diff --git a/packages/xarc-create-app/template/src/import-assets.d.ts b/packages/xarc-create-app/template/src/import-assets.d.ts
new file mode 100644
index 000000000..7d1f2ebf8
--- /dev/null
+++ b/packages/xarc-create-app/template/src/import-assets.d.ts
@@ -0,0 +1,5 @@
+// custom typing for import assets
+declare module "*.png" {
+  const value: any;
+  export default value;
+}
diff --git a/packages/xarc-react/package.json b/packages/xarc-react/package.json
index f829de539..1528f8be2 100644
--- a/packages/xarc-react/package.json
+++ b/packages/xarc-react/package.json
@@ -24,6 +24,7 @@
   "author": "Electrode",
   "license": "Apache-2.0",
   "dependencies": {
+    "@types/react": ">= 16",
     "@xarc/render-context": "^1.0.3",
     "@xarc/subapp": "^0.1.4",
     "@xarc/tag-renderer": "^1.0.3",
diff --git a/packages/xarc-react/src/common/index.ts b/packages/xarc-react/src/common/index.ts
index af91ac01c..67fa307d5 100644
--- a/packages/xarc-react/src/common/index.ts
+++ b/packages/xarc-react/src/common/index.ts
@@ -3,7 +3,7 @@ import ReactDom from "react-dom";
 import ReactDomServer from "react-dom/server";
 import { SubAppOptions, SubApp, SubAppFeatureFactory, SubAppDef } from "@xarc/subapp";
 
-export type ReactSubApp = SubApp<React.Component>;
+export type ReactSubApp = SubApp<React.Component | React.FunctionComponent>;
 
 //
 // re-exports
diff --git a/samples/create-app-demo/src/import-assets.d.ts b/samples/create-app-demo/src/import-assets.d.ts
new file mode 100644
index 000000000..7d1f2ebf8
--- /dev/null
+++ b/samples/create-app-demo/src/import-assets.d.ts
@@ -0,0 +1,5 @@
+// custom typing for import assets
+declare module "*.png" {
+  const value: any;
+  export default value;
+}