diff --git a/templates/common/Gruntfile.js b/templates/common/Gruntfile.js
index add91c7..36e9817 100644
--- a/templates/common/Gruntfile.js
+++ b/templates/common/Gruntfile.js
@@ -27,6 +27,7 @@ module.exports = function (grunt) {
 
     'webpack-dev-server': {
       options: {
+        hot: true,
         port: 8000,
         webpack: webpackDevConfig,
         publicPath: '/assets/',
diff --git a/templates/common/_package.json b/templates/common/_package.json
index 587c1fa..3b8c387 100644
--- a/templates/common/_package.json
+++ b/templates/common/_package.json
@@ -35,6 +35,7 @@
     "grunt-open": "~0.2.3",
     "jshint-loader": "~0.8.0",
     "grunt-contrib-copy": "~0.5.0",
-    "grunt-contrib-clean": "~0.6.0"
+    "grunt-contrib-clean": "~0.6.0",
+    "react-hot-loader": "^0.4.5"
   }
 }
diff --git a/templates/common/root/webpack.config.js b/templates/common/root/webpack.config.js
index 1235f53..4c69e48 100644
--- a/templates/common/root/webpack.config.js
+++ b/templates/common/root/webpack.config.js
@@ -6,6 +6,7 @@
  */
 
 'use strict';
+var webpack = require('webpack');
 
 module.exports = {
 
@@ -17,7 +18,10 @@ module.exports = {
   cache: true,
   debug: true,
   devtool: false,
-  entry: './src/scripts/components/<%= pkg.mainInput %>.jsx',
+  entry: [
+      'webpack/hot/only-dev-server',
+      './src/scripts/components/<%= pkg.mainInput %>.jsx'
+  ],
 
   stats: {
     colors: true,
@@ -37,7 +41,7 @@ module.exports = {
 
     loaders: [{
       test: /\.jsx$/,
-      loader: 'jsx-loader?harmony'
+      loader: 'react-hot!jsx-loader?harmony'
     }, {
       test: /\.css$/,
       loader: 'style-loader!css-loader'
@@ -45,6 +49,11 @@ module.exports = {
       test: /\.(png|jpg)$/,
       loader: 'url-loader?limit=8192'
     }]
-  }
+  },
+
+  plugins: [
+    new webpack.HotModuleReplacementPlugin(),
+    new webpack.NoErrorsPlugin()
+  ]
 
 };
diff --git a/test/test-creation.js b/test/test-creation.js
index e9e589b..b006aa5 100644
--- a/test/test-creation.js
+++ b/test/test-creation.js
@@ -3,6 +3,7 @@
 
 var path = require('path');
 var helpers = require('yeoman-generator').test;
+var assert = require('yeoman-generator').assert;
 var _ = require('underscore.string');
 
 describe('react-webpack generator', function() {
@@ -93,6 +94,20 @@ describe('react-webpack generator', function() {
       });
     });
 
+    it('should use HMR webpack API inside of configs', function (done) {
+      react.run({}, function() {
+        assert.fileContent([
+            ['package.json', /react-hot-loader/],
+            ['Gruntfile.js', /hot:\s*true/],
+            ['webpack.config.js', /react-hot/],
+            ['webpack.config.js', /webpack\.HotModuleReplacementPlugin/],
+            ['webpack.config.js', /webpack\.NoErrorsPlugin/],
+            ['webpack.config.js', /webpack\/hot\/only-dev-server/]
+        ]);
+        done();
+      });
+    });
+
   });
 
   describe('Subgenerators', function() {