diff --git a/docs/pages/docs.md b/docs/pages/docs.md
index d040f2a..d4434b4 100644
--- a/docs/pages/docs.md
+++ b/docs/pages/docs.md
@@ -246,7 +246,7 @@ export default class Counter extends HTMLElement {
   }
 
   connectedCallback() {
-    this.render();
+    this.render(); // this is required
   }
 
   increment() {
@@ -289,6 +289,32 @@ There are of couple things you will need to do to use WCC with JSX:
 
 > _See our [example's page](/examples#jsx) for some usages of WCC + JSX._  👀
 
+### Declarative Shadow DOM
+
+To opt-in to Declarative Shadow DOM with JSX, you will need to signal to the WCC compiler your intentions so it can accurately mount from a `shadowRoot` on the client side.  To opt-in, simply make a call to `attachShadow` in your `connectedCallback` method.
+
+Using, the Counter example from above, we would amend it like so:
+
+```js
+export default class Counter extends HTMLElement {
+  constructor() {
+    super();
+    this.count = 0;
+  }
+
+  connectedCallback() {
+    if (!this.shadowRoot) {
+      this.attachShadow({ mode: 'open' }); // this is required for DSD support
+      this.render();
+    }
+  }
+
+  // ...
+}
+
+customElements.define('wcc-counter', Counter);
+```
+
 ### (Inferred) Attribute Observability
 
 An optional feature supported by JSX based compilation is a feature called `inferredObservability`.  With this enabled, WCC will read any `this` member references in your component's `render` function and map each member instance to
@@ -322,6 +348,6 @@ And so now when the attribute is set on this component, the component will re-re
 ```
 
 Some notes / limitations:
-- Please be aware of the above linked discussion which is tracking known bugs / feature requests to all things WCC + JSX.
+- Please be aware of the above linked discussion which is tracking known bugs / feature requests / open items related to all things WCC + JSX.
 - We consider the capability of this observability to be "coarse grained" at this time since WCC just re-runs the entire `render` function, replacing of the `innerHTML` for the host component.  Thought it is still WIP, we are exploring a more ["fine grained" approach](https://github.com/ProjectEvergreen/wcc/issues/108) that will more efficient than blowing away all the HTML, a la in the style of [**lit-html**](https://lit.dev/docs/templates/overview/) or [**Solid**'s Signals](https://www.solidjs.com/tutorial/introduction_signals).
-- This automatically _reflects properties used in the `render` function to attributes_, so YMMV.
\ No newline at end of file
+- This automatically _reflects properties used in the `render` function to attributes_, so YMMV.
diff --git a/sandbox/components/card.js b/sandbox/components/card.js
index 3d27a9b..d2c05ae 100644
--- a/sandbox/components/card.js
+++ b/sandbox/components/card.js
@@ -1,7 +1,7 @@
 export default class Card extends HTMLElement {
 
   selectItem() {
-    alert(`selected item is => ${this.getAttribute('title')}!`);
+    alert(`selected item is => ${this.title}!`);
   }
 
   connectedCallback() {
diff --git a/sandbox/components/card.jsx b/sandbox/components/card.jsx
index 006ef9f..5aed1aa 100644
--- a/sandbox/components/card.jsx
+++ b/sandbox/components/card.jsx
@@ -19,12 +19,12 @@ const styles = `
 export default class CardJsx extends HTMLElement {
 
   selectItem() {
-    alert(`selected item is => ${this.getAttribute('title')}!`);
+    alert(`selected item is => ${this.title}!`);
   }
 
   connectedCallback() {
     if (!this.shadowRoot) {
-      console.log('NO shadowRoot detected for card.jsx!');
+      console.warn('NO shadowRoot detected for card.jsx!');
       this.thumbnail = this.getAttribute('thumbnail');
       this.title = this.getAttribute('title');
 
@@ -39,7 +39,7 @@ export default class CardJsx extends HTMLElement {
     const { thumbnail, title } = this;
 
     return (
-      <div>
+      <div class="card">
         <style>
           {styles}
         </style>
diff --git a/sandbox/components/counter-dsd.jsx b/sandbox/components/counter-dsd.jsx
index 40e5fb5..26c7a53 100644
--- a/sandbox/components/counter-dsd.jsx
+++ b/sandbox/components/counter-dsd.jsx
@@ -1,16 +1,10 @@
 export const inferredObservability = true;
 
 export default class CounterDsdJsx extends HTMLElement {
-  // having a constructor is required for inferredObservability
-  constructor() {
-    super();
-    this.count = 0;
-  }
-
   connectedCallback() {
     if (!this.shadowRoot) {
-      console.log('NO shadowRoot detected for counter-dsd.jsx!');
-      this.count = this.getAttribute('count');
+      console.warn('NO shadowRoot detected for counter-dsd.jsx!');
+      this.count = this.getAttribute('count') || 0;
 
       // having an attachShadow call is required for DSD
       this.attachShadow({ mode: 'open' });
diff --git a/sandbox/components/counter.jsx b/sandbox/components/counter.jsx
index 41e5f87..e54fe24 100644
--- a/sandbox/components/counter.jsx
+++ b/sandbox/components/counter.jsx
@@ -1,13 +1,13 @@
 export const inferredObservability = true;
 
 export default class CounterJsx extends HTMLElement {
-  // having a constructor is required for inferredObservability
   constructor() {
     super();
     this.count = 0;
   }
 
   connectedCallback() {
+    this.count = parseInt(this.getAttribute('count'), 10) || this.count;
     this.render();
   }
 
diff --git a/sandbox/index.html b/sandbox/index.html
index 339dd8b..8ca8030 100644
--- a/sandbox/index.html
+++ b/sandbox/index.html
@@ -19,8 +19,33 @@
         margin: 0 auto;
         text-align: center;
       }
+
+      button.reset {
+        display: block;
+        min-width: 5%;
+        margin: 0 auto;
+      }
     </style>
 
+    <script>
+      function randomReset() {
+        return Math.floor(Math.random() * 100);
+      }
+
+      globalThis.document.addEventListener('DOMContentLoaded', () => {
+        const counterJsxResetButton = document.getElementById('counter-jsx-reset');
+        const counterJsxDsdResetButton = document.getElementById('counter-jsx-dsd-reset');
+
+        counterJsxResetButton.addEventListener('click', () => {
+          document.querySelector('sb-counter-jsx').setAttribute('count', randomReset());
+        });
+
+        counterJsxDsdResetButton.addEventListener('click', () => {
+          document.querySelector('sb-counter-dsd-jsx').setAttribute('count', randomReset());
+        });
+      });
+    </script>
+
     <script>
       document.write('<script src="http://' + (location.host || 'localhost').split(':')[0] +
       ':35729/livereload.js?snipver=1"></' + 'script>')
@@ -68,21 +93,16 @@ <h2>JSX + Light DOM (no JS)</h2>
 
     <hr/>
 
-    <!-- TODO - https://github.com/ProjectEvergreen/wcc/issues/128 -->
-    <h2>JSX + Declarative Shadow DOM (has JS) 🚫</h2>
-
-    <details>
-      SSR Shadow DOM (and thus host styles) not working, see - https://github.com/ProjectEvergreen/wcc/issues/128
-    </details>
+    <h2>JSX + Declarative Shadow DOM (has JS)</h2>
 
     <sb-card-jsx
-      title="iPhone 9"
-      thumbnail="https://i.dummyjson.com/data/products/1/thumbnail.jpg"
+      title="iPhone X"
+      thumbnail="https://i.dummyjson.com/data/products/2/thumbnail.jpg"
     ></sb-card-jsx>
 
     <pre>
       &lt;sb-card-jsx
-        title="iPhone 9" thumbnail="https://i.dummyjson.com/data/products/1/thumbnail.jpg"
+        title="iPhone X" thumbnail="https://i.dummyjson.com/data/products/2/thumbnail.jpg"
       &gt;&lt;/sb-card-jsx&gt;
     </pre>
 
@@ -94,6 +114,8 @@ <h2>JSX + Light DOM + inferredObservability (has JS)</h2>
       count="5"
     ></sb-counter-jsx>
 
+    <button class="reset" id="counter-jsx-reset">Random Reset</button>
+
     <pre>
       &lt;sb-counter-jsx
         count="5"
@@ -102,17 +124,14 @@ <h2>JSX + Light DOM + inferredObservability (has JS)</h2>
 
     <hr/>
 
-    <!-- TODO - https://github.com/ProjectEvergreen/wcc/issues/128 -->
-    <h2>JSX + DSD + inferredObservability (has JS) 🚫</h2>
-
-    <details>
-      SSR Shadow DOM and inferredObservability not working, see - https://github.com/ProjectEvergreen/wcc/issues/128
-    </details>
+    <h2>JSX + DSD + inferredObservability (has JS)</h2>
 
     <sb-counter-dsd-jsx
       count="3"
     ></sb-counter-dsd-jsx>
 
+    <button class="reset" id="counter-jsx-dsd-reset">Random Reset</button>
+
     <pre>
       &lt;sb-counter-dsd-jsx
         count="3"
diff --git a/src/jsx-loader.js b/src/jsx-loader.js
index bef481b..e84aad4 100644
--- a/src/jsx-loader.js
+++ b/src/jsx-loader.js
@@ -265,8 +265,26 @@ export function parseJsx(moduleURL) {
 
                   applyDomDepthSubstitutions(elementTree, undefined, hasShadowRoot);
 
-                  const finalHtml = serialize(elementTree);
-                  const transformed = acorn.parse(`${elementRoot}.innerHTML = \`${finalHtml}\`;`, {
+                  const serializedHtml = serialize(elementTree);
+                  // we have to Shadow DOM use cases here
+                  // 1. No shadowRoot, so we attachShadow and append the template
+                  // 2. If there is root from the attachShadow signal, so we just need to inject innerHTML, say in an htmx
+                  // could / should we do something else instead of .innerHTML
+                  // https://github.com/ProjectEvergreen/wcc/issues/138
+                  const renderHandler = hasShadowRoot
+                    ? `
+                        const template = document.createElement('template');
+                        template.innerHTML = \`${serializedHtml}\`;
+
+                        if(!${elementRoot}) {
+                          this.attachShadow({ mode: 'open' });
+                          this.shadowRoot.appendChild(template.content.cloneNode(true));
+                        } else {
+                          this.shadowRoot.innerHTML = template.innerHTML;
+                        }
+                      `
+                    : `${elementRoot}.innerHTML = \`${serializedHtml}\`;`;
+                  const transformed = acorn.parse(renderHandler, {
                     ecmaVersion: 'latest',
                     sourceType: 'module'
                   });
@@ -300,15 +318,7 @@ export function parseJsx(moduleURL) {
     for (const line of tree.body) {
       // test for class MyComponent vs export default class MyComponent
       if (line.type === 'ClassDeclaration' || (line.declaration && line.declaration.type) === 'ClassDeclaration') {
-        const children = !line.declaration
-          ? line.body.body
-          : line.declaration.body.body;
-        for (const method of children) {
-          if (method.key.name === 'constructor') {
-            insertPoint = method.start - 1;
-            break;
-          }
-        }
+        insertPoint = line.declaration.body.start + 1;
       }
     }
 
diff --git a/test/cases/jsx-coarse-grained/fixtures/attribute-changed-callback.txt b/test/cases/jsx-inferred-observability/fixtures/attribute-changed-callback.txt
similarity index 100%
rename from test/cases/jsx-coarse-grained/fixtures/attribute-changed-callback.txt
rename to test/cases/jsx-inferred-observability/fixtures/attribute-changed-callback.txt
diff --git a/test/cases/jsx-coarse-grained/fixtures/get-observed-attributes.txt b/test/cases/jsx-inferred-observability/fixtures/get-observed-attributes.txt
similarity index 100%
rename from test/cases/jsx-coarse-grained/fixtures/get-observed-attributes.txt
rename to test/cases/jsx-inferred-observability/fixtures/get-observed-attributes.txt
diff --git a/test/cases/jsx-coarse-grained/jsx-coarse-grained.spec.js b/test/cases/jsx-inferred-observability/jsx-inferred-obsevability.spec.js
similarity index 95%
rename from test/cases/jsx-coarse-grained/jsx-coarse-grained.spec.js
rename to test/cases/jsx-inferred-observability/jsx-inferred-obsevability.spec.js
index 756b6ee..1c66430 100644
--- a/test/cases/jsx-coarse-grained/jsx-coarse-grained.spec.js
+++ b/test/cases/jsx-inferred-observability/jsx-inferred-obsevability.spec.js
@@ -16,7 +16,7 @@ import { renderToString } from '../../../src/wcc.js';
 const expect = chai.expect;
 
 describe('Run WCC For ', function() {
-  const LABEL = 'Single Custom Element using JSX';
+  const LABEL = 'Single Custom Element using JSX and Inferred Observability';
   let fixtureAttributeChangedCallback;
   let fixtureGetObservedAttributes;
   let meta;
diff --git a/test/cases/jsx-coarse-grained/src/counter.jsx b/test/cases/jsx-inferred-observability/src/counter.jsx
similarity index 100%
rename from test/cases/jsx-coarse-grained/src/counter.jsx
rename to test/cases/jsx-inferred-observability/src/counter.jsx
diff --git a/test/cases/jsx-shadow-dom/jsx-shadow-dom.spec.js b/test/cases/jsx-shadow-dom/jsx-shadow-dom.spec.js
new file mode 100644
index 0000000..5bdf3ee
--- /dev/null
+++ b/test/cases/jsx-shadow-dom/jsx-shadow-dom.spec.js
@@ -0,0 +1,71 @@
+/*
+ * Use Case
+ * Run wcc against a nested custom elements using JSX render function and Declarative Shadow DOM.
+ *
+ * User Result
+ * Should return the expected HTML and JavaScript output.
+ *
+ * User Workspace
+ * src/
+ *   heading.jsx
+ */
+import chai from 'chai';
+import { JSDOM } from 'jsdom';
+import { renderToString } from '../../../src/wcc.js';
+
+const expect = chai.expect;
+
+describe('Run WCC For ', function() {
+  const LABEL = 'Single Custom Element using JSX and Declarative Shadow DOM';
+  let dom;
+  let meta;
+
+  before(async function() {
+    const { html, metadata } = await renderToString(new URL('./src/heading.jsx', import.meta.url));
+
+    meta = metadata;
+    dom = new JSDOM(html);
+  });
+
+  describe(LABEL, function() {
+
+    describe('<wcc-heading> component', function() {
+      let heading;
+
+      before(async function() {
+        heading = dom.window.document.querySelector('wcc-heading template[shadowrootmode="open"]');
+      });
+
+      describe('Metadata', () => {
+        it('should return a JSX definition in metadata', () => {
+          expect(Object.keys(meta).length).to.equal(1);
+          expect(meta['wcc-heading'].source).to.not.be.undefined;
+        });
+      });
+
+      describe('Declarative Shadow DOM (<template> tag)', () => {
+        it('should handle a this expression', () => {
+          expect(heading).to.not.be.undefined;
+        });
+      });
+
+      describe('Event Handling', () => {
+        it('should handle a this expression', () => {
+          const wrapper = new JSDOM(heading.innerHTML);
+          const button = wrapper.window.document.querySelector('button');
+
+          expect(button.getAttribute('onclick')).to.be.equal('this.parentElement.parentNode.host.sayHello()');
+        });
+      });
+
+      describe('Attribute Contents', () => {
+        it('should handle a this expression', () => {
+          const wrapper = new JSDOM(heading.innerHTML);
+          const header = wrapper.window.document.querySelector('h1');
+
+          expect(header.textContent).to.be.equal('Hello, World!');
+        });
+      });
+    });
+  });
+});
\ No newline at end of file
diff --git a/test/cases/jsx-shadow-dom/src/heading.jsx b/test/cases/jsx-shadow-dom/src/heading.jsx
new file mode 100644
index 0000000..68f6d1b
--- /dev/null
+++ b/test/cases/jsx-shadow-dom/src/heading.jsx
@@ -0,0 +1,27 @@
+export default class HeadingComponent extends HTMLElement {
+  sayHello() {
+    alert(`Hello, ${this.greeting}!`);
+  }
+
+  connectedCallback() {
+    if (!this.shadowRoot) {
+      this.greeting = this.getAttribute('greeting') || 'World';
+
+      this.attachShadow({ mode: 'open' });
+      this.render();
+    }
+  }
+
+  render() {
+    const { greeting } = this;
+
+    return (
+      <div>
+        <h1>Hello, {greeting}!</h1>
+        <button onclick={this.sayHello}>Get a greeting!</button>
+      </div>
+    );
+  }
+}
+
+customElements.define('wcc-heading', HeadingComponent);
\ No newline at end of file