diff --git a/.changeset/beige-moles-listen.md b/.changeset/beige-moles-listen.md
index f98e103f18..a86ba7ce01 100644
--- a/.changeset/beige-moles-listen.md
+++ b/.changeset/beige-moles-listen.md
@@ -1,19 +1,19 @@
 ---
-'@commercetools-frontend/tsconfig': minor
+'@commercetools-frontend/application-config': minor
 ---
 
-Exposes a base `tsconfig.json` file to extend in Custom Applications.
+Expose a base `tsconfig.json` file to extend in Custom Applications.
 
 Install:
 
 ```bash
-$ npm install --save @commercetools-frontend/tsconfig
+$ npm install --save @commercetools-frontend/application-config
 ```
 
 Add to your `tsconfig.json`:
 
 ```json
 {
-  "extends": "@commercetools-frontend/tsconfig"
+  "extends": "@commercetools-frontend/application-config/tsconfig/tsconfig.json"
 }
 ```
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 212ba735f0..51d86ca1e8 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -47,7 +47,6 @@ packages/
   react-notifications/
   sdk/
   sentry/
-  tsconfig/
   url-utils/
 ```
 
@@ -116,10 +115,6 @@ This package contains React components to render notification (e.g. error messag
 
 This package contains React components to perform requests in a declarative way. Underneath it uses our [js-sdk](https://commercetools.github.io/nodejs/sdk/) to perform the network requests.
 
-#### [tsconfig](./packages/tsconfig)
-
-This package contains a TSConfig file used by a Merchant Center application in TypeScript.
-
 ## Setting up a local copy
 
 1. Clone the repository
diff --git a/package.json b/package.json
index 90ad93ee97..4d02fa38fb 100644
--- a/package.json
+++ b/package.json
@@ -76,8 +76,7 @@
       "!packages/jest-preset-mc-app",
       "!packages/jest-stylelint-runner",
       "!packages/mc-scripts",
-      "!packages-backend/eslint-config-node",
-      "!packages/tsconfig"
+      "!packages-backend/eslint-config-node"
     ]
   },
   "dependencies": {
diff --git a/packages/tsconfig/tsconfig.json b/packages/application-config/tsconfig/tsconfig.json
similarity index 100%
rename from packages/tsconfig/tsconfig.json
rename to packages/application-config/tsconfig/tsconfig.json
diff --git a/packages/tsconfig/.gitignore b/packages/tsconfig/.gitignore
deleted file mode 100644
index c795b054e5..0000000000
--- a/packages/tsconfig/.gitignore
+++ /dev/null
@@ -1 +0,0 @@
-build
\ No newline at end of file
diff --git a/packages/tsconfig/LICENSE b/packages/tsconfig/LICENSE
deleted file mode 100644
index dbf31194f2..0000000000
--- a/packages/tsconfig/LICENSE
+++ /dev/null
@@ -1,21 +0,0 @@
-MIT License
-
-Copyright (c) 2022 commercetools GmbH
-
-Permission is hereby granted, free of charge, to any person obtaining a copy
-of this software and associated documentation files (the "Software"), to deal
-in the Software without restriction, including without limitation the rights
-to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
-copies of the Software, and to permit persons to whom the Software is
-furnished to do so, subject to the following conditions:
-
-The above copyright notice and this permission notice shall be included in all
-copies or substantial portions of the Software.
-
-THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
-IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
-FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
-AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
-LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
-OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
-SOFTWARE.
\ No newline at end of file
diff --git a/packages/tsconfig/README.md b/packages/tsconfig/README.md
deleted file mode 100644
index 02347d5f9c..0000000000
--- a/packages/tsconfig/README.md
+++ /dev/null
@@ -1,23 +0,0 @@
-# @commercetools-frontend/tsconfig
-
-<p align="center">
-  <a href="https://www.npmjs.com/package/@commercetools-frontend/tsconfig"><img src="https://badgen.net/npm/v/@commercetools-frontend/tsconfig" alt="Latest release (latest dist-tag)" /></a> <a href="https://www.npmjs.com/package/@commercetools-frontend/tsconfig"><img src="https://badgen.net/npm/v/@commercetools-frontend/tsconfig/next" alt="Latest release (next dist-tag)" /></a> <a href="https://bundlephobia.com/result?p=@commercetools-frontend/tsconfig"><img src="https://badgen.net/bundlephobia/minzip/@commercetools-frontend/tsconfig" alt="Minified + GZipped size" /></a> <a href="https://github.com/commercetools/merchant-center-application-kit/blob/main/LICENSE"><img src="https://badgen.net/github/license/commercetools/merchant-center-application-kit" alt="GitHub license" /></a>
-</p>
-
-TSConfig file used by a Custom Application in TypeScript.
-
-## Install
-
-```bash
-$ npm install --save @commercetools-frontend/tsconfig
-```
-
-## Usage
-
-Add to your `tsconfig.json`:
-
-```json
-{
-  "extends": "@commercetools-frontend/tsconfig"
-}
-```
diff --git a/packages/tsconfig/package.json b/packages/tsconfig/package.json
deleted file mode 100644
index 54d4c4ed10..0000000000
--- a/packages/tsconfig/package.json
+++ /dev/null
@@ -1,29 +0,0 @@
-{
-  "name": "@commercetools-frontend/tsconfig",
-  "version": "0.1.0",
-  "description": "Shared TypeScript config for Custom Applications",
-  "bugs": "https://github.com/commercetools/merchant-center-application-kit/issues",
-  "repository": {
-    "type": "git",
-    "url": "https://github.com/commercetools/merchant-center-application-kit.git",
-    "directory": "packages/tsconfig"
-  },
-  "homepage": "https://docs.commercetools.com/custom-applications",
-  "keywords": [
-    "config",
-    "configuration",
-    "javascript",
-    "frontend",
-    "toolkit",
-    "tsconfig",
-    "typescript",
-    "ts"
-  ],
-  "license": "MIT",
-  "publishConfig": {
-    "access": "public"
-  },
-  "engines": {
-    "node": "14.x || 16.x || 17.x"
-  }
-}