diff --git a/packages/module-utils/README.md b/packages/module-utils/README.md
index b9afa99e1..b864ba3ad 100644
--- a/packages/module-utils/README.md
+++ b/packages/module-utils/README.md
@@ -8,9 +8,9 @@
 
 Creates a factory for creating multiple Stylable modules in a shared context, used by the webpack plugin.
 
-### `generateModuleSource`
+### `generateStylableJSModuleSource`
 
-Creates a single Stylable module source code, used by the node integration.
+Creates a single Stylable module source code.
 
 ## License
 Copyright (c) 2017 Wix.com Ltd. All Rights Reserved. Use of this source code is governed by an [MIT license](./LICENSE).
diff --git a/packages/module-utils/src/index.ts b/packages/module-utils/src/index.ts
index c437761bf..98b1bb175 100644
--- a/packages/module-utils/src/index.ts
+++ b/packages/module-utils/src/index.ts
@@ -1,4 +1,7 @@
+/**@deprecated */
 export { createModuleSource, generateModuleSource } from './module-source';
+
 export { Options, stylableModuleFactory } from './module-factory';
 export { generateDTSContent } from './generate-dts';
 export { generateDTSSourceMap } from './generate-dts-sourcemaps';
+export { generateStylableJSModuleSource } from './stylable-js-module-source';
diff --git a/packages/module-utils/src/module-factory.ts b/packages/module-utils/src/module-factory.ts
index 33940750e..fd7e2ed0b 100644
--- a/packages/module-utils/src/module-factory.ts
+++ b/packages/module-utils/src/module-factory.ts
@@ -1,43 +1,46 @@
 import { Stylable, StylableConfig } from '@stylable/core';
-import { generateModuleSource } from './module-source';
+import { generateStylableJSModuleSource } from './stylable-js-module-source';
 
 export interface Options {
+    injectCSS: boolean;
+    staticImports: string[];
     runtimePath: string;
     runtimeStylesheetId: 'module' | 'namespace';
-    injectCSS: boolean;
+    moduleType: 'esm' | 'cjs';
+    runtimeId: string;
+    /**@deprecated not in use */
     renderableOnly: boolean;
-    staticImports: string[];
 }
 
 export function stylableModuleFactory(
     stylableOptions: StylableConfig,
     {
-        runtimePath = '@stylable/runtime',
+        runtimePath,
         runtimeStylesheetId = 'module',
         injectCSS = true,
-        renderableOnly = false,
         staticImports = [],
+        moduleType = 'cjs',
+        runtimeId = '0',
     }: Partial<Options> = {}
 ) {
     const stylable = new Stylable(stylableOptions);
     return function stylableToModule(source: string, path: string) {
-        const meta = stylable.analyze(path, source);
-        const res = stylable.transform(meta);
-        return generateModuleSource(
-            res,
-            runtimeStylesheetId === 'module' ? 'module.id' : res.meta.namespace,
-            [
-                ...staticImports.map((request) => `import ${JSON.stringify(request)}`),
-                `const runtime = require(${JSON.stringify(runtimePath)})`,
-            ],
-            `runtime.$`,
-            `runtime.create`,
-            `runtime.createRenderable`,
-            injectCSS ? JSON.stringify(res.meta.targetAst!.toString()) : '""',
-            '-1', // ToDo: calc depth for node as well
-            'module.exports',
-            '' /* afterModule */,
-            renderableOnly
+        const { meta, exports } = stylable.transform(stylable.analyze(path, source));
+        return generateStylableJSModuleSource(
+            {
+                moduleType: moduleType,
+                imports: staticImports.map((from) => ({ from })),
+                jsExports: exports,
+                namespace: meta.namespace,
+                runtimeRequest: runtimePath,
+                varType: 'var',
+            },
+            {
+                id: runtimeStylesheetId === 'module' ? undefined : meta.namespace,
+                css: injectCSS ? meta.targetAst!.toString() : '',
+                depth: -1,
+                runtimeId,
+            }
         );
     };
 }
diff --git a/packages/module-utils/src/module-source.ts b/packages/module-utils/src/module-source.ts
index bc0287743..8bbb664ca 100644
--- a/packages/module-utils/src/module-source.ts
+++ b/packages/module-utils/src/module-source.ts
@@ -1,5 +1,8 @@
 import type { StylableResults } from '@stylable/core';
 
+/**
+ * @deprecated use generateStylableJSModuleSource
+ */
 export function generateModuleSource(
     stylableResult: StylableResults,
     moduleId: string,
@@ -32,6 +35,9 @@ ${exportsArgument} = ${createFunction}(
 `;
 }
 
+/**
+ * @deprecated use generateStylableJSModuleSource
+ */
 export function createModuleSource(
     stylableResult: StylableResults,
     moduleFormat = 'cjs',
diff --git a/packages/module-utils/src/stylable-js-module-source.ts b/packages/module-utils/src/stylable-js-module-source.ts
new file mode 100644
index 000000000..9884bcb6f
--- /dev/null
+++ b/packages/module-utils/src/stylable-js-module-source.ts
@@ -0,0 +1,148 @@
+import type { StylableExports } from '@stylable/core/dist/index-internal';
+
+interface InjectCSSOptions {
+    /**
+     *  omitting the id will fallback to module.id/import.meta.url
+     */
+    id?: string | undefined;
+    /**
+     * css string to inject
+     */
+    css: string;
+    /**
+     *  calculated style depth
+     */
+    depth: number | string;
+    /**
+     *  use code to get the depth
+     */
+    depthCode?: string;
+    /**
+     *  reconciliation will happen only for style with the same runtimeId
+     */
+    runtimeId: string;
+}
+
+interface ModuleOptions {
+    /**
+     * module namespace
+     */
+    namespace: string;
+    /**
+     * static imports for the module
+     */
+    imports?: Array<{ from: string }>;
+    /**
+     * Stylable transforms exports
+     */
+    jsExports: StylableExports | { [K in keyof StylableExports]: string };
+    /**
+     * the request of the module runtime api e.g @stylable/runtime
+     */
+    runtimeRequest?: string;
+    /**
+     * target module format
+     */
+    moduleType: 'esm' | 'cjs';
+    /**
+     * es3 compat mode
+     */
+    varType?: 'const' | 'var';
+    /**
+     * inject code immediately after imports
+     */
+    header?: string;
+    /**
+     * inject code after the entire module code
+     */
+    footer?: string;
+}
+
+export function generateStylableJSModuleSource(
+    moduleOptions: ModuleOptions,
+    injectOptions?: InjectCSSOptions
+) {
+    const {
+        namespace,
+        imports = [],
+        jsExports,
+        moduleType,
+        runtimeRequest,
+        varType = 'const',
+        header = '',
+        footer = '',
+    } = moduleOptions;
+
+    const { classes, keyframes, layers, stVars, vars } = jsExports;
+    const exportKind = moduleType === 'esm' ? `export ${varType} ` : 'module.exports.';
+    return `
+${imports.map(moduleRequest(moduleType)).join('\n')}
+${runtimeImport(moduleType, runtimeRequest, injectOptions)}
+
+${header}
+
+${varType} _namespace_ = ${JSON.stringify(namespace)};
+${varType} _style_ = /*#__PURE__*/ classesRuntime.bind(null, _namespace_);
+
+${exportKind}cssStates = /*#__PURE__*/ statesRuntime.bind(null, _namespace_);
+${exportKind}style = /*#__PURE__*/ _style_;
+${exportKind}st = /*#__PURE__*/ _style_;
+
+${exportKind}namespace = _namespace_;
+${exportKind}classes = ${JSON.stringify(classes)};
+${exportKind}keyframes = ${JSON.stringify(keyframes)}; 
+${exportKind}layers = ${JSON.stringify(layers)};
+${exportKind}stVars = ${JSON.stringify(stVars)}; 
+${exportKind}vars = ${JSON.stringify(vars)}; 
+
+${runtimeExecuteInject(moduleType, injectOptions)}
+
+${footer}
+`;
+}
+
+function moduleRequest(moduleType: 'esm' | 'cjs') {
+    return (moduleRequest: { from: string }) => {
+        const request = JSON.stringify(moduleRequest.from);
+        return moduleType === 'esm' ? `import ${request};` : `require(${request});`;
+    };
+}
+
+function runtimeImport(
+    moduleType: 'esm' | 'cjs',
+    runtimeRequest: string | undefined,
+    injectOptions: InjectCSSOptions | undefined
+) {
+    const importInjectCSS = injectOptions?.css ? `, injectCSS` : '';
+    const request = JSON.stringify(
+        runtimeRequest ??
+            // TODO: we use direct requests here since we don't know how this will be resolved
+            (moduleType === 'esm'
+                ? '@stylable/runtime/esm/runtime'
+                : '@stylable/runtime/dist/runtime')
+    );
+    return moduleType === 'esm'
+        ? `import { classesRuntime, statesRuntime${importInjectCSS} } from ${request};`
+        : `const { classesRuntime, statesRuntime${importInjectCSS} } = require(${request});`;
+}
+
+function runtimeExecuteInject(
+    moduleType: 'esm' | 'cjs',
+    injectOptions: InjectCSSOptions | undefined
+) {
+    if (!injectOptions?.css) {
+        return '';
+    }
+    const { id, css, depthCode, depth, runtimeId } = injectOptions;
+
+    let out = 'injectCSS(';
+    out += id ? JSON.stringify(id) : moduleType === 'esm' ? 'import.meta.url' : 'module.id';
+    out += ', ';
+    out += JSON.stringify(css);
+    out += ', ';
+    out += depthCode || JSON.stringify(depth) || '-1';
+    out += ', ';
+    out += JSON.stringify(runtimeId);
+    out += ');';
+    return out;
+}
diff --git a/packages/module-utils/test/index.spec.ts b/packages/module-utils/test/index.spec.ts
index f353ca428..a80c48677 100644
--- a/packages/module-utils/test/index.spec.ts
+++ b/packages/module-utils/test/index.spec.ts
@@ -23,7 +23,7 @@ describe('Module Factory', () => {
         const testFile = '/entry.st.css';
         const { fs, factory, evalStylableModule } = moduleFactoryTestKit(
             {
-                [testFile]: '.root {}',
+                [testFile]: '.root {background: red}',
             },
             { injectCSS: false }
         );
@@ -33,11 +33,13 @@ describe('Module Factory', () => {
         const exports = evalStylableModule(moduleSource, testFile);
 
         expect(exports).to.deep.include({
-            $css: '',
+            namespace: 'entry',
             classes: {
                 root: 'entry__root',
             },
         });
+        expect(moduleSource).to.not.match(/background/);
+        expect(moduleSource).to.not.match(/injectCSS/);
     });
 
     it('should create a module with cross file use', () => {
@@ -84,8 +86,8 @@ describe('Module Factory', () => {
 
         const moduleSource = factory(fs.readFileSync(testFile, 'utf8'), testFile);
 
-        const exports = evalStylableModule(moduleSource, testFile);
-        expect(Object.keys(exports as {}).sort()).to.eql(
+        const exports = evalStylableModule<{}>(moduleSource, testFile);
+        expect(Object.keys(exports).sort()).to.eql(
             [
                 'namespace',
                 'classes',
@@ -96,9 +98,6 @@ describe('Module Factory', () => {
                 'cssStates',
                 'style',
                 'st',
-                '$id',
-                '$depth',
-                '$css',
             ].sort()
         );
     });
diff --git a/packages/module-utils/test/test-kit.ts b/packages/module-utils/test/test-kit.ts
index 00ceab098..c3cae8ea6 100644
--- a/packages/module-utils/test/test-kit.ts
+++ b/packages/module-utils/test/test-kit.ts
@@ -1,4 +1,4 @@
-import { create } from '@stylable/runtime';
+import * as runtime from '@stylable/runtime';
 import { stylableModuleFactory, Options } from '@stylable/module-utils';
 import type { IDirectoryContents } from '@file-services/types';
 import { createMemoryFs } from '@file-services/memory';
@@ -23,8 +23,8 @@ function evalModule(id: string, source: string, requireModule: (s: string) => an
  */
 export function evalStylableModule<T = unknown>(source: string, fullPath: string): T {
     return evalModule(fullPath, source, (id) => {
-        if (id === '@stylable/runtime') {
-            return { create };
+        if (id === '@stylable/runtime' || id === '@stylable/runtime/dist/runtime') {
+            return runtime;
         }
         throw new Error(`Could not find module: ${id}`);
     }) as T;
diff --git a/packages/node/test/require-hook.spec.ts b/packages/node/test/require-hook.spec.ts
index 2ddf98578..0670c8d0b 100644
--- a/packages/node/test/require-hook.spec.ts
+++ b/packages/node/test/require-hook.spec.ts
@@ -62,6 +62,7 @@ describe('require hook', () => {
     it('should ignoreJSModules', () => {
         attachHook({ ignoreJSModules: true });
         const m = require(join(fixturesPath, 'has-js.st.css'));
-        expect(m.$id).to.contain('has-js.st.css');
+        expect(m.test).equal(undefined);
+        expect(m.namespace).to.match(/^hasjs/);
     });
 });
diff --git a/packages/runtime/src/index.ts b/packages/runtime/src/index.ts
index b01e4c6e7..72203ba0d 100644
--- a/packages/runtime/src/index.ts
+++ b/packages/runtime/src/index.ts
@@ -15,3 +15,4 @@ export {
     RuntimeStVar,
 } from './types';
 export { DOMListRenderer, createDOMListRenderer } from './keyed-list-renderer';
+export * from './runtime';
diff --git a/packages/runtime/src/inject-styles.ts b/packages/runtime/src/inject-styles.ts
index 7b18ff5c6..7ca7756d7 100644
--- a/packages/runtime/src/inject-styles.ts
+++ b/packages/runtime/src/inject-styles.ts
@@ -44,4 +44,5 @@ export function injectStyles(host: Host) {
         }
     }
     host.sti = stylableRuntime;
+    return host;
 }
diff --git a/packages/runtime/src/runtime.ts b/packages/runtime/src/runtime.ts
index ce20c109e..7ef84952b 100644
--- a/packages/runtime/src/runtime.ts
+++ b/packages/runtime/src/runtime.ts
@@ -1,5 +1,6 @@
 /* eslint-disable no-var */
 import type { Host, StateMap, StateValue } from './types';
+import { injectStyles } from './inject-styles';
 
 export function stylesheet(host?: Host) {
     host = host || {};
@@ -87,3 +88,7 @@ export function stylesheet(host?: Host) {
     host.stc = cssStates;
     return host as Required<Pick<Host, 'stc' | 'sts'>>;
 }
+
+const { sti } = injectStyles({});
+const { stc, sts } = stylesheet({});
+export { sti as injectCSS, stc as statesRuntime, sts as classesRuntime };