diff --git a/src/index.js b/src/index.js
index 8db36879..6b02897b 100644
--- a/src/index.js
+++ b/src/index.js
@@ -365,12 +365,18 @@ function ncc (
             options: {
               transpileOnly,
               compiler: eval('__dirname + "/typescript.js"'),
+              // ncc emits JS, so noEmit is forced off. TS5096 then fires if the
+              // project enabled allowImportingTsExtensions; ignore that config error.
+              ignoreDiagnostics: (fullTsconfig.compilerOptions || {}).allowImportingTsExtensions
+                ? [5096]
+                : [],
               compilerOptions: {
                 module: 'esnext',
                 target: 'esnext',
                 ...fullTsconfig.compilerOptions,
                 allowSyntheticDefaultImports: true,
                 noEmit: false,
+                emitDeclarationOnly: false,
                 outDir: '//'
               }
             }
diff --git a/test/cli.js b/test/cli.js
index 1ac38536..e038095f 100644
--- a/test/cli.js
+++ b/test/cli.js
@@ -70,6 +70,13 @@ module.exports = [
     args: ["run", "-t", "test/fixtures/with-type-errors/ts-error.ts"],
     expect: { code: 0 }
   },
+  {
+    args: ["build", "-o", "tmp", "test/fixtures/ts-allow-importing-ts-extensions/input.ts"],
+    expect (code, stdout, stderr) {
+      const fs = require('fs');
+      return code === 0 && fs.readFileSync(join('tmp', 'index.js'), 'utf8').indexOf('value') !== -1;
+    }
+  },
   {
     args: ["build", "-o", "tmp", "test/fixtures/test.cjs"],
     expect (code, stdout, stderr) {
diff --git a/test/fixtures/ts-allow-importing-ts-extensions/dep.ts b/test/fixtures/ts-allow-importing-ts-extensions/dep.ts
new file mode 100644
index 00000000..efeee5db
--- /dev/null
+++ b/test/fixtures/ts-allow-importing-ts-extensions/dep.ts
@@ -0,0 +1 @@
+export const value = 1;
diff --git a/test/fixtures/ts-allow-importing-ts-extensions/input.ts b/test/fixtures/ts-allow-importing-ts-extensions/input.ts
new file mode 100644
index 00000000..be4af8ed
--- /dev/null
+++ b/test/fixtures/ts-allow-importing-ts-extensions/input.ts
@@ -0,0 +1,2 @@
+import { value } from './dep.ts';
+console.log(value);
diff --git a/test/fixtures/ts-allow-importing-ts-extensions/tsconfig.json b/test/fixtures/ts-allow-importing-ts-extensions/tsconfig.json
new file mode 100644
index 00000000..dcaf38d4
--- /dev/null
+++ b/test/fixtures/ts-allow-importing-ts-extensions/tsconfig.json
@@ -0,0 +1,9 @@
+{
+  "compilerOptions": {
+    "target": "ESNext",
+    "module": "ESNext",
+    "moduleResolution": "bundler",
+    "allowImportingTsExtensions": true,
+    "noEmit": true
+  }
+}