diff --git a/npm/vite-dev-server/package.json b/npm/vite-dev-server/package.json
index 751a25976e4f..85b284f6ba68 100644
--- a/npm/vite-dev-server/package.json
+++ b/npm/vite-dev-server/package.json
@@ -26,7 +26,7 @@
     "dedent": "^0.7.0",
     "mocha": "^9.2.2",
     "sinon": "^13.0.1",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "vite": "3.0.3",
     "vite-plugin-inspect": "0.4.3"
   },
diff --git a/npm/webpack-dev-server/package.json b/npm/webpack-dev-server/package.json
index f2e369047448..086e9880a07f 100644
--- a/npm/webpack-dev-server/package.json
+++ b/npm/webpack-dev-server/package.json
@@ -37,7 +37,7 @@
     "proxyquire": "2.1.3",
     "sinon": "^13.0.1",
     "snap-shot-it": "^7.9.6",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "webpack": "npm:webpack@^5",
     "webpack-4": "npm:webpack@^4",
     "webpack-dev-server-3": "npm:webpack-dev-server@^3"
diff --git a/npm/webpack-preprocessor/package.json b/npm/webpack-preprocessor/package.json
index 390f12d8f08b..894b78f5765f 100644
--- a/npm/webpack-preprocessor/package.json
+++ b/npm/webpack-preprocessor/package.json
@@ -58,7 +58,7 @@
     "sinon": "^9.0.0",
     "sinon-chai": "^3.5.0",
     "snap-shot-it": "7.9.2",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "webpack": "^4.44.2"
   },
   "peerDependencies": {
diff --git a/package.json b/package.json
index 5fc4ad282b57..46d566a9c7c7 100644
--- a/package.json
+++ b/package.json
@@ -214,7 +214,7 @@
     "through": "2.3.8",
     "through2": "^4.0.2",
     "tree-kill": "1.2.2",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "typescript": "^4.7.4",
     "yarn-deduplicate": "3.1.0"
   },
diff --git a/packages/data-context/src/data/ProjectConfigIpc.ts b/packages/data-context/src/data/ProjectConfigIpc.ts
index a2125ae9844f..3a96e89f9912 100644
--- a/packages/data-context/src/data/ProjectConfigIpc.ts
+++ b/packages/data-context/src/data/ProjectConfigIpc.ts
@@ -271,7 +271,9 @@ export class ProjectConfigIpc extends EventEmitter {
     // ts-node for CommonJS
     // ts-node/esm for ESM
     if (hasTypeScriptInstalled(this.projectRoot)) {
+      debug('found typescript in %s', this.projectRoot)
       if (isProjectUsingESModules) {
+        debug(`using --experimental-specifier-resolution=node with --loader ${tsNodeEsm}`)
         // Use the ts-node/esm loader so they can use TypeScript with `"type": "module".
         // The loader API is experimental and will change.
         // The same can be said for the other alternative, esbuild, so this is the
@@ -294,6 +296,8 @@ export class ProjectConfigIpc extends EventEmitter {
         // so we need to load and evaluate the hook first using the `--require` module API.
         const tsNodeLoader = `--require "${tsNode}"`
 
+        debug(`using cjs with --require ${tsNode}`)
+
         if (childOptions.env.NODE_OPTIONS) {
           childOptions.env.NODE_OPTIONS += ` ${tsNodeLoader}`
         } else {
@@ -303,6 +307,7 @@ export class ProjectConfigIpc extends EventEmitter {
     } else {
       // Just use Node's built-in ESM support.
       // TODO: Consider using userland `esbuild` with Node's --loader API to handle ESM.
+      debug(`no typescript found, just use regular Node.js`)
     }
 
     return fork(CHILD_PROCESS_FILE_PATH, configProcessArgs, childOptions)
diff --git a/packages/server/package.json b/packages/server/package.json
index ad7c0456671a..e2b900f1a3ae 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -116,7 +116,7 @@
     "tough-cookie": "4.0.0",
     "trash": "5.2.0",
     "tree-kill": "1.2.2",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "tslib": "2.3.1",
     "underscore.string": "3.3.5",
     "url-parse": "1.5.9",
diff --git a/packages/ts/package.json b/packages/ts/package.json
index 3cbb75ce1f4b..b40bf5a5dcb6 100644
--- a/packages/ts/package.json
+++ b/packages/ts/package.json
@@ -12,7 +12,7 @@
   },
   "dependencies": {
     "debug": "^4.3.2",
-    "ts-node": "^10.2.1",
+    "ts-node": "^10.9.1",
     "tslib": "2.3.1",
     "typescript-cached-transpile": "^0.0.6"
   },
diff --git a/system-tests/scripts/bootstrap-docker-container.sh b/system-tests/scripts/bootstrap-docker-container.sh
index cca161f9475d..19bcda1bf8f9 100755
--- a/system-tests/scripts/bootstrap-docker-container.sh
+++ b/system-tests/scripts/bootstrap-docker-container.sh
@@ -36,6 +36,9 @@ export CYPRESS_CACHE_FOLDER=/tmp/CYPRESS_CACHE_FOLDER/
 export npm_config_cache=/tmp/npm_config_cache/
 export npm_config_package_lock=false
 
+mkdir $npm_config_cache
+chown -R 1000:1000 $npm_config_cache
+
 npx npm@latest install --unsafe-perm --allow-root --force file:$CLI_PATH
 
 PATH=$PATH:./node_modules/.bin
@@ -52,4 +55,4 @@ set -e
 cd -
 rm -rf $TEST_PROJECT_DIR
 
-exit $EXIT_CODE
\ No newline at end of file
+exit $EXIT_CODE
diff --git a/system-tests/test-binary/node_versions_spec.ts b/system-tests/test-binary/node_versions_spec.ts
index d006b4b2730e..d62dd43db645 100644
--- a/system-tests/test-binary/node_versions_spec.ts
+++ b/system-tests/test-binary/node_versions_spec.ts
@@ -32,3 +32,20 @@ describe('binary node versions', () => {
     'cypress/base:17.3.0',
   ].forEach(smokeTestDockerImage)
 })
+
+describe('type: module', () => {
+  [
+    'cypress/base:16.17.0',
+    'cypress/base:18.6.0',
+  ].forEach((dockerImage) => {
+    systemTests.it(`can run in ${dockerImage}`, {
+      withBinary: true,
+      project: 'config-cjs-and-esm/config-with-ts-module',
+      dockerImage,
+      testingType: 'e2e',
+      spec: 'app.cy.js',
+      browser: 'electron',
+      expectedExitCode: 0,
+    })
+  })
+})
diff --git a/yarn.lock b/yarn.lock
index 10546d39d8b1..833fbc9757b1 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2293,17 +2293,12 @@
   resolved "https://registry.yarnpkg.com/@coolaj86/urequest/-/urequest-1.3.7.tgz#66a1d66378dd6534e9c8e68948bf09acf32bab77"
   integrity sha512-PPrVYra9aWvZjSCKl/x1pJ9ZpXda1652oJrPBYy5rQumJJMkmTBN3ux+sK2xAUwVvv2wnewDlaQaHLxLwSHnIA==
 
-"@cspotcode/source-map-consumer@0.8.0":
-  version "0.8.0"
-  resolved "https://registry.yarnpkg.com/@cspotcode/source-map-consumer/-/source-map-consumer-0.8.0.tgz#33bf4b7b39c178821606f669bbc447a6a629786b"
-  integrity sha512-41qniHzTU8yAGbCp04ohlmSrZf8bkf/iJsl3V0dRGsQN/5GFfx+LbCSsCpp2gqrqjTVg/K6O8ycoV35JIwAzAg==
-
-"@cspotcode/source-map-support@0.7.0":
-  version "0.7.0"
-  resolved "https://registry.yarnpkg.com/@cspotcode/source-map-support/-/source-map-support-0.7.0.tgz#4789840aa859e46d2f3173727ab707c66bf344f5"
-  integrity sha512-X4xqRHqN8ACt2aHVe51OxeA2HjbcL4MqFqXkrmQszJ1NOUuUu5u6Vqx/0lZSVNku7velL5FC/s5uEAj1lsBMhA==
+"@cspotcode/source-map-support@^0.8.0":
+  version "0.8.1"
+  resolved "https://registry.yarnpkg.com/@cspotcode/source-map-support/-/source-map-support-0.8.1.tgz#00629c35a688e05a88b1cda684fb9d5e73f000a1"
+  integrity sha512-IchNf6dN4tHoMFIn/7OE8LWZ19Y6q/67Bmf6vnGREv8RSbBVb9LPJxEcnwrcwX6ixSvaiGoomAUvu4YSxXrVgw==
   dependencies:
-    "@cspotcode/source-map-consumer" "0.8.0"
+    "@jridgewell/trace-mapping" "0.3.9"
 
 "@csstools/convert-colors@^1.4.0":
   version "1.4.0"
@@ -4150,10 +4145,10 @@
   resolved "https://registry.yarnpkg.com/@jridgewell/sourcemap-codec/-/sourcemap-codec-1.4.10.tgz#baf57b4e2a690d4f38560171f91783656b7f8186"
   integrity sha512-Ht8wIW5v165atIX1p+JvKR5ONzUyF4Ac8DZIQ5kZs9zrb6M8SJNXpx1zn04rn65VjBMygRoMXcyYwNK0fT7bEg==
 
-"@jridgewell/trace-mapping@^0.3.0":
-  version "0.3.4"
-  resolved "https://registry.yarnpkg.com/@jridgewell/trace-mapping/-/trace-mapping-0.3.4.tgz#f6a0832dffd5b8a6aaa633b7d9f8e8e94c83a0c3"
-  integrity sha512-vFv9ttIedivx0ux3QSjhgtCVjPZd5l46ZOMDSCwnH1yUO2e964gO8LZGyv2QkqcgR6TnBU1v+1IFqmeoG+0UJQ==
+"@jridgewell/trace-mapping@0.3.9", "@jridgewell/trace-mapping@^0.3.0":
+  version "0.3.9"
+  resolved "https://registry.yarnpkg.com/@jridgewell/trace-mapping/-/trace-mapping-0.3.9.tgz#6534fd5933a53ba7cbf3a17615e273a0d1273ff9"
+  integrity sha512-3Belt6tdc8bPgAtbcmdtNJlirVoTmEb5e2gC94PnkwEW9jI6CAHUeoG85tjWP5WquqfavoMtMwiG4P926ZKKuQ==
   dependencies:
     "@jridgewell/resolve-uri" "^3.0.3"
     "@jridgewell/sourcemap-codec" "^1.4.10"
@@ -32749,12 +32744,12 @@ ts-log@^2.2.3:
   resolved "https://registry.yarnpkg.com/ts-log/-/ts-log-2.2.3.tgz#4da5640fe25a9fb52642cd32391c886721318efb"
   integrity sha512-XvB+OdKSJ708Dmf9ore4Uf/q62AYDTzFcAdxc8KNML1mmAWywRFVt/dn1KYJH8Agt5UJNujfM3znU5PxgAzA2w==
 
-ts-node@^10.2.1:
-  version "10.7.0"
-  resolved "https://registry.yarnpkg.com/ts-node/-/ts-node-10.7.0.tgz#35d503d0fab3e2baa672a0e94f4b40653c2463f5"
-  integrity sha512-TbIGS4xgJoX2i3do417KSaep1uRAW/Lu+WAL2doDHC0D6ummjirVOXU5/7aiZotbQ5p1Zp9tP7U6cYhA0O7M8A==
+ts-node@^10.9.1:
+  version "10.9.1"
+  resolved "https://registry.yarnpkg.com/ts-node/-/ts-node-10.9.1.tgz#e73de9102958af9e1f0b168a6ff320e25adcff4b"
+  integrity sha512-NtVysVPkxxrwFGUUxGYhfux8k78pQB3JqYBXlLRZgdGUqTO5wU/UyHop5p70iEbGhB7q5KmiZiU0Y3KlJrScEw==
   dependencies:
-    "@cspotcode/source-map-support" "0.7.0"
+    "@cspotcode/source-map-support" "^0.8.0"
     "@tsconfig/node10" "^1.0.7"
     "@tsconfig/node12" "^1.0.7"
     "@tsconfig/node14" "^1.0.0"
@@ -32765,7 +32760,7 @@ ts-node@^10.2.1:
     create-require "^1.1.0"
     diff "^4.0.1"
     make-error "^1.1.1"
-    v8-compile-cache-lib "^3.0.0"
+    v8-compile-cache-lib "^3.0.1"
     yn "3.1.1"
 
 ts-node@^9:
@@ -33656,10 +33651,10 @@ uuid@^3.0.0, uuid@^3.0.1, uuid@^3.3.2, uuid@^3.4.0:
   resolved "https://registry.yarnpkg.com/uuid/-/uuid-3.4.0.tgz#b23e4358afa8a202fe7a100af1f5f883f02007ee"
   integrity sha512-HjSDRw6gZE5JMggctHBcjVak08+KEVhSIiDzFnT9S9aegmp85S/bReBVTb4QTFaRNptJ9kuYaNhnbNEOkbKb/A==
 
-v8-compile-cache-lib@^3.0.0:
-  version "3.0.0"
-  resolved "https://registry.yarnpkg.com/v8-compile-cache-lib/-/v8-compile-cache-lib-3.0.0.tgz#0582bcb1c74f3a2ee46487ceecf372e46bce53e8"
-  integrity sha512-mpSYqfsFvASnSn5qMiwrr4VKfumbPyONLCOPmsR3A6pTY/r0+tSaVbgPWSAIuzbk3lCTa+FForeTiO+wBQGkjA==
+v8-compile-cache-lib@^3.0.1:
+  version "3.0.1"
+  resolved "https://registry.yarnpkg.com/v8-compile-cache-lib/-/v8-compile-cache-lib-3.0.1.tgz#6336e8d71965cb3d35a1bbb7868445a7c05264bf"
+  integrity sha512-wa7YjyUGfNZngI/vtK0UHAN+lgDCxBPCylVXGp0zu59Fz5aiGtNXaq3DhIov063MorB+VfufLh3JlF2KdTK3xg==
 
 v8-compile-cache@^2.0.2, v8-compile-cache@^2.0.3:
   version "2.0.3"