@babel/plugin-transform-react-jsx-compat lets you use classic React JSX transform with Babel 7+. It ensures compatibility with older React versions by transforming JSX syntax into React.createElement calls instead of the modern _jsx and _jsxs functions. This plugin is essential for projects migrating to Babel 7+ while maintaining compatibility with libraries or environments that rely on the classic JSX transform output. It eases the upgrade process and avoids code breaking changes.