diff --git a/packages/sku/config/webpack/plugins/sku-webpack-plugin/index.js b/packages/sku/config/webpack/plugins/sku-webpack-plugin/index.js
index 84afa0b83..71441b1b2 100644
--- a/packages/sku/config/webpack/plugins/sku-webpack-plugin/index.js
+++ b/packages/sku/config/webpack/plugins/sku-webpack-plugin/index.js
@@ -149,12 +149,13 @@ class SkuWebpackPlugin {
       },
       {
         // All CSS created by vanilla-extract
-        test: /\.vanilla.css$/i,
+        test: /\.vanilla\.css$/i,
         // Don't process vanilla files from Playroom as they are handled separately.
         // Virtual file paths will look more realistic in the future allowing
         // more standard handling of include/exclude path matching.
         exclude: /node_modules\/playroom/,
         use: makeVanillaCssLoaders({
+          target,
           isProductionBuild,
           MiniCssExtractPlugin,
           hot,
diff --git a/packages/sku/config/webpack/utils/loaders.js b/packages/sku/config/webpack/utils/loaders.js
index 23c3062ca..458b277de 100644
--- a/packages/sku/config/webpack/utils/loaders.js
+++ b/packages/sku/config/webpack/utils/loaders.js
@@ -99,10 +99,11 @@ const makeCssLoaders = (options = {}) => {
 };
 
 const makeVanillaCssLoaders = (options = {}) => {
-  const { isProductionBuild, MiniCssExtractPlugin, browserslist } = options;
+  const { target, isProductionBuild, MiniCssExtractPlugin, browserslist } =
+    options;
 
   return [
-    MiniCssExtractPlugin.loader,
+    ...(target === 'browser' ? [MiniCssExtractPlugin.loader] : []),
     {
       loader: require.resolve('css-loader'),
       options: {