diff --git a/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/actual.js.es6 b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/actual.js.es6
new file mode 100644
index 00000000..708d32ee
--- /dev/null
+++ b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/actual.js.es6
@@ -0,0 +1,9 @@
+class Foo {
+  f() {
+    class Bar extends React.Component {
+      render() {}
+    }
+
+    foo(Bar);
+  }
+}
diff --git a/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/babel.json b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/babel.json
new file mode 100644
index 00000000..06659d70
--- /dev/null
+++ b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/babel.json
@@ -0,0 +1,7 @@
+{
+  "transforms": [{
+    "transform": "react-transform-hmr/lib/index.js",
+    "imports": ["react"],
+    "locals": ["module"]
+  }]
+}
diff --git a/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/expected.js.es6 b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/expected.js.es6
new file mode 100644
index 00000000..15473dd3
--- /dev/null
+++ b/packages/metro-babel7-plugin-react-transform/__tests__/__fixtures__/babel7-regression/expected.js.es6
@@ -0,0 +1,37 @@
+var _transformLib = _interopRequireDefault(require(\\"transform-lib\\")).default;
+
+const _components = {
+  Bar: {
+    displayName: \\"Bar\\",
+    isInFunction: true
+  }
+};
+
+const _transformLib2 = _transformLib({
+  filename: \\"unknown\\",
+  components: _components,
+  locals: [],
+  imports: []
+});
+
+function _wrapComponent(id) {
+  return function (Component) {
+    return _transformLib2(Component, id);
+  };
+}
+
+function _interopRequireDefault(obj) { return obj && obj.__esModule ? obj : { default: obj }; }
+
+class Foo {
+  f() {
+    const Bar = _wrapComponent(\\"Bar\\")(function () {
+      return class Bar extends React.Component {
+        render() {}
+
+      };
+    }());
+
+    foo(Bar);
+  }
+
+}
diff --git a/packages/metro-babel7-plugin-react-transform/__tests__/__snapshots__/babel-plugin-react-transform-test.js.snap b/packages/metro-babel7-plugin-react-transform/__tests__/__snapshots__/babel-plugin-react-transform-test.js.snap
index 30c05d1b..9db26621 100644
--- a/packages/metro-babel7-plugin-react-transform/__tests__/__snapshots__/babel-plugin-react-transform-test.js.snap
+++ b/packages/metro-babel7-plugin-react-transform/__tests__/__snapshots__/babel-plugin-react-transform-test.js.snap
@@ -1,5 +1,40 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
+exports[`finds React components should babel7 regression 1`] = `
+"import _react from \\"react\\";
+import _reactTransformHmrLibIndexJs from \\"react-transform-hmr/lib/index.js\\";
+const _components = {
+  Bar: {
+    displayName: \\"Bar\\",
+    isInFunction: true
+  }
+};
+
+const _reactTransformHmrLibIndexJs2 = _reactTransformHmrLibIndexJs({
+  filename: \\"unknown\\",
+  components: _components,
+  locals: [module],
+  imports: [_react]
+});
+
+function _wrapComponent(id) {
+  return function (Component) {
+    return _reactTransformHmrLibIndexJs2(Component, id);
+  };
+}
+
+class Foo {
+  f() {
+    class Bar extends React.Component {
+      render() {}
+    }
+
+    Bar = _wrapComponent(\\"Bar\\")(Bar);
+    foo(Bar);
+  }
+}"
+`;
+
 exports[`finds React components should code call expression with render method 1`] = `
 "factory({
   render() {}
@@ -71,10 +106,10 @@ function _wrapComponent(id) {
 }
 
 import React, { Component } from 'react';
-
-const Foo = _wrapComponent('Foo')(class Foo extends Component {
+class Foo extends Component {
   render() {}
-});"
+}
+Foo = _wrapComponent('Foo')(Foo);"
 `;
 
 exports[`finds React components should code class extends purecomponent with render method 1`] = `
@@ -99,10 +134,10 @@ function _wrapComponent(id) {
 }
 
 import React, { PureComponent } from 'react';
-
-const Foo = _wrapComponent('Foo')(class Foo extends PureComponent {
+class Foo extends PureComponent {
   render() {}
-});"
+}
+Foo = _wrapComponent('Foo')(Foo);"
 `;
 
 exports[`finds React components should code class extends react component 1`] = `"class Foo extends React.Component {}"`;
@@ -128,9 +163,10 @@ function _wrapComponent(id) {
   };
 }
 
-const Foo = _wrapComponent(\\"Foo\\")(class Foo extends React.Component {
+class Foo extends React.Component {
   render() {}
-});"
+}
+Foo = _wrapComponent(\\"Foo\\")(Foo);"
 `;
 
 exports[`finds React components should code class with render method 1`] = `
@@ -393,13 +429,14 @@ function _wrapComponent(id) {
   };
 }
 
-const Foo = _wrapComponent(\\"Foo\\")(class Foo extends BooComponent {
+class Foo extends BooComponent {
   render() {}
-});
-
-const Bar = _wrapComponent(\\"Bar\\")(class Bar extends CustomComponent {
+}
+Foo = _wrapComponent(\\"Foo\\")(Foo);
+class Bar extends CustomComponent {
   render() {}
-});"
+}
+Bar = _wrapComponent(\\"Bar\\")(Bar);"
 `;
 
 exports[`finds React components should options multiple transforms 1`] = `"class Foo extends React.Component {}"`;
@@ -433,9 +470,10 @@ function _wrapComponent(id) {
   };
 }
 
-const Foo = _wrapComponent(\\"Foo\\")(class Foo extends React.Component {
+class Foo extends React.Component {
   render() {}
-});"
+}
+Foo = _wrapComponent(\\"Foo\\")(Foo);"
 `;
 
 exports[`finds React components should options with imports 1`] = `"class Foo extends React.Component {}"`;
@@ -463,9 +501,10 @@ function _wrapComponent(id) {
   };
 }
 
-const Foo = _wrapComponent(\\"Foo\\")(class Foo extends React.Component {
+class Foo extends React.Component {
   render() {}
-});"
+}
+Foo = _wrapComponent(\\"Foo\\")(Foo);"
 `;
 
 exports[`finds React components should options with locals 1`] = `"class Foo extends React.Component {}"`;
@@ -491,7 +530,8 @@ function _wrapComponent(id) {
   };
 }
 
-const Foo = _wrapComponent(\\"Foo\\")(class Foo extends React.Component {
+class Foo extends React.Component {
   render() {}
-});"
+}
+Foo = _wrapComponent(\\"Foo\\")(Foo);"
 `;
diff --git a/packages/metro-babel7-plugin-react-transform/lib/index.js b/packages/metro-babel7-plugin-react-transform/lib/index.js
index c7fcfdd2..c6ac456c 100644
--- a/packages/metro-babel7-plugin-react-transform/lib/index.js
+++ b/packages/metro-babel7-plugin-react-transform/lib/index.js
@@ -125,6 +125,29 @@ module.exports = {
 
         // Can't wrap ClassDeclarations
         const isStatement = t.isStatement(path.node);
+        const isExport = t.isExportDefaultDeclaration(path.parent);
+
+        if (isStatement && !isExport) {
+          // class decl
+          // need to work around Babel 7 detecting duplicate decls here
+
+          path.insertAfter(
+            t.expressionStatement(
+              t.assignmentExpression(
+                '=',
+                t.identifier(componentId),
+                wrapComponent(
+                  t.identifier(componentId),
+                  componentId,
+                  this.wrapperFunctionId,
+                ),
+              ),
+            ),
+          );
+
+          return;
+        }
+
         const expression = t.toExpression(path.node);
 
         // wrapperFunction("componentId")(node)
@@ -143,7 +166,7 @@ module.exports = {
           ]);
         }
 
-        if (t.isExportDefaultDeclaration(path.parent)) {
+        if (isExport) {
           path.parentPath.insertBefore(wrapped);
           path.parent.declaration = constId;
         } else {