diff --git a/addons/docs/src/frameworks/common/preset.ts b/addons/docs/src/frameworks/common/preset.ts
index ce48d65c65f..f1c5764d650 100644
--- a/addons/docs/src/frameworks/common/preset.ts
+++ b/addons/docs/src/frameworks/common/preset.ts
@@ -99,7 +99,7 @@ export function webpack(webpackConfig: any = {}, options: any = {}) {
   return result;
 }
 
-export function addons(entry: any[] = [], options: any) {
+export function managerEntries(entry: any[] = [], options: any) {
   return [...entry, require.resolve('../../register')];
 }
 
diff --git a/addons/docs/src/preset.ts b/addons/docs/src/preset.ts
index ba24891b7bf..48f1033657d 100644
--- a/addons/docs/src/preset.ts
+++ b/addons/docs/src/preset.ts
@@ -11,7 +11,7 @@ const PRESET_METHODS = [
   'webpack',
   'webpackFinal',
   'managerWebpack',
-  'addons',
+  'managerEntries',
   'entries',
   'config',
 ];
diff --git a/addons/essentials/src/index.ts b/addons/essentials/src/index.ts
index fc9dbd0f125..35fc43c9f16 100644
--- a/addons/essentials/src/index.ts
+++ b/addons/essentials/src/index.ts
@@ -22,7 +22,7 @@ const isInstalled = (addon: string) => {
 
 const makeAddon = (key: string) => `@storybook/addon-${key}`;
 
-export function addons(entry: any[] = [], options: PresetOptions = {}) {
+export function managerEntries(entry: any[] = [], options: PresetOptions = {}) {
   const registerAddons = ['backgrounds', 'viewport']
     .filter(key => (options as any)[key] !== false)
     .map(key => makeAddon(key))
diff --git a/addons/knobs/src/preset/index.ts b/addons/knobs/src/preset/index.ts
index 0bce78742e0..835b0fffa16 100644
--- a/addons/knobs/src/preset/index.ts
+++ b/addons/knobs/src/preset/index.ts
@@ -2,7 +2,7 @@ type KnobsOptions = {
   addDecorator?: boolean;
 };
 
-export function addons(entry: any[] = [], options: any) {
+export function managerEntries(entry: any[] = [], options: any) {
   return [...entry, require.resolve('../register')];
 }
 
diff --git a/addons/storysource/src/preset.js b/addons/storysource/src/preset.js
index 34ff01a97f1..3bf0a6d9fab 100644
--- a/addons/storysource/src/preset.js
+++ b/addons/storysource/src/preset.js
@@ -24,8 +24,8 @@ function webpack(webpackConfig = {}, options = {}) {
   };
 }
 
-function addons(entry = []) {
+function managerEntries(entry = []) {
   return [...entry, require.resolve('@storybook/addon-storysource/register')];
 }
 
-module.exports = { webpack, addons };
+module.exports = { webpack, managerEntries };
diff --git a/docs/src/pages/presets/writing-presets/index.md b/docs/src/pages/presets/writing-presets/index.md
index 16422a4089b..79c59f95fd5 100644
--- a/docs/src/pages/presets/writing-presets/index.md
+++ b/docs/src/pages/presets/writing-presets/index.md
@@ -86,7 +86,7 @@ The addon config `addons` allows you to add addons to Storybook from within a pr
 For example, the Storysource preset contains the following code:
 
 ```js
-export function addons(entry = []) {
+export function managerEntries(entry = []) {
   return [...entry, require.resolve('@storybook/addon-storysource/register')];
 }
 ```
@@ -95,8 +95,8 @@ This is equivalent to [registering the addon manually](../../addons/using-addons
 
 ```js
 module.exports = {
-  addons: ['@storybook/addon-storysource/register']
-}
+  addons: ['@storybook/addon-storysource/register'],
+};
 ```
 
 ### Entries
@@ -128,7 +128,7 @@ module.exports = {
     return config;
   },
   addons: [],
-}
+};
 ```
 
 ## Sharing advanced configuration
@@ -162,7 +162,7 @@ module.exports = {
     return config;
   },
   addons: [],
-}
+};
 ```
 
-Place your `my-preset.js` file where ever you want, if you want to share if far and wide you'll want to make it it's own package. 
+Place your `my-preset.js` file where ever you want, if you want to share if far and wide you'll want to make it it's own package.
diff --git a/lib/core/src/server/manager/manager-preset.js b/lib/core/src/server/manager/manager-preset.js
index 7b4906d45ea..e9b8ef0c5f1 100644
--- a/lib/core/src/server/manager/manager-preset.js
+++ b/lib/core/src/server/manager/manager-preset.js
@@ -5,12 +5,10 @@ export async function managerWebpack(_, options) {
   return createDevConfig(options);
 }
 
-export async function managerEntries(_, options) {
-  const { presets, managerEntry = '../../client/manager' } = options;
+export async function managerEntries(installedAddons, options) {
+  const { managerEntry = '../../client/manager' } = options;
   const entries = [require.resolve('../common/polyfills')];
 
-  const installedAddons = await presets.apply('addons', [], options);
-
   if (installedAddons && installedAddons.length) {
     entries.push(...installedAddons);
   }
@@ -20,8 +18,4 @@ export async function managerEntries(_, options) {
   return entries;
 }
 
-export async function addons(_, options) {
-  return loadCustomAddons(options);
-}
-
 export * from '../common/common-preset';
diff --git a/lib/core/src/server/presets.js b/lib/core/src/server/presets.js
index 411573f2e1e..81bf727d779 100644
--- a/lib/core/src/server/presets.js
+++ b/lib/core/src/server/presets.js
@@ -4,7 +4,7 @@ import dedent from 'ts-dedent';
 const isObject = val => val != null && typeof val === 'object' && Array.isArray(val) === false;
 const isFunction = val => typeof val === 'function';
 
-const sanitizeSubPresets = (input, presetOptions, storybookOptions) => {
+const resolvePresetFunction = (input, presetOptions, storybookOptions) => {
   if (isFunction(input)) {
     return input({ ...storybookOptions, ...presetOptions });
   }
@@ -15,6 +15,29 @@ const sanitizeSubPresets = (input, presetOptions, storybookOptions) => {
   return [];
 };
 
+export const splitAddons = addons => {
+  return addons.reduce(
+    (acc, item) => {
+      if (typeof item === 'string' && item.match(/register$/)) {
+        acc.managerEntries.push(item);
+      } else if (typeof item === 'string' || (isObject(item) && item.name)) {
+        acc.presets.push(item);
+      } else {
+        logger.error(
+          'Addon value should end in /register OR it should be a valid preset https://storybook.js.org/docs/presets/introduction/',
+          item
+        );
+      }
+
+      return acc;
+    },
+    {
+      managerEntries: [],
+      presets: [],
+    }
+  );
+};
+
 function interopRequireDefault(filePath) {
   // eslint-disable-next-line global-require,import/no-dynamic-require
   const result = require(`${filePath}`);
@@ -37,11 +60,16 @@ function loadPreset(input, level, storybookOptions) {
     }
 
     if (isObject(contents)) {
-      const { presets: subPresetsInput, ...rest } = contents;
-      const subPresets = sanitizeSubPresets(subPresetsInput, presetOptions, storybookOptions);
+      const { addons: addonsInput, presets: presetsInput, ...rest } = contents;
+
+      const subPresets = resolvePresetFunction(presetsInput, presetOptions, storybookOptions);
+      const subAddons = resolvePresetFunction(addonsInput, presetOptions, storybookOptions);
+
+      const { managerEntries, presets } = splitAddons(subAddons);
 
       return [
-        ...loadPresets(subPresets, level + 1, storybookOptions),
+        ...loadPresets([...subPresets, ...presets], level + 1, storybookOptions),
+        { name: `${name}_additionalManagerEntries`, preset: { managerEntries } },
         {
           name,
           preset: rest,
diff --git a/lib/core/src/server/presets.test.js b/lib/core/src/server/presets.test.js
index 613f4cddd5a..86be48c3bd5 100644
--- a/lib/core/src/server/presets.test.js
+++ b/lib/core/src/server/presets.test.js
@@ -316,3 +316,40 @@ describe('presets', () => {
     jest.resetModules();
   });
 });
+
+describe('splitAddons', () => {
+  const { splitAddons } = require.requireActual('./presets');
+
+  it('should split managerEntries that end in register', () => {
+    const addons = ['@storybook/addon-actions/register', '@storybook-addon-readme/register'];
+    expect(splitAddons(addons)).toEqual({
+      managerEntries: addons,
+      presets: [],
+    });
+  });
+  it('should split preset packages and package entries', () => {
+    const addons = ['@storybook/addon-essentials', '@storybook/addon-docs/presets'];
+    expect(splitAddons(addons)).toEqual({
+      managerEntries: [],
+      presets: addons,
+    });
+  });
+
+  it('should split preset objects', () => {
+    const addons = [
+      { name: '@storybook/addon-essentials' },
+      { name: '@storybook/addon-docs/presets', options: { configureJSX: true } },
+    ];
+    expect(splitAddons(addons)).toEqual({
+      managerEntries: [],
+      presets: addons,
+    });
+  });
+  it('should skip invalid objects', () => {
+    const addons = [1, true, { foo: 'bar' }];
+    expect(splitAddons(addons)).toEqual({
+      managerEntries: [],
+      presets: [],
+    });
+  });
+});