diff --git a/packages/react-scripts/config/paths.js b/packages/react-scripts/config/paths.js
index b719054583b..c4549cc14e2 100644
--- a/packages/react-scripts/config/paths.js
+++ b/packages/react-scripts/config/paths.js
@@ -58,6 +58,7 @@ const moduleFileExtensions = [
   'json',
   'web.jsx',
   'jsx',
+  'wasm',
 ];
 
 // Resolve file paths in the same order as webpack
diff --git a/packages/react-scripts/config/webpack.config.js b/packages/react-scripts/config/webpack.config.js
index 746884a03eb..4a558d6b1e1 100644
--- a/packages/react-scripts/config/webpack.config.js
+++ b/packages/react-scripts/config/webpack.config.js
@@ -506,7 +506,7 @@ module.exports = function(webpackEnv) {
               // its runtime that would otherwise be processed through "file" loader.
               // Also exclude `html` and `json` extensions so they get processed
               // by webpacks internal loaders.
-              exclude: [/\.(js|mjs|jsx|ts|tsx)$/, /\.html$/, /\.json$/],
+              exclude: [/\.(js|mjs|jsx|ts|tsx|wasm)$/, /\.html$/, /\.json$/],
               options: {
                 name: 'static/media/[name].[hash:8].[ext]',
               },
diff --git a/packages/react-scripts/package.json b/packages/react-scripts/package.json
index 1f6b8cfafec..31623c423fd 100644
--- a/packages/react-scripts/package.json
+++ b/packages/react-scripts/package.json
@@ -67,7 +67,7 @@
     "style-loader": "0.23.0",
     "terser-webpack-plugin": "1.1.0",
     "url-loader": "1.1.1",
-    "webpack": "4.19.1",
+    "webpack": "4.26.1",
     "webpack-dev-server": "3.1.9",
     "webpack-manifest-plugin": "2.0.4",
     "workbox-webpack-plugin": "3.6.3"