diff --git a/packages/compat/src/compat-app-builder.ts b/packages/compat/src/compat-app-builder.ts
index 443db410b..fc8b9de2e 100644
--- a/packages/compat/src/compat-app-builder.ts
+++ b/packages/compat/src/compat-app-builder.ts
@@ -4,7 +4,6 @@ import {
   explicitRelative,
   extensionsPattern,
   warn,
-  jsHandlebarsCompile,
   templateColocationPluginPath,
   cacheBustingPluginVersion,
   cacheBustingPluginPath,
@@ -581,11 +580,6 @@ export class CompatAppBuilder {
       `module.exports = ${JSON.stringify(pconfig.config, null, 2)}`,
       'utf8'
     );
-    writeFileSync(
-      join(locateEmbroiderWorkingDir(this.compatApp.root), '_babel_filter_.js'),
-      babelFilterTemplate({ skipBabel: this.options.skipBabel, appRoot: this.origAppPackage.root }),
-      'utf8'
-    );
   }
 
   private addResolverConfig(config: CompatResolverOptions) {
@@ -656,11 +650,6 @@ function defaultAddonPackageRules(): PackageRules[] {
     .reduce((a, b) => a.concat(b), []);
 }
 
-const babelFilterTemplate = jsHandlebarsCompile(`
-const { babelFilter } = require(${JSON.stringify(require.resolve('@embroider/core'))});
-module.exports = babelFilter({{json-stringify skipBabel}}, "{{js-string-escape appRoot}}");
-`) as (params: { skipBabel: Options['skipBabel']; appRoot: string }) => string;
-
 function combinePackageJSON(...layers: object[]) {
   function custom(objValue: any, srcValue: any, key: string, _object: any, _source: any, stack: { size: number }) {
     if (key === 'keywords' && stack.size === 0) {
diff --git a/packages/core/src/options.ts b/packages/core/src/options.ts
index b89b5672f..d957c6b26 100644
--- a/packages/core/src/options.ts
+++ b/packages/core/src/options.ts
@@ -59,14 +59,6 @@ export default interface Options {
   // route templates, and controllers which are governed by splitAtRoutes).
   staticAppPaths?: string[];
 
-  // By default, all modules that get imported into the app go through Babel, so
-  // that all code will conform with your Babel targets. This option allows you
-  // to turn Babel off for a particular package. You might need this to work
-  // around a transpiler bug or you might use this as a build-performance
-  // optimization if you've manually verified that a particular package doesn't
-  // need transpilation to be safe in your target browsers.
-  skipBabel?: { package: string; semverRange?: string }[];
-
   // This is a performance optimization that can help you avoid the "Your build
   // is slower because some babel plugins are non-serializable" penalty. If you
   // provide the locations of known non-serializable objects, we can discover
@@ -131,7 +123,6 @@ export function optionsWithDefaults(options?: Options): Required<Options> {
     staticComponents: false,
     splitAtRoutes: [],
     staticAppPaths: [],
-    skipBabel: [],
     pluginHints: [],
     amdCompatibility: 'cjs' as const,
   };
diff --git a/packages/shared-internals/src/babel-filter.ts b/packages/shared-internals/src/babel-filter.ts
deleted file mode 100644
index 96cebe448..000000000
--- a/packages/shared-internals/src/babel-filter.ts
+++ /dev/null
@@ -1,34 +0,0 @@
-import PackageCache from './package-cache';
-import semver from 'semver';
-
-export default function babelFilter(skipBabel: { package: string; semverRange?: string }[], appRoot: string) {
-  return function shouldTranspileFile(filename: string) {
-    if (!babelCanHandle(filename)) {
-      // quick exit for non JS extensions
-      return false;
-    }
-
-    let owner = PackageCache.shared('embroider', appRoot).ownerOfFile(filename);
-    if (owner) {
-      for (let { package: pkg, semverRange } of skipBabel) {
-        if (owner.name === pkg && (semverRange == null || semver.satisfies(owner.version, semverRange))) {
-          if (owner.isEmberAddon()) {
-            throw new Error(
-              `You can't use skipBabel to disable transpilation of Ember addons, it only works for non-Ember third-party packages`
-            );
-          }
-          return false;
-        }
-      }
-    }
-    return true;
-  };
-}
-
-function babelCanHandle(filename: string) {
-  // we can handle .mjs, .js and .ts files with babel. If typescript is enabled,
-  // .ts files become resolvable and stage3 will be asking us if they should get
-  // transpiled and the answer is yes. If typescript is not enbled, they will
-  // not be resolvable, so stage3 won't ask us about them.
-  return /\.m?[jt]s$/i.test(filename);
-}
diff --git a/packages/shared-internals/src/index.ts b/packages/shared-internals/src/index.ts
index 47a8ea4cf..bd88319a7 100644
--- a/packages/shared-internals/src/index.ts
+++ b/packages/shared-internals/src/index.ts
@@ -12,7 +12,6 @@ export { default as Package, V2AddonPackage as AddonPackage, V2AppPackage as App
 export { default as PackageCache } from './package-cache';
 export type { RewrittenPackageIndex } from './rewritten-package-cache';
 export { RewrittenPackageCache } from './rewritten-package-cache';
-export { default as babelFilter } from './babel-filter';
 export { default as packageName } from './package-name';
 export { default as tmpdir } from './tmpdir';
 export * from './ember-cli-models';
diff --git a/test-packages/support/transpiler.ts b/test-packages/support/transpiler.ts
index f1cbef381..3a954d6da 100644
--- a/test-packages/support/transpiler.ts
+++ b/test-packages/support/transpiler.ts
@@ -6,7 +6,6 @@ import type { BoundExpectFile } from './file-assertions';
 import type { AppMeta } from '../../packages/core/src/index';
 import { hbsToJS, locateEmbroiderWorkingDir, RewrittenPackageCache } from '../../packages/core/src/index';
 import { Memoize } from 'typescript-memoize';
-import { getRewrittenLocation } from './rewritten-path';
 
 export class Transpiler {
   private appOutputPath: string;
@@ -14,7 +13,6 @@ export class Transpiler {
     let packageCache = RewrittenPackageCache.shared('embroider', appDir);
     this.appOutputPath = packageCache.maybeMoved(packageCache.get(appDir)).root;
     this.transpile = this.transpile.bind(this);
-    this.shouldTranspile = this.shouldTranspile.bind(this);
   }
 
   transpile(contents: string, fileAssert: BoundExpectFile): string {
@@ -33,15 +31,6 @@ export class Transpiler {
     }
   }
 
-  shouldTranspile(relativePath: string) {
-    // Depending on how the app builds, the babel filter is not at the same location
-    let embroiderLocation = join(locateEmbroiderWorkingDir(this.appDir), '_babel_filter_.js');
-    let shouldTranspile = existsSync(embroiderLocation)
-      ? require(embroiderLocation)
-      : require(join(this.appOutputPath, '_babel_filter_'));
-    return shouldTranspile(join(this.appDir, getRewrittenLocation(this.appDir, relativePath))) as boolean;
-  }
-
   @Memoize()
   private get pkgJSON() {
     return readJSONSync(join(this.appOutputPath, 'package.json'));
diff --git a/tests/addon-template/ember-cli-build.js b/tests/addon-template/ember-cli-build.js
index e211c6334..a778499b7 100644
--- a/tests/addon-template/ember-cli-build.js
+++ b/tests/addon-template/ember-cli-build.js
@@ -15,11 +15,5 @@ module.exports = function (defaults) {
   */
 
   const { maybeEmbroider } = require('@embroider/test-setup');
-  return maybeEmbroider(app, {
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };
diff --git a/tests/app-template/ember-cli-build.js b/tests/app-template/ember-cli-build.js
index ab01aed3e..ebb76e53a 100644
--- a/tests/app-template/ember-cli-build.js
+++ b/tests/app-template/ember-cli-build.js
@@ -6,11 +6,5 @@ const { maybeEmbroider } = require('@embroider/test-setup');
 module.exports = function (defaults) {
   let app = new EmberApp(defaults, {});
 
-  return maybeEmbroider(app, {
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };
diff --git a/tests/fixtures/blacklisted-addon-build-options/ember-cli-build.js b/tests/fixtures/blacklisted-addon-build-options/ember-cli-build.js
index bb4421fac..fad75c7a9 100644
--- a/tests/fixtures/blacklisted-addon-build-options/ember-cli-build.js
+++ b/tests/fixtures/blacklisted-addon-build-options/ember-cli-build.js
@@ -10,12 +10,5 @@ module.exports = function (defaults) {
     },
   });
 
-  return maybeEmbroider(app, {
-
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };
diff --git a/tests/fixtures/macro-sample-addon/ember-cli-build.js b/tests/fixtures/macro-sample-addon/ember-cli-build.js
index 90518ee15..1fa2835f4 100644
--- a/tests/fixtures/macro-sample-addon/ember-cli-build.js
+++ b/tests/fixtures/macro-sample-addon/ember-cli-build.js
@@ -17,10 +17,5 @@ module.exports = function(defaults) {
 
   return maybeEmbroider(app, {
     useAddonAppBoot: false,
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
   });
 };
diff --git a/tests/scenarios/compat-addon-classic-features-test.ts b/tests/scenarios/compat-addon-classic-features-test.ts
index 3f5ebbd58..63ebf4403 100644
--- a/tests/scenarios/compat-addon-classic-features-test.ts
+++ b/tests/scenarios/compat-addon-classic-features-test.ts
@@ -52,11 +52,6 @@ appScenarios
         
           return maybeEmbroider(app, {
             availableContentForTypes: ['custom'],
-            skipBabel: [
-              {
-                package: 'qunit',
-              },
-            ],
           });
         };
       `,
diff --git a/tests/scenarios/compat-exclude-dot-files-test.ts b/tests/scenarios/compat-exclude-dot-files-test.ts
index 0e6756640..2544d8ccc 100644
--- a/tests/scenarios/compat-exclude-dot-files-test.ts
+++ b/tests/scenarios/compat-exclude-dot-files-test.ts
@@ -23,11 +23,6 @@ appScenarios
 
         return maybeEmbroider(app, {
           staticAddonTrees: false,
-          skipBabel: [
-            {
-              package: 'qunit',
-            },
-          ],
         });
       };
       `,
diff --git a/tests/scenarios/compat-plugin-hints-test.ts b/tests/scenarios/compat-plugin-hints-test.ts
index 503a533de..f57b94794 100644
--- a/tests/scenarios/compat-plugin-hints-test.ts
+++ b/tests/scenarios/compat-plugin-hints-test.ts
@@ -31,11 +31,6 @@ appScenarios
         });
 
         return maybeEmbroider(app, {
-          skipBabel: [
-            {
-              package: 'qunit',
-            },
-          ],
           pluginHints: [
             {
               resolve: ["${__filename.replace(/\\/g, '/').replace(/\.ts$/, '.js')}"],
diff --git a/tests/scenarios/compat-renaming-test.ts b/tests/scenarios/compat-renaming-test.ts
index 3e8dfb0d2..0b3da9c8a 100644
--- a/tests/scenarios/compat-renaming-test.ts
+++ b/tests/scenarios/compat-renaming-test.ts
@@ -24,11 +24,6 @@ appScenarios
         return maybeEmbroider(app, {
           staticAddonTrees: false,
           staticComponents: false,
-          skipBabel: [
-            {
-              package: 'qunit',
-            },
-          ],
           // TODO remove this when we virtualise the entrypoint
           amdCompatibility: {
             es: [
diff --git a/tests/scenarios/compat-resolver-test.ts b/tests/scenarios/compat-resolver-test.ts
index 33504039d..f13639f8d 100644
--- a/tests/scenarios/compat-resolver-test.ts
+++ b/tests/scenarios/compat-resolver-test.ts
@@ -120,9 +120,6 @@ Scenarios.fromProject(() => new Project())
                 [require.resolve('@embroider/compat/src/babel-plugin-adjust-imports'), { appRoot: app.dir }],
               ])}
             }`,
-            'node_modules/.embroider/_babel_filter.js': `
-              module.exports = function(filename) { return true }
-            `,
             'node_modules/.embroider/resolver.json': JSON.stringify(resolverOptions),
           });
         };
diff --git a/tests/scenarios/compat-stage2-test.ts b/tests/scenarios/compat-stage2-test.ts
index 8f079fa41..7a727eec4 100644
--- a/tests/scenarios/compat-stage2-test.ts
+++ b/tests/scenarios/compat-stage2-test.ts
@@ -331,19 +331,6 @@ stage2Scenarios
       amdCompatibility: {
         es: [['not-a-resolvable-package', ['default']]],
       },
-      skipBabel: [
-        {
-          package: 'babel-filter-test1',
-        },
-        {
-          package: 'babel-filter-test2',
-          semverRange: '^4.0.0',
-        },
-        {
-          package: 'babel-filter-test3',
-          semverRange: '^2.0.0',
-        },
-      ],
       staticAppPaths: ['static-dir', 'top-level-static.js'],
       packageRules: [
         {
@@ -404,11 +391,6 @@ stage2Scenarios
           });
 
           return prebuild(app, {
-            skipBabel: [
-              {
-                package: 'qunit',
-              },
-            ],
             ...opts
           });
         };
@@ -780,26 +762,6 @@ stage2Scenarios
         assertFile.matches(/return require\(['"]some-package['"]\)/, 'should find plain cjs require');
       });
 
-      test('transpilation runs for ember addons', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/my-addon/components/has-relative-template.js'));
-      });
-
-      test('transpilation is skipped when package matches skipBabel', async function (assert) {
-        assert.ok(!build.shouldTranspile('node_modules/babel-filter-test1/index.js'));
-      });
-
-      test('transpilation is skipped when package and version match skipBabel', async function (assert) {
-        assert.ok(!build.shouldTranspile('node_modules/babel-filter-test2/index.js'));
-      });
-
-      test('transpilation runs when package version does not match skipBabel', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/babel-filter-test3/index.js'));
-      });
-
-      test('transpilation runs for non-ember package that is not explicitly skipped', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/babel-filter-test4/index.js'));
-      });
-
       test(`app's babel plugins ran`, async function () {
         let assertFile = expectFile('custom-babel-needed.js').transform(build.transpile);
         assertFile.matches(/console\.log\(['"]embroider-sample-transforms-result['"]\)/);
diff --git a/tests/scenarios/core-resolver-test.ts b/tests/scenarios/core-resolver-test.ts
index 0f1eba66d..0b3020d7f 100644
--- a/tests/scenarios/core-resolver-test.ts
+++ b/tests/scenarios/core-resolver-test.ts
@@ -142,9 +142,6 @@ Scenarios.fromProject(() => new Project())
               plugins: []
             }
             `,
-            'node_modules/.embroider/_babel_filter.js': `
-              module.exports = function(filename) { return true }
-            `,
             'node_modules/.embroider/resolver.json': JSON.stringify(resolverOptions),
             'node_modules/my-addon/package.json': addonPackageJSON('my-addon', opts?.addonMeta),
           });
diff --git a/tests/scenarios/router-test.ts b/tests/scenarios/router-test.ts
index 4e50cdbce..b53d5f2d4 100644
--- a/tests/scenarios/router-test.ts
+++ b/tests/scenarios/router-test.ts
@@ -38,11 +38,6 @@ function setupScenario(project: Project) {
             staticHelpers: true,
             staticModifiers: true,
             splitAtRoutes: ['split-me'],
-            skipBabel: [
-              {
-                package: 'qunit',
-              },
-            ],
           });
         };
       `,
diff --git a/tests/scenarios/stage1-test.ts b/tests/scenarios/stage1-test.ts
index 62a319d61..b88cf124a 100644
--- a/tests/scenarios/stage1-test.ts
+++ b/tests/scenarios/stage1-test.ts
@@ -30,11 +30,6 @@ appScenarios
             staticComponents: false,
             staticHelpers: false,
             staticModifiers: false,
-            skipBabel: [
-              {
-                package: 'qunit',
-              },
-            ],
           });
         };
       `,
diff --git a/tests/scenarios/static-app-test.ts b/tests/scenarios/static-app-test.ts
index 435869b61..e074480e2 100644
--- a/tests/scenarios/static-app-test.ts
+++ b/tests/scenarios/static-app-test.ts
@@ -396,10 +396,6 @@ appScenarios
                 },
               },
             ],
-            skipBabel: [
-              { package: 'qunit' },
-              { package: 'macro-decorators' },
-            ],
           });
         };
       `,
diff --git a/tests/ts-app-template-classic/ember-cli-build.js b/tests/ts-app-template-classic/ember-cli-build.js
index 736cf11f1..f46ba13b7 100644
--- a/tests/ts-app-template-classic/ember-cli-build.js
+++ b/tests/ts-app-template-classic/ember-cli-build.js
@@ -8,11 +8,5 @@ module.exports = function (defaults) {
     'ember-cli-babel': { enableTypeScriptTransform: true },
   });
 
-  return maybeEmbroider(app, {
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };
diff --git a/tests/ts-app-template/ember-cli-build.js b/tests/ts-app-template/ember-cli-build.js
index 736cf11f1..f46ba13b7 100644
--- a/tests/ts-app-template/ember-cli-build.js
+++ b/tests/ts-app-template/ember-cli-build.js
@@ -8,11 +8,5 @@ module.exports = function (defaults) {
     'ember-cli-babel': { enableTypeScriptTransform: true },
   });
 
-  return maybeEmbroider(app, {
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };