diff --git a/e2e/workspace-create/src/create-nx-plugin.test.ts b/e2e/workspace-create/src/create-nx-plugin.test.ts
index 5348a90e4a238..299b2580c79f9 100644
--- a/e2e/workspace-create/src/create-nx-plugin.test.ts
+++ b/e2e/workspace-create/src/create-nx-plugin.test.ts
@@ -20,7 +20,7 @@ describe('create-nx-plugin', () => {
 
     runCreatePlugin(pluginName, {
       packageManager,
-      extraArgs: `--createPackageName='false'`,
+      extraArgs: `--createPackageName=false`,
     });
 
     checkFilesExist(
@@ -62,14 +62,14 @@ describe('create-nx-plugin', () => {
 
     runCLI(`build ${pluginName}`);
     checkFilesExist(
-      `dist/${pluginName}/package.json`,
-      `dist/${pluginName}/generators.json`,
-      `e2e/tests/${pluginName}.spec.ts`
+      `dist/packages/${pluginName}/package.json`,
+      `dist/packages/${pluginName}/generators.json`,
+      `packages/${pluginName}-e2e/tests/${pluginName}.spec.ts`
     );
 
     runCLI(`build create-${pluginName}-package`);
-    checkFilesExist(`dist/create-${pluginName}-package/bin/index.js`);
+    checkFilesExist(`dist/packages/create-${pluginName}-package/bin/index.js`);
 
-    expect(() => runCLI(`e2e e2e`)).not.toThrow();
+    expect(() => runCLI(`e2e ${pluginName}-e2e`)).not.toThrow();
   });
 });
diff --git a/packages/plugin/src/generators/preset/generator.ts b/packages/plugin/src/generators/preset/generator.ts
index 61dae9d564fb9..47769716d5b06 100644
--- a/packages/plugin/src/generators/preset/generator.ts
+++ b/packages/plugin/src/generators/preset/generator.ts
@@ -6,6 +6,7 @@ import {
   formatFiles,
   runTasksInSerial,
   GeneratorCallback,
+  names,
 } from '@nx/devkit';
 import { Linter } from '@nx/linter';
 import { PackageJson } from 'nx/src/utils/package-json';
@@ -15,18 +16,30 @@ import createPackageGenerator from '../create-package/create-package';
 
 export default async function (tree: Tree, options: PresetGeneratorSchema) {
   const tasks: GeneratorCallback[] = [];
+  const pluginProjectName = names(
+    options.pluginName.includes('/')
+      ? options.pluginName.split('/')[1]
+      : options.pluginName
+  ).fileName;
+  options.createPackageName =
+    options.createPackageName === 'false' // for command line in e2e, it is passed as a string
+      ? undefined
+      : options.createPackageName;
   const pluginTask = await pluginGenerator(tree, {
     compiler: 'tsc',
     linter: Linter.EsLint,
-    name: options.pluginName.includes('/')
-      ? options.pluginName.split('/')[1]
-      : options.pluginName,
+    name: pluginProjectName,
     skipFormat: true,
     unitTestRunner: 'jest',
     importPath: options.pluginName,
-    rootProject: true,
     e2eTestRunner: 'jest',
     publishable: true,
+    // when creating a CLI package, the plugin will be in the packages folder
+    directory:
+      options.createPackageName && options.createPackageName !== 'false'
+        ? 'packages'
+        : undefined,
+    rootProject: options.createPackageName ? false : true,
   });
   tasks.push(pluginTask);
 
@@ -34,9 +47,11 @@ export default async function (tree: Tree, options: PresetGeneratorSchema) {
   moveNxPluginToDevDeps(tree);
 
   if (options.createPackageName) {
+    const e2eProject = `${options.pluginName}-e2e`;
     const cliTask = await createPackageGenerator(tree, {
+      directory: 'packages',
       name: options.createPackageName,
-      e2eProject: 'e2e',
+      e2eProject: e2eProject,
       project: options.pluginName,
       skipFormat: true,
       unitTestRunner: 'jest',