diff --git a/local-cli/init/init.js b/local-cli/init/init.js
index d7497a4a8..54324c152 100644
--- a/local-cli/init/init.js
+++ b/local-cli/init/init.js
@@ -99,7 +99,7 @@ function generateProject(destinationRoot, newProjectName, options) {
     });
   }
   if (!options['skip-jest']) {
-    const jestDeps = `jest babel-jest babel-preset-react-native@^5 react-test-renderer@${reactVersion}`;
+    const jestDeps = `jest babel-jest metro-react-native-babel-preset@^0.43.5 react-test-renderer@${reactVersion}`;
     if (yarnVersion) {
       console.log('Adding Jest...');
       execSync(`yarn add ${jestDeps} --dev --exact`, {stdio: 'inherit'});
diff --git a/local-cli/templates/HelloWorld/_babelrc b/local-cli/templates/HelloWorld/_babelrc
index a9ce1369e..d4b74b5be 100644
--- a/local-cli/templates/HelloWorld/_babelrc
+++ b/local-cli/templates/HelloWorld/_babelrc
@@ -1,3 +1,3 @@
 {
-  "presets": ["react-native"]
+  "presets": ["module:metro-react-native-babel-preset"]
 }