diff --git a/.changeset/poor-grapes-fry.md b/.changeset/poor-grapes-fry.md
new file mode 100644
index 000000000..e41b16d25
--- /dev/null
+++ b/.changeset/poor-grapes-fry.md
@@ -0,0 +1,5 @@
+---
+'sku': patch
+---
+
+Remove external CSS imports when running Jest
diff --git a/fixtures/styling/src/components/BlueBlock.test.ts b/fixtures/styling/src/components/BlueBlock.test.ts
index 6a77a582b..7aa732871 100644
--- a/fixtures/styling/src/components/BlueBlock.test.ts
+++ b/fixtures/styling/src/components/BlueBlock.test.ts
@@ -1,6 +1,17 @@
+import BlueBlock from './BlueBlock';
 import lessStyles from './styles.less';
+import * as styles from './BlueBlock.css';
 
 test('LESS styles', () => {
   expect(lessStyles.root).toEqual('styles__root');
   expect(lessStyles.nested).toEqual('styles__nested');
 });
+
+test('Vanilla Extract styles', () => {
+  expect(styles.root).toEqual(expect.stringContaining('BlueBlock_root'));
+  expect(styles.border).toEqual(expect.stringContaining('BlueBlock_border'));
+});
+
+test('external CSS loaded without errors', () => {
+  expect(BlueBlock).toBeDefined();
+});
diff --git a/packages/sku/config/babel/babelConfig.js b/packages/sku/config/babel/babelConfig.js
index 8f88cb227..a698d013e 100644
--- a/packages/sku/config/babel/babelConfig.js
+++ b/packages/sku/config/babel/babelConfig.js
@@ -10,6 +10,7 @@ module.exports = ({
   rootResolution = false,
 }) => {
   const isBrowser = target === 'browser';
+  const isJest = target === 'jest';
   const isProductionBuild = process.env.NODE_ENV === 'production';
 
   const plugins = [
@@ -32,6 +33,16 @@ module.exports = ({
     ]);
   }
 
+  if (isJest) {
+    plugins.push([
+      require.resolve('babel-plugin-transform-remove-imports'),
+      {
+        test: /\.css$/,
+        remove: 'effects',
+      },
+    ]);
+  }
+
   if (isProductionBuild) {
     plugins.push(
       require.resolve('@babel/plugin-transform-react-inline-elements'),
diff --git a/packages/sku/package.json b/packages/sku/package.json
index 721b43a1d..b7dbac9c2 100644
--- a/packages/sku/package.json
+++ b/packages/sku/package.json
@@ -61,6 +61,7 @@
     "babel-plugin-macros": "^3.1.0",
     "babel-plugin-module-resolver": "^5.0.0",
     "babel-plugin-transform-react-remove-prop-types": "^0.4.24",
+    "babel-plugin-transform-remove-imports": "^1.7.0",
     "babel-plugin-unassert": "^3.1.0",
     "browserslist": "^4.16.1",
     "browserslist-config-seek": "^2.1.0",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 2d117dbcb..5b4d5eb94 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -580,6 +580,9 @@ importers:
       babel-plugin-transform-react-remove-prop-types:
         specifier: ^0.4.24
         version: 0.4.24
+      babel-plugin-transform-remove-imports:
+        specifier: ^1.7.0
+        version: 1.7.0(@babel/core@7.22.8)
       babel-plugin-unassert:
         specifier: ^3.1.0
         version: 3.2.0
@@ -6789,6 +6792,14 @@ packages:
     resolution: {integrity: sha512-eqj0hVcJUR57/Ug2zE1Yswsw4LhuqqHhD+8v120T1cl3kjg76QwtyBrdIk4WVwK+lAhBJVYCd/v+4nc4y+8JsA==}
     dev: false
 
+  /babel-plugin-transform-remove-imports@1.7.0(@babel/core@7.22.8):
+    resolution: {integrity: sha512-gprmWf6ry5qrnxMyiDaxZpXzZJP6R9FRA+p0AImLIWRmSEGtlKcFprHKeGMZYkII9rJR6Q1hYou+n1fk6rWf2g==}
+    peerDependencies:
+      '@babel/core': ^7.0.0-0
+    dependencies:
+      '@babel/core': 7.22.8
+    dev: false
+
   /babel-plugin-unassert@3.2.0:
     resolution: {integrity: sha512-dNeuFtaJ1zNDr59r24NjjIm4SsXXm409iNOVMIERp6ePciII+rTrdwsWcHDqDFUKpOoBNT4ZS63nPEbrANW7DQ==}
     dev: false