diff --git a/.changeset/rich-snakes-drum.md b/.changeset/rich-snakes-drum.md
new file mode 100644
index 000000000..a7102d2d0
--- /dev/null
+++ b/.changeset/rich-snakes-drum.md
@@ -0,0 +1,5 @@
+---
+'modular-scripts': patch
+---
+
+Add modular directory to targetLocations checked by typecheck
diff --git a/.eslintrc.js b/.eslintrc.js
index 85718b333..cecc67b11 100644
--- a/.eslintrc.js
+++ b/.eslintrc.js
@@ -21,6 +21,7 @@ module.exports = {
         '**/*.test.*',
         '**/__tests__/**',
         '**/modular-template-app/**',
+        '**/create-modular-react-app/template/**',
         '**/modular-template-view/**',
         '**/modular-template-esm-view/**',
       ],
diff --git a/packages/create-modular-react-app/template/modular/setupTests.ts b/packages/create-modular-react-app/template/modular/setupTests.ts
index 74b1a275a..8f2609b7b 100644
--- a/packages/create-modular-react-app/template/modular/setupTests.ts
+++ b/packages/create-modular-react-app/template/modular/setupTests.ts
@@ -2,4 +2,4 @@
 // allows you to do things like:
 // expect(element).toHaveTextContent(/react/i)
 // learn more: https://github.com/testing-library/jest-dom
-import '@testing-library/jest-dom/extend-expect';
+import '@testing-library/jest-dom';
diff --git a/packages/modular-scripts/src/typecheck.ts b/packages/modular-scripts/src/typecheck.ts
index a072a9bf1..cf25574c5 100644
--- a/packages/modular-scripts/src/typecheck.ts
+++ b/packages/modular-scripts/src/typecheck.ts
@@ -107,7 +107,7 @@ async function typecheck(
     'typecheck',
   );
 
-  const targetLocations: string[] = [];
+  const targetLocations: string[] = ['modular'];
   for (const [pkgName, pkg] of workspaceMap) {
     if (modularTargets.includes(pkgName)) {
       targetLocations.push(pkg.location);