diff --git a/packages/kbn-storybook/src/webpack.config.ts b/packages/kbn-storybook/src/webpack.config.ts
index fb901692e7f66..b03d78dbbc190 100644
--- a/packages/kbn-storybook/src/webpack.config.ts
+++ b/packages/kbn-storybook/src/webpack.config.ts
@@ -125,6 +125,17 @@ export default ({ config: storybookConfig }: { config: Configuration }) => {
             },
           ],
         },
+        {
+          test: /node_modules\/@?xstate5\/.*\.js$/,
+          use: {
+            loader: 'babel-loader',
+            options: {
+              babelrc: false,
+              presets: [require.resolve('@kbn/babel-preset/webpack_preset')],
+              plugins: ['@babel/plugin-transform-logical-assignment-operators'],
+            },
+          },
+        },
       ],
     },
     plugins: [new IgnoreNotFoundExportPlugin()],