diff --git a/README.md b/README.md
index 952012f78ad..0fa595c433f 100644
--- a/README.md
+++ b/README.md
@@ -19,6 +19,12 @@ If something doesn’t work, please [file an issue](https://github.com/ctco-dev/
 * [TSLint Config Airbnb](https://github.com/progre/tslint-config-airbnb) - a tslint config for [Airbnb JavaScript Style Guide](https://github.com/airbnb/javascript)
 * [12 Factor Application Configuration](https://12factor.net/config) approach to profile application in runtime. [Details](https://github.com/ctco-dev/create-react-app/blob/master/packages/react-scripts/template/README.md#12-factor-app-config)
 * :whale: [Docker](https://www.docker.com/) support (plus 12 Factor configuration in runtime, see above)
+* [CSS Modules](https://github.com/css-modules/css-modules) - optional
+* [typings-for-css-modules-loader](https://github.com/Jimdo/typings-for-css-modules-loader) - lightweight `css-loader` replacement to enable type generation for css module files
+* [Browserslist](https://github.com/browserslist/browserslist)
+* [SASS/SCSS](https://sass-lang.com/) - optional
+* Source maps for CSS enabled in dev mode
+* [Classnames](https://github.com/JedWatson/classnames) - for conditionally joining classNames together
 
 ## Quick Overview
 
diff --git a/packages/react-scripts/config/webpack.config.dev.js b/packages/react-scripts/config/webpack.config.dev.js
index 53369e98388..2187753b5a2 100644
--- a/packages/react-scripts/config/webpack.config.dev.js
+++ b/packages/react-scripts/config/webpack.config.dev.js
@@ -33,6 +33,60 @@ const publicUrl = '';
 // Get environment variables to inject into our app.
 const env = getClientEnvironment(publicUrl);
 
+// style files regexes
+const cssRegex = /\.css$/;
+const cssModuleRegex = /\.module\.css$/;
+const sassRegex = /\.(scss|sass)$/;
+const sassModuleRegex = /\.module\.(scss|sass)$/;
+const localIdentName = '[name]__[local]___[hash:base64:8]';
+
+// common function to get style loaders
+const getStyleLoaders = (cssOptions, preProcessor, preProcessorOptions) => {
+  const loaders = [
+    { 
+      loader: require.resolve('style-loader'),
+      options: { sourceMap: true },
+    },
+    // this one is used instead of css-loader to allow css modules inside typescript
+    {
+      loader: require.resolve('typings-for-css-modules-loader'),
+      options: Object.assign({},
+        {
+          sourceMap: true,
+          silent: true, // typings-for-css-modules-loader option
+          namedExport: true, // typings-for-css-modules-loader option
+          camelCase: true, // typings-for-css-modules-loader option
+        },
+        cssOptions)
+    },
+    {
+      // Options for PostCSS as we reference these options twice
+      // Adds vendor prefixing based on your specified browser support in
+      // package.json
+      loader: require.resolve('postcss-loader'),
+      options: {
+        // Necessary for external CSS imports to work
+        // https://github.com/facebook/create-react-app/issues/2677
+        ident: 'postcss',
+        plugins: () => [
+          require('postcss-flexbugs-fixes'),
+          autoprefixer({
+            flexbox: 'no-2009',
+          }),
+        ],
+        sourceMap: true,
+      },
+    },
+  ];
+  if (preProcessor) {
+    loaders.push({
+      loader: require.resolve(preProcessor),
+      options: Object.assign({}, { sourceMap: true }, preProcessorOptions),
+    });
+  }
+  return loaders;
+};
+
 // This is the development configuration.
 // It is focused on developer experience and fast rebuilds.
 // The production configuration is different and lives in a separate file.
@@ -210,37 +264,33 @@ module.exports = {
           // "style" loader turns CSS into JS modules that inject <style> tags.
           // In production, we use a plugin to extract that CSS to a file, but
           // in development "style" loader enables hot editing of CSS.
+          // By default we support CSS Modules with the extension .module.css
           {
-            test: /\.css$/,
-            use: [
-              require.resolve('style-loader'),
-              {
-                loader: require.resolve('css-loader'),
-                options: {
-                  importLoaders: 1,
-                },
-              },
-              {
-                loader: require.resolve('postcss-loader'),
-                options: {
-                  // Necessary for external CSS imports to work
-                  // https://github.com/facebookincubator/create-react-app/issues/2677
-                  ident: 'postcss',
-                  plugins: () => [
-                    require('postcss-flexbugs-fixes'),
-                    autoprefixer({
-                      browsers: [
-                        '>1%',
-                        'last 4 versions',
-                        'Firefox ESR',
-                        'not ie < 9', // React doesn't support IE8 anyway
-                      ],
-                      flexbox: 'no-2009',
-                    }),
-                  ],
-                },
-              },
-            ],
+            test: cssRegex,
+            exclude: cssModuleRegex,
+            use: getStyleLoaders({ importLoaders: 1 }),
+          },
+          // Adds support for CSS Modules (https://github.com/css-modules/css-modules)
+          // using the extension .module.css
+          {
+            test: cssModuleRegex,
+            use: getStyleLoaders({ importLoaders: 1, modules: true, localIdentName }),
+          },
+          // Opt-in support for SASS (using .scss or .sass extensions).
+          // Chains the sass-loader with the css-loader and the style-loader
+          // to immediately apply all styles to the DOM.
+          // By default we support SASS Modules with the
+          // extensions .module.scss or .module.sass
+          {
+            test: sassRegex,
+            exclude: sassModuleRegex,
+            use: getStyleLoaders({ importLoaders: 2 }, 'sass-loader'),
+          },
+          // Adds support for CSS Modules, but using SASS
+          // using the extension .module.scss or .module.sass
+          {
+            test: sassModuleRegex,
+            use: getStyleLoaders({ importLoaders: 2, modules: true, localIdentName }, 'sass-loader'),
           },
           // "file" loader makes sure those assets get served by WebpackDevServer.
           // When you `import` an asset, you get its (virtual) filename.
@@ -277,6 +327,11 @@ module.exports = {
     }),
     // inject env vars, filtered by mask WEB_APP_, into window.env
     new HtmlWebpackInjectEnvPlugin(),
+    // ignore generated type files for CSS Modules,
+    // see https://github.com/Jimdo/typings-for-css-modules-loader#webpack-rebuilds--builds-slow
+    // new webpack.WatchIgnorePlugin([
+    //   /\.(css|sass|scss)\.d\.ts$/
+    // ]),
     // Add module names to factory functions so they appear in browser profiler.
     new webpack.NamedModulesPlugin(),
     // Makes some environment variables available to the JS code, for example:
diff --git a/packages/react-scripts/config/webpack.config.prod.js b/packages/react-scripts/config/webpack.config.prod.js
index 03cece42960..a8dc1602d10 100644
--- a/packages/react-scripts/config/webpack.config.prod.js
+++ b/packages/react-scripts/config/webpack.config.prod.js
@@ -37,6 +37,64 @@ const publicUrl = publicPath.slice(0, -1);
 // Get environment variables to inject into our app.
 const env = getClientEnvironment(publicUrl);
 
+// style files regexes
+const cssRegex = /\.css$/;
+const cssModuleRegex = /\.module\.css$/;
+const sassRegex = /\.(scss|sass)$/;
+const sassModuleRegex = /\.module\.(scss|sass)$/;
+const localIdentName = '__[hash:base64:8]';
+
+// common function to get style loaders
+const getStyleLoaders = (cssOptions, preProcessor, preProcessorOptions) => {
+  const loaders = [
+    // this one is used instead of css-loader to allow css modules inside typescript
+    {
+      loader: require.resolve('typings-for-css-modules-loader'),
+      options: Object.assign({},
+        {
+          minimize: true,
+          sourceMap: shouldUseSourceMap,
+          silent: true, // typings-for-css-modules-loader option
+          namedExport: true, // typings-for-css-modules-loader option
+          camelCase: true, // typings-for-css-modules-loader option
+        },
+        cssOptions)
+    },
+    {
+      // Options for PostCSS as we reference these options twice
+      // Adds vendor prefixing based on your specified browser support in
+      // package.json
+      loader: require.resolve('postcss-loader'),
+      options: {
+        // Necessary for external CSS imports to work
+        // https://github.com/facebook/create-react-app/issues/2677
+        ident: 'postcss',
+        plugins: () => [
+          require('postcss-flexbugs-fixes'),
+          autoprefixer({
+            flexbox: 'no-2009',
+          }),
+        ],
+        sourceMap: shouldUseSourceMap,
+      },
+    },
+  ];
+  if (preProcessor) {
+    loaders.push({
+      loader: require.resolve(preProcessor),
+      options: Object.assign({}, { sourceMap: shouldUseSourceMap }, preProcessorOptions),
+    });
+  }
+  return loaders;
+};
+
+const fallbackStyleLoader = {
+  loader: require.resolve('style-loader'),
+  options: {
+    hmr: false,
+  },
+};
+
 // Assert this just to be safe.
 // Development builds of React are slow and not intended for production.
 if (env.stringified['process.env'].NODE_ENV !== '"production"') {
@@ -220,52 +278,59 @@ module.exports = {
           // use the "style" loader inside the async code so CSS from them won't be
           // in the main CSS file.
           {
-            test: /\.css$/,
+            test: cssRegex,
+            exclude: cssModuleRegex,
             loader: ExtractTextPlugin.extract(
               Object.assign(
-                {
-                  fallback: {
-                    loader: require.resolve('style-loader'),
-                    options: {
-                      hmr: false,
-                    },
-                  },
-                  use: [
-                    {
-                      loader: require.resolve('css-loader'),
-                      options: {
-                        importLoaders: 1,
-                        minimize: true,
-                        sourceMap: shouldUseSourceMap,
-                      },
-                    },
-                    {
-                      loader: require.resolve('postcss-loader'),
-                      options: {
-                        // Necessary for external CSS imports to work
-                        // https://github.com/facebookincubator/create-react-app/issues/2677
-                        ident: 'postcss',
-                        plugins: () => [
-                          require('postcss-flexbugs-fixes'),
-                          autoprefixer({
-                            browsers: [
-                              '>1%',
-                              'last 4 versions',
-                              'Firefox ESR',
-                              'not ie < 9', // React doesn't support IE8 anyway
-                            ],
-                            flexbox: 'no-2009',
-                          }),
-                        ],
-                      },
-                    },
-                  ],
+                { 
+                  fallback: fallbackStyleLoader,
+                  use: getStyleLoaders({ importLoaders: 1 }),
                 },
                 extractTextPluginOptions
               )
             ),
             // Note: this won't work without `new ExtractTextPlugin()` in `plugins`.
           },
+          {
+            // Adds support for CSS Modules (https://github.com/css-modules/css-modules)
+            // using the extension .module.css
+            test: cssModuleRegex,
+            loader: ExtractTextPlugin.extract(
+              Object.assign(
+                { use: getStyleLoaders({ importLoaders: 1, modules: true, localIdentName }) },
+                extractTextPluginOptions
+              )
+            ),
+            // Note: this won't work without `new ExtractTextPlugin()` in `plugins`.
+          },
+          {
+            // Opt-in support for SASS (using .scss or .sass extensions).
+            // Chains the sass-loader with the css-loader and the style-loader
+            // to immediately apply all styles to the DOM.
+            // By default we support SASS Modules with the
+            // extensions .module.scss or .module.sass
+            test: sassRegex,
+            exclude: sassModuleRegex,
+            loader: ExtractTextPlugin.extract(
+              Object.assign(
+                { use: getStyleLoaders({ importLoaders: 2 }, 'sass-loader') },
+                extractTextPluginOptions
+              )
+            ),
+            // Note: this won't work without `new ExtractTextPlugin()` in `plugins`.
+          },
+          {
+            // Adds support for CSS Modules, but using SASS
+            // using the extension .module.scss or .module.sass
+            test: sassModuleRegex,
+            loader: ExtractTextPlugin.extract(
+              Object.assign(
+                { use: getStyleLoaders({ importLoaders: 2, modules: true, localIdentName }, 'sass-loader') },
+                extractTextPluginOptions
+              )
+            ),
+            // Note: this won't work without `new ExtractTextPlugin()` in `plugins`.
+          },
           // "file" loader makes sure assets end up in the `build` folder.
           // When you `import` an asset, you get its filename.
           // This loader doesn't use a "test" so it will catch all modules
diff --git a/packages/react-scripts/package.json b/packages/react-scripts/package.json
index 6496f6b4157..cce42d57ec7 100644
--- a/packages/react-scripts/package.json
+++ b/packages/react-scripts/package.json
@@ -54,6 +54,7 @@
     "raf": "3.4.0",
     "react-dev-utils": "^5.0.1",
     "resolve": "1.6.0",
+    "sass-loader": "7.1.0",
     "style-loader": "0.19.0",
     "sw-precache-webpack-plugin": "0.11.4",
     "ts-jest": "23.1.3",
@@ -62,6 +63,7 @@
     "tslint-config-airbnb": "5.9.2",
     "tslint-config-prettier": "1.14.0",
     "tslint-react": "3.6.0",
+    "typings-for-css-modules-loader": "1.7.0",
     "url-loader": "0.6.2",
     "webpack": "3.8.1",
     "webpack-dev-server": "2.9.4",
@@ -69,6 +71,7 @@
     "whatwg-fetch": "2.0.3"
   },
   "devDependencies": {
+    "classnames": "^2.2.6",
     "react": "^16.0.0",
     "react-dom": "^16.0.0",
     "typescript": "^3.0.1"
diff --git a/packages/react-scripts/scripts/utils/dependencies.js b/packages/react-scripts/scripts/utils/dependencies.js
index 5e7b43c1768..0b5c1965eaf 100644
--- a/packages/react-scripts/scripts/utils/dependencies.js
+++ b/packages/react-scripts/scripts/utils/dependencies.js
@@ -1,3 +1,3 @@
 'use strict';
 
-module.exports = ['react', 'react-dom'];
+module.exports = ['react', 'react-dom', 'classnames'];
diff --git a/packages/react-scripts/template/.browserslistrc b/packages/react-scripts/template/.browserslistrc
new file mode 100644
index 00000000000..51b897f56e4
--- /dev/null
+++ b/packages/react-scripts/template/.browserslistrc
@@ -0,0 +1,10 @@
+[production]
+>1%
+last 4 versions
+Firefox ESR
+not ie < 11
+
+[development]
+last 2 chrome versions
+last 2 firefox versions
+last 2 edge versions
\ No newline at end of file
diff --git a/packages/react-scripts/template/README.md b/packages/react-scripts/template/README.md
index a4c3dd9b155..8c55cb5fef0 100644
--- a/packages/react-scripts/template/README.md
+++ b/packages/react-scripts/template/README.md
@@ -8,7 +8,10 @@ You can find the official CRA docs [here](https://github.com/facebookincubator/c
 * [How it differes from the official CRA](https://github.com/ctco-dev/create-react-app/blob/master/README.md#how-it-differs-from-the-official-cra)
 * [Common tasks](#common-tasks)
 * [Use docker](#use-docker)
-* [12 Factor app config](#12-factor-app-config) - [12 Factor](https://12factor.net/config) approach to maintain configuration.
+* [12 Factor app config](#12-factor-app-config) - [12 Factor](https://12factor.net/config) approach to maintain configuration
+* [CSS Modules](#css-modules)
+* [Browserslist](#browserslist) - autoprefixer configuration
+* [SASS/SCSS](#sass/scss)
 
 ## Common tasks
 
@@ -64,3 +67,18 @@ To inject environment variables into an application on starting a docker contain
 ```sh
 docker run --rm -it --name my-cra-container -e "WEB_APP_ONE=hello my app" -p 8080:80 my-cra-image
 ```
+
+## CSS Modules
+
+[CSS Modules](https://github.com/css-modules/css-modules) can be used to define CSS styles. The file for CSS Modules should be named with `.module.css` suffix. To make typescript understand typings for the CSS Module file, they are generated automatically, when `yarn start` is running. The typings file is named the same as `*.module.css` file plus `.d.ts` suffix.
+
+## Browserslist
+
+[Browserslist](https://github.com/browserslist/browserslist) is used to configure [autoprefixer](https://github.com/postcss/autoprefixer). See official [docs](https://github.com/browserslist/browserslist).
+
+## SASS/SCSS
+
+Just add it to the project. CSS Modules work with sass files as well.
+```sh
+yarn add sass
+```
diff --git a/packages/react-scripts/template/src/App.module.css b/packages/react-scripts/template/src/App.module.css
new file mode 100644
index 00000000000..08e5fe17106
--- /dev/null
+++ b/packages/react-scripts/template/src/App.module.css
@@ -0,0 +1,4 @@
+.header-subtitle {
+  font-size: .9em;
+  text-shadow: 0 0 5px lightblue;
+}
diff --git a/packages/react-scripts/template/src/App.module.css.d.ts b/packages/react-scripts/template/src/App.module.css.d.ts
new file mode 100644
index 00000000000..2cf2ab13522
--- /dev/null
+++ b/packages/react-scripts/template/src/App.module.css.d.ts
@@ -0,0 +1 @@
+export const headerSubtitle: string;
diff --git a/packages/react-scripts/template/src/App.tsx b/packages/react-scripts/template/src/App.tsx
index 61f905222e2..a558087bb73 100644
--- a/packages/react-scripts/template/src/App.tsx
+++ b/packages/react-scripts/template/src/App.tsx
@@ -2,6 +2,8 @@ import React, { Component } from 'react';
 import logo from './logo.svg';
 import './App.css';
 
+import styles from './App.module.css';
+
 class App extends Component {
   render() {
     return (
@@ -9,7 +11,7 @@ class App extends Component {
         <header className="App-header">
           <img src={logo} className="App-logo" alt="logo" />
           <h1 className="App-title">Welcome to React!</h1>
-          <small>Unofficial C.T.Co opinion about CRA ;)</small>
+          <small className={styles.headerSubtitle}>Unofficial C.T.Co opinion about CRA ;)</small>
         </header>
         <p className="App-intro">
           To get started, edit <code>src/App.tsx</code> and save to reload.