diff --git a/packages/nitro/src/context.ts b/packages/nitro/src/context.ts
index 8cd5f0e561..e0a917a95a 100644
--- a/packages/nitro/src/context.ts
+++ b/packages/nitro/src/context.ts
@@ -5,6 +5,7 @@ import Hookable, { configHooksT } from 'hookable'
 import type { Preset } from '@nuxt/un'
 import { tryImport, resolvePath, detectTarget, extendPreset } from './utils'
 import * as PRESETS from './presets'
+import type { NodeExternalsOptions } from './rollup/plugins/externals'
 
 export interface ServerMiddleware {
   route: string
@@ -18,7 +19,7 @@ export interface SigmaContext {
   inlineChunks: boolean
   minify: boolean
   sourceMap: boolean
-  externals: boolean
+  externals: boolean | NodeExternalsOptions
   analyze: boolean
   entry: string
   node: boolean
diff --git a/packages/nitro/src/rollup/config.ts b/packages/nitro/src/rollup/config.ts
index 34f994c8ce..56491792a0 100644
--- a/packages/nitro/src/rollup/config.ts
+++ b/packages/nitro/src/rollup/config.ts
@@ -1,5 +1,6 @@
 import { dirname, join, relative, resolve } from 'upath'
 import { InputOptions, OutputOptions } from 'rollup'
+import defu from 'defu'
 import { terser } from 'rollup-plugin-terser'
 import commonjs from '@rollup/plugin-commonjs'
 import nodeResolve from '@rollup/plugin-node-resolve'
@@ -51,6 +52,8 @@ export const getRollupConfig = (sigmaContext: SigmaContext) => {
 
   const env = un.env(nodePreset, builtinPreset, sigmaContext.env)
 
+  delete env.alias['node-fetch'] // FIX ME
+
   if (sigmaContext.sourceMap) {
     env.polyfill.push('source-map-support/register')
   }
@@ -165,15 +168,27 @@ export const getRollupConfig = (sigmaContext: SigmaContext) => {
     }
   }))
 
-  // External Plugin
+  const moduleDirectories = [
+    resolve(sigmaContext._nuxt.rootDir, 'node_modules'),
+    resolve(MODULE_DIR, 'node_modules'),
+    resolve(MODULE_DIR, '../node_modules'),
+    'node_modules'
+  ]
+
+  // Externals Plugin
   if (sigmaContext.externals) {
-    rollupConfig.plugins.push(externals({
-      relativeTo: sigmaContext.output.serverDir,
-      include: [
+    rollupConfig.plugins.push(externals(defu(sigmaContext.externals as any, {
+      outDir: sigmaContext.output.serverDir,
+      moduleDirectories,
+      ignore: [
         sigmaContext._internal.runtimeDir,
+        ...(sigmaContext._nuxt.dev ? [] : [sigmaContext._nuxt.buildDir]),
         ...sigmaContext.middleware.map(m => m.handle)
-      ]
-    }))
+      ],
+      traceOptions: {
+        base: sigmaContext._nuxt.rootDir
+      }
+    })))
   }
 
   // https://github.com/rollup/plugins/tree/master/packages/node-resolve
@@ -181,11 +196,7 @@ export const getRollupConfig = (sigmaContext: SigmaContext) => {
     extensions,
     preferBuiltins: true,
     rootDir: sigmaContext._nuxt.rootDir,
-    moduleDirectories: [
-      resolve(sigmaContext._nuxt.rootDir, 'node_modules'),
-      resolve(MODULE_DIR, 'node_modules'),
-      'node_modules'
-    ],
+    moduleDirectories,
     mainFields: ['main'] // Force resolve CJS (@vue/runtime-core ssrUtils)
   }))
 
diff --git a/packages/nitro/src/rollup/plugins/externals.ts b/packages/nitro/src/rollup/plugins/externals.ts
index e05537c9b7..71aefa4ca8 100644
--- a/packages/nitro/src/rollup/plugins/externals.ts
+++ b/packages/nitro/src/rollup/plugins/externals.ts
@@ -1,24 +1,62 @@
-import { isAbsolute, relative } from 'upath'
+import { isAbsolute, relative } from 'path'
+import type { Plugin } from 'rollup'
+import { resolve, dirname } from 'upath'
+import { copyFile, mkdirp } from 'fs-extra'
+import { nodeFileTrace, NodeFileTraceOptions } from '@vercel/nft'
 
-export function externals ({ include = [], relativeTo }) {
+export interface NodeExternalsOptions {
+  ignore?: string[]
+  outDir?: string
+  trace?: boolean
+  traceOptions?: NodeFileTraceOptions
+  moduleDirectories?: string[]
+}
+
+export function externals (opts: NodeExternalsOptions): Plugin {
+  const resolvedExternals = {}
   return {
-    name: 'externals',
-    resolveId (source) {
-      if (
-        source[0] === '.' || // Compile relative imports
-        source[0] === '\x00' || // Skip helpers
-        source.includes('?') || // Skip helpers
-        include.find(i => source.startsWith(i))
-      ) { return null }
-
-      if (!isAbsolute(source)) {
-        source = require.resolve(source)
+    name: 'node-externals',
+    resolveId (id) {
+      // Internals
+      if (id.startsWith('\x00') || id.includes('?')) {
+        return null
       }
 
+      // Resolve relative paths and exceptions
+      if (id.startsWith('.') || opts.ignore.find(i => id.startsWith(i))) {
+        return null
+      }
+
+      for (const dir of opts.moduleDirectories) {
+        if (id.startsWith(dir)) {
+          id = id.substr(dir.length + 1)
+          break
+        }
+      }
+
+      try {
+        resolvedExternals[id] = require.resolve(id, { paths: opts.moduleDirectories })
+      } catch (_err) { }
+
       return {
-        id: relative(relativeTo, source),
+        id: isAbsolute(id) ? relative(opts.outDir, id) : id,
         external: true
       }
+    },
+    async buildEnd () {
+      if (opts.trace) {
+        const { fileList } = await nodeFileTrace(Object.values(resolvedExternals), opts.traceOptions)
+        await Promise.all(fileList.map(async (file) => {
+          if (!file.startsWith('node_modules')) {
+            return
+          }
+          // TODO: Minify package.json
+          const src = resolve(opts.traceOptions.base, file)
+          const dst = resolve(opts.outDir, file)
+          await mkdirp(dirname(dst))
+          await copyFile(src, dst)
+        }))
+      }
     }
   }
 }
diff --git a/packages/nitro/src/utils/tree.ts b/packages/nitro/src/utils/tree.ts
index 15dad502b9..15e6607774 100644
--- a/packages/nitro/src/utils/tree.ts
+++ b/packages/nitro/src/utils/tree.ts
@@ -6,7 +6,7 @@ import { readFile } from 'fs-extra'
 import chalk from 'chalk'
 
 export async function printFSTree (dir) {
-  const files = await globby('**/*.js', { cwd: dir })
+  const files = await globby('**/*.*', { cwd: dir })
 
   const items = (await Promise.all(files.map(async (file) => {
     const path = resolve(dir, file)
@@ -19,16 +19,27 @@ export async function printFSTree (dir) {
   let totalSize = 0
   let totalGzip = 0
 
+  let totalNodeModulesSize = 0
+  let totalNodeModulesGzip = 0
+
   items.forEach((item, index) => {
     let dir = dirname(item.file)
     if (dir === '.') { dir = '' }
     const rpath = relative(process.cwd(), item.path)
     const treeChar = index === items.length - 1 ? '└─' : '├─'
-    process.stdout.write(chalk.gray(`  ${treeChar} ${rpath} (${prettyBytes(item.size)}) (${prettyBytes(item.gzip)} gzip)\n`))
 
+    const isNodeModules = item.file.includes('node_modules')
+
+    if (isNodeModules) {
+      totalNodeModulesSize += item.size
+      totalNodeModulesGzip += item.gzip
+      return
+    }
+
+    process.stdout.write(chalk.gray(`  ${treeChar} ${rpath} (${prettyBytes(item.size)}) (${prettyBytes(item.gzip)} gzip)\n`))
     totalSize += item.size
     totalGzip += item.gzip
   })
 
-  process.stdout.write(`${chalk.cyan('Σ Total size:')} ${prettyBytes(totalSize)} (${prettyBytes(totalGzip)} gzip)\n`)
+  process.stdout.write(`${chalk.cyan('Σ Total size:')} ${prettyBytes(totalSize + totalNodeModulesSize)} (${prettyBytes(totalGzip + totalNodeModulesGzip)} gzip)\n`)
 }