diff --git a/CHANGELOG.md b/CHANGELOG.md
index de6ca5220..476a66119 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 **Please note that Webpacker 3.1.0 and 3.1.1 have some serious bugs so please consider using either 3.0.2 or 3.2.0**
 
+## [[4.0.6]](https://github.com/rails/webpacker/compare/v4.0.5...v4.0.6) - 2019-05-30
+
+- Webpack should not be transpiled [#2111](https://github.com/rails/webpacker/pull/2111)
+
 ## [[4.0.5]](https://github.com/rails/webpacker/compare/v4.0.4...v4.0.5) - 2019-05-30
 
 - Don't let babel & core-js transpile each other [#2110](https://github.com/rails/webpacker/pull/2110)
diff --git a/Gemfile.lock b/Gemfile.lock
index be17d039b..93de93ea3 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    webpacker (4.0.5)
+    webpacker (4.0.6)
       activesupport (>= 4.2)
       rack-proxy (>= 0.6.1)
       railties (>= 4.2)
diff --git a/lib/webpacker/version.rb b/lib/webpacker/version.rb
index 749a45a74..05006e1b5 100644
--- a/lib/webpacker/version.rb
+++ b/lib/webpacker/version.rb
@@ -1,4 +1,4 @@
 module Webpacker
   # Change the version in package.json too, please!
-  VERSION = "4.0.5".freeze
+  VERSION = "4.0.6".freeze
 end
diff --git a/package.json b/package.json
index 8258fb089..fd93f939f 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@rails/webpacker",
-  "version": "4.0.5",
+  "version": "4.0.6",
   "description": "Use webpack to manage app-like JavaScript modules in Rails",
   "main": "package/index.js",
   "files": [
diff --git a/package/rules/node_modules.js b/package/rules/node_modules.js
index 6488bee77..a2770adba 100644
--- a/package/rules/node_modules.js
+++ b/package/rules/node_modules.js
@@ -3,11 +3,11 @@ const { cache_path: cachePath } = require('../config')
 const { nodeEnv } = require('../env')
 
 // Compile standard ES features for JS in node_modules with Babel.
-//   Regex details for exclude: https://regex101.com/r/CglKdg/3/
+//   Regex details for exclude: https://regex101.com/r/CglKdg/5/
 module.exports = {
   test: /\.(js|mjs)$/,
   include: /node_modules/,
-  exclude: /(?:@?babel(?:\/|\\{1,2}|-).+)|regenerator-runtime|core-js/,
+  exclude: /(?:@?babel(?:\/|\\{1,2}|-).+)|regenerator-runtime|core-js|webpack/,
   use: [
     {
       loader: 'babel-loader',