jest.config.js

// 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 = {
  // Add more setup options before each test is run
  // setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  // if using TypeScript with a baseUrl set to the root directory then you need the below for alias' to work
  modulePaths: ['<rootDir>/src'],
  testEnvironment: 'jest-environment-jsdom',
  // Math aliases too instead of just baseUrl
  moduleNameMapper: {
    '^@components(.*)$': '<rootDir>/src/components$1',
    '^@lib(.*)$': '<rootDir>/src/lib$1',
    '^@styles(.*)$': '<rootDir>/src/styles$1'
  }
};

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