diff --git a/packages/core/src/app.ts b/packages/core/src/app.ts
index de4f75779..ff5a0330c 100644
--- a/packages/core/src/app.ts
+++ b/packages/core/src/app.ts
@@ -147,7 +147,7 @@ export function excludeDotFiles(files: string[]) {
 }
 
 export const CACHE_BUSTING_PLUGIN = {
-  path: require.resolve('./babel-plugin-cache-busting'),
+  path: require.resolve('@embroider/shared-internals/src/babel-plugin-cache-busting.js'),
   version: readJSONSync(`${__dirname}/../package.json`).version,
 };
 
@@ -393,7 +393,7 @@ export class AppBuilder<TreeNames> {
     ]);
 
     // this is @embroider/macros configured for full stage3 resolution
-    babel.plugins.push(this.macrosConfig.babelPluginConfig());
+    babel.plugins.push(...this.macrosConfig.babelPluginConfig());
 
     babel.plugins.push([require.resolve('./template-colocation-plugin')]);
 
diff --git a/packages/macros/package.json b/packages/macros/package.json
index e34881645..9493775b6 100644
--- a/packages/macros/package.json
+++ b/packages/macros/package.json
@@ -27,6 +27,7 @@
     "@embroider/shared-internals": "0.43.4",
     "assert-never": "^1.2.1",
     "ember-cli-babel": "^7.26.6",
+    "find-up": "^5.0.0",
     "lodash": "^4.17.21",
     "resolve": "^1.20.0",
     "semver": "^7.3.2"
diff --git a/packages/macros/src/ember-addon-main.ts b/packages/macros/src/ember-addon-main.ts
index bdd019146..d5e1b2a0f 100644
--- a/packages/macros/src/ember-addon-main.ts
+++ b/packages/macros/src/ember-addon-main.ts
@@ -69,7 +69,7 @@ export = {
     if (!babelPlugins.some(isEmbroiderMacrosPlugin)) {
       let appInstance = this._findHost();
       let source = appOrAddonInstance.root || appOrAddonInstance.project.root;
-      babelPlugins.unshift(MacrosConfig.for(appInstance).babelPluginConfig(source));
+      babelPlugins.unshift(...MacrosConfig.for(appInstance).babelPluginConfig(source));
     }
   },
 
diff --git a/packages/macros/src/macros-config.ts b/packages/macros/src/macros-config.ts
index b121390d2..d1ccd77f5 100644
--- a/packages/macros/src/macros-config.ts
+++ b/packages/macros/src/macros-config.ts
@@ -1,4 +1,7 @@
+import fs from 'fs';
 import { join } from 'path';
+import crypto from 'crypto';
+import findUp from 'find-up';
 import type { PluginItem } from '@babel/core';
 import { PackageCache, getOrCreate } from '@embroider/shared-internals';
 import { makeFirstTransform, makeSecondTransform } from './glimmer/ast-transform';
@@ -255,7 +258,7 @@ export default class MacrosConfig {
   // normal node_modules resolution can find their dependencies. In other words,
   // owningPackageRoot is needed when you use this inside classic ember-cli, and
   // it's not appropriate inside embroider.
-  babelPluginConfig(owningPackageRoot?: string): PluginItem {
+  babelPluginConfig(owningPackageRoot?: string): PluginItem[] {
     let self = this;
     let opts: State['opts'] = {
       // this is deliberately lazy because we want to allow everyone to finish
@@ -281,7 +284,31 @@ export default class MacrosConfig {
 
       importSyncImplementation: this.importSyncImplementation,
     };
-    return [join(__dirname, 'babel', 'macros-babel-plugin.js'), opts];
+
+    let lockFilePath = findUp.sync(['yarn.lock', 'package-lock.json', 'pnpm-lock.yaml'], { cwd: opts.appPackageRoot });
+
+    if (!lockFilePath) {
+      lockFilePath = findUp.sync('package.json', { cwd: opts.appPackageRoot });
+    }
+
+    let lockFileBuffer = lockFilePath ? fs.readFileSync(lockFilePath) : 'no-cache-key';
+
+    // @embroider/macros provides a macro called dependencySatisfies which checks if a given
+    // package name satisfies a given semver version range. Due to the way babel caches this can
+    // cause a problem where the macro plugin does not run (because it has been cached) but the version
+    // of the dependency being checked for changes (due to installing a different version). This will lead to
+    // the old evaluated state being used which might be invalid. This cache busting plugin keeps track of a
+    // hash representing the lock file of the app and if it ever changes forces babel to rerun its plugins.
+    // more information in issue #906
+    let cacheKey = crypto.createHash('sha256').update(lockFileBuffer).digest('hex');
+    return [
+      [join(__dirname, 'babel', 'macros-babel-plugin.js'), opts],
+      [
+        require.resolve('@embroider/shared-internals/src/babel-plugin-cache-busting.js'),
+        { version: cacheKey },
+        `@embroider/macros cache buster: ${owningPackageRoot}`,
+      ],
+    ];
   }
 
   static astPlugins(owningPackageRoot?: string): {
diff --git a/packages/macros/tests/babel/helpers.ts b/packages/macros/tests/babel/helpers.ts
index ddd04fbf9..4f6bde184 100644
--- a/packages/macros/tests/babel/helpers.ts
+++ b/packages/macros/tests/babel/helpers.ts
@@ -54,7 +54,7 @@ export function makeBabelConfig(_babelVersion: number, macroConfig: MacrosConfig
   return {
     filename: join(__dirname, 'sample.js'),
     presets: [],
-    plugins: [macroConfig.babelPluginConfig()],
+    plugins: macroConfig.babelPluginConfig(),
   };
 }
 
@@ -100,7 +100,7 @@ export function allBabelVersions(createTests: CreateTests | CreateTestsWithConfi
       return {
         filename: join(__dirname, 'sample.js'),
         presets: [],
-        plugins: [config.babelPluginConfig()],
+        plugins: config.babelPluginConfig(),
       };
     },
 
diff --git a/packages/shared-internals/package.json b/packages/shared-internals/package.json
index 259211fea..d06b06880 100644
--- a/packages/shared-internals/package.json
+++ b/packages/shared-internals/package.json
@@ -12,7 +12,8 @@
     ".": {
       "browser": "./src/browser-index.js",
       "default": "./src/index.js"
-    }
+    },
+    "./src/babel-plugin-cache-busting.js": "./src/babel-plugin-cache-busting.js"
   },
   "license": "MIT",
   "author": "Edward Faulkner",
diff --git a/packages/core/src/babel-plugin-cache-busting.ts b/packages/shared-internals/src/babel-plugin-cache-busting.ts
similarity index 100%
rename from packages/core/src/babel-plugin-cache-busting.ts
rename to packages/shared-internals/src/babel-plugin-cache-busting.ts
diff --git a/tests/fixtures/macro-test/app/controllers/application.js b/tests/fixtures/macro-test/app/controllers/application.js
index e75f85988..6c85764c3 100644
--- a/tests/fixtures/macro-test/app/controllers/application.js
+++ b/tests/fixtures/macro-test/app/controllers/application.js
@@ -1,5 +1,5 @@
 import Controller from '@ember/controller';
-import { getOwnConfig, isTesting, isDevelopingApp } from '@embroider/macros';
+import { getOwnConfig, isTesting, isDevelopingApp, macroCondition, dependencySatisfies } from '@embroider/macros';
 
 export default class Application extends Controller {
   constructor() {
@@ -7,5 +7,11 @@ export default class Application extends Controller {
     this.mode = getOwnConfig()['mode'];
     this.isTesting = isTesting();
     this.isDeveloping = isDevelopingApp();
+
+    if (macroCondition(dependencySatisfies('lodash', '^4'))) {
+      this.lodashVersion = 'four';
+    } else {
+      this.lodashVersion = 'three';
+    }
   }
 }
diff --git a/tests/fixtures/macro-test/app/templates/application.hbs b/tests/fixtures/macro-test/app/templates/application.hbs
index 1d0d1451e..dad21ec84 100644
--- a/tests/fixtures/macro-test/app/templates/application.hbs
+++ b/tests/fixtures/macro-test/app/templates/application.hbs
@@ -1,4 +1,5 @@
 <div data-test-mode>{{this.mode}}</div>
 <div data-test-count>{{macroGetOwnConfig "count"}}</div>
 <div>isDeveloping: <span data-test-developing>{{this.isDeveloping}}</span></div>
-<div>isTesting: <span data-test-testing>{{this.isTesting}}</span></div>
\ No newline at end of file
+<div>isTesting: <span data-test-testing>{{this.isTesting}}</span></div>
+<div data-test-version>{{this.lodashVersion}}</div>
diff --git a/tests/fixtures/macro-test/config/environment.js b/tests/fixtures/macro-test/config/environment.js
new file mode 100644
index 000000000..43bb7ed81
--- /dev/null
+++ b/tests/fixtures/macro-test/config/environment.js
@@ -0,0 +1,52 @@
+'use strict';
+
+module.exports = function (environment) {
+  let ENV = {
+    modulePrefix: 'app-template',
+    environment,
+    rootURL: '/',
+    locationType: 'auto',
+    EmberENV: {
+      FEATURES: {
+        // Here you can enable experimental features on an ember canary build
+        // e.g. EMBER_NATIVE_DECORATOR_SUPPORT: true
+      },
+      EXTEND_PROTOTYPES: {
+        // Prevent Ember Data from overriding Date.parse.
+        Date: false,
+      },
+    },
+
+    APP: {
+      // Here you can pass flags/options to your application instance
+      // when it is created
+    },
+    LODASH_VERSION: process.env.LODASH_VERSION || 'four',
+  };
+
+  if (environment === 'development') {
+    // ENV.APP.LOG_RESOLVER = true;
+    // ENV.APP.LOG_ACTIVE_GENERATION = true;
+    // ENV.APP.LOG_TRANSITIONS = true;
+    // ENV.APP.LOG_TRANSITIONS_INTERNAL = true;
+    // ENV.APP.LOG_VIEW_LOOKUPS = true;
+  }
+
+  if (environment === 'test') {
+    // Testem prefers this...
+    ENV.locationType = 'none';
+
+    // keep test console output quieter
+    ENV.APP.LOG_ACTIVE_GENERATION = false;
+    ENV.APP.LOG_VIEW_LOOKUPS = false;
+
+    ENV.APP.rootElement = '#ember-testing';
+    ENV.APP.autoboot = false;
+  }
+
+  if (environment === 'production') {
+    // here you can enable a production-specific feature
+  }
+
+  return ENV;
+};
diff --git a/tests/fixtures/macro-test/tests/acceptance/basic-test.js b/tests/fixtures/macro-test/tests/acceptance/basic-test.js
index f3144f51b..6d866ddf4 100644
--- a/tests/fixtures/macro-test/tests/acceptance/basic-test.js
+++ b/tests/fixtures/macro-test/tests/acceptance/basic-test.js
@@ -1,36 +1,37 @@
 import { module, test } from 'qunit';
 import { visit, currentURL } from '@ember/test-helpers';
 import { setupApplicationTest } from 'ember-qunit';
+import ENV from 'app-template/config/environment';
 
-module('Acceptance | smoke tests', function(hooks) {
+module('Acceptance | smoke tests', function (hooks) {
   setupApplicationTest(hooks);
 
-  test('ensure all scripts in index.html 200', async function(assert) {
+  test('ensure all scripts in index.html 200', async function (assert) {
     for (let { src } of document.scripts) {
       let { status } = await fetch(src);
       assert.equal(status, 200, `expected: '${src}' to be accessible`);
     }
   });
 
-  test('JS getOwnConfig worked', async function(assert) {
+  test('JS getOwnConfig worked', async function (assert) {
     await visit('/');
     assert.equal(currentURL(), '/');
     assert.equal(this.element.querySelector('[data-test-mode]').textContent.trim(), 'amazing');
   });
 
-  test('HBS getOwnConfig worked', async function(assert) {
+  test('HBS getOwnConfig worked', async function (assert) {
     await visit('/');
     assert.equal(currentURL(), '/');
     assert.equal(this.element.querySelector('[data-test-count]').textContent.trim(), '42');
   });
 
-  test('JS isTesting worked', async function(assert) {
+  test('JS isTesting worked', async function (assert) {
     await visit('/');
     assert.equal(currentURL(), '/');
     assert.equal(this.element.querySelector('[data-test-testing]').textContent.trim(), 'true');
   });
 
-  test('/ordered.js is ordered correctly', function(assert) {
+  test('/ordered.js is ordered correctly', function (assert) {
     assert.deepEqual(self.ORDER, [
       // these come via app.import(name, { prepend: true });
       // which ultimately end up in vendor.js
@@ -49,4 +50,12 @@ module('Acceptance | smoke tests', function(hooks) {
       'ONE',
     ]);
   });
+
+  test('dependency satisfies works correctly', async function (assert) {
+    await visit('/');
+    assert.equal(currentURL(), '/');
+
+    let expectedVersion = ENV.LODASH_VERSION;
+    assert.equal(this.element.querySelector('[data-test-version]').textContent.trim(), expectedVersion);
+  });
 });
diff --git a/tests/scenarios/macro-test.ts b/tests/scenarios/macro-test.ts
index 7ddcfe3c4..bfd398fe5 100644
--- a/tests/scenarios/macro-test.ts
+++ b/tests/scenarios/macro-test.ts
@@ -2,10 +2,22 @@ import { appScenarios } from './scenarios';
 import { PreparedApp, Project } from 'scenario-tester';
 import QUnit from 'qunit';
 import merge from 'lodash/merge';
-import { dirname } from 'path';
+import { dirname, join } from 'path';
 import { loadFromFixtureData } from './helpers';
+import fs from 'fs-extra';
 const { module: Qmodule, test } = QUnit;
 
+function updateLodashVersion(app: PreparedApp, version: string) {
+  let pkgJson = fs.readJsonSync(join(app.dir, 'package.json'));
+  let pkgJsonLodash = fs.readJsonSync(join(app.dir, 'node_modules', 'lodash', 'package.json'));
+
+  pkgJson.devDependencies.lodash = version;
+  pkgJsonLodash.version = version;
+
+  fs.writeJsonSync(join(app.dir, 'package.json'), pkgJson);
+  fs.writeJsonSync(join(app.dir, 'node_modules', 'lodash', 'package.json'), pkgJsonLodash);
+}
+
 appScenarios
   .map('macro-tests', project => {
     let macroSampleAddon = Project.fromDir(dirname(require.resolve('../addon-template/package.json')), {
@@ -27,6 +39,7 @@ appScenarios
     funkySampleAddon.linkDependency('@embroider/macros', { baseDir: __dirname });
     macroSampleAddon.linkDependency('@embroider/macros', { baseDir: __dirname });
     project.linkDevDependency('@embroider/macros', { baseDir: __dirname });
+    project.linkDevDependency('lodash', { baseDir: __dirname });
 
     project.addDevDependency(macroSampleAddon);
     project.addDevDependency(funkySampleAddon);
@@ -34,8 +47,10 @@ appScenarios
   .forEachScenario(scenario => {
     Qmodule(scenario.name, function (hooks) {
       let app: PreparedApp;
+
       hooks.before(async () => {
         app = await scenario.prepare();
+        updateLodashVersion(app, '4.0.0');
       });
 
       test(`yarn test`, async function (assert) {
@@ -53,5 +68,29 @@ appScenarios
         let result = await app.execute(`cross-env THROW_UNLESS_PARALLELIZABLE=1 CLASSIC=true yarn test`);
         assert.equal(result.exitCode, 0, result.output);
       });
+
+      test(`@embroider/macros babel caching plugin works`, async function (assert) {
+        let lodashFourRun = await app.execute(`yarn test`);
+        assert.equal(lodashFourRun.exitCode, 0, lodashFourRun.output);
+
+        // simulate a different version being installed
+        updateLodashVersion(app, '3.0.0');
+
+        let lodashThreeRun = await app.execute(`cross-env LODASH_VERSION=three yarn test`);
+        assert.equal(lodashThreeRun.exitCode, 0, lodashThreeRun.output);
+      });
+
+      test(`CLASSIC=true @embroider/macros babel caching plugin works`, async function (assert) {
+        updateLodashVersion(app, '4.0.1');
+
+        let lodashFourRun = await app.execute(`cross-env CLASSIC=true yarn test`);
+        assert.equal(lodashFourRun.exitCode, 0, lodashFourRun.output);
+
+        // simulate a different version being installed
+        updateLodashVersion(app, '3.0.0');
+
+        let lodashThreeRun = await app.execute(`cross-env LODASH_VERSION=three CLASSIC=true yarn test`);
+        assert.equal(lodashThreeRun.exitCode, 0, lodashThreeRun.output);
+      });
     });
   });
diff --git a/tests/scenarios/package.json b/tests/scenarios/package.json
index 8d863dc5a..02e231bf7 100644
--- a/tests/scenarios/package.json
+++ b/tests/scenarios/package.json
@@ -4,6 +4,7 @@
   "dependencies": {
     "@types/qunit": "^2.11.1",
     "fastboot": "^3.1.0",
+    "fs-extra": "^10.0.0",
     "globby": "^11.0.3",
     "jsdom": "^16.2.2",
     "lodash": "^4.17.20",
diff --git a/yarn.lock b/yarn.lock
index 827180565..3fbecf00b 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5673,15 +5673,15 @@ browserify-zlib@^0.2.0:
     pako "~1.0.5"
 
 browserslist@^3.2.6, browserslist@^4.0.0, browserslist@^4.14.0, browserslist@^4.14.5, browserslist@^4.16.6:
-  version "4.16.6"
-  resolved "https://registry.yarnpkg.com/browserslist/-/browserslist-4.16.6.tgz#d7901277a5a88e554ed305b183ec9b0c08f66fa2"
-  integrity sha512-Wspk/PqO+4W9qp5iUTJsa1B/QrYn1keNCcEP5OvP7WBwT4KaDly0uONYmC6Xa3Z5IqnUgS0KcgLYu1l74x0ZXQ==
+  version "4.16.7"
+  resolved "https://registry.yarnpkg.com/browserslist/-/browserslist-4.16.7.tgz#108b0d1ef33c4af1b587c54f390e7041178e4335"
+  integrity sha512-7I4qVwqZltJ7j37wObBe3SoTz+nS8APaNcrBOlgoirb6/HbEU2XxW/LpUDTCngM6iauwFqmRTuOMfyKnFGY5JA==
   dependencies:
-    caniuse-lite "^1.0.30001219"
+    caniuse-lite "^1.0.30001248"
     colorette "^1.2.2"
-    electron-to-chromium "^1.3.723"
+    electron-to-chromium "^1.3.793"
     escalade "^3.1.1"
-    node-releases "^1.1.71"
+    node-releases "^1.1.73"
 
 bser@2.1.1:
   version "2.1.1"
@@ -5917,11 +5917,16 @@ caniuse-api@^3.0.0:
     lodash.memoize "^4.1.2"
     lodash.uniq "^4.5.0"
 
-caniuse-lite@^1.0.0, caniuse-lite@^1.0.30001219:
+caniuse-lite@^1.0.0:
   version "1.0.30001236"
   resolved "https://registry.yarnpkg.com/caniuse-lite/-/caniuse-lite-1.0.30001236.tgz#0a80de4cdf62e1770bb46a30d884fc8d633e3958"
   integrity sha512-o0PRQSrSCGJKCPZcgMzl5fUaj5xHe8qA2m4QRvnyY4e1lITqoNkr7q/Oh1NcpGSy0Th97UZ35yoKcINPoq7YOQ==
 
+caniuse-lite@^1.0.30001248:
+  version "1.0.30001248"
+  resolved "https://registry.yarnpkg.com/caniuse-lite/-/caniuse-lite-1.0.30001248.tgz#26ab45e340f155ea5da2920dadb76a533cb8ebce"
+  integrity sha512-NwlQbJkxUFJ8nMErnGtT0QTM2TJ33xgz4KXJSMIrjXIbDVdaYueGyjOrLKRtJC+rTiWfi6j5cnZN1NBiSBJGNw==
+
 capture-exit@^2.0.0:
   version "2.0.0"
   resolved "https://registry.yarnpkg.com/capture-exit/-/capture-exit-2.0.0.tgz#fb953bfaebeb781f62898239dabb426d08a509a4"
@@ -7181,10 +7186,10 @@ ee-first@1.1.1:
   resolved "https://registry.yarnpkg.com/ee-first/-/ee-first-1.1.1.tgz#590c61156b0ae2f4f0255732a158b266bc56b21d"
   integrity sha1-WQxhFWsK4vTwJVcyoViyZrxWsh0=
 
-electron-to-chromium@^1.3.723:
-  version "1.3.752"
-  resolved "https://registry.yarnpkg.com/electron-to-chromium/-/electron-to-chromium-1.3.752.tgz#0728587f1b9b970ec9ffad932496429aef750d09"
-  integrity sha512-2Tg+7jSl3oPxgsBsWKh5H83QazTkmWG/cnNwJplmyZc7KcN61+I10oUgaXSVk/NwfvN3BdkKDR4FYuRBQQ2v0A==
+electron-to-chromium@^1.3.793:
+  version "1.3.796"
+  resolved "https://registry.yarnpkg.com/electron-to-chromium/-/electron-to-chromium-1.3.796.tgz#bd74a4367902c9d432d129f265bf4542cddd9f54"
+  integrity sha512-agwJFgM0FUC1UPPbQ4aII3HamaaJ09fqWGAWYHmzxDWqdmTleCHyyA0kt3fJlTd5M440IaeuBfzXzXzCotnZcQ==
 
 elliptic@^6.5.3:
   version "6.5.4"
@@ -10982,6 +10987,15 @@ fs-extra@^0.30.0:
     path-is-absolute "^1.0.0"
     rimraf "^2.2.8"
 
+fs-extra@^10.0.0:
+  version "10.0.0"
+  resolved "https://registry.yarnpkg.com/fs-extra/-/fs-extra-10.0.0.tgz#9ff61b655dde53fb34a82df84bb214ce802e17c1"
+  integrity sha512-C5owb14u9eJwizKGdchcDUQeFtlSHHthBk8pbX9Vc1PFZrLombudjDnNns88aYslCyF6IY5SUw3Roz6xShcEIQ==
+  dependencies:
+    graceful-fs "^4.2.0"
+    jsonfile "^6.0.1"
+    universalify "^2.0.0"
+
 fs-extra@^3.0.1:
   version "3.0.1"
   resolved "https://registry.yarnpkg.com/fs-extra/-/fs-extra-3.0.1.tgz#3794f378c58b342ea7dbbb23095109c4b3b62291"
@@ -14563,7 +14577,7 @@ node-notifier@^9.0.1:
     uuid "^8.3.0"
     which "^2.0.2"
 
-node-releases@^1.1.71:
+node-releases@^1.1.73:
   version "1.1.73"
   resolved "https://registry.yarnpkg.com/node-releases/-/node-releases-1.1.73.tgz#dd4e81ddd5277ff846b80b52bb40c49edf7a7b20"
   integrity sha512-uW7fodD6pyW2FZNZnp/Z3hvWKeEW1Y8R1+1CnErE8cXFXzl5blBOoVB41CvMer6P6Q0S5FXDwcHgFd1Wj0U9zg==