diff --git a/packages/next/build/swc/options.js b/packages/next/build/swc/options.js
index 362ce88a42a55..8e1a5820a350b 100644
--- a/packages/next/build/swc/options.js
+++ b/packages/next/build/swc/options.js
@@ -43,10 +43,7 @@ function getBaseSWCOptions({
         },
       },
     },
-    styledComponents: {
-      displayName: styledComponents,
-      ssr: styledComponents,
-    },
+    styledComponents: styledComponents ? {} : null,
   }
 }
 
diff --git a/test/development/basic/styled-components-disabled.test.ts b/test/development/basic/styled-components-disabled.test.ts
new file mode 100644
index 0000000000000..af49dd5deb910
--- /dev/null
+++ b/test/development/basic/styled-components-disabled.test.ts
@@ -0,0 +1,65 @@
+import { join } from 'path'
+import webdriver from 'next-webdriver'
+import { createNext, FileRef } from 'e2e-utils'
+import { NextInstance } from 'test/lib/next-modes/base'
+import { fetchViaHTTP } from 'next-test-utils'
+
+describe('styled-components SWC transform', () => {
+  let next: NextInstance
+
+  beforeAll(async () => {
+    next = await createNext({
+      files: {
+        'next.config.js': new FileRef(
+          join(__dirname, 'styled-components-disabled/next.config.js')
+        ),
+        pages: new FileRef(join(__dirname, 'styled-components-disabled/pages')),
+      },
+      dependencies: {
+        'styled-components': '5.3.3',
+      },
+    })
+  })
+  afterAll(() => next.destroy())
+
+  async function matchLogs$(browser) {
+    let foundLog = false
+
+    const browserLogs = await browser.log('browser')
+
+    browserLogs.forEach((log) => {
+      if (log.message.includes('Warning: Prop `%s` did not match.')) {
+        foundLog = true
+      }
+    })
+    return foundLog
+  }
+  it('should have hydration mismatch with styled-components transform disabled', async () => {
+    let browser
+    try {
+      browser = await webdriver(next.appPort, '/')
+
+      // Compile /_error
+      await fetchViaHTTP(next.appPort, '/404')
+
+      try {
+        // Try 4 times to be sure there is no mismatch
+        expect(await matchLogs$(browser)).toBe(false)
+        await browser.refresh()
+        expect(await matchLogs$(browser)).toBe(false)
+        await browser.refresh()
+        expect(await matchLogs$(browser)).toBe(false)
+        await browser.refresh()
+        expect(await matchLogs$(browser)).toBe(false)
+        throw new Error('did not find mismatch')
+      } catch (err) {
+        // Verify that it really has the logs
+        expect(await matchLogs$(browser)).toBe(true)
+      }
+    } finally {
+      if (browser) {
+        await browser.close()
+      }
+    }
+  })
+})
diff --git a/test/development/basic/styled-components-disabled/next.config.js b/test/development/basic/styled-components-disabled/next.config.js
new file mode 100644
index 0000000000000..4ba52ba2c8df6
--- /dev/null
+++ b/test/development/basic/styled-components-disabled/next.config.js
@@ -0,0 +1 @@
+module.exports = {}
diff --git a/test/development/basic/styled-components-disabled/pages/_app.js b/test/development/basic/styled-components-disabled/pages/_app.js
new file mode 100644
index 0000000000000..019f78b2afc64
--- /dev/null
+++ b/test/development/basic/styled-components-disabled/pages/_app.js
@@ -0,0 +1,26 @@
+import { createGlobalStyle, ThemeProvider } from 'styled-components'
+
+const GlobalStyle = createGlobalStyle`
+  body {
+    margin: 0;
+    padding: 0;
+    box-sizing: border-box;
+  }
+`
+
+const theme = {
+  colors: {
+    primary: '#0070f3',
+  },
+}
+
+export default function App({ Component, pageProps }) {
+  return (
+    <>
+      <GlobalStyle />
+      <ThemeProvider theme={theme}>
+        <Component {...pageProps} />
+      </ThemeProvider>
+    </>
+  )
+}
diff --git a/test/development/basic/styled-components-disabled/pages/_document.js b/test/development/basic/styled-components-disabled/pages/_document.js
new file mode 100644
index 0000000000000..2a59afeb93c1f
--- /dev/null
+++ b/test/development/basic/styled-components-disabled/pages/_document.js
@@ -0,0 +1,30 @@
+import Document from 'next/document'
+import { ServerStyleSheet } from 'styled-components'
+
+export default class MyDocument extends Document {
+  static async getInitialProps(ctx) {
+    const sheet = new ServerStyleSheet()
+    const originalRenderPage = ctx.renderPage
+
+    try {
+      ctx.renderPage = () =>
+        originalRenderPage({
+          enhanceApp: (App) => (props) =>
+            sheet.collectStyles(<App {...props} />),
+        })
+
+      const initialProps = await Document.getInitialProps(ctx)
+      return {
+        ...initialProps,
+        styles: (
+          <>
+            {initialProps.styles}
+            {sheet.getStyleElement()}
+          </>
+        ),
+      }
+    } finally {
+      sheet.seal()
+    }
+  }
+}
diff --git a/test/development/basic/styled-components-disabled/pages/index.js b/test/development/basic/styled-components-disabled/pages/index.js
new file mode 100644
index 0000000000000..31bd1226e7689
--- /dev/null
+++ b/test/development/basic/styled-components-disabled/pages/index.js
@@ -0,0 +1,38 @@
+import styled, { css } from 'styled-components'
+const Button = styled.a`
+  /* This renders the buttons above... Edit me! */
+  display: inline-block;
+  border-radius: 3px;
+  padding: 0.5rem 0;
+  margin: 0.5rem 1rem;
+  width: 11rem;
+  background: transparent;
+  color: white;
+  border: 2px solid white;
+
+  /* The GitHub button is a primary button
+   * edit this to target it specifically! */
+  ${(props) =>
+    props.primary &&
+    css`
+      background: white;
+      color: black;
+    `}
+`
+
+export default function Home() {
+  return (
+    <div>
+      <Button
+        href="https://github.com/styled-components/styled-components"
+        target="_blank"
+        rel="noopener"
+        primary
+      >
+        GitHub
+      </Button>
+
+      <Button href="/docs">Documentation</Button>
+    </div>
+  )
+}
diff --git a/test/development/basic/styled-components.test.ts b/test/development/basic/styled-components.test.ts
index 99838fd36f4fb..c17cc8f7be609 100644
--- a/test/development/basic/styled-components.test.ts
+++ b/test/development/basic/styled-components.test.ts
@@ -10,9 +10,9 @@ describe('styled-components SWC transform', () => {
   beforeAll(async () => {
     next = await createNext({
       files: {
-        // 'next.config.js': new FileRef(
-        //   join(__dirname, 'styled-components/next.config.js')
-        // ),
+        'next.config.js': new FileRef(
+          join(__dirname, 'styled-components/next.config.js')
+        ),
         pages: new FileRef(join(__dirname, 'styled-components/pages')),
       },
       dependencies: {
@@ -28,7 +28,6 @@ describe('styled-components SWC transform', () => {
     const browserLogs = await browser.log('browser')
 
     browserLogs.forEach((log) => {
-      console.error({ log })
       if (log.message.includes('Warning: Prop `%s` did not match.')) {
         foundLog = true
       }