diff --git a/.gitignore b/.gitignore
index a0c91f38..8e5cfef6 100644
--- a/.gitignore
+++ b/.gitignore
@@ -40,3 +40,6 @@ yarn-error.log*
 
 # vscode plugin
 *.vsix
+
+# npm pack artifacts
+*.tgz
diff --git a/packages/raystack/.npmignore b/packages/raystack/.npmignore
new file mode 100644
index 00000000..b4482701
--- /dev/null
+++ b/packages/raystack/.npmignore
@@ -0,0 +1,13 @@
+# Exclude test files
+**/__tests__/
+**/__tests__/**
+# Exclude dev files  
+vitest.setup.*
+figma/
+figma/**
+# Exclude bundled dependencies
+node_modules/
+node_modules/**
+_virtual/
+_virtual/**
+
diff --git a/packages/raystack/package.json b/packages/raystack/package.json
index b3d11d79..0931f358 100644
--- a/packages/raystack/package.json
+++ b/packages/raystack/package.json
@@ -95,6 +95,7 @@
     "react": "^19.0.1",
     "react-dom": "^19.0.1",
     "rollup": "^3.25.1",
+    "rollup-plugin-node-externals": "^5.1.0",
     "rollup-plugin-postcss": "^4.0.2",
     "rollup-plugin-preserve-directives": "^0.4.0",
     "rollup-plugin-tsconfig-paths": "^1.5.2",
diff --git a/packages/raystack/rollup.config.mjs b/packages/raystack/rollup.config.mjs
index b14cf77b..52f14405 100644
--- a/packages/raystack/rollup.config.mjs
+++ b/packages/raystack/rollup.config.mjs
@@ -4,11 +4,28 @@ import { nodeResolve } from '@rollup/plugin-node-resolve';
 import typescript from '@rollup/plugin-typescript';
 import svgr from '@svgr/rollup';
 import postcssImport from 'postcss-import';
+import nodeExternals from 'rollup-plugin-node-externals';
 import postcss from 'rollup-plugin-postcss';
 import preserveDirectives from 'rollup-plugin-preserve-directives';
 import tsconfigPaths from 'rollup-plugin-tsconfig-paths';
 
 const createPlugins = ({ rootDir, declarationDir }) => [
+  // Externalize all dependencies and peer dependencies
+  // This must be placed before nodeResolve() to work correctly
+  nodeExternals({
+    deps: true,
+    devDeps: false,
+    peerDeps: true,
+    optDeps: true,
+    // Note: Include deps with subpaths that need to be externalized in include array.
+    // https://github.com/Septh/rollup-plugin-node-externals?tab=readme-ov-file#1-this-plugin-is-smart
+    include: [
+      'react/jsx-runtime',
+      'react-dom/client',
+      /^dayjs\/plugin\/.*/,
+      /^@radix-ui\/.*/
+    ]
+  }),
   nodeResolve(),
   commonjs(),
   svgr({
@@ -100,7 +117,6 @@ const rollupConfig = configs.map(conf => {
         preserveModulesRoot: conf.inputPath
       }
     ],
-    external: ['react', 'react-dom', 'react-dom/client', 'react/jsx-runtime'],
     plugins: createPlugins({
       rootDir: conf.inputPath,
       declarationDir: conf.outputPath
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index c69f9deb..60be2799 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -303,6 +303,9 @@ importers:
       rollup:
         specifier: ^3.25.1
         version: 3.25.1
+      rollup-plugin-node-externals:
+        specifier: ^5.1.0
+        version: 5.1.3(rollup@3.25.1)
       rollup-plugin-postcss:
         specifier: ^4.0.2
         version: 4.0.2(postcss@8.4.24)(ts-node@10.9.2(@swc/core@1.11.21)(@types/node@24.10.0)(typescript@5.4.3))
@@ -8617,6 +8620,12 @@ packages:
     engines: {node: 20 || >=22}
     hasBin: true
 
+  rollup-plugin-node-externals@5.1.3:
+    resolution: {integrity: sha512-Q3VMjsn39r0/mjKrX++rFlC7kwL7YZdScdyU7BEo+PrEremal3mnol/1X+wQUU++7NeqC1ZNAeRYnHGtsTu9GQ==}
+    engines: {node: '>=14.0.0'}
+    peerDependencies:
+      rollup: ^2.60.0 || ^3.0.0
+
   rollup-plugin-postcss@4.0.2:
     resolution: {integrity: sha512-05EaY6zvZdmvPUDi3uCcAQoESDcYnv8ogJJQRp6V5kZ6J6P7uAVJlrTZcaaA20wTH527YTnKfkAoPxWI/jPp4w==}
     engines: {node: '>=10'}
@@ -11593,6 +11602,8 @@ snapshots:
       '@parcel/logger': 2.12.0
       '@parcel/utils': 2.12.0
       lmdb: 2.8.5
+    transitivePeerDependencies:
+      - '@swc/helpers'
 
   '@parcel/cache@2.9.2(@parcel/core@2.12.0)':
     dependencies:
@@ -20534,6 +20545,10 @@ snapshots:
       glob: 11.0.3
       package-json-from-dist: 1.0.0
 
+  rollup-plugin-node-externals@5.1.3(rollup@3.25.1):
+    dependencies:
+      rollup: 3.25.1
+
   rollup-plugin-postcss@4.0.2(postcss@8.4.24)(ts-node@10.9.2(@swc/core@1.11.21)(@types/node@24.10.0)(typescript@5.4.3)):
     dependencies:
       chalk: 4.1.2