ ...config, buildType: 'script' }),
+};
+
+const moduleConfig = {
+	...baseConfig,
+
+	entry: () => getEntryPoints({ ...config, buildType: 'module' }),
+	plugins: getPlugins({ ...config, isModule: true }),
+
+	experiments: {
+		...baseConfig.experiments,
+		outputModule: true,
+	},
+
+	output: {
+		clean: false,
+		module: true,
+		chunkFormat: 'module',
+		library: {
+			...baseConfig.output.library,
+			type: 'module',
+		},
+		filename: 'blocks/[name].js',
+	},
+};
+
+module.exports = [scriptsConfig, moduleConfig];
diff --git a/packages/toolkit/config/webpack/entry.js b/packages/toolkit/config/webpack/entry.js
index f94877f9..5f66b3af 100644
--- a/packages/toolkit/config/webpack/entry.js
+++ b/packages/toolkit/config/webpack/entry.js
@@ -7,6 +7,7 @@ const removeDistFolder = (file) => {
 };
 
 module.exports = ({
+	buildType = 'script',
 	isPackage,
 	projectConfig: { devServer, paths, useBlockAssets, filenames },
 	packageConfig: { packageType, source, main, umd, libraryName },
@@ -36,12 +37,31 @@ module.exports = ({
 			// at which point they are completely empty and therefore not valid JSON
 			try {
 				// get all assets from the block.json file
-				const { editorScript, script, viewScript, style, editorStyle } = JSON.parse(
-					readFileSync(blockMetadataFile),
-				);
+				const {
+					editorScript,
+					script,
+					viewScript,
+					scriptModule,
+					viewScriptModule,
+					style,
+					editorStyle,
+					viewStyle,
+				} = JSON.parse(readFileSync(blockMetadataFile));
+
+				const assets = [];
+
+				if (buildType === 'script') {
+					assets.push(
+						...[editorScript, script, viewScript, style, editorStyle, viewStyle].filter(
+							Boolean,
+						),
+					);
+				} else if (buildType === 'module') {
+					assets.push(...[scriptModule, viewScriptModule].filter(Boolean));
+				}
 
 				// generate a new entrypoint for each of the assets
-				[editorScript, script, viewScript, style, editorStyle]
+				assets
 					.flat()
 					.filter((rawFilepath) => rawFilepath && rawFilepath.startsWith('file:')) // assets can be files or handles. we only want files
 					.forEach((rawFilepath) => {
@@ -84,6 +104,10 @@ module.exports = ({
 		}, {});
 	}
 
+	if (buildType === 'module') {
+		return additionalEntrypoints;
+	}
+
 	// merge the new entrypoints with the existing ones
 	Object.assign(buildFiles, additionalEntrypoints);
 
diff --git a/packages/toolkit/config/webpack/output.js b/packages/toolkit/config/webpack/output.js
index e0e86ae4..cc463779 100644
--- a/packages/toolkit/config/webpack/output.js
+++ b/packages/toolkit/config/webpack/output.js
@@ -23,7 +23,7 @@ module.exports = ({
 
 	return {
 		// when in hot reload mode we should not clear dist folder between builds
-		clean: !hot,
+		clean: false,
 		path: path.resolve(process.cwd(), 'dist'),
 		chunkFilename: filenames.jsChunk,
 		publicPath,
diff --git a/packages/toolkit/config/webpack/plugins.js b/packages/toolkit/config/webpack/plugins.js
index 3567ac11..eaf0a0b6 100644
--- a/packages/toolkit/config/webpack/plugins.js
+++ b/packages/toolkit/config/webpack/plugins.js
@@ -34,6 +34,7 @@ const webpackbarArguments =
 
 module.exports = ({
 	isPackage,
+	isModule = false,
 	isProduction,
 	projectConfig: {
 		devServer,
@@ -202,6 +203,10 @@ module.exports = ({
 				injectPolyfill: false,
 				requestToHandle: (request) => {
 					if (request.includes('react-refresh/runtime')) {
+						if (isModule) {
+							return undefined;
+						}
+
 						return 'tenup-toolkit-react-refresh-runtime';
 					}
 
diff --git a/projects/10up-theme/includes/blocks/example/block.json b/projects/10up-theme/includes/blocks/example/block.json
index a8bd8bca..15e0b060 100644
--- a/projects/10up-theme/includes/blocks/example/block.json
+++ b/projects/10up-theme/includes/blocks/example/block.json
@@ -36,11 +36,13 @@
 		"reusable": false,
 		"spacing": {
 			"padding": false
-		}
+		},
+		"interactivity": true
 	},
 	"editorScript": "file:./index.js",
 	"editorStyle": "file:./editor.css",
 	"style": "file:./style.css",
 	"viewScript": "file:./view.js",
+	"viewScriptModule": "file:./view-module.js",
 	"script": "file:./script.js"
 }
diff --git a/projects/10up-theme/includes/blocks/example/markup.php b/projects/10up-theme/includes/blocks/example/markup.php
index 62760819..978578f0 100644
--- a/projects/10up-theme/includes/blocks/example/markup.php
+++ b/projects/10up-theme/includes/blocks/example/markup.php
@@ -11,8 +11,9 @@
  */
 
 ?>
-<div <?php echo get_block_wrapper_attributes(); // phpcs:ignore ?>>
+<div <?php echo get_block_wrapper_attributes(['data-wp-interactive' => 'example']); // phpcs:ignore ?>>
 	<h2 class="wp-block-tenup-example__title">
 		<?php echo wp_kses_post( $attributes['title'] ); ?>
 	</h2>
+	<button data-wp-on--click="actions.toggle">Toggle</button>
 </div>
diff --git a/projects/10up-theme/includes/blocks/example/view-module.js b/projects/10up-theme/includes/blocks/example/view-module.js
new file mode 100644
index 00000000..0e8f3649
--- /dev/null
+++ b/projects/10up-theme/includes/blocks/example/view-module.js
@@ -0,0 +1,11 @@
+import { store } from '@wordpress/interactivity';
+
+store('example', {
+	actions: {
+		toggle: () => {
+			console.log('Hello, world!');
+		},
+	},
+});
+
+console.log('Loaded');