diff --git a/.changeset/babel-loader-flow-pragma-gate.md b/.changeset/babel-loader-flow-pragma-gate.md
new file mode 100644
index 000000000..74a86fc9a
--- /dev/null
+++ b/.changeset/babel-loader-flow-pragma-gate.md
@@ -0,0 +1,10 @@
+---
+"@callstack/repack": patch
+---
+
+Send only sources carrying an `@flow` pragma through hermes-parser in `babelLoader`, matching
+`babel-plugin-syntax-hermes-parser` with the React Native preset's default
+`parseLangTypes: 'flow'`. hermes-parser converts its own AST into a Babel AST, and that conversion
+is quadratic in the number of sibling nodes, so a single prebuilt minified dependency could add
+minutes to a build. Set `hermesParserOverrides.flow` to `'all'` to keep parsing every file with
+hermes-parser.
diff --git a/packages/repack/src/loaders/babelLoader/__tests__/babelLoader.test.ts b/packages/repack/src/loaders/babelLoader/__tests__/babelLoader.test.ts
index 5bc77a195..277d8f881 100644
--- a/packages/repack/src/loaders/babelLoader/__tests__/babelLoader.test.ts
+++ b/packages/repack/src/loaders/babelLoader/__tests__/babelLoader.test.ts
@@ -1,4 +1,5 @@
 import { transform } from '../babelLoader.js';
+import { loadHermesParser } from '../utils.js';
 
 jest.mock('../utils.js', () => {
   const actual = jest.requireActual('../utils.js');
@@ -12,12 +13,68 @@ jest.mock('../utils.js', () => {
       ) =>
         parseSync(src, {
           sourceType: opts?.sourceType ?? 'unambiguous',
+          // the stand-in parser runs outside of a file context, so skip config lookup
+          filename: '/virtual/hermes-parser-stand-in.js',
+          babelrc: false,
+          configFile: false,
         }),
     })),
   };
 });
 
+const baseTransformOptions = (filename: string) => ({
+  caller: { name: 'jest-babel-loader-test' },
+  filename,
+  sourceMaps: false,
+  sourceFileName: filename,
+  sourceRoot: '/virtual',
+  envName: 'production',
+});
+
 describe('babelLoader', () => {
+  describe('parser selection', () => {
+    beforeEach(() => {
+      jest.clearAllMocks();
+    });
+
+    it('skips hermes-parser for sources without an @flow pragma', async () => {
+      await transform(
+        'export const answer = 42;',
+        baseTransformOptions('/virtual/plain.js')
+      );
+
+      expect(loadHermesParser).not.toHaveBeenCalled();
+    });
+
+    it('uses hermes-parser for sources with an @flow pragma', async () => {
+      await transform(
+        '// @flow\nexport const answer = 42;',
+        baseTransformOptions('/virtual/flow.js')
+      );
+
+      expect(loadHermesParser).toHaveBeenCalled();
+    });
+
+    it('uses hermes-parser for every source when flow is set to all', async () => {
+      await transform(
+        'export const answer = 42;',
+        baseTransformOptions('/virtual/plain.js'),
+        { hermesParserOverrides: { flow: 'all' } }
+      );
+
+      expect(loadHermesParser).toHaveBeenCalled();
+    });
+
+    it('skips hermes-parser for TypeScript sources', async () => {
+      await transform(
+        '// @flow\nexport const answer: number = 42;',
+        baseTransformOptions('/virtual/typescript.ts')
+      );
+
+      expect(loadHermesParser).not.toHaveBeenCalled();
+    });
+  });
+
   describe('includePlugins', () => {
     it('includes @babel/plugin-transform-react-jsx and transforms JSX', async () => {
       const src = 'export const Component = () => <View test={1} />;';
diff --git a/packages/repack/src/loaders/babelLoader/babelLoader.ts b/packages/repack/src/loaders/babelLoader/babelLoader.ts
index e9ba968f6..dc220a68b 100644
--- a/packages/repack/src/loaders/babelLoader/babelLoader.ts
+++ b/packages/repack/src/loaders/babelLoader/babelLoader.ts
@@ -1,6 +1,7 @@
 import {
   type BabelFileResult,
   loadOptions,
+  type ParseResult,
   parseSync,
   type TransformOptions,
   transformFromAstSync,
@@ -16,6 +17,7 @@ import {
   isTSXSource,
   isTypeScriptSource,
   loadHermesParser,
+  shouldUseHermesParser,
 } from './utils.js';
 
 export const raw = false;
@@ -78,23 +80,33 @@ export const transform = async (
     excludePlugins: customOptions?.excludePlugins,
   });
   const projectRoot = babelConfig.root ?? babelConfig.cwd;
-  // load hermes parser dynamically to match the version from preset
-  const hermesParser = await loadHermesParser(
-    projectRoot,
-    customOptions?.hermesParserPath
-  );
 
   // filename will be always defined at this point
-  const sourceAst =
+  const isTypeScript =
     isTypeScriptSource(babelConfig.filename!) ||
-    isTSXSource(babelConfig.filename!)
-      ? parseSync(src, babelConfig)
-      : hermesParser.parse(src, {
-          babel: true,
-          reactRuntimeTarget: '19',
-          sourceType: babelConfig.sourceType,
-          ...customOptions?.hermesParserOverrides,
-        });
+    isTSXSource(babelConfig.filename!);
+
+  const needsHermesParser =
+    !isTypeScript &&
+    shouldUseHermesParser(src, customOptions?.hermesParserOverrides?.flow);
+
+  let sourceAst: ParseResult | null;
+  if (needsHermesParser) {
+    // load hermes parser dynamically to match the version from preset
+    const hermesParser = await loadHermesParser(
+      projectRoot,
+      customOptions?.hermesParserPath
+    );
+
+    sourceAst = hermesParser.parse(src, {
+      babel: true,
+      reactRuntimeTarget: '19',
+      sourceType: babelConfig.sourceType,
+      ...customOptions?.hermesParserOverrides,
+    });
+  } else {
+    sourceAst = parseSync(src, babelConfig);
+  }
 
   if (!sourceAst) {
     throw new Error(`Failed to parse source file: ${babelConfig.filename}`);
diff --git a/packages/repack/src/loaders/babelLoader/utils.ts b/packages/repack/src/loaders/babelLoader/utils.ts
index 670897a32..58ae1133b 100644
--- a/packages/repack/src/loaders/babelLoader/utils.ts
+++ b/packages/repack/src/loaders/babelLoader/utils.ts
@@ -13,6 +13,8 @@ interface HermesParser {
   ) => ParseResult;
 }
 
+const FLOW_PRAGMA_REGEX = /@flow/;
+
 export function isTypeScriptSource(fileName: string) {
   return !!fileName && fileName.endsWith('.ts');
 }
@@ -21,6 +23,24 @@ export function isTSXSource(fileName: string) {
   return !!fileName && fileName.endsWith('.tsx');
 }
 
+/**
+ * Decides whether a source file needs hermes-parser.
+ *
+ * Mirrors `babel-plugin-syntax-hermes-parser` with the React Native preset's default
+ * `parseLangTypes: 'flow'`, which sends only files carrying an `@flow` pragma to hermes-parser
+ * and leaves everything else to `@babel/parser`. hermes-parser converts its own AST into a Babel
+ * AST, and that conversion is quadratic in the number of sibling nodes, so prebuilt minified
+ * dependencies can take minutes.
+ *
+ * `flow: 'all'` opts every file back into hermes-parser.
+ */
+export function shouldUseHermesParser(
+  src: string,
+  flow?: 'all' | 'detect'
+): boolean {
+  return flow === 'all' || FLOW_PRAGMA_REGEX.test(src);
+}
+
 function resolveHermesParser(projectRoot: string) {
   const reactNativeBabelPresetPath = require.resolve(
     '@react-native/babel-preset',