diff --git a/src/utils.js b/src/utils.js
index 4375a3b7..64ee8b1e 100644
--- a/src/utils.js
+++ b/src/utils.js
@@ -491,40 +491,39 @@ function getValidLocalName(localName, exportLocalsConvention) {
   return camelCase(localName);
 }
 
-const moduleRegExp = /\.module(s)?\.\w+$/i;
-const icssRegExp = /\.icss\.\w+$/i;
+const IS_MODULES = /\.module(s)?\.\w+$/i;
+const IS_ICSS = /\.icss\.\w+$/i;
 
 function getModulesOptions(rawOptions, loaderContext) {
+  if (typeof rawOptions.modules === "boolean" && rawOptions.modules === false) {
+    return false;
+  }
+
   const resourcePath =
     // eslint-disable-next-line no-underscore-dangle
     (loaderContext._module && loaderContext._module.matchResource) ||
     loaderContext.resourcePath;
 
-  let isIcss;
+  let auto;
+  let rawModulesOptions;
 
   if (typeof rawOptions.modules === "undefined") {
-    const isModules = moduleRegExp.test(resourcePath);
-
-    if (!isModules) {
-      isIcss = icssRegExp.test(resourcePath);
-    }
-
-    if (!isModules && !isIcss) {
-      return false;
-    }
-  } else if (
-    typeof rawOptions.modules === "boolean" &&
-    rawOptions.modules === false
-  ) {
-    return false;
+    rawModulesOptions = {};
+    auto = true;
+  } else if (typeof rawOptions.modules === "boolean") {
+    rawModulesOptions = {};
+  } else if (typeof rawOptions.modules === "string") {
+    rawModulesOptions = { mode: rawOptions.modules };
+  } else {
+    rawModulesOptions = rawOptions.modules;
+    ({ auto } = rawModulesOptions);
   }
 
   // eslint-disable-next-line no-underscore-dangle
   const { outputOptions } = loaderContext._compilation;
-
-  let modulesOptions = {
-    auto: true,
-    mode: isIcss ? "icss" : "local",
+  const modulesOptions = {
+    auto,
+    mode: "local",
     exportGlobals: false,
     localIdentName: "[hash:base64]",
     localIdentContext: loaderContext.rootContext,
@@ -537,48 +536,43 @@ function getModulesOptions(rawOptions, loaderContext) {
     // eslint-disable-next-line no-undefined
     getLocalIdent: undefined,
     namedExport: false,
-    exportLocalsConvention: "asIs",
+    exportLocalsConvention:
+      rawModulesOptions.namedExport === true &&
+      typeof rawModulesOptions.exportLocalsConvention === "undefined"
+        ? "camelCaseOnly"
+        : "asIs",
     exportOnlyLocals: false,
+    ...rawModulesOptions,
   };
 
-  if (
-    typeof rawOptions.modules === "boolean" ||
-    typeof rawOptions.modules === "string"
-  ) {
-    modulesOptions.mode =
-      typeof rawOptions.modules === "string" ? rawOptions.modules : "local";
-  } else {
-    if (rawOptions.modules) {
-      if (typeof rawOptions.modules.auto === "boolean") {
-        const isModules =
-          rawOptions.modules.auto && moduleRegExp.test(resourcePath);
+  if (typeof modulesOptions.auto === "boolean") {
+    const isModules = modulesOptions.auto && IS_MODULES.test(resourcePath);
 
-        if (!isModules) {
-          return false;
-        }
-      } else if (rawOptions.modules.auto instanceof RegExp) {
-        const isModules = rawOptions.modules.auto.test(resourcePath);
+    let isIcss;
 
-        if (!isModules) {
-          return false;
-        }
-      } else if (typeof rawOptions.modules.auto === "function") {
-        const isModule = rawOptions.modules.auto(resourcePath);
+    if (!isModules) {
+      isIcss = IS_ICSS.test(resourcePath);
 
-        if (!isModule) {
-          return false;
-        }
+      if (isIcss) {
+        modulesOptions.mode = "icss";
       }
+    }
 
-      if (
-        rawOptions.modules.namedExport === true &&
-        typeof rawOptions.modules.exportLocalsConvention === "undefined"
-      ) {
-        modulesOptions.exportLocalsConvention = "camelCaseOnly";
-      }
+    if (!isModules && !isIcss) {
+      return false;
     }
+  } else if (modulesOptions.auto instanceof RegExp) {
+    const isModules = modulesOptions.auto.test(resourcePath);
 
-    modulesOptions = { ...modulesOptions, ...(rawOptions.modules || {}) };
+    if (!isModules) {
+      return false;
+    }
+  } else if (typeof modulesOptions.auto === "function") {
+    const isModule = modulesOptions.auto(resourcePath);
+
+    if (!isModule) {
+      return false;
+    }
   }
 
   if (typeof modulesOptions.mode === "function") {
diff --git a/test/__snapshots__/modules-option.test.js.snap b/test/__snapshots__/modules-option.test.js.snap
index ee72f724..f47b2779 100644
--- a/test/__snapshots__/modules-option.test.js.snap
+++ b/test/__snapshots__/modules-option.test.js.snap
@@ -4414,6 +4414,126 @@ Object {
 
 exports[`"modules" option should work js template with "namedExport" option: warnings 1`] = `Array []`;
 
+exports[`"modules" option should work when the "auto" is not specified, but specified other modules options: errors 1`] = `Array []`;
+
+exports[`"modules" option should work when the "auto" is not specified, but specified other modules options: modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".modules-mode-style-modules__class {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+___CSS_LOADER_EXPORT___.locals = {
+	\\"class\\": \\"modules-mode-style-modules__class\\"
+};
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified, but specified other modules options: not-modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".modules-mode-no-modules__class {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+___CSS_LOADER_EXPORT___.locals = {
+	\\"class\\": \\"modules-mode-no-modules__class\\"
+};
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified, but specified other modules options: result 1`] = `
+".modules-mode-style-modules__class {
+    color: red;
+}
+.modules-mode-no-modules__class {
+    color: red;
+}
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified, but specified other modules options: warnings 1`] = `Array []`;
+
+exports[`"modules" option should work when the "auto" is not specified: errors 1`] = `Array []`;
+
+exports[`"modules" option should work when the "auto" is not specified: modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\"._BNmWUIwputjT_WFqpoZ {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+___CSS_LOADER_EXPORT___.locals = {
+	\\"class\\": \\"_BNmWUIwputjT_WFqpoZ\\"
+};
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified: not-modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".class {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified: result 1`] = `
+"._BNmWUIwputjT_WFqpoZ {
+    color: red;
+}
+.class {
+    color: red;
+}
+"
+`;
+
+exports[`"modules" option should work when the "auto" is not specified: warnings 1`] = `Array []`;
+
+exports[`"modules" option should work when the "auto" option is "true" with other options: errors 1`] = `Array []`;
+
+exports[`"modules" option should work when the "auto" option is "true" with other options: modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".modules-mode-style-modules__class {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+___CSS_LOADER_EXPORT___.locals = {
+	\\"class\\": \\"modules-mode-style-modules__class\\"
+};
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" option is "true" with other options: not-modules-module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".class {\\\\n    color: red;\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work when the "auto" option is "true" with other options: result 1`] = `
+".modules-mode-style-modules__class {
+    color: red;
+}
+.class {
+    color: red;
+}
+"
+`;
+
+exports[`"modules" option should work when the "auto" option is "true" with other options: warnings 1`] = `Array []`;
+
 exports[`"modules" option should work when the "namedExport" is enabled and the "exportLocalsConvention" options has "dashesOnly" value: errors 1`] = `Array []`;
 
 exports[`"modules" option should work when the "namedExport" is enabled and the "exportLocalsConvention" options has "dashesOnly" value: module 1`] = `
@@ -13743,9 +13863,48 @@ Array [
 
 exports[`"modules" option should work with the "auto" by default: warnings 1`] = `Array []`;
 
-exports[`"modules" option should work with the "auto" when it is "false": errors 1`] = `Array []`;
+exports[`"modules" option should work with the "auto" option in the "modules" option for icss: errors 1`] = `Array []`;
+
+exports[`"modules" option should work with the "auto" option in the "modules" option for icss: module 1`] = `
+"// Imports
+import ___CSS_LOADER_API_IMPORT___ from \\"../../../../../src/runtime/api.js\\";
+import ___CSS_LOADER_ICSS_IMPORT_0___ from \\"-!../../../../../src/index.js??ruleSet[1].rules[0].use[0]!./vars.icss.css\\";
+var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
+___CSS_LOADER_EXPORT___.i(___CSS_LOADER_ICSS_IMPORT_0___, \\"\\", true);
+// Module
+___CSS_LOADER_EXPORT___.push([module.id, \\".className {\\\\n  color: \\" + ___CSS_LOADER_ICSS_IMPORT_0___.locals[\\"primary-color\\"] + \\";\\\\n}\\\\n\\", \\"\\"]);
+// Exports
+___CSS_LOADER_EXPORT___.locals = {
+	\\"primary-color\\": \\"\\" + ___CSS_LOADER_ICSS_IMPORT_0___.locals[\\"primary-color\\"] + \\"\\"
+};
+export default ___CSS_LOADER_EXPORT___;
+"
+`;
+
+exports[`"modules" option should work with the "auto" option in the "modules" option for icss: result 1`] = `
+Array [
+  Array [
+    "../../src/index.js??ruleSet[1].rules[0].use[0]!./modules/mode/icss/vars.icss.css",
+    "
+",
+    "",
+  ],
+  Array [
+    "./modules/mode/icss/relative.icss.css",
+    ".className {
+  color: red;
+}
+",
+    "",
+  ],
+]
+`;
+
+exports[`"modules" option should work with the "auto" option in the "modules" option for icss: warnings 1`] = `Array []`;
+
+exports[`"modules" option should work with the "auto" option is "false": errors 1`] = `Array []`;
 
-exports[`"modules" option should work with the "auto" when it is "false": module 1`] = `
+exports[`"modules" option should work with the "auto" option is "false": module 1`] = `
 "// Imports
 import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
 var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
@@ -13756,7 +13915,7 @@ export default ___CSS_LOADER_EXPORT___;
 "
 `;
 
-exports[`"modules" option should work with the "auto" when it is "false": result 1`] = `
+exports[`"modules" option should work with the "auto" option is "false": result 1`] = `
 Array [
   Array [
     "./modules/mode/relative.module.css",
@@ -13769,11 +13928,11 @@ Array [
 ]
 `;
 
-exports[`"modules" option should work with the "auto" when it is "false": warnings 1`] = `Array []`;
+exports[`"modules" option should work with the "auto" option is "false": warnings 1`] = `Array []`;
 
-exports[`"modules" option should work with the "auto" when it is "true": errors 1`] = `Array []`;
+exports[`"modules" option should work with the "auto" option is "true": errors 1`] = `Array []`;
 
-exports[`"modules" option should work with the "auto" when it is "true": module 1`] = `
+exports[`"modules" option should work with the "auto" option is "true": module 1`] = `
 "// Imports
 import ___CSS_LOADER_API_IMPORT___ from \\"../../../../src/runtime/api.js\\";
 var ___CSS_LOADER_EXPORT___ = ___CSS_LOADER_API_IMPORT___(function(i){return i[1]});
@@ -13787,7 +13946,7 @@ export default ___CSS_LOADER_EXPORT___;
 "
 `;
 
-exports[`"modules" option should work with the "auto" when it is "true": result 1`] = `
+exports[`"modules" option should work with the "auto" option is "true": result 1`] = `
 Array [
   Array [
     "./modules/mode/relative.module.css",
@@ -13800,7 +13959,7 @@ Array [
 ]
 `;
 
-exports[`"modules" option should work with the "auto" when it is "true": warnings 1`] = `Array []`;
+exports[`"modules" option should work with the "auto" option is "true": warnings 1`] = `Array []`;
 
 exports[`"modules" option should work with the "namedExport" option with nested import: errors 1`] = `Array []`;
 
diff --git a/test/fixtures/modules/mode/no-modules.css b/test/fixtures/modules/mode/no-modules.css
new file mode 100644
index 00000000..a95613b1
--- /dev/null
+++ b/test/fixtures/modules/mode/no-modules.css
@@ -0,0 +1,3 @@
+.class {
+    color: red;
+}
diff --git a/test/fixtures/modules/mode/not-specified.js b/test/fixtures/modules/mode/not-specified.js
new file mode 100644
index 00000000..6aecc673
--- /dev/null
+++ b/test/fixtures/modules/mode/not-specified.js
@@ -0,0 +1,6 @@
+import modules from './style.modules.css';
+import noModules from './no-modules.css';
+
+__export__ = modules + noModules;
+
+export default [modules, noModules];
diff --git a/test/fixtures/modules/mode/style.modules.css b/test/fixtures/modules/mode/style.modules.css
new file mode 100644
index 00000000..a95613b1
--- /dev/null
+++ b/test/fixtures/modules/mode/style.modules.css
@@ -0,0 +1,3 @@
+.class {
+    color: red;
+}
diff --git a/test/modules-option.test.js b/test/modules-option.test.js
index e737f17b..2f97dc5d 100644
--- a/test/modules-option.test.js
+++ b/test/modules-option.test.js
@@ -1,8 +1,6 @@
 import path from "path";
 import fs from "fs";
 
-import webpack from "webpack";
-
 import {
   compile,
   getCompiler,
@@ -17,8 +15,6 @@ const testCases = fs.readdirSync(testCasesPath);
 
 jest.setTimeout(60000);
 
-const isWebpack5 = webpack.version.startsWith(5);
-
 describe('"modules" option', () => {
   [
     true,
@@ -918,6 +914,24 @@ describe('"modules" option', () => {
     expect(getErrors(stats)).toMatchSnapshot("errors");
   });
 
+  it('should work with the "auto" option in the "modules" option for icss', async () => {
+    const compiler = getCompiler("./modules/mode/icss/icss.js", {
+      modules: {
+        auto: true,
+      },
+    });
+    const stats = await compile(compiler);
+
+    expect(
+      getModuleSource("./modules/mode/icss/relative.icss.css", stats)
+    ).toMatchSnapshot("module");
+    expect(getExecutedCode("main.bundle.js", compiler, stats)).toMatchSnapshot(
+      "result"
+    );
+    expect(getWarnings(stats)).toMatchSnapshot("warnings");
+    expect(getErrors(stats)).toMatchSnapshot("errors");
+  });
+
   it('should work with "false" alises', async () => {
     const compiler = getCompiler(
       "./modules/icss-false-alias/icss.js",
@@ -925,12 +939,7 @@ describe('"modules" option', () => {
       {
         resolve: {
           alias: {
-            "./unknown.css": isWebpack5
-              ? false
-              : path.resolve(
-                  __dirname,
-                  "./fixtures/modules/icss-false-alias/unknown.css"
-                ),
+            "./unknown.css": false,
           },
         },
       }
@@ -947,7 +956,45 @@ describe('"modules" option', () => {
     expect(getErrors(stats)).toMatchSnapshot("errors");
   });
 
-  it('should work with the "auto" when it is "false"', async () => {
+  it('should work when the "auto" is not specified', async () => {
+    const compiler = getCompiler("./modules/mode/not-specified.js");
+    const stats = await compile(compiler);
+
+    expect(
+      getModuleSource("./modules/mode/style.modules.css", stats)
+    ).toMatchSnapshot("modules-module");
+    expect(
+      getModuleSource("./modules/mode/no-modules.css", stats)
+    ).toMatchSnapshot("not-modules-module");
+    expect(getExecutedCode("main.bundle.js", compiler, stats)).toMatchSnapshot(
+      "result"
+    );
+    expect(getWarnings(stats)).toMatchSnapshot("warnings");
+    expect(getErrors(stats)).toMatchSnapshot("errors");
+  });
+
+  it('should work when the "auto" is not specified, but specified other modules options', async () => {
+    const compiler = getCompiler("./modules/mode/not-specified.js", {
+      modules: {
+        localIdentName: "[path][name]__[local]",
+      },
+    });
+    const stats = await compile(compiler);
+
+    expect(
+      getModuleSource("./modules/mode/style.modules.css", stats)
+    ).toMatchSnapshot("modules-module");
+    expect(
+      getModuleSource("./modules/mode/no-modules.css", stats)
+    ).toMatchSnapshot("not-modules-module");
+    expect(getExecutedCode("main.bundle.js", compiler, stats)).toMatchSnapshot(
+      "result"
+    );
+    expect(getWarnings(stats)).toMatchSnapshot("warnings");
+    expect(getErrors(stats)).toMatchSnapshot("errors");
+  });
+
+  it('should work with the "auto" option is "false"', async () => {
     const compiler = getCompiler("./modules/mode/modules.js", {
       modules: {
         auto: false,
@@ -965,7 +1012,7 @@ describe('"modules" option', () => {
     expect(getErrors(stats)).toMatchSnapshot("errors");
   });
 
-  it('should work with the "auto" when it is "true"', async () => {
+  it('should work with the "auto" option is "true"', async () => {
     const compiler = getCompiler("./modules/mode/modules.js", {
       modules: {
         auto: true,
@@ -983,6 +1030,28 @@ describe('"modules" option', () => {
     expect(getErrors(stats)).toMatchSnapshot("errors");
   });
 
+  it('should work when the "auto" option is "true" with other options', async () => {
+    const compiler = getCompiler("./modules/mode/not-specified.js", {
+      modules: {
+        auto: true,
+        localIdentName: "[path][name]__[local]",
+      },
+    });
+    const stats = await compile(compiler);
+
+    expect(
+      getModuleSource("./modules/mode/style.modules.css", stats)
+    ).toMatchSnapshot("modules-module");
+    expect(
+      getModuleSource("./modules/mode/no-modules.css", stats)
+    ).toMatchSnapshot("not-modules-module");
+    expect(getExecutedCode("main.bundle.js", compiler, stats)).toMatchSnapshot(
+      "result"
+    );
+    expect(getWarnings(stats)).toMatchSnapshot("warnings");
+    expect(getErrors(stats)).toMatchSnapshot("errors");
+  });
+
   it('should work with a modules.auto RegExp that returns "true"', async () => {
     const compiler = getCompiler("./modules/mode/modules.js", {
       modules: {