diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5d9273a7a..d43a2076f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,4 +1,8 @@
-- Added [Elm](http://elm-lang.org) support. You can now add Elm support via the following methods:
+### Fixed
+- Update `.babelrc` to fix compilation issues - [#306](https://github.com/rails/webpacker/issues/306)
+
+### Added
+- [Elm](http://elm-lang.org) support. You can now add Elm support via the following methods:
   - New app: `rails new <app> --webpack=elm`
   - Within an existing app: `rails webpacker:install:elm`
 
diff --git a/lib/install/config/.babelrc b/lib/install/config/.babelrc
index a9cd732a6..67bea12e8 100644
--- a/lib/install/config/.babelrc
+++ b/lib/install/config/.babelrc
@@ -3,7 +3,8 @@
     ["env", {
       "modules": false,
       "targets": {
-        "node": "current"
+        "browsers": "> 1%",
+        "uglify": true
       },
       "useBuiltIns": true
     }]
diff --git a/lib/install/template.rb b/lib/install/template.rb
index fa600347a..33dc4d2df 100644
--- a/lib/install/template.rb
+++ b/lib/install/template.rb
@@ -25,7 +25,7 @@
 puts "Installing all JavaScript dependencies"
 run "yarn add webpack webpack-merge js-yaml path-complete-extname " \
 "webpack-manifest-plugin babel-loader@7.x coffee-loader coffee-script " \
-"babel-core babel-preset-env compression-webpack-plugin rails-erb-loader glob " \
+"babel-core babel-preset-env babel-polyfill compression-webpack-plugin rails-erb-loader glob " \
 "extract-text-webpack-plugin node-sass file-loader sass-loader css-loader style-loader " \
 "postcss-loader autoprefixer postcss-smart-import precss"