jest.config.js

const nextJest = require('next/jest');

const createJestConfig = nextJest({
  // Provide the path to your Next.js app to load next.config.js and .env files in your test environment
  dir: './',
});

// Add any custom config to be passed to Jest
const customJestConfig = {
  setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  moduleNameMapper: {
    // Handle module aliases (this will be automatically configured for you soon)
    '^@/components/(.*)$': '<rootDir>/components/$1',
    '^components/(.*)$': '<rootDir>/components/$1',
    '^components/(.*)$': '<rootDir>/components/$1',
    '^@/pages/(.*)$': '<rootDir>/pages/$1',
    '^common/(.*)$': '<rootDir>/common/$1',
    '^context/(.*)$': '<rootDir>/context/$1',
  },
  testEnvironment: 'jest-environment-jsdom',
  testMatch: ['**/tests/**/*.test.[jt]s'],
};

// createJestConfig is exported this way to ensure that next/jest can load the Next.js config which is async
module.exports = createJestConfig(customJestConfig);