diff --git a/packages/nx/src/utils/register.spec.ts b/packages/nx/src/utils/register.spec.ts
index 7ba3b637b2cc6..3cdba50c48d15 100644
--- a/packages/nx/src/utils/register.spec.ts
+++ b/packages/nx/src/utils/register.spec.ts
@@ -1,4 +1,4 @@
-import { ModuleKind, ScriptTarget } from 'typescript';
+import { JsxEmit, ModuleKind, ScriptTarget } from 'typescript';
 import { getTsNodeCompilerOptions } from './register';
 
 describe('getTsNodeCompilerOptions', () => {
@@ -17,4 +17,20 @@ describe('getTsNodeCompilerOptions', () => {
       }).target
     ).toEqual('ES2020');
   });
+
+  it('should remove jsx option', () => {
+    expect(
+      getTsNodeCompilerOptions({
+        jsx: JsxEmit.ReactJSX,
+      }).jsx
+    ).toBeUndefined();
+  });
+
+  it('should use correct lib value', () => {
+    expect(
+      getTsNodeCompilerOptions({
+        lib: ['lib.es2022.d.ts'],
+      }).lib
+    ).toEqual(['es2022']);
+  });
 });
diff --git a/packages/nx/src/utils/register.ts b/packages/nx/src/utils/register.ts
index b0b39089f50f2..c727339f7677f 100644
--- a/packages/nx/src/utils/register.ts
+++ b/packages/nx/src/utils/register.ts
@@ -130,7 +130,7 @@ function readCompilerOptionsWithTypescript(tsConfigPath) {
   const { readConfigFile, parseJsonConfigFileContent, sys } = ts;
   const jsonContent = readConfigFile(tsConfigPath, sys.readFile);
   const { options } = parseJsonConfigFileContent(
-    jsonContent,
+    jsonContent.config,
     sys,
     dirname(tsConfigPath)
   );
@@ -203,6 +203,15 @@ export function getTsNodeCompilerOptions(compilerOptions: CompilerOptions) {
 
   delete result.pathsBasePath;
   delete result.configFilePath;
+
+  // instead of mapping to enum value we just remove it as it shouldn't ever need to be set for ts-node
+  delete result.jsx;
+
+  // lib option is in the format `lib.es2022.d.ts`, so we need to remove the leading `lib.` and trailing `.d.ts` to make it valid
+  result.lib = result.lib?.map((value) => {
+    return value.replace(/^lib\./, '').replace(/\.d\.ts$/, '');
+  });
+
   if (result.moduleResolution) {
     result.moduleResolution =
       result.moduleResolution === 'NodeJs'