diff --git a/packages/plugin/src/generators/e2e-project/e2e.spec.ts b/packages/plugin/src/generators/e2e-project/e2e.spec.ts
index 8f0bcefacef85..5b042d22f751e 100644
--- a/packages/plugin/src/generators/e2e-project/e2e.spec.ts
+++ b/packages/plugin/src/generators/e2e-project/e2e.spec.ts
@@ -51,7 +51,7 @@ describe('NxPlugin e2e-project Generator', () => {
 
     expect(tree.exists('apps/my-plugin-e2e/tsconfig.json')).toBeTruthy();
     expect(
-      tree.exists('apps/my-plugin-e2e/tests/my-plugin.spec.ts')
+      tree.exists('apps/my-plugin-e2e/src/my-plugin.spec.ts')
     ).toBeTruthy();
   });
 
diff --git a/packages/plugin/src/generators/e2e-project/e2e.ts b/packages/plugin/src/generators/e2e-project/e2e.ts
index 72c5fc2008b7d..f413b79b21f03 100644
--- a/packages/plugin/src/generators/e2e-project/e2e.ts
+++ b/packages/plugin/src/generators/e2e-project/e2e.ts
@@ -109,7 +109,7 @@ async function addJest(host: Tree, options: NormalizedSchema) {
   addProjectConfiguration(host, options.projectName, {
     root: options.projectRoot,
     projectType: 'application',
-    sourceRoot: `${options.projectRoot}/tests`,
+    sourceRoot: `${options.projectRoot}/src`,
     targets: {},
     implicitDependencies: [options.pluginName],
   });
diff --git a/packages/plugin/src/generators/e2e-project/files/tests/__pluginName__.spec.ts__tmpl__ b/packages/plugin/src/generators/e2e-project/files/src/__pluginName__.spec.ts__tmpl__
similarity index 100%
rename from packages/plugin/src/generators/e2e-project/files/tests/__pluginName__.spec.ts__tmpl__
rename to packages/plugin/src/generators/e2e-project/files/src/__pluginName__.spec.ts__tmpl__