diff --git a/packages/jest-config/src/__tests__/normalize-test.js b/packages/jest-config/src/__tests__/normalize-test.js
index 7605164cef53..e1b9edf5c498 100644
--- a/packages/jest-config/src/__tests__/normalize-test.js
+++ b/packages/jest-config/src/__tests__/normalize-test.js
@@ -730,6 +730,41 @@ describe('testMatch', () => {
       );
     }).toThrowErrorMatchingSnapshot();
   });
+
+  it('normalizes testMatch', () => {
+    const {options} = normalize(
+      {
+        rootDir: '/root',
+        testMatch: ['<rootDir>/**/*.js'],
+      },
+      {},
+    );
+
+    expect(options.testMatch).toEqual(['/root/**/*.js']);
+  });
+});
+
+describe('moduleDirectories', () => {
+  it('defaults to node_modules', () => {
+    const {options} = normalize({rootDir: '/root'}, {});
+
+    expect(options.moduleDirectories).toEqual(['node_modules']);
+  });
+
+  it('normalizes moduleDirectories', () => {
+    const {options} = normalize(
+      {
+        moduleDirectories: ['<rootDir>/src', '<rootDir>/node_modules'],
+        rootDir: '/root',
+      },
+      {},
+    );
+
+    expect(options.moduleDirectories).toEqual([
+      '/root/src',
+      '/root/node_modules',
+    ]);
+  });
 });
 
 describe('preset', () => {
diff --git a/packages/jest-config/src/normalize.js b/packages/jest-config/src/normalize.js
index 29830d4f60b7..f33b02d7604d 100644
--- a/packages/jest-config/src/normalize.js
+++ b/packages/jest-config/src/normalize.js
@@ -397,6 +397,10 @@ function normalize(options: InitialOptions, argv: Argv) {
           );
         value = list;
         break;
+      case 'moduleDirectories':
+      case 'testMatch':
+        value = _replaceRootDirTags(options.rootDir, options[key]);
+        break;
       case 'automock':
       case 'bail':
       case 'browser':
@@ -409,7 +413,6 @@ function normalize(options: InitialOptions, argv: Argv) {
       case 'globals':
       case 'logHeapUsage':
       case 'mapCoverage':
-      case 'moduleDirectories':
       case 'moduleFileExtensions':
       case 'name':
       case 'noStackTrace':
@@ -421,7 +424,6 @@ function normalize(options: InitialOptions, argv: Argv) {
       case 'rootDir':
       case 'silent':
       case 'testEnvironment':
-      case 'testMatch':
       case 'testNamePattern':
       case 'testRegex':
       case 'testURL':