diff --git a/packages/metro-bundler/src/DeltaBundler/DeltaTransformer.js b/packages/metro-bundler/src/DeltaBundler/DeltaTransformer.js
index a5effb21..efcdfd62 100644
--- a/packages/metro-bundler/src/DeltaBundler/DeltaTransformer.js
+++ b/packages/metro-bundler/src/DeltaBundler/DeltaTransformer.js
@@ -16,6 +16,7 @@ const DeltaCalculator = require('./DeltaCalculator');
 
 const addParamsToDefineCall = require('../lib/addParamsToDefineCall');
 const createModuleIdFactory = require('../lib/createModuleIdFactory');
+const removeInlineRequiresBlacklistFromOptions = require('../lib/removeInlineRequiresBlacklistFromOptions');
 
 const {EventEmitter} = require('events');
 
@@ -559,7 +560,9 @@ class DeltaTransformer extends EventEmitter {
     +map: CompactRawMappings,
     +source: string,
   }> {
-    return await module.read(transformOptions);
+    return await module.read(
+      removeInlineRequiresBlacklistFromOptions(module.path, transformOptions),
+    );
   }
 
   _onFileChange = () => {
diff --git a/packages/metro-bundler/src/DeltaBundler/traverseDependencies.js b/packages/metro-bundler/src/DeltaBundler/traverseDependencies.js
index 49fc7e03..6659f30a 100644
--- a/packages/metro-bundler/src/DeltaBundler/traverseDependencies.js
+++ b/packages/metro-bundler/src/DeltaBundler/traverseDependencies.js
@@ -12,6 +12,8 @@
 
 'use strict';
 
+const removeInlineRequiresBlacklistFromOptions = require('../lib/removeInlineRequiresBlacklistFromOptions');
+
 import type {Options as JSTransformerOptions} from '../JSTransformer/worker';
 import type DependencyGraph from '../node-haste/DependencyGraph';
 
@@ -217,7 +219,7 @@ async function addDependency(
 
   const shallowDeps = await dependencyGraph.getShallowDependencies(
     dependencyEdge.path,
-    transformOptions,
+    removeInlineRequiresBlacklistFromOptions(module.path, transformOptions),
   );
 
   const nonNullDependencyEdge = dependencyEdge;
diff --git a/packages/metro-bundler/src/JSTransformer/worker/index.js b/packages/metro-bundler/src/JSTransformer/worker/index.js
index 122a48a2..c8030b6e 100644
--- a/packages/metro-bundler/src/JSTransformer/worker/index.js
+++ b/packages/metro-bundler/src/JSTransformer/worker/index.js
@@ -60,7 +60,7 @@ export type TransformOptionsStrict = {|
   +dev: boolean,
   +generateSourceMaps: boolean,
   +hot: boolean,
-  +inlineRequires: {+blacklist: {[string]: true}} | boolean,
+  +inlineRequires: boolean,
   +minify: boolean,
   +platform: ?string,
   +projectRoot: string,
@@ -71,7 +71,7 @@ export type TransformOptions = {
   +dev?: boolean,
   +generateSourceMaps?: boolean,
   +hot?: boolean,
-  +inlineRequires?: {+blacklist: {[string]: true}} | boolean,
+  +inlineRequires: boolean,
   +minify: boolean,
   +platform: ?string,
   +projectRoot: string,
diff --git a/packages/metro-bundler/src/lib/GlobalTransformCache.js b/packages/metro-bundler/src/lib/GlobalTransformCache.js
index e1d607ae..7b03826d 100644
--- a/packages/metro-bundler/src/lib/GlobalTransformCache.js
+++ b/packages/metro-bundler/src/lib/GlobalTransformCache.js
@@ -445,7 +445,7 @@ class OptionsHasher {
         +dev |
           (+generateSourceMaps << 1) |
           (+hot << 2) |
-          (+!!inlineRequires << 3) |
+          (+inlineRequires << 3) |
           (+enableBabelRCLookup << 4) |
           (+minify << 5),
       ]),
@@ -453,15 +453,8 @@ class OptionsHasher {
     /* eslint-enable no-bitwise */
 
     hash.update(JSON.stringify(platform));
-    let blacklistWithLocalPaths = [];
-    if (typeof inlineRequires === 'object') {
-      blacklistWithLocalPaths = this.pathsToLocal(
-        Object.keys(inlineRequires.blacklist),
-      );
-    }
-    const localProjectRoot = this.toLocalPath(projectRoot);
-    const optionTuple = [blacklistWithLocalPaths, localProjectRoot];
-    hash.update(JSON.stringify(optionTuple));
+    hash.update(JSON.stringify(this.toLocalPath(projectRoot)));
+
     return hash;
   }
 
diff --git a/packages/metro-bundler/src/lib/__tests__/__snapshots__/GlobalTransformCache-test.js.snap b/packages/metro-bundler/src/lib/__tests__/__snapshots__/GlobalTransformCache-test.js.snap
index bae2e335..d05e6956 100644
--- a/packages/metro-bundler/src/lib/__tests__/__snapshots__/GlobalTransformCache-test.js.snap
+++ b/packages/metro-bundler/src/lib/__tests__/__snapshots__/GlobalTransformCache-test.js.snap
@@ -19,12 +19,12 @@ Object {
 exports[`GlobalTransformCache fetches results 1`] = `
 Array [
   Object {
-    "code": "/* code from http://globalcache.com/010a1a9e948edce805a4fa7685a1c64ce97dc035-foo.js */",
+    "code": "/* code from http://globalcache.com/c78d72e5b503433212dce49b558b0ee350b6d578-foo.js */",
     "dependencies": Array [],
     "dependencyOffsets": Array [],
   },
   Object {
-    "code": "/* code from http://globalcache.com/640a1404db77ab17a10fbae1a3b4db92634669c1-bar.js */",
+    "code": "/* code from http://globalcache.com/47637fbb61b7dfeda3a0d0a36241510b4669e4da-bar.js */",
     "dependencies": Array [],
     "dependencyOffsets": Array [],
   },
diff --git a/packages/metro-bundler/src/lib/__tests__/removeInlineRequiresBlacklistFromOptions-test.js b/packages/metro-bundler/src/lib/__tests__/removeInlineRequiresBlacklistFromOptions-test.js
new file mode 100644
index 00000000..09576f09
--- /dev/null
+++ b/packages/metro-bundler/src/lib/__tests__/removeInlineRequiresBlacklistFromOptions-test.js
@@ -0,0 +1,57 @@
+/**
+ * Copyright (c) 2016-present, Facebook, Inc.
+ * All rights reserved.
+ *
+ * This source code is licensed under the BSD-style license found in the
+ * LICENSE file in the root directory of this source tree. An additional grant
+ * of patent rights can be found in the PATENTS file in the same directory.
+ *
+ * @format
+ * @emails oncall+js_foundation
+ */
+
+'use strict';
+
+const removeInlineRequiresBlacklistFromOptions = require('../removeInlineRequiresBlacklistFromOptions');
+
+it('should not touch a transformOption object with boolean inlineRequires', () => {
+  const transformOptions = {
+    inlineRequires: false,
+  };
+
+  expect(
+    removeInlineRequiresBlacklistFromOptions('/path', transformOptions),
+  ).toBe(transformOptions);
+});
+
+it('should change inlineRequires to true when the path is not in the blacklist', () => {
+  const transformOptions = {
+    inlineRequires: {
+      blacklist: {'/other': true},
+    },
+    foo: 'bar',
+  };
+
+  expect(
+    removeInlineRequiresBlacklistFromOptions('/path', transformOptions),
+  ).toEqual({
+    inlineRequires: true,
+    foo: 'bar',
+  });
+});
+
+it('should change inlineRequires to false when the path is in the blacklist', () => {
+  const transformOptions = {
+    inlineRequires: {
+      blacklist: {'/path': true},
+    },
+    foo: 'bar',
+  };
+
+  expect(
+    removeInlineRequiresBlacklistFromOptions('/path', transformOptions),
+  ).toEqual({
+    inlineRequires: false,
+    foo: 'bar',
+  });
+});
diff --git a/packages/metro-bundler/src/lib/removeInlineRequiresBlacklistFromOptions.js b/packages/metro-bundler/src/lib/removeInlineRequiresBlacklistFromOptions.js
new file mode 100644
index 00000000..30d6cfbb
--- /dev/null
+++ b/packages/metro-bundler/src/lib/removeInlineRequiresBlacklistFromOptions.js
@@ -0,0 +1,32 @@
+/**
+ * Copyright (c) 2015-present, Facebook, Inc.
+ * All rights reserved.
+ *
+ * This source code is licensed under the BSD-style license found in the
+ * LICENSE file in the root directory of this source tree. An additional grant
+ * of patent rights can be found in the PATENTS file in the same directory.
+ *
+ * @flow
+ * @format
+ */
+
+'use strict';
+
+import type {Options as JSTransformerOptions} from '../JSTransformer/worker';
+
+function removeInlineRequiresBlacklistFromOptions(
+  path: string,
+  transformOptions: JSTransformerOptions,
+): JSTransformerOptions {
+  if (typeof transformOptions.inlineRequires === 'object') {
+    // $FlowIssue #23854098 - Object.assign() loses the strictness of an object in flow
+    return {
+      ...transformOptions,
+      inlineRequires: !(path in transformOptions.inlineRequires.blacklist),
+    };
+  }
+
+  return transformOptions;
+}
+
+module.exports = removeInlineRequiresBlacklistFromOptions;
diff --git a/packages/metro-bundler/src/transformer.js b/packages/metro-bundler/src/transformer.js
index 2f7793cb..203849ef 100644
--- a/packages/metro-bundler/src/transformer.js
+++ b/packages/metro-bundler/src/transformer.js
@@ -99,10 +99,7 @@ function buildBabelConfig(filename, options, plugins?: BabelPlugins = []) {
   // Add extra plugins
   const extraPlugins = [externalHelpersPlugin];
 
-  var inlineRequires = options.inlineRequires;
-  var blacklist =
-    typeof inlineRequires === 'object' ? inlineRequires.blacklist : null;
-  if (inlineRequires && !(blacklist && filename in blacklist)) {
+  if (options.inlineRequires) {
     extraPlugins.push(inlineRequiresPlugin);
   }