diff --git a/frontend/packages/compile-test-app/package.json b/frontend/packages/compile-test-app/package.json
index 7bf384bc07..fa47ec56a9 100644
--- a/frontend/packages/compile-test-app/package.json
+++ b/frontend/packages/compile-test-app/package.json
@@ -13,6 +13,7 @@
   },
   "devDependencies": {
     "@spotify/web-scripts": "^6.0.0",
-    "@spotify-backstage/cli": "^1.2.0"
+    "@spotify-backstage/cli": "^1.2.0",
+    "compile-test-lib": "0.0.0"
   }
 }
diff --git a/frontend/packages/compile-test-app/src/ExampleComponent.tsx b/frontend/packages/compile-test-app/src/ExampleComponent.tsx
index a9efc2c14d..3da90fb3ee 100644
--- a/frontend/packages/compile-test-app/src/ExampleComponent.tsx
+++ b/frontend/packages/compile-test-app/src/ExampleComponent.tsx
@@ -1,7 +1,13 @@
 import React, { FC } from 'react';
+import { getMessage } from 'compile-test-lib';
 
 const ExampleComponent: FC<{}> = () => {
-  return <div>This is the ExampleComponent</div>;
+  return (
+    <div>
+      <h2>This is the ExampleComponent</h2>
+      <p>{getMessage()}</p>
+    </div>
+  );
 };
 
 export default ExampleComponent;
diff --git a/frontend/packages/compile-test-app/tsconfig.json b/frontend/packages/compile-test-app/tsconfig.json
index 54d6092ed9..f6e285c390 100644
--- a/frontend/packages/compile-test-app/tsconfig.json
+++ b/frontend/packages/compile-test-app/tsconfig.json
@@ -1,4 +1,4 @@
 {
-  "extends": "../../tsconfig.json",
+  "extends": "@spotify/web-scripts/config/tsconfig.json",
   "include": ["dev", "src"]
 }
diff --git a/frontend/packages/compile-test-lib-2/README.md b/frontend/packages/compile-test-lib-2/README.md
new file mode 100644
index 0000000000..c2b442171b
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/README.md
@@ -0,0 +1,3 @@
+# compile-test-lib
+
+Used to try out different setups for building packages separately but supporting global watch mode.
diff --git a/frontend/packages/compile-test-lib-2/jest.config.js b/frontend/packages/compile-test-lib-2/jest.config.js
new file mode 100644
index 0000000000..6b28dacb3d
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/jest.config.js
@@ -0,0 +1,4 @@
+module.exports = {
+  ...require('@spotify/web-scripts/config/jest.config.js'),
+  setupFilesAfterEnv: ['../jest.setup.ts'],
+};
diff --git a/frontend/packages/compile-test-lib-2/jest.setup.ts b/frontend/packages/compile-test-lib-2/jest.setup.ts
new file mode 100644
index 0000000000..666127af39
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/jest.setup.ts
@@ -0,0 +1 @@
+import '@testing-library/jest-dom/extend-expect';
diff --git a/frontend/packages/compile-test-lib-2/package.json b/frontend/packages/compile-test-lib-2/package.json
new file mode 100644
index 0000000000..5b8879c851
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/package.json
@@ -0,0 +1,16 @@
+{
+  "name": "compile-test-lib-2",
+  "version": "0.0.0",
+  "main": "dist/cjs",
+  "license": "Apache-2.0",
+  "private": false,
+  "scripts": {
+    "build": "tsc --outDir dist/cjs --noEmit false --module CommonJS",
+    "build:watch": "yarn run build --watch",
+    "lint": "web-scripts lint",
+    "test": "web-scripts test"
+  },
+  "devDependencies": {
+    "@spotify/web-scripts": "^6.0.0"
+  }
+}
diff --git a/frontend/packages/compile-test-lib-2/src/index.ts b/frontend/packages/compile-test-lib-2/src/index.ts
new file mode 100644
index 0000000000..e1fe5416e9
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/src/index.ts
@@ -0,0 +1,3 @@
+export function getPartialMessage(): string {
+  return '<lib2/>';
+}
diff --git a/frontend/packages/compile-test-lib-2/tsconfig.json b/frontend/packages/compile-test-lib-2/tsconfig.json
new file mode 100644
index 0000000000..88db93fb91
--- /dev/null
+++ b/frontend/packages/compile-test-lib-2/tsconfig.json
@@ -0,0 +1,4 @@
+{
+  "extends": "@spotify/web-scripts/config/tsconfig.json",
+  "include": ["src"]
+}
diff --git a/frontend/packages/compile-test-lib/README.md b/frontend/packages/compile-test-lib/README.md
new file mode 100644
index 0000000000..c2b442171b
--- /dev/null
+++ b/frontend/packages/compile-test-lib/README.md
@@ -0,0 +1,3 @@
+# compile-test-lib
+
+Used to try out different setups for building packages separately but supporting global watch mode.
diff --git a/frontend/packages/compile-test-lib/jest.config.js b/frontend/packages/compile-test-lib/jest.config.js
new file mode 100644
index 0000000000..6b28dacb3d
--- /dev/null
+++ b/frontend/packages/compile-test-lib/jest.config.js
@@ -0,0 +1,4 @@
+module.exports = {
+  ...require('@spotify/web-scripts/config/jest.config.js'),
+  setupFilesAfterEnv: ['../jest.setup.ts'],
+};
diff --git a/frontend/packages/compile-test-lib/jest.setup.ts b/frontend/packages/compile-test-lib/jest.setup.ts
new file mode 100644
index 0000000000..666127af39
--- /dev/null
+++ b/frontend/packages/compile-test-lib/jest.setup.ts
@@ -0,0 +1 @@
+import '@testing-library/jest-dom/extend-expect';
diff --git a/frontend/packages/compile-test-lib/package.json b/frontend/packages/compile-test-lib/package.json
new file mode 100644
index 0000000000..38aa412ace
--- /dev/null
+++ b/frontend/packages/compile-test-lib/package.json
@@ -0,0 +1,19 @@
+{
+  "name": "compile-test-lib",
+  "version": "0.0.0",
+  "main": "dist/cjs/index.js",
+  "license": "Apache-2.0",
+  "private": false,
+  "scripts": {
+    "build": "tsc --outDir dist/cjs --noEmit false --module CommonJS",
+    "build:watch": "yarn run build --watch",
+    "lint": "web-scripts lint",
+    "test": "web-scripts test"
+  },
+  "dependencies": {
+    "compile-test-lib-2": "0.0.0"
+  },
+  "devDependencies": {
+    "@spotify/web-scripts": "^6.0.0"
+  }
+}
diff --git a/frontend/packages/compile-test-lib/src/index.ts b/frontend/packages/compile-test-lib/src/index.ts
new file mode 100644
index 0000000000..45e021b42a
--- /dev/null
+++ b/frontend/packages/compile-test-lib/src/index.ts
@@ -0,0 +1,5 @@
+import { getPartialMessage } from 'compile-test-lib-2';
+
+export function getMessage(): string {
+  return `<lib> ${getPartialMessage()} </lib>`;
+}
diff --git a/frontend/packages/compile-test-lib/tsconfig.json b/frontend/packages/compile-test-lib/tsconfig.json
new file mode 100644
index 0000000000..88db93fb91
--- /dev/null
+++ b/frontend/packages/compile-test-lib/tsconfig.json
@@ -0,0 +1,4 @@
+{
+  "extends": "@spotify/web-scripts/config/tsconfig.json",
+  "include": ["src"]
+}