diff --git a/packages/waku/src/client.ts b/packages/waku/src/client.ts
index 79e0a6d40..99c576b17 100644
--- a/packages/waku/src/client.ts
+++ b/packages/waku/src/client.ts
@@ -13,7 +13,7 @@ import {
 import type { ReactNode } from 'react';
 import RSDWClient from 'react-server-dom-webpack/client';
 
-import { encodeInput } from './lib/renderers/utils.js';
+import { encodeInput, encodeActionId } from './lib/renderers/utils.js';
 
 const { createFromFetch, encodeReply } = RSDWClient;
 
@@ -81,7 +81,7 @@ export const fetchRSC = (
   const options = {
     async callServer(actionId: string, args: unknown[]) {
       const response = fetch(
-        BASE_PATH + encodeInput(encodeURIComponent(actionId)),
+        BASE_PATH + encodeInput(encodeActionId(actionId)),
         {
           method: 'POST',
           body: await encodeReply(args),
diff --git a/packages/waku/src/config.ts b/packages/waku/src/config.ts
index 6194fa287..bcf3c7211 100644
--- a/packages/waku/src/config.ts
+++ b/packages/waku/src/config.ts
@@ -27,6 +27,11 @@ export interface Config {
    * Defaults to "assets".
    */
   assetsDir?: string;
+  /**
+   * The SSR directory relative to distDir.
+   * Defaults to "ssr".
+   */
+  ssrDir?: string;
   /**
    * The index.html file for any directories.
    * Defaults to "index.html".
diff --git a/packages/waku/src/lib/builder/build.ts b/packages/waku/src/lib/builder/build.ts
index a0b34a3a8..df4b33c30 100644
--- a/packages/waku/src/lib/builder/build.ts
+++ b/packages/waku/src/lib/builder/build.ts
@@ -22,6 +22,7 @@ import {
   createReadStream,
   createWriteStream,
   existsSync,
+  copyFile,
   rename,
   mkdir,
   readFile,
@@ -135,6 +136,7 @@ const analyzeEntries = async (entriesFile: string) => {
   };
 };
 
+// For RSC
 const buildServerBundle = async (
   rootDir: string,
   config: ResolvedConfig,
@@ -152,13 +154,11 @@ const buildServerBundle = async (
       rscTransformPlugin({
         isBuild: true,
         assetsDir: config.assetsDir,
-        clientEntryFiles: {
-          // FIXME this seems very ad-hoc
-          [WAKU_CLIENT]: decodeFilePathFromAbsolute(
-            joinPath(fileURLToFilePath(import.meta.url), '../../../client.js'),
-          ),
-          ...clientEntryFiles,
-        },
+        wakuClientId: WAKU_CLIENT,
+        wakuClientPath: decodeFilePathFromAbsolute(
+          joinPath(fileURLToFilePath(import.meta.url), '../../../client.js'),
+        ),
+        clientEntryFiles,
         serverEntryFiles,
       }),
       rscEnvPlugin({ config }),
@@ -224,7 +224,8 @@ const buildServerBundle = async (
   if (!('output' in serverBuildOutput)) {
     throw new Error('Unexpected vite server build output');
   }
-  const psDir = joinPath(config.publicDir, config.assetsDir);
+  // TODO If ssr === false, we don't need to write ssr entries.
+  const ssrAssetsDir = joinPath(config.ssrDir, config.assetsDir);
   const code = `
 export function loadModule(id) {
   switch (id) {
@@ -234,24 +235,24 @@ ${Object.keys(CLIENT_MODULE_MAP)
   .map(
     (key) => `
     case '${CLIENT_PREFIX}${key}':
-      return import('./${psDir}/${key}.js');
+      return import('./${ssrAssetsDir}/${key}.js');
   `,
   )
   .join('')}
-    case '${psDir}/${WAKU_CLIENT}.js':
-      return import('./${psDir}/${WAKU_CLIENT}.js');
-${Object.entries(serverEntryFiles || {})
+    case '${ssrAssetsDir}/${WAKU_CLIENT}.js':
+      return import('./${ssrAssetsDir}/${WAKU_CLIENT}.js');
+${Object.entries(clientEntryFiles || {})
   .map(
     ([k]) => `
-    case '${config.assetsDir}/${k}.js':
-      return import('./${config.assetsDir}/${k}.js');`,
+    case '${ssrAssetsDir}/${k}.js':
+      return import('./${ssrAssetsDir}/${k}.js');`,
   )
   .join('')}
-${Object.entries(clientEntryFiles || {})
+${Object.entries(serverEntryFiles || {})
   .map(
     ([k]) => `
-    case '${psDir}/${k}.js':
-      return import('./${psDir}/${k}.js');`,
+    case '${config.assetsDir}/${k}.js':
+      return import('./${config.assetsDir}/${k}.js');`,
   )
   .join('')}
     default:
@@ -263,6 +264,67 @@ ${Object.entries(clientEntryFiles || {})
   return serverBuildOutput;
 };
 
+// For SSR (render client components on server to generate HTML)
+const buildSsrBundle = async (
+  rootDir: string,
+  config: ResolvedConfig,
+  commonEntryFiles: Record<string, string>,
+  clientEntryFiles: Record<string, string>,
+  serverBuildOutput: Awaited<ReturnType<typeof buildServerBundle>>,
+) => {
+  const mainJsFile = joinPath(rootDir, config.srcDir, config.mainJs);
+  const cssAssets = serverBuildOutput.output.flatMap(({ type, fileName }) =>
+    type === 'asset' && fileName.endsWith('.css') ? [fileName] : [],
+  );
+  await buildVite({
+    base: config.basePath,
+    plugins: [
+      rscIndexPlugin({ ...config, cssAssets }),
+      rscEnvPlugin({ config, hydrate: true }),
+    ],
+    ssr: {
+      noExternal: /^(?!node:)/,
+    },
+    define: {
+      'process.env.NODE_ENV': JSON.stringify('production'),
+    },
+    publicDir: false,
+    build: {
+      ssr: true,
+      outDir: joinPath(rootDir, config.distDir, config.ssrDir),
+      rollupOptions: {
+        onwarn,
+        input: {
+          main: mainJsFile,
+          ...CLIENT_MODULE_MAP,
+          ...commonEntryFiles,
+          ...clientEntryFiles,
+        },
+        output: {
+          entryFileNames: (chunkInfo) => {
+            if (
+              CLIENT_MODULE_MAP[
+                chunkInfo.name as keyof typeof CLIENT_MODULE_MAP
+              ] ||
+              commonEntryFiles[chunkInfo.name] ||
+              clientEntryFiles[chunkInfo.name]
+            ) {
+              return config.assetsDir + '/[name].js';
+            }
+            return config.assetsDir + '/[name]-[hash].js';
+          },
+        },
+      },
+    },
+  });
+  for (const cssAsset of cssAssets) {
+    const from = joinPath(rootDir, config.distDir, cssAsset);
+    const to = joinPath(rootDir, config.distDir, config.ssrDir, cssAsset);
+    await copyFile(from, to);
+  }
+};
+
+// For Browsers
 const buildClientBundle = async (
   rootDir: string,
   config: ResolvedConfig,
@@ -288,7 +350,7 @@ const buildClientBundle = async (
         onwarn,
         input: {
           main: mainJsFile,
-          ...CLIENT_MODULE_MAP,
+          [WAKU_CLIENT]: CLIENT_MODULE_MAP[WAKU_CLIENT],
           ...commonEntryFiles,
           ...clientEntryFiles,
         },
@@ -296,9 +358,7 @@ const buildClientBundle = async (
         output: {
           entryFileNames: (chunkInfo) => {
             if (
-              CLIENT_MODULE_MAP[
-                chunkInfo.name as keyof typeof CLIENT_MODULE_MAP
-              ] ||
+              [WAKU_CLIENT].includes(chunkInfo.name) ||
               commonEntryFiles[chunkInfo.name] ||
               clientEntryFiles[chunkInfo.name]
             ) {
@@ -567,6 +627,15 @@ export async function build(options: {
       (options.deploy === 'netlify-functions' ? 'netlify' : false) ||
       (options.deploy === 'aws-lambda' ? 'aws-lambda' : false),
   );
+  if (options.ssr) {
+    await buildSsrBundle(
+      rootDir,
+      config,
+      commonEntryFiles,
+      clientEntryFiles,
+      serverBuildOutput,
+    );
+  }
   await buildClientBundle(
     rootDir,
     config,
diff --git a/packages/waku/src/lib/config.ts b/packages/waku/src/lib/config.ts
index 2b5ec998a..6ff9861b2 100644
--- a/packages/waku/src/lib/config.ts
+++ b/packages/waku/src/lib/config.ts
@@ -21,6 +21,7 @@ export async function resolveConfig(config: Config) {
     distDir: 'dist',
     publicDir: 'public',
     assetsDir: 'assets',
+    ssrDir: 'ssr',
     indexHtml: 'index.html',
     mainJs: 'main.tsx',
     entriesJs: 'entries.js',
diff --git a/packages/waku/src/lib/plugins/vite-plugin-rsc-transform.ts b/packages/waku/src/lib/plugins/vite-plugin-rsc-transform.ts
index f2f351994..d1354fdc6 100644
--- a/packages/waku/src/lib/plugins/vite-plugin-rsc-transform.ts
+++ b/packages/waku/src/lib/plugins/vite-plugin-rsc-transform.ts
@@ -9,6 +9,8 @@ export function rscTransformPlugin(
     | {
         isBuild: true;
         assetsDir: string;
+        wakuClientId: string;
+        wakuClientPath: string;
         clientEntryFiles: Record<string, string>;
         serverEntryFiles: Record<string, string>;
       },
@@ -17,6 +19,9 @@ export function rscTransformPlugin(
     if (!opts.isBuild) {
       throw new Error('not buiding');
     }
+    if (id === opts.wakuClientPath) {
+      return `@id/${opts.assetsDir}/${opts.wakuClientId}.js`;
+    }
     for (const [k, v] of Object.entries(opts.clientEntryFiles)) {
       if (v === id) {
         return `@id/${opts.assetsDir}/${k}.js`;
diff --git a/packages/waku/src/lib/renderers/html-renderer.ts b/packages/waku/src/lib/renderers/html-renderer.ts
index 66e52947c..c0cafb828 100644
--- a/packages/waku/src/lib/renderers/html-renderer.ts
+++ b/packages/waku/src/lib/renderers/html-renderer.ts
@@ -322,7 +322,7 @@ export const renderHtml = async (
                 moduleLoading.set(
                   id,
                   opts
-                    .loadModule(joinPath(config.publicDir, id))
+                    .loadModule(joinPath(config.ssrDir, id))
                     .then((m: any) => {
                       moduleCache.set(id, m);
                     }),
diff --git a/packages/waku/src/lib/renderers/rsc-renderer.ts b/packages/waku/src/lib/renderers/rsc-renderer.ts
index 85a041358..a43b9ce9a 100644
--- a/packages/waku/src/lib/renderers/rsc-renderer.ts
+++ b/packages/waku/src/lib/renderers/rsc-renderer.ts
@@ -10,6 +10,7 @@ import {
 } from '../utils/path.js';
 import { parseFormData } from '../utils/form.js';
 import { streamToString } from '../utils/stream.js';
+import { decodeActionId } from '../renderers/utils.js';
 
 export const RSDW_SERVER_MODULE = 'rsdw-server';
 export const RSDW_SERVER_MODULE_VALUE = 'react-server-dom-webpack/server.edge';
@@ -110,7 +111,7 @@ export async function renderRsc(
   );
 
   if (method === 'POST') {
-    const rsfId = decodeURIComponent(input);
+    const rsfId = decodeActionId(input);
     let args: unknown[] = [];
     let bodyStr = '';
     if (body) {
diff --git a/packages/waku/src/lib/renderers/utils.ts b/packages/waku/src/lib/renderers/utils.ts
index d8e5c1f60..b23292841 100644
--- a/packages/waku/src/lib/renderers/utils.ts
+++ b/packages/waku/src/lib/renderers/utils.ts
@@ -28,6 +28,19 @@ export const decodeInput = (encodedInput: string) => {
   throw err;
 };
 
+export const encodeActionId = (actionId: string) => {
+  const [file, name] = actionId.split('#') as [string, string];
+  if (name.includes('/')) {
+    throw new Error('Unsupported action name');
+  }
+  return '_' + file + '/' + name;
+};
+
+export const decodeActionId = (encoded: string) => {
+  const index = encoded.lastIndexOf('/');
+  return encoded.slice(1, index) + '#' + encoded.slice(index + 1);
+};
+
 export const hasStatusCode = (x: unknown): x is { statusCode: number } =>
   typeof (x as any)?.statusCode === 'number';
 
diff --git a/packages/waku/src/lib/utils/node-fs.ts b/packages/waku/src/lib/utils/node-fs.ts
index 71801910f..049aa0945 100644
--- a/packages/waku/src/lib/utils/node-fs.ts
+++ b/packages/waku/src/lib/utils/node-fs.ts
@@ -14,6 +14,9 @@ export const createWriteStream = (filePath: string) =>
 export const existsSync = (filePath: string) =>
   fs.existsSync(filePathToOsPath(filePath));
 
+export const copyFile = (filePath1: string, filePath2: string) =>
+  fsPromises.copyFile(filePathToOsPath(filePath1), filePathToOsPath(filePath2));
+
 export const rename = (filePath1: string, filePath2: string) =>
   fsPromises.rename(filePathToOsPath(filePath1), filePathToOsPath(filePath2));