diff --git a/packages/next/src/build/webpack-config.ts b/packages/next/src/build/webpack-config.ts
index f9c462c1bdc8b..b180e71fd1865 100644
--- a/packages/next/src/build/webpack-config.ts
+++ b/packages/next/src/build/webpack-config.ts
@@ -461,8 +461,8 @@ export default async function getBaseWebpackConfig(
 
   const swcLoaderForMiddlewareLayer = useSWCLoader
     ? getSwcLoader({
-        serverComponents: false,
-        isReactServerLayer: false,
+        serverComponents: true,
+        isReactServerLayer: true,
       })
     : // When using Babel, we will have to use SWC to do the optimization
       // for middleware to tree shake the unused default optimized imports like "next/server".
@@ -470,8 +470,8 @@ export default async function getBaseWebpackConfig(
       // acceptable as Babel will not be recommended.
       [
         getSwcLoader({
-          serverComponents: false,
-          isReactServerLayer: false,
+          serverComponents: true,
+          isReactServerLayer: true,
         }),
         getBabelLoader(),
       ]
diff --git a/packages/next/src/lib/constants.ts b/packages/next/src/lib/constants.ts
index 25d026a4a43c9..b943c19cecdf1 100644
--- a/packages/next/src/lib/constants.ts
+++ b/packages/next/src/lib/constants.ts
@@ -154,12 +154,9 @@ const WEBPACK_LAYERS = {
       WEBPACK_LAYERS_NAMES.actionBrowser,
       WEBPACK_LAYERS_NAMES.appMetadataRoute,
       WEBPACK_LAYERS_NAMES.appRouteHandler,
-    ],
-    nonClientServerTarget: [
-      // plus middleware and pages api
       WEBPACK_LAYERS_NAMES.middleware,
-      WEBPACK_LAYERS_NAMES.api,
     ],
+    nonClientServerTarget: [WEBPACK_LAYERS_NAMES.api],
     app: [
       WEBPACK_LAYERS_NAMES.reactServerComponents,
       WEBPACK_LAYERS_NAMES.actionBrowser,
diff --git a/test/e2e/module-layer/index.test.ts b/test/e2e/module-layer/index.test.ts
index 4aef0e35246fe..701050aaaa34f 100644
--- a/test/e2e/module-layer/index.test.ts
+++ b/test/e2e/module-layer/index.test.ts
@@ -1,11 +1,12 @@
 import { createNextDescribe } from 'e2e-utils'
+import { getRedboxSource, hasRedbox } from 'next-test-utils'
 
 createNextDescribe(
   'module layer',
   {
     files: __dirname,
   },
-  ({ next, isNextStart }) => {
+  ({ next, isNextStart, isNextDev }) => {
     function runTests() {
       it('should render routes marked with restriction marks without errors', async () => {
         const routes = [
@@ -60,45 +61,60 @@ createNextDescribe(
       }
     }
 
-    describe('no server-only in server targets', () => {
-      const middlewareFile = 'middleware.js'
-      // const pagesApiFile = 'pages/api/hello.js'
-      let middlewareContent = ''
-      // let pagesApiContent = ''
+    describe('with server-only in server targets', () => {
+      runTests()
+    })
 
-      beforeAll(async () => {
-        await next.stop()
+    // Should error for using mixed (with client-only) in server targets
+    if (isNextDev) {
+      describe('no server-only in server targets', () => {
+        const middlewareFile = 'middleware.js'
+        // const pagesApiFile = 'pages/api/hello.js'
+        let middlewareContent = ''
+        // let pagesApiContent = ''
 
-        middlewareContent = await next.readFile(middlewareFile)
-        // pagesApiContent = await next.readFile(pagesApiFile)
+        beforeAll(async () => {
+          await next.stop()
 
-        await next.patchFile(
-          middlewareFile,
-          middlewareContent
-            .replace("import 'server-only'", "// import 'server-only'")
-            .replace("// import './lib/mixed-lib'", "import './lib/mixed-lib'")
-        )
+          middlewareContent = await next.readFile(middlewareFile)
+          // pagesApiContent = await next.readFile(pagesApiFile)
 
-        // await next.patchFile(
-        //   pagesApiFile,
-        //   pagesApiContent
-        //     .replace("import 'server-only'", "// import 'server-only'")
-        //     .replace(
-        //       "// import '../../lib/mixed-lib'",
-        //       "import '../../lib/mixed-lib'"
-        //     )
-        // )
+          await next.patchFile(
+            middlewareFile,
+            middlewareContent
+              // .replace("import 'server-only'", "// import 'server-only'")
+              .replace(
+                "// import './lib/mixed-lib'",
+                "import './lib/mixed-lib'"
+              )
+          )
 
-        await next.start()
-      })
-      afterAll(async () => {
-        await next.patchFile(middlewareFile, middlewareContent)
-        // await next.patchFile(pagesApiFile, pagesApiContent)
+          // await next.patchFile(
+          //   pagesApiFile,
+          //   pagesApiContent
+          //     .replace("import 'server-only'", "// import 'server-only'")
+          //     .replace(
+          //       "// import '../../lib/mixed-lib'",
+          //       "import '../../lib/mixed-lib'"
+          //     )
+          // )
+
+          await next.start()
+        })
+        afterAll(async () => {
+          await next.patchFile(middlewareFile, middlewareContent)
+          // await next.patchFile(pagesApiFile, pagesApiContent)
+        })
+
+        it('should error when import client-only in middleware', async () => {
+          const browser = await next.browser('/')
+
+          expect(await hasRedbox(browser, true)).toBe(true)
+          expect(await getRedboxSource(browser)).toContain(
+            `You're importing a component that imports client-only. It only works in a Client Component but none of its parents are marked with "use client", so they're Server Components by default.`
+          )
+        })
       })
-      runTests()
-    })
-    describe('with server-only in server targets', () => {
-      runTests()
-    })
+    }
   }
 )