diff --git a/jest.config.js b/jest.config.js
index 6a0461ed..cd36e86d 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -13,12 +13,6 @@ module.exports = {
       statements: 100
     }
   },
-  moduleNameMapper: {
-    '^~/(.*)$': '<rootDir>/lib/$1',
-    '^~~$': '<rootDir>',
-    '^@@$': '<rootDir>',
-    '^@/(.*)$': '<rootDir>/lib/$1'
-  },
   transform: {
     '^.+\\.js$': 'babel-jest'
   }
diff --git a/packages/typescript-build/lib/module.js b/packages/typescript-build/lib/module.js
index b135e897..3de6d48e 100644
--- a/packages/typescript-build/lib/module.js
+++ b/packages/typescript-build/lib/module.js
@@ -14,9 +14,6 @@ function tsModule (_moduleOptions) {
     _moduleOptions
   )
 
-  // Allow TypeScript extension for severMiddlewares (`nuxt.resolver.resolvePath` uses `options.extensions`)
-  this.options.extensions.push('ts')
-
   // Extend Builder to handle .ts/.tsx files as routes and watch them
   this.options.build.additionalExtensions = ['ts', 'tsx']
 
diff --git a/packages/typescript-build/test/fixture/nuxt.config.js b/packages/typescript-build/test/fixture/nuxt.config.js
index 2588c57f..8c0436d3 100644
--- a/packages/typescript-build/test/fixture/nuxt.config.js
+++ b/packages/typescript-build/test/fixture/nuxt.config.js
@@ -1,5 +1,5 @@
 export default {
-  modules: [
-    '../../../packages/typescript-build'
+  buildModules: [
+    '@nuxt/typescript-build'
   ]
 }
diff --git a/packages/typescript-build/test/module.test.js b/packages/typescript-build/test/module.test.js
index 4dd3f0f7..61e68a37 100644
--- a/packages/typescript-build/test/module.test.js
+++ b/packages/typescript-build/test/module.test.js
@@ -34,9 +34,6 @@ describe('module', () => {
   test('with default options', async () => {
     builder = await buildWithTsModule()
 
-    expect(builder.nuxt.options.extensions).toHaveLength(3)
-    expect(builder.nuxt.options.extensions).toEqual(['js', 'mjs', 'ts'])
-
     expect(builder.nuxt.options.build.additionalExtensions).toHaveLength(2)
     expect(builder.nuxt.options.build.additionalExtensions).toEqual(['ts', 'tsx'])
 
diff --git a/packages/typescript-runtime/bin/nuxt-ts.js b/packages/typescript-runtime/bin/nuxt-ts.js
index ee6f26ea..713b50e7 100755
--- a/packages/typescript-runtime/bin/nuxt-ts.js
+++ b/packages/typescript-runtime/bin/nuxt-ts.js
@@ -1,20 +1,11 @@
 #!/usr/bin/env node
 
-const path = require('path')
-const { resolveNuxtBin, getRootdirFromArgv, registerTSNode } = require('..')
+const cli = (() => { try { return require('@nuxt/cli') } catch { return require('@nuxt/cli-edge') } })()
 
-function main () {
-  const rootDir = getRootdirFromArgv()
-  const tsConfigPath = path.resolve(rootDir, 'tsconfig.json')
+const { hooks } = require('..')
 
-  registerTSNode(tsConfigPath)
-
-  require(resolveNuxtBin())
-}
-
-try {
-  main()
-} catch (error) {
-  require('consola').error(error)
-  process.exit(1)
-}
+cli.run(null, hooks)
+  .catch((error) => {
+    require('consola').fatal(error)
+    require('exit')(2)
+  })
diff --git a/packages/typescript-runtime/lib/args.js b/packages/typescript-runtime/lib/args.js
deleted file mode 100644
index 40643f6c..00000000
--- a/packages/typescript-runtime/lib/args.js
+++ /dev/null
@@ -1,37 +0,0 @@
-const path = require('path')
-const { tryResolve } = require('./resolve')
-
-function getCliOptions () {
-  const cli = ['@nuxt/cli', '@nuxt/cli-edge'].find(cli => tryResolve(cli))
-  return Object.entries(require(cli).options)
-    .reduce((options, [_key, value]) => {
-      return { ...options, ...value }
-    }, {})
-}
-
-function getCliOptionsWithValue () {
-  return Object.entries(getCliOptions())
-    .filter(([_name, { type }]) => type !== 'boolean')
-    .reduce((optionsWithValue, [name, { alias }]) => {
-      return [...optionsWithValue, `--${name}`, ...alias ? [`-${alias}`] : []]
-    }, [])
-}
-
-function getRootdirFromArgv () {
-  const args = process.argv.slice(2)
-  const optionsWithValue = getCliOptionsWithValue()
-
-  const isCliOption = (previousArg, currentArg) => {
-    return ['dev', 'build', 'start', 'generate'].includes(currentArg) ||
-      currentArg[0] === '-' ||
-      (previousArg && previousArg[0] === '-' && optionsWithValue.includes(previousArg))
-  }
-
-  const rootDir = args.find((arg, i) => !isCliOption(args[i - 1], arg)) || '.'
-
-  return path.resolve(process.cwd(), rootDir)
-}
-
-module.exports = {
-  getRootdirFromArgv
-}
diff --git a/packages/typescript-runtime/lib/index.js b/packages/typescript-runtime/lib/index.js
index 5351ee34..b59fc55b 100644
--- a/packages/typescript-runtime/lib/index.js
+++ b/packages/typescript-runtime/lib/index.js
@@ -1,5 +1,24 @@
+const path = require('path')
+const { register } = require('ts-node')
+
+const hooks = {
+  'run:before' ({ argv, rootDir }) {
+    const customPath = argv.find((_arg, index) => index > 0 && argv[index - 1] === '--tsconfig')
+    const tsConfigPath = path.resolve(customPath || rootDir, customPath && customPath.endsWith('.json') ? '' : 'tsconfig.json')
+
+    register({
+      project: tsConfigPath,
+      compilerOptions: {
+        module: 'commonjs'
+      }
+    })
+  },
+
+  config (config) {
+    config.extensions = [...(config.extensions || []), 'ts']
+  }
+}
+
 module.exports = {
-  ...require('./resolve'),
-  ...require('./args'),
-  registerTSNode: require('./register')
+  hooks
 }
diff --git a/packages/typescript-runtime/lib/register.js b/packages/typescript-runtime/lib/register.js
deleted file mode 100644
index 55c432d9..00000000
--- a/packages/typescript-runtime/lib/register.js
+++ /dev/null
@@ -1,13 +0,0 @@
-const { register } = require('ts-node')
-
-function registerTSNode (tsconfigPath) {
-  // https://github.com/TypeStrong/ts-node
-  register({
-    project: tsconfigPath,
-    compilerOptions: {
-      module: 'commonjs'
-    }
-  })
-}
-
-module.exports = registerTSNode
diff --git a/packages/typescript-runtime/lib/resolve.js b/packages/typescript-runtime/lib/resolve.js
deleted file mode 100644
index a1c8c67b..00000000
--- a/packages/typescript-runtime/lib/resolve.js
+++ /dev/null
@@ -1,31 +0,0 @@
-const path = require('path')
-
-function tryResolve (path) {
-  try {
-    return require.resolve(path)
-  } catch (err) {
-    return null
-  }
-}
-
-function resolveNuxtFile (filePath, packages = ['nuxt', 'nuxt-start']) {
-  packages.push(...packages.map(pkg => pkg + '-edge'))
-
-  for (const pkg of packages) {
-    const resolvedFile = tryResolve(path.join(pkg, filePath))
-
-    if (resolvedFile) {
-      return resolvedFile
-    }
-  }
-}
-
-function resolveNuxtBin () {
-  return resolveNuxtFile('bin/nuxt.js')
-}
-
-module.exports = {
-  resolveNuxtFile,
-  resolveNuxtBin,
-  tryResolve
-}
diff --git a/packages/typescript-runtime/test/args.test.js b/packages/typescript-runtime/test/args.test.js
deleted file mode 100644
index 03b54125..00000000
--- a/packages/typescript-runtime/test/args.test.js
+++ /dev/null
@@ -1,47 +0,0 @@
-import { resolve } from 'path'
-import { getRootdirFromArgv } from '..'
-
-jest.mock('@nuxt/cli-edge', () => ({
-  options: {
-    ...jest.requireActual('@nuxt/cli-edge').options,
-    custom: {
-      withoutAlias: {
-        type: 'string'
-      }
-    }
-  }
-}))
-
-const argv = process.argv
-
-describe('getRootdirFromArgv', () => {
-  let setupArgs
-
-  beforeEach(() => {
-    setupArgs = (commandLine) => { process.argv = [...argv, ...commandLine.split(' ')] }
-  })
-
-  test('nuxt-ts', () => {
-    expect(getRootdirFromArgv()).toEqual(process.cwd())
-  })
-  test('nuxt-ts project', () => {
-    setupArgs('project')
-    expect(getRootdirFromArgv()).toEqual(resolve(process.cwd(), 'project'))
-  })
-  test('nuxt-ts dev project', () => {
-    setupArgs('dev project')
-    expect(getRootdirFromArgv()).toEqual(resolve(process.cwd(), 'project'))
-  })
-  test('nuxt-ts dev -p 3001 project', () => {
-    setupArgs('dev -p 30001 project')
-    expect(getRootdirFromArgv()).toEqual(resolve(process.cwd(), 'project'))
-  })
-  test('nuxt-ts dev -p 3001 --analyze project', () => {
-    setupArgs('dev -p 30001 --analyze project')
-    expect(getRootdirFromArgv()).toEqual(resolve(process.cwd(), 'project'))
-  })
-  test('nuxt-ts dev --withoutAlias test project', () => {
-    setupArgs('dev --withoutAlias test project')
-    expect(getRootdirFromArgv()).toEqual(resolve(process.cwd(), 'project'))
-  })
-})
diff --git a/packages/typescript-runtime/test/hooks.test.js b/packages/typescript-runtime/test/hooks.test.js
new file mode 100644
index 00000000..c56c86e6
--- /dev/null
+++ b/packages/typescript-runtime/test/hooks.test.js
@@ -0,0 +1,62 @@
+import path from 'path'
+import { register } from 'ts-node'
+import { hooks } from '..'
+
+jest.mock('ts-node')
+
+describe('run:before hook', () => {
+  beforeEach(() => {
+    register.mockClear()
+  })
+
+  test('registers ts-node', () => {
+    hooks['run:before']({ argv: [], rootDir: 'path' })
+
+    expect(register).toHaveBeenCalledWith({
+      project: path.resolve('path', 'tsconfig.json'),
+      compilerOptions: {
+        module: 'commonjs'
+      }
+    })
+  })
+
+  test('registers ts-node (custom tsconfig.json path)', () => {
+    hooks['run:before']({ argv: ['--tsconfig', 'custom/tsconfig.json'], rootDir: 'path' })
+
+    expect(register).toHaveBeenCalledWith({
+      project: path.resolve('custom/tsconfig.json'),
+      compilerOptions: {
+        module: 'commonjs'
+      }
+    })
+  })
+
+  test('registers ts-node (custom tsconfig.json dir path)', () => {
+    hooks['run:before']({ argv: ['--tsconfig', 'custom'], rootDir: 'path' })
+
+    expect(register).toHaveBeenCalledWith({
+      project: path.resolve('custom/tsconfig.json'),
+      compilerOptions: {
+        module: 'commonjs'
+      }
+    })
+  })
+})
+
+describe('config hook', () => {
+  test('adds ts extension (config.extensions is: defined)', () => {
+    const config = { extensions: [] }
+
+    hooks.config(config)
+
+    expect(config.extensions).toContain('ts')
+  })
+
+  test('adds ts extension (config.extensions is: undefined)', () => {
+    const config = {}
+
+    hooks.config(config)
+
+    expect(config.extensions).toContain('ts')
+  })
+})
diff --git a/packages/typescript-runtime/test/register.test.js b/packages/typescript-runtime/test/register.test.js
deleted file mode 100644
index fc6850d5..00000000
--- a/packages/typescript-runtime/test/register.test.js
+++ /dev/null
@@ -1,17 +0,0 @@
-import { register } from 'ts-node'
-import { registerTSNode } from '..'
-
-jest.mock('ts-node')
-
-test('registerTSNode', () => {
-  const tsConfigPath = 'path/tsconfig.json'
-
-  registerTSNode(tsConfigPath)
-
-  expect(register).toHaveBeenCalledWith({
-    project: tsConfigPath,
-    compilerOptions: {
-      module: 'commonjs'
-    }
-  })
-})
diff --git a/packages/typescript-runtime/test/resolve.test.js b/packages/typescript-runtime/test/resolve.test.js
deleted file mode 100644
index 3b6f0fd1..00000000
--- a/packages/typescript-runtime/test/resolve.test.js
+++ /dev/null
@@ -1,5 +0,0 @@
-import { resolveNuxtBin } from '..'
-
-test('resolveNuxtBin', () => {
-  expect(resolveNuxtBin()).toEqual(require.resolve('nuxt-edge/bin/nuxt.js'))
-})
diff --git a/test/setup.js b/test/setup.js
deleted file mode 100644
index b532703e..00000000
--- a/test/setup.js
+++ /dev/null
@@ -1,12 +0,0 @@
-import consola from 'consola'
-import exit from 'exit'
-
-consola.mockTypes(() => jest.fn())
-
-function errorTrap (error) {
-  process.stderr.write('\n' + error.stack + '\n')
-  exit(1)
-}
-
-process.on('unhandledRejection', errorTrap)
-process.on('uncaughtException', errorTrap)