diff --git a/packages/babel-plugin/src/__tests__/index.test.ts b/packages/babel-plugin/src/__tests__/index.test.ts
index 786122ae7..63082ac3e 100644
--- a/packages/babel-plugin/src/__tests__/index.test.ts
+++ b/packages/babel-plugin/src/__tests__/index.test.ts
@@ -114,6 +114,95 @@ describe('babel plugin', () => {
     `);
   });
 
+  it('should transform cloneElement css prop', () => {
+    const actual = transform(`
+      import { cloneElement } from 'react';
+      import { css } from '@compiled/react';
+
+      const MyDiv = ({ children }) => {
+        return cloneElement(children, { css: css({ fontSize: 12 }) });
+      };
+    `);
+
+    expect(actual).toMatchInlineSnapshot(`
+      "/* File generated by @compiled/babel-plugin v0.0.0 */
+      import * as React from "react";
+      import { ax, ix, CC, CS } from "@compiled/react/runtime";
+      import { cloneElement } from "react";
+      const _ = "._1wyb1fwx{font-size:12px}";
+      const MyDiv = ({ children }) => {
+        return (
+          <CC>
+            <CS>{[_]}</CS>
+            {cloneElement(children, {
+              className: ax(["_1wyb1fwx"]),
+            })}
+          </CC>
+        );
+      };
+      "
+    `);
+  });
+
+  it('should transform cloneElement css prop with aliased import', () => {
+    const actual = transform(`
+      import { cloneElement as CE } from 'react';
+      import { css } from '@compiled/react';
+
+      const MyDiv = ({ children }) => {
+        return CE(children, { css: css({ fontSize: 12 }) });
+      };
+    `);
+
+    expect(actual).toMatchInlineSnapshot(`
+      "/* File generated by @compiled/babel-plugin v0.0.0 */
+      import * as React from "react";
+      import { ax, ix, CC, CS } from "@compiled/react/runtime";
+      import { cloneElement as CE } from "react";
+      const _ = "._1wyb1fwx{font-size:12px}";
+      const MyDiv = ({ children }) => {
+        return (
+          <CC>
+            <CS>{[_]}</CS>
+            {CE(children, {
+              className: ax(["_1wyb1fwx"]),
+            })}
+          </CC>
+        );
+      };
+      "
+    `);
+  });
+
+  it('should transform React.cloneElement css prop', () => {
+    const actual = transform(`
+      import React from 'react';
+      import { css } from '@compiled/react';
+
+      const MyDiv = ({ children }) => {
+        return React.cloneElement(children, { css: css({ fontSize: 12 }) });
+      };
+    `);
+
+    expect(actual).toMatchInlineSnapshot(`
+      "/* File generated by @compiled/babel-plugin v0.0.0 */
+      import { ax, ix, CC, CS } from "@compiled/react/runtime";
+      import React from "react";
+      const _ = "._1wyb1fwx{font-size:12px}";
+      const MyDiv = ({ children }) => {
+        return (
+          <CC>
+            <CS>{[_]}</CS>
+            {React.cloneElement(children, {
+              className: ax(["_1wyb1fwx"]),
+            })}
+          </CC>
+        );
+      };
+      "
+    `);
+  });
+
   // TODO Removing import React from 'react' breaks this test
   it('should preserve comments at the top of the processed file before inserting runtime imports', () => {
     const actual = transform(`
diff --git a/packages/babel-plugin/src/babel-plugin.ts b/packages/babel-plugin/src/babel-plugin.ts
index 380101199..5c85995fb 100644
--- a/packages/babel-plugin/src/babel-plugin.ts
+++ b/packages/babel-plugin/src/babel-plugin.ts
@@ -14,6 +14,7 @@ import {
 } from '@compiled/utils';
 
 import { visitClassNamesPath } from './class-names';
+import { visitCloneElementPath } from './clone-element';
 import { visitCssMapPath } from './css-map';
 import { visitCssPropPath } from './css-prop';
 import { visitStyledPath } from './styled';
@@ -65,6 +66,26 @@ const findClassicJsxPragmaImport: Visitor<State> = {
   },
 };
 
+const findReactImportSpecifier: Visitor<State> = {
+  ImportSpecifier(path, state) {
+    const specifier = path.node;
+
+    t.assertImportDeclaration(path.parent);
+    if (path.parent.source.value !== 'react') {
+      return;
+    }
+
+    if (
+      (specifier.imported.type === 'StringLiteral' &&
+        specifier.imported.value === 'cloneElement') ||
+      (specifier.imported.type === 'Identifier' && specifier.imported.name === 'cloneElement')
+    ) {
+      state.reactImports = state.reactImports || {};
+      state.reactImports.cloneElement = specifier.local.name;
+    }
+  },
+};
+
 export default declare<State>((api) => {
   api.assertVersion(7);
 
@@ -124,6 +145,7 @@ export default declare<State>((api) => {
 
           // Handle classic JSX pragma, if it exists
           path.traverse<State>(findClassicJsxPragmaImport, this);
+          path.traverse<State>(findReactImportSpecifier, this);
 
           if (!file.ast.comments) {
             return;
@@ -295,6 +317,26 @@ export default declare<State>((api) => {
         path: NodePath<t.TaggedTemplateExpression> | NodePath<t.CallExpression>,
         state: State
       ) {
+        if (
+          (t.isCallExpression(path.node) &&
+            t.isIdentifier(path.node.callee) &&
+            path.node.callee.name === state.reactImports?.cloneElement) ||
+          // handle member expression React.cloneElement
+          (t.isCallExpression(path.node) &&
+            t.isMemberExpression(path.node.callee) &&
+            t.isIdentifier(path.node.callee.object) &&
+            path.node.callee.object.name === 'React' &&
+            t.isIdentifier(path.node.callee.property) &&
+            path.node.callee.property.name === 'cloneElement')
+        ) {
+          visitCloneElementPath(path as NodePath<t.CallExpression>, {
+            context: 'root',
+            state,
+            parentPath: path,
+          });
+          return;
+        }
+
         if (isTransformedJsxFunction(path, state)) {
           throw buildCodeFrameError(
             `Found a \`jsx\` function call in the Babel output where one should not have been generated. Was Compiled not set up correctly?
diff --git a/packages/babel-plugin/src/clone-element/index.ts b/packages/babel-plugin/src/clone-element/index.ts
new file mode 100644
index 000000000..3cb6deffe
--- /dev/null
+++ b/packages/babel-plugin/src/clone-element/index.ts
@@ -0,0 +1,131 @@
+import type { NodePath } from '@babel/core';
+import * as t from '@babel/types';
+
+import type { Metadata } from '../types';
+import { buildCompiledCloneElement } from '../utils/build-compiled-component';
+import { buildCss } from '../utils/css-builders';
+import { getRuntimeClassNameLibrary } from '../utils/get-runtime-class-name-library';
+import { resolveIdentifierComingFromDestructuring } from '../utils/resolve-binding';
+import { transformCssItems } from '../utils/transform-css-items';
+import type { CSSOutput } from '../utils/types';
+
+/**
+ * Extracts styles from an expression.
+ *
+ * @param path Expression node
+ */
+const extractStyles = (path: NodePath<t.Expression>): t.Expression[] | t.Expression | undefined => {
+  if (
+    t.isCallExpression(path.node) &&
+    t.isIdentifier(path.node.callee) &&
+    path.node.callee.name === 'css' &&
+    t.isExpression(path.node.arguments[0])
+  ) {
+    // css({}) call
+    const styles = path.node.arguments as t.Expression[];
+    return styles;
+  }
+
+  if (
+    t.isCallExpression(path.node) &&
+    t.isIdentifier(path.node.callee) &&
+    t.isExpression(path.node.arguments[0]) &&
+    path.scope.hasOwnBinding(path.node.callee.name)
+  ) {
+    const binding = path.scope.getBinding(path.node.callee.name)?.path.node;
+
+    if (
+      !!resolveIdentifierComingFromDestructuring({ name: 'css', node: binding as t.Expression })
+    ) {
+      // c({}) rename call
+      const styles = path.node.arguments as t.Expression[];
+      return styles;
+    }
+  }
+
+  if (t.isCallExpression(path.node) && t.isMemberExpression(path.node.callee)) {
+    if (
+      t.isIdentifier(path.node.callee.property) &&
+      path.node.callee.property.name === 'css' &&
+      t.isExpression(path.node.arguments[0])
+    ) {
+      // props.css({}) call
+      const styles = path.node.arguments as t.Expression[];
+      return styles;
+    }
+  }
+
+  if (t.isTaggedTemplateExpression(path.node)) {
+    const styles = path.node.quasi;
+    return styles;
+  }
+
+  return undefined;
+};
+
+/**
+ * Takes a React.cloneElement invocation and transforms it into a compiled component.
+ * This method will traverse the AST twice,
+ * once to replace all calls to `css`,
+ * and another to replace `style` usage.
+ *
+ * `React.cloneElement(<Component />, { css: {} })`
+ *
+ * @param path {NodePath} The opening JSX element
+ * @param meta {Metadata} Useful metadata that can be used during the transformation
+ */
+export const visitCloneElementPath = (path: NodePath<t.CallExpression>, meta: Metadata): void => {
+  // if props contains a `css` prop, we need to transform it.
+  const props = path.node.arguments[1];
+
+  if (props.type !== 'ObjectExpression') {
+    // TODO: handle this case properly
+    console.error('cloneElement props are not an ObjectExpression');
+    return;
+  }
+
+  const collectedVariables: CSSOutput['variables'] = [];
+  const collectedSheets: string[] = [];
+
+  // First pass to replace all usages of `css({})`
+  path.traverse({
+    CallExpression(path) {
+      const styles = extractStyles(path);
+
+      if (!styles) {
+        // Nothing to do - skip.
+        return;
+      }
+
+      const builtCss = buildCss(styles, meta);
+      const { sheets, classNames } = transformCssItems(builtCss.css, meta);
+
+      collectedVariables.push(...builtCss.variables);
+      collectedSheets.push(...sheets);
+
+      path.replaceWith(
+        t.callExpression(t.identifier(getRuntimeClassNameLibrary(meta)), [
+          t.arrayExpression(classNames),
+        ])
+      );
+
+      // find ancestor cloneElement callExpression
+      const ancestorPath = path.findParent(
+        (p) =>
+          (p.isCallExpression() &&
+            t.isIdentifier(p.node.callee) &&
+            p.node.callee.name === meta.state.reactImports?.cloneElement) ||
+          (p.isCallExpression() &&
+            t.isMemberExpression(p.node.callee) &&
+            t.isIdentifier(p.node.callee.property) &&
+            p.node.callee.property.name === 'cloneElement')
+      ) as NodePath<t.CallExpression>;
+
+      if (!ancestorPath) {
+        return;
+      }
+
+      ancestorPath.replaceWith(buildCompiledCloneElement(ancestorPath.node, builtCss, meta));
+    },
+  });
+};
diff --git a/packages/babel-plugin/src/types.ts b/packages/babel-plugin/src/types.ts
index f697dda57..679da5614 100644
--- a/packages/babel-plugin/src/types.ts
+++ b/packages/babel-plugin/src/types.ts
@@ -138,6 +138,22 @@ export interface State extends PluginPass {
     cssMap?: string[];
   };
 
+  /**
+   * Returns the name of the cloneElement import specifier if it is imported.
+   * If an alias is used, the alias will be returned.
+   *
+   * E.g:
+   *
+   * ```
+   * import { cloneElement as myCloneElement } from 'react';
+   * ```
+   *
+   * Returns `myCloneElement`.
+   */
+  reactImports?: {
+    cloneElement?: string;
+  };
+
   usesXcss?: boolean;
 
   importedCompiledImports?: {
diff --git a/packages/babel-plugin/src/utils/build-compiled-component.ts b/packages/babel-plugin/src/utils/build-compiled-component.ts
index 82ad36a0f..067f8e37c 100644
--- a/packages/babel-plugin/src/utils/build-compiled-component.ts
+++ b/packages/babel-plugin/src/utils/build-compiled-component.ts
@@ -142,3 +142,61 @@ export const buildCompiledComponent = (
 
   return compiledTemplate(node, sheets, meta);
 };
+
+/**
+ * Accepts a cloneElement node and returns a Compiled Component AST.
+ *
+ * @param node Originating cloneElement node
+ * @param cssOutput CSS and variables to place onto the component
+ * @param meta {Metadata} Useful metadata that can be used during the transformation
+ */
+export const buildCompiledCloneElement = (
+  node: t.CallExpression,
+  cssOutput: CSSOutput,
+  meta: Metadata
+): t.Node => {
+  const { sheets, classNames } = transformCssItems(cssOutput.css, meta);
+
+  const props = node.arguments[1];
+
+  // TODO: This is a temporary fix to prevent the plugin from crashing when the second argument of cloneElement is not an object expression.
+  if (!t.isObjectExpression(props)) {
+    throw new Error('Second argument of cloneElement must be an object expression.');
+  }
+
+  const [classNameProperty] = props.properties.filter(
+    (prop) => t.isObjectProperty(prop) && t.isIdentifier(prop.key) && prop.key.name === 'className'
+  );
+
+  if (
+    classNameProperty &&
+    t.isObjectProperty(classNameProperty) &&
+    t.isIdentifier(classNameProperty.value)
+  ) {
+    const values: t.Expression[] = classNames.concat(classNameProperty.value);
+
+    classNameProperty.value = t.callExpression(t.identifier(getRuntimeClassNameLibrary(meta)), [
+      t.arrayExpression(values),
+    ]);
+  } else {
+    props.properties.push(
+      t.objectProperty(
+        t.identifier('className'),
+        t.callExpression(t.identifier(getRuntimeClassNameLibrary(meta)), [
+          t.arrayExpression(classNames),
+        ])
+      )
+    );
+  }
+
+  // remove css prop from props object
+  const cssPropIndex = props.properties.findIndex(
+    (prop) => t.isObjectProperty(prop) && t.isIdentifier(prop.key) && prop.key.name === 'css'
+  );
+
+  if (cssPropIndex !== -1) {
+    props.properties.splice(cssPropIndex, 1);
+  }
+
+  return compiledTemplate(node, sheets, meta);
+};