diff --git a/packages/pigment-css-react/src/processors/styled.ts b/packages/pigment-css-react/src/processors/styled.ts
index f439f24a..813f09eb 100644
--- a/packages/pigment-css-react/src/processors/styled.ts
+++ b/packages/pigment-css-react/src/processors/styled.ts
@@ -14,6 +14,7 @@ import {
   IOptions as IBaseOptions,
 } from '@wyw-in-js/processor-utils';
 import {
+  type FunctionValue,
   ValueType,
   type ConstValue,
   type ExpressionValue,
@@ -238,7 +239,35 @@ export class StyledProcessor extends BaseProcessor {
     });
   }
 
-  private buildForTemplateTag(values: ValueCache): void {
+  private buildTemplateTag(
+    templateStrs: TemplateStringsArray,
+    templateExpressions: Primitive[],
+    values: ValueCache,
+  ) {
+    const cssClassName = css(templateStrs, ...templateExpressions);
+    const cssText = cache.registered[cssClassName] as string;
+
+    const baseClass = this.getClassName();
+    this.baseClasses.push(baseClass);
+    this.collectedStyles.push([baseClass, cssText, null]);
+    const variantsAccumulator: VariantData[] = [];
+    this.processOverrides(values, variantsAccumulator);
+    variantsAccumulator.forEach((variant) => {
+      this.processVariant(variant);
+    });
+    this.generateArtifacts();
+  }
+
+  /**
+   * This handles transformation for direct tagged-template literal styled calls.
+   *
+   * @example
+   * ```js
+   * const Component = style('a')`
+   *   color: red;
+   * `;
+   */
+  private buildForTemplateTag(values: ValueCache) {
     const templateStrs: string[] = [];
     // @ts-ignore @TODO - Fix this. No idea how to initialize a Tagged String array.
     templateStrs.raw = [];
@@ -274,14 +303,74 @@ export class StyledProcessor extends BaseProcessor {
         templateStrs.raw.push(item.value.raw);
       }
     });
-    const cssClassName = css(templateStrs, ...templateExpressions);
-    const cssText = cache.registered[cssClassName] as string;
+    this.buildTemplateTag(
+      templateStrs as unknown as TemplateStringsArray,
+      templateExpressions,
+      values,
+    );
+  }
 
-    const baseClass = this.getClassName();
-    this.baseClasses.push(baseClass);
-    this.collectedStyles.push([baseClass, cssText, null]);
-    const variantsAccumulator: VariantData[] = [];
+  /**
+   * This handles transformation for tagged-template literal styled calls that have already been
+   * transformed through swc. See [styled-swc-transformed-tagged-string.input.js](../../tests/styled/fixtures/styled-swc-transformed-tagged-string.input.js)
+   * for sample code.
+   */
+  private buildForTransformedTemplateTag(values: ValueCache) {
+    // the below types are already validated in isMaybeTransformedTemplateLiteral check
+    const [templateStrArg, ...restArgs] = this.styleArgs as (LazyValue | FunctionValue)[];
+    const templateStrings = values.get(templateStrArg.ex.name) as string[];
+
+    const templateStrs: string[] = [...templateStrings];
+    // @ts-ignore @TODO - Fix this. No idea how to initialize a Tagged String array.
+    templateStrs.raw = [...templateStrings];
+    const templateExpressions: Primitive[] = [];
+    const { themeArgs } = this.options as IOptions;
+
+    restArgs.forEach((item) => {
+      switch (item.kind) {
+        case ValueType.FUNCTION: {
+          const value = values.get(item.ex.name) as TemplateCallback;
+          templateExpressions.push(value(themeArgs));
+          break;
+        }
+        case ValueType.LAZY: {
+          const evaluatedValue = values.get(item.ex.name);
+          if (typeof evaluatedValue === 'function') {
+            templateExpressions.push(evaluatedValue(themeArgs));
+          } else {
+            templateExpressions.push(evaluatedValue as Primitive);
+          }
+          break;
+        }
+        default:
+          break;
+      }
+    });
+    this.buildTemplateTag(
+      templateStrs as unknown as TemplateStringsArray,
+      templateExpressions,
+      values,
+    );
+  }
+
+  private buildForStyledCall(values: ValueCache) {
+    const themeImportIdentifier = this.astService.addDefaultImport(
+      `${this.getImportPath()}/theme`,
+      'theme',
+    );
+    // all the variant definitions are collected here so that we can
+    // apply variant styles after base styles for more specific targetting.
+    let variantsAccumulator: VariantData[] = [];
+    (this.styleArgs as ExpressionValue[]).forEach((styleArg) => {
+      this.processStyle(values, styleArg, variantsAccumulator, themeImportIdentifier.name);
+    });
+    // Generate CSS for default variants first
+    variantsAccumulator.forEach((variant) => {
+      this.processVariant(variant);
+    });
+    variantsAccumulator = [];
     this.processOverrides(values, variantsAccumulator);
+    // Generate CSS for variants declared in `styleOverrides`, if any
     variantsAccumulator.forEach((variant) => {
       this.processVariant(variant);
     });
@@ -304,6 +393,18 @@ export class StyledProcessor extends BaseProcessor {
     this.replacer(this.astService.stringLiteral(this.asSelector), false);
   }
 
+  isMaybeTransformedTemplateLiteral(values: ValueCache): boolean {
+    const [firstArg, ...restArgs] = this.styleArgs;
+    if (!('kind' in firstArg) || firstArg.kind === ValueType.CONST) {
+      return false;
+    }
+    const firstArgVal = values.get(firstArg.ex.name);
+    if (Array.isArray(firstArgVal) && restArgs.length === firstArgVal.length - 1) {
+      return true;
+    }
+    return false;
+  }
+
   /**
    * This is called by Wyw-in-JS after evaluating the code. Here, we
    * get access to the actual values of the `styled` arguments
@@ -314,32 +415,16 @@ export class StyledProcessor extends BaseProcessor {
    * 2. CSS declared in theme object's styledOverrides
    * 3. Variants declared in theme object
    */
-  build(values: ValueCache): void {
+  build(values: ValueCache) {
     if (this.isTemplateTag) {
       this.buildForTemplateTag(values);
       return;
     }
-    const themeImportIdentifier = this.astService.addDefaultImport(
-      `${this.getImportPath()}/theme`,
-      'theme',
-    );
-    // all the variant definitions are collected here so that we can
-    // apply variant styles after base styles for more specific targetting.
-    let variantsAccumulator: VariantData[] = [];
-    (this.styleArgs as ExpressionValue[]).forEach((styleArg) => {
-      this.processStyle(values, styleArg, variantsAccumulator, themeImportIdentifier.name);
-    });
-    // Generate CSS for default variants first
-    variantsAccumulator.forEach((variant) => {
-      this.processVariant(variant);
-    });
-    variantsAccumulator = [];
-    this.processOverrides(values, variantsAccumulator);
-    // Generate CSS for variants declared in `styleOverrides`, if any
-    variantsAccumulator.forEach((variant) => {
-      this.processVariant(variant);
-    });
-    this.generateArtifacts();
+    if (this.isMaybeTransformedTemplateLiteral(values)) {
+      this.buildForTransformedTemplateTag(values);
+      return;
+    }
+    this.buildForStyledCall(values);
   }
 
   /**
diff --git a/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.input.js b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.input.js
new file mode 100644
index 00000000..7ec230c2
--- /dev/null
+++ b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.input.js
@@ -0,0 +1,88 @@
+/**
+ * This is a pre-transformed file for testing.
+ */
+import { _ as _tagged_template_literal } from "@swc/helpers/_/_tagged_template_literal";
+import { styled, keyframes } from '@pigment-css/react';
+
+function _templateObject() {
+    const data = _tagged_template_literal(["\n  0% {\n    transform: scale(0);\n    opacity: 0.1;\n  }\n\n  100% {\n    transform: scale(1);\n    opacity: 0.3;\n  }\n"]);
+    _templateObject = function () {
+        return data;
+    };
+    return data;
+}
+function _templateObject1() {
+    const data = _tagged_template_literal(["\n  0% {\n    opacity: 1;\n  }\n\n  100% {\n    opacity: 0;\n  }\n"]);
+    _templateObject1 = function () {
+        return data;
+    };
+    return data;
+}
+function _templateObject2() {
+    const data = _tagged_template_literal(["\n  0% {\n    transform: scale(1);\n  }\n\n  50% {\n    transform: scale(0.92);\n  }\n\n  100% {\n    transform: scale(1);\n  }\n"]);
+    _templateObject2 = function () {
+        return data;
+    };
+    return data;
+}
+function _templateObject3() {
+    const data = _tagged_template_literal(["\n  opacity: 0;\n  position: absolute;\n\n  &.", " {\n    opacity: 0.3;\n    transform: scale(1);\n    animation-name: ", ";\n    animation-duration: ", "ms;\n    animation-timing-function: ", ";\n  }\n\n  &.", " {\n    animation-duration: ", "ms;\n  }\n\n  & .", " {\n    opacity: 1;\n    display: block;\n    width: 100%;\n    height: 100%;\n    border-radius: 50%;\n    background-color: currentColor;\n  }\n\n  & .", " {\n    opacity: 0;\n    animation-name: ", ";\n    animation-duration: ", "ms;\n    animation-timing-function: ", ";\n  }\n\n  & .", " {\n    position: absolute;\n    /* @noflip */\n    left: 0px;\n    top: 0;\n    animation-name: ", ";\n    animation-duration: 2500ms;\n    animation-timing-function: ", ";\n    animation-iteration-count: infinite;\n    animation-delay: 200ms;\n  }\n"]);
+    _templateObject3 = function () {
+        return data;
+    };
+    return data;
+}
+
+const touchRippleClasses = {
+    rippleVisible: 'MuiTouchRipple.rippleVisible',
+    ripplePulsate: 'MuiTouchRipple.ripplePulsate',
+    child: 'MuiTouchRipple.child',
+    childLeaving: 'MuiTouchRipple.childLeaving',
+    childPulsate: 'MuiTouchRipple.childPulsate',
+};
+
+const enterKeyframe = keyframes(_templateObject());
+const exitKeyframe = keyframes(_templateObject1());
+const pulsateKeyframe = keyframes(_templateObject2());
+
+export const TouchRippleRoot = styled('span', {
+    name: 'MuiTouchRipple',
+    slot: 'Root'
+})({
+    overflow: 'hidden',
+    pointerEvents: 'none',
+    position: 'absolute',
+    zIndex: 0,
+    top: 0,
+    right: 0,
+    bottom: 0,
+    left: 0,
+    borderRadius: 'inherit'
+});
+
+// This `styled()` function invokes keyframes. `styled-components` only supports keyframes
+// in string templates. Do not convert these styles in JS object as it will break.
+export const TouchRippleRipple = styled(Ripple, {
+    name: 'MuiTouchRipple',
+    slot: 'Ripple'
+})(_templateObject3(), touchRippleClasses.rippleVisible, enterKeyframe, DURATION, param => {
+    let {
+        theme
+    } = param;
+    return theme.transitions.easing.easeInOut;
+}, touchRippleClasses.ripplePulsate, param => {
+    let {
+        theme
+    } = param;
+    return theme.transitions.duration.shorter;
+}, touchRippleClasses.child, touchRippleClasses.childLeaving, exitKeyframe, DURATION, param => {
+    let {
+        theme
+    } = param;
+    return theme.transitions.easing.easeInOut;
+}, touchRippleClasses.childPulsate, pulsateKeyframe, param => {
+    let {
+        theme
+    } = param;
+    return theme.transitions.easing.easeInOut;
+});
diff --git a/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.css b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.css
new file mode 100644
index 00000000..6a99bc3e
--- /dev/null
+++ b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.css
@@ -0,0 +1,78 @@
+@keyframes e19ejdhp {
+  0% {
+    transform: scale(0);
+    opacity: 0.1;
+  }
+  100% {
+    transform: scale(1);
+    opacity: 0.3;
+  }
+}
+@keyframes e1rvu9kp {
+  0% {
+    opacity: 1;
+  }
+  100% {
+    opacity: 0;
+  }
+}
+@keyframes p1yhz964 {
+  0% {
+    transform: scale(1);
+  }
+  50% {
+    transform: scale(0.92);
+  }
+  100% {
+    transform: scale(1);
+  }
+}
+.ttz155n {
+  overflow: hidden;
+  pointer-events: none;
+  position: absolute;
+  z-index: 0;
+  top: 0;
+  right: 0;
+  bottom: 0;
+  left: 0;
+  border-radius: inherit;
+}
+.tm7990f {
+  opacity: 0;
+  position: absolute;
+}
+.tm7990f.MuiTouchRipple.rippleVisible {
+  opacity: 0.3;
+  transform: scale(1);
+  animation-name: e19ejdhp;
+  animation-duration: ms;
+  animation-timing-function: cubic-bezier(0.4, 0, 0.2, 1);
+}
+.tm7990f.MuiTouchRipple.ripplePulsate {
+  animation-duration: 200ms;
+}
+.tm7990f .MuiTouchRipple.child {
+  opacity: 1;
+  display: block;
+  width: 100%;
+  height: 100%;
+  border-radius: 50%;
+  background-color: currentColor;
+}
+.tm7990f .MuiTouchRipple.childLeaving {
+  opacity: 0;
+  animation-name: e1rvu9kp;
+  animation-duration: ms;
+  animation-timing-function: cubic-bezier(0.4, 0, 0.2, 1);
+}
+.tm7990f .MuiTouchRipple.childPulsate {
+  position: absolute;
+  left: 0px;
+  top: 0;
+  animation-name: p1yhz964;
+  animation-duration: 2500ms;
+  animation-timing-function: cubic-bezier(0.4, 0, 0.2, 1);
+  animation-iteration-count: infinite;
+  animation-delay: 200ms;
+}
diff --git a/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.js b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.js
new file mode 100644
index 00000000..88887a5b
--- /dev/null
+++ b/packages/pigment-css-react/tests/styled/fixtures/styled-swc-transformed-tagged-string.output.js
@@ -0,0 +1,21 @@
+import { styled as _styled, styled as _styled2 } from '@pigment-css/react';
+import _theme from '@pigment-css/react/theme';
+/**
+ * This is a pre-transformed file for testing.
+ */
+export const TouchRippleRoot = /*#__PURE__*/ _styled('span', {
+  name: 'MuiTouchRipple',
+  slot: 'Root',
+})({
+  classes: ['ttz155n'],
+});
+
+// This `styled()` function invokes keyframes. `styled-components` only supports keyframes
+// in string templates. Do not convert these styles in JS object as it will break.
+const _exp6 = /*#__PURE__*/ () => Ripple;
+export const TouchRippleRipple = /*#__PURE__*/ _styled2(_exp6(), {
+  name: 'MuiTouchRipple',
+  slot: 'Ripple',
+})({
+  classes: ['tm7990f'],
+});
diff --git a/packages/pigment-css-react/tests/styled/styled.test.tsx b/packages/pigment-css-react/tests/styled/styled.test.tsx
index c12f42ed..933f8abd 100644
--- a/packages/pigment-css-react/tests/styled/styled.test.tsx
+++ b/packages/pigment-css-react/tests/styled/styled.test.tsx
@@ -154,4 +154,36 @@ describe('Pigment CSS - styled', () => {
     expect(output.js).to.equal(fixture.js);
     expect(output.css).to.equal(fixture.css);
   });
+
+  it('should properly transform a pre-transform tagged-template styled call', async () => {
+    const { output, fixture } = await runTransformation(
+      path.join(__dirname, 'fixtures/styled-swc-transformed-tagged-string.input.js'),
+      {
+        themeArgs: {
+          theme: {
+            transitions: {
+              easing: {
+                easeInOut: 'cubic-bezier(0.4, 0, 0.2, 1)',
+                easeOut: 'cubic-bezier(0.0, 0, 0.2, 1)',
+                easeIn: 'cubic-bezier(0.4, 0, 1, 1)',
+                sharp: 'cubic-bezier(0.4, 0, 0.6, 1)',
+              },
+              duration: {
+                shortest: 150,
+                shorter: 200,
+                short: 250,
+                standard: 300,
+                complex: 375,
+                enteringScreen: 225,
+                leavingScreen: 195,
+              },
+            },
+          },
+        },
+      },
+    );
+
+    expect(output.js).to.equal(fixture.js);
+    expect(output.css).to.equal(fixture.css);
+  });
 });
diff --git a/packages/pigment-css-unplugin/src/index.ts b/packages/pigment-css-unplugin/src/index.ts
index 45768174..08b426e0 100644
--- a/packages/pigment-css-unplugin/src/index.ts
+++ b/packages/pigment-css-unplugin/src/index.ts
@@ -116,7 +116,7 @@ export const plugin = createUnplugin<PigmentOptions, true>((options) => {
     theme,
     meta,
     transformLibraries = [],
-    preprocessor,
+    preprocessor = basePreprocessor,
     asyncResolve: asyncResolveOpt,
     debug = false,
     sourceMap = false,