diff --git a/packages/zitadel-client/tsconfig.json b/packages/zitadel-client/tsconfig.json
index e502a91e1..5f0ea6911 100644
--- a/packages/zitadel-client/tsconfig.json
+++ b/packages/zitadel-client/tsconfig.json
@@ -1,8 +1,5 @@
 {
-  "extends": "@zitadel/tsconfig/node14.json",
-  "include": ["."],
-  "compilerOptions": {
-    "baseUrl": "."
-  },
+  "extends": "@zitadel/tsconfig/tsup.json",
+  "include": ["./src/**/*"],
   "exclude": ["dist", "build", "node_modules"]
 }
diff --git a/packages/zitadel-server/tsconfig.json b/packages/zitadel-server/tsconfig.json
index 3d12dfd62..5f0ea6911 100644
--- a/packages/zitadel-server/tsconfig.json
+++ b/packages/zitadel-server/tsconfig.json
@@ -1,9 +1,5 @@
 {
-  "extends": "@zitadel/tsconfig/node14.json",
-  "include": ["src/**/*.ts"],
-  "compilerOptions": {
-    "baseUrl": ".",
-    "rootDir": "src"
-  },
+  "extends": "@zitadel/tsconfig/tsup.json",
+  "include": ["./src/**/*"],
   "exclude": ["dist", "build", "node_modules"]
 }
diff --git a/packages/zitadel-tsconfig/base.json b/packages/zitadel-tsconfig/base.json
index d72a9f3a2..6d65860cc 100644
--- a/packages/zitadel-tsconfig/base.json
+++ b/packages/zitadel-tsconfig/base.json
@@ -9,7 +9,7 @@
     "forceConsistentCasingInFileNames": true,
     "inlineSources": false,
     "isolatedModules": true,
-    "moduleResolution": "node",
+    "moduleResolution": "node16",
     "noUnusedLocals": false,
     "noUnusedParameters": false,
     "preserveWatchOutput": true,
diff --git a/packages/zitadel-tsconfig/nextjs.json b/packages/zitadel-tsconfig/nextjs.json
index 279282183..eaa9942e1 100644
--- a/packages/zitadel-tsconfig/nextjs.json
+++ b/packages/zitadel-tsconfig/nextjs.json
@@ -12,11 +12,14 @@
     "noEmit": true,
     "esModuleInterop": true,
     "module": "esnext",
-    "moduleResolution": "node",
+    "moduleResolution": "bundler",
     "resolveJsonModule": true,
     "isolatedModules": true,
     "jsx": "preserve",
     "incremental": true,
+    "preserveSymlinks": true,
+    "declaration": false,
+    "declarationMap": false,
     "baseUrl": ".",
     "plugins": [
       {
diff --git a/packages/zitadel-tsconfig/node14.json b/packages/zitadel-tsconfig/node20.json
similarity index 54%
rename from packages/zitadel-tsconfig/node14.json
rename to packages/zitadel-tsconfig/node20.json
index 5b0728a3e..bc88cfbee 100644
--- a/packages/zitadel-tsconfig/node14.json
+++ b/packages/zitadel-tsconfig/node20.json
@@ -1,10 +1,10 @@
 {
   "$schema": "https://json.schemastore.org/tsconfig",
-  "display": "Node 14",
+  "display": "Node 20",
   "extends": "./base.json",
   "compilerOptions": {
-    "lib": ["ES2020"],
-    "module": "commonjs",
-    "target": "ES2020"
+    "lib": ["es2023"],
+    "module": "node16",
+    "target": "es2022"
   }
 }
diff --git a/packages/zitadel-tsconfig/react-library.json b/packages/zitadel-tsconfig/react-library.json
index fc1e02a96..3f6e3580f 100644
--- a/packages/zitadel-tsconfig/react-library.json
+++ b/packages/zitadel-tsconfig/react-library.json
@@ -5,7 +5,7 @@
   "compilerOptions": {
     "jsx": "react-jsx",
     "lib": ["dom", "ES2015"],
-    "module": "ESNext",
-    "target": "es6"
+    "module": "preserve",
+    "moduleResolution": "Bundler"
   }
 }
diff --git a/packages/zitadel-tsconfig/tsup.json b/packages/zitadel-tsconfig/tsup.json
new file mode 100644
index 000000000..3e1ddbc44
--- /dev/null
+++ b/packages/zitadel-tsconfig/tsup.json
@@ -0,0 +1,9 @@
+{
+  "$schema": "https://json.schemastore.org/tsconfig",
+  "display": "tsup",
+  "extends": "./node20.json",
+  "compilerOptions": {
+    "module": "preserve",
+    "moduleResolution": "Bundler"
+  }
+}