diff --git a/packages/react-scripts/config/paths.js b/packages/react-scripts/config/paths.js
index 42ec8374a15..5934e73fa8d 100644
--- a/packages/react-scripts/config/paths.js
+++ b/packages/react-scripts/config/paths.js
@@ -55,6 +55,7 @@ module.exports = {
   appPublic: resolveApp('public'),
   appHtml: resolveApp('public/index.html'),
   appIndexJs: resolveApp('src/index.js'),
+  appVendorJs: resolveApp('src/vendor.js'),
   appPackageJson: resolveApp('package.json'),
   appSrc: resolveApp('src'),
   yarnLockFile: resolveApp('yarn.lock'),
@@ -75,6 +76,7 @@ module.exports = {
   appPublic: resolveApp('public'),
   appHtml: resolveApp('public/index.html'),
   appIndexJs: resolveApp('src/index.js'),
+  appVendorJs: resolveApp('src/vendor.js'),
   appPackageJson: resolveApp('package.json'),
   appSrc: resolveApp('src'),
   yarnLockFile: resolveApp('yarn.lock'),
@@ -104,6 +106,7 @@ if (
     appPublic: resolveOwn('template/public'),
     appHtml: resolveOwn('template/public/index.html'),
     appIndexJs: resolveOwn('template/src/index.js'),
+    appVendorJs: resolveOwn('template/src/vendor.js'),
     appPackageJson: resolveOwn('package.json'),
     appSrc: resolveOwn('template/src'),
     yarnLockFile: resolveOwn('template/yarn.lock'),
diff --git a/packages/react-scripts/config/webpack.config.prod.js b/packages/react-scripts/config/webpack.config.prod.js
index 3de2775e030..32231f118ec 100644
--- a/packages/react-scripts/config/webpack.config.prod.js
+++ b/packages/react-scripts/config/webpack.config.prod.js
@@ -12,8 +12,11 @@
 
 const autoprefixer = require('autoprefixer');
 const path = require('path');
+const fs = require('fs');
 const webpack = require('webpack');
+const NameAllModulesPlugin = require('name-all-modules-plugin');
 const HtmlWebpackPlugin = require('html-webpack-plugin');
+const ScriptExtHtmlWebpackPlugin = require('script-ext-html-webpack-plugin');
 const ExtractTextPlugin = require('extract-text-webpack-plugin');
 const ManifestPlugin = require('webpack-manifest-plugin');
 const InterpolateHtmlPlugin = require('react-dev-utils/InterpolateHtmlPlugin');
@@ -53,6 +56,18 @@ const extractTextPluginOptions = shouldUseRelativeAssetPaths
   ? // Making sure that the publicPath goes back to to build folder.
     { publicPath: Array(cssFilename.split('/').length).join('../') }
   : {};
+// Check if vendor file exists
+const checkIfVendorFileExists = fs.existsSync(paths.appVendorJs);
+// If the vendor file exists, add an entry point for vendor,
+// and a seperate entry for polyfills and app index file,
+// otherwise keep only polyfills and app index.
+const appEntryFiles = [require.resolve('./polyfills'), paths.appIndexJs];
+const entryFiles = checkIfVendorFileExists
+  ? {
+      vendor: paths.appVendorJs,
+      main: appEntryFiles,
+    }
+  : appEntryFiles;
 
 // This is the production configuration.
 // It compiles slowly and is focused on producing a fast and minimal bundle.
@@ -63,8 +78,8 @@ module.exports = {
   // We generate sourcemaps in production. This is slow but gives good results.
   // You can exclude the *.map files from the build during deployment.
   devtool: 'source-map',
-  // In production, we only want to load the polyfills and the app code.
-  entry: [require.resolve('./polyfills'), paths.appIndexJs],
+  // Add the entry point based on whether vendor file exists.
+  entry: entryFiles,
   output: {
     // The build folder.
     path: paths.appBuild,
@@ -250,6 +265,41 @@ module.exports = {
     ],
   },
   plugins: [
+    // configuration for vendor splitting and long term caching
+    // more info: https://medium.com/webpack/predictable-long-term-caching-with-webpack-d3eee1d3fa31
+    new webpack.NamedModulesPlugin(),
+    new webpack.NamedChunksPlugin(chunk => {
+      if (chunk.name) {
+        return chunk.name;
+      }
+      return chunk.modules
+        .map(m => path.relative(m.context, m.request))
+        .join('_');
+    }),
+    new webpack.optimize.CommonsChunkPlugin(
+      // Check if vendor file exists, if it does,
+      // generate a seperate chucks for vendor
+      // else don't generate any common chunck
+      checkIfVendorFileExists
+        ? {
+            name: 'vendor',
+            minChunks: Infinity,
+          }
+        : { names: [] }
+    ),
+    // We need to extract out the runtime into a separate manifest file.
+    // more info: https://webpack.js.org/guides/code-splitting-libraries/#manifest-file
+    new webpack.optimize.CommonsChunkPlugin(
+      // Check if vendor file exists, if it does,
+      // generate a seperate chucks for manifest file
+      // else don't generate any common chunck
+      checkIfVendorFileExists
+        ? {
+            name: 'manifest',
+          }
+        : { names: [] }
+    ),
+    new NameAllModulesPlugin(),
     // Makes some environment variables available in index.html.
     // The public URL is available as %PUBLIC_URL% in index.html, e.g.:
     // <link rel="shortcut icon" href="%PUBLIC_URL%/favicon.ico">
@@ -273,6 +323,11 @@ module.exports = {
         minifyURLs: true,
       },
     }),
+    // This ensures that the browser will load the scripts in parallel,
+    // but execute them in the order they appear in the document.
+    new ScriptExtHtmlWebpackPlugin({
+      defaultAttribute: 'defer',
+    }),
     // Makes some environment variables available to the JS code, for example:
     // if (process.env.NODE_ENV === 'production') { ... }. See `./env.js`.
     // It is absolutely essential that NODE_ENV was set to production here.
diff --git a/packages/react-scripts/package.json b/packages/react-scripts/package.json
index 06b0d6b76c4..5fcbbf83b7a 100644
--- a/packages/react-scripts/package.json
+++ b/packages/react-scripts/package.json
@@ -44,12 +44,14 @@
     "fs-extra": "3.0.1",
     "html-webpack-plugin": "2.28.0",
     "jest": "20.0.3",
+    "name-all-modules-plugin": "^1.0.1",
     "object-assign": "4.1.1",
     "postcss-flexbugs-fixes": "3.0.0",
     "postcss-loader": "2.0.5",
     "promise": "7.1.1",
     "react-dev-utils": "^2.0.0",
     "react-error-overlay": "^1.0.5",
+    "script-ext-html-webpack-plugin": "^1.8.0",
     "style-loader": "0.17.0",
     "sw-precache-webpack-plugin": "0.9.1",
     "url-loader": "0.5.8",