jest.config.js

// jest.config.js
const nextJest = require('next/jest')
const { pathsToModuleNameMapper } = require('ts-jest')
const { compilerOptions } = require('./tsconfig')

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
/** @type {import('jest').Config} */
const customJestConfig = {
  globalSetup: '<rootDir>/src/test/global-setup.ts',
  setupFilesAfterEnv: ['<rootDir>/src/test/setup-files-after-env.ts'],
  moduleDirectories: ['node_modules', '<rootDir>/'],
  testEnvironment: 'jest-environment-jsdom',
  modulePaths: [compilerOptions.baseUrl], // <-- This will be set to 'baseUrl' value
  moduleNameMapper: pathsToModuleNameMapper(compilerOptions.paths /*, { prefix: '<rootDir>/' } */),
}

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