diff --git a/packages/babel-plugin-jsx-dom-expressions/src/shared/utils.js b/packages/babel-plugin-jsx-dom-expressions/src/shared/utils.js
index 61bd4b81..d958ec9c 100644
--- a/packages/babel-plugin-jsx-dom-expressions/src/shared/utils.js
+++ b/packages/babel-plugin-jsx-dom-expressions/src/shared/utils.js
@@ -94,7 +94,7 @@ export function isDynamic(path, { checkMember, checkTags, checkCallExpressions =
     return false;
   }
 
-  if (checkCallExpressions && (t.isCallExpression(expr) || t.isOptionalCallExpression(expr))) {
+  if (checkCallExpressions && (t.isCallExpression(expr) || t.isOptionalCallExpression(expr) || t.isTaggedTemplateExpression(expr))) {
     return true;
   }
 
diff --git a/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/code.js b/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/code.js
index 1ea24bbf..f5bedf05 100644
--- a/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/code.js
+++ b/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/code.js
@@ -27,6 +27,9 @@ const singleExpression = <>{inserted}</>;
 
 const singleDynamic = <>{inserted()}</>;
 
+const greeting = (x) => "Hello " + x;
+const singleTemplateLiteral = <>{greeting`world`}</>
+
 const firstStatic = (
   <>
     {inserted}
diff --git a/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/output.js b/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/output.js
index bba096fc..49f0df99 100644
--- a/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/output.js
+++ b/packages/babel-plugin-jsx-dom-expressions/test/__dynamic_fixtures__/fragments/output.js
@@ -27,6 +27,8 @@ const multiDynamic = [
 ];
 const singleExpression = inserted;
 const singleDynamic = _$memo(inserted);
+const greeting = x => "Hello " + x;
+const singleTemplateLiteral = _$memo(() => greeting`world`);
 const firstStatic = [inserted, _tmpl$3()];
 const firstDynamic = [_$memo(inserted), _tmpl$3()];
 const firstComponent = [_$createComponent(Component, {}), _tmpl$3()];