diff --git a/docs/generated/cli/workspace-generator.md b/docs/generated/cli/workspace-generator.md
index b5332ac1316c49..edb0b80d3f48a0 100644
--- a/docs/generated/cli/workspace-generator.md
+++ b/docs/generated/cli/workspace-generator.md
@@ -12,7 +12,7 @@ description: 'Runs a workspace generator from the tools/generators directory'
 ## Usage
 
 ```shell
-nx workspace-generator [name]
+nx workspace-generator [generator]
 ```
 
 Install `nx` globally to invoke the command directly using `nx`, or use `npx nx`, `yarn nx`, or `pnpm nx`.
diff --git a/docs/generated/packages/nx/documents/workspace-generator.md b/docs/generated/packages/nx/documents/workspace-generator.md
index b5332ac1316c49..edb0b80d3f48a0 100644
--- a/docs/generated/packages/nx/documents/workspace-generator.md
+++ b/docs/generated/packages/nx/documents/workspace-generator.md
@@ -12,7 +12,7 @@ description: 'Runs a workspace generator from the tools/generators directory'
 ## Usage
 
 ```shell
-nx workspace-generator [name]
+nx workspace-generator [generator]
 ```
 
 Install `nx` globally to invoke the command directly using `nx`, or use `npx nx`, `yarn nx`, or `pnpm nx`.
diff --git a/packages/nx/src/command-line/nx-commands.ts b/packages/nx/src/command-line/nx-commands.ts
index 78ce53be2305b4..efa385c32a4ab8 100644
--- a/packages/nx/src/command-line/nx-commands.ts
+++ b/packages/nx/src/command-line/nx-commands.ts
@@ -238,11 +238,11 @@ export const commandsObject = yargs
    * @deprecated(v17): Remove `workspace-generator in v17. Use local plugins.
    */
   .command({
-    command: 'workspace-generator [name]',
+    command: 'workspace-generator [generator]',
     describe: 'Runs a workspace generator from the tools/generators directory',
     deprecated:
       'Use a local plugin instead. See: https://nx.dev/deprecated/workspace-generators',
-    aliases: ['workspace-schematic [name]'],
+    aliases: ['workspace-schematic [generator]'],
     builder: async (yargs) =>
       linkToNxDevAndExamples(withGenerateOptions(yargs), 'workspace-generator'),
     handler: workspaceGeneratorHandler,
diff --git a/packages/nx/src/command-line/workspace-generators.ts b/packages/nx/src/command-line/workspace-generators.ts
index df8981abff6287..be1041d790ffc3 100644
--- a/packages/nx/src/command-line/workspace-generators.ts
+++ b/packages/nx/src/command-line/workspace-generators.ts
@@ -13,7 +13,7 @@ export async function workspaceGenerators(args: yargs.Arguments) {
   const generator = process.argv.slice(3);
 
   output.warn({
-    title: `${NX_PREFIX} Workspace Generators are no longer supported`,
+    title: `Workspace Generators are no longer supported`,
     bodyLines: [
       'Instead, Nx now supports executing generators or executors from ',
       'local plugins. To run a generator from a local plugin, ',
diff --git a/packages/workspace/src/migrations/update-16-0-0/move-workspace-generators-to-local-plugin.ts b/packages/workspace/src/migrations/update-16-0-0/move-workspace-generators-to-local-plugin.ts
index a7b7e4b6764a66..8d35bef72b741c 100644
--- a/packages/workspace/src/migrations/update-16-0-0/move-workspace-generators-to-local-plugin.ts
+++ b/packages/workspace/src/migrations/update-16-0-0/move-workspace-generators-to-local-plugin.ts
@@ -22,6 +22,7 @@ import {
 import { moveGenerator } from '../../generators/move/move';
 import { nxVersion } from '../../utils/versions';
 import { PackageJson } from 'nx/src/utils/package-json';
+import { posix } from 'path';
 
 const PROJECT_NAME = 'workspace-plugin';
 const DESTINATION = `tools/${PROJECT_NAME}`;
@@ -74,12 +75,71 @@ function collectAndMoveGenerators(tree: Tree, destinationProjectRoot: string) {
         schema: `./src/generators/${joinPathFragments(c, 'schema.json')}`,
         description: schema.description ?? `Generator ${c}`,
       };
-      tree.rename(childDir, joinPathFragments(destinationDir, c));
+      moveFilesInDirectory(
+        tree,
+        childDir,
+        joinPathFragments(destinationDir, c)
+      );
     }
   }
   return generators;
 }
 
+function moveFilesInDirectory(tree: Tree, source: string, destination: string) {
+  const relative = posix.relative(source, posix.dirname(destination));
+  if (!relative.startsWith('../')) {
+    // If the destination is in the same directory or a subdirectory of the source
+    // we can just move the files. If it is not, we need to update the relative imports.
+    return;
+  }
+  let offsetLevel = 0;
+  const pathParts = relative.split('/');
+  for (const part of pathParts) {
+    if (part === '..') {
+      offsetLevel++;
+    } else {
+      break;
+    }
+  }
+  for (const c of tree.children(source)) {
+    if (!tree.isFile(c)) {
+      moveFilesInDirectory(
+        tree,
+        joinPathFragments(source, c),
+        joinPathFragments(destination, c)
+      );
+    }
+    tree.rename(
+      joinPathFragments(source, c),
+      joinPathFragments(destination, c)
+    );
+    // If its a TS file we can update relative imports with find + replace
+    // This could be done with AST, but since we are only looking at relative
+    // imports its easy to do via string replace. We replace any strings starting
+    // with a relative path outside of their own directory.
+    if (c.endsWith('.ts')) {
+      let content = tree.read(joinPathFragments(destination, c)).toString();
+      // +2 is a bit of a magic number here - represents extra directory levels in a normal
+      // plugin structure compared to the workspace-generator layout
+      const extraDirectoriesInPluginStructure = 2;
+      content = content.replace(
+        new RegExp(`'` + `\.\.\/`.repeat(offsetLevel), 'g'),
+        "'" + '../'.repeat(offsetLevel + extraDirectoriesInPluginStructure)
+      );
+      content = content.replace(
+        new RegExp(`"` + `\.\.\/`.repeat(offsetLevel), 'g'),
+        '"' + '../'.repeat(offsetLevel + extraDirectoriesInPluginStructure)
+      );
+      // We write it back in the same spot, since it is moved as if it was a regular file after this
+      tree.write(joinPathFragments(source, c), content);
+    }
+    tree.rename(
+      joinPathFragments(source, c),
+      joinPathFragments(destination, c)
+    );
+  }
+}
+
 async function createNewPlugin(tree: Tree) {
   ensurePackage('@nx/nx-plugin', nxVersion);
   const { pluginGenerator } =
@@ -90,7 +150,7 @@ async function createNewPlugin(tree: Tree) {
   const { Linter } = ensurePackage('@nx/linter', nxVersion);
 
   const { npmScope } = getWorkspaceLayout(tree);
-  const importPath = npmScope ? `${npmScope}/${PROJECT_NAME}` : PROJECT_NAME;
+  const importPath = npmScope ? `@${npmScope}/${PROJECT_NAME}` : PROJECT_NAME;
 
   await pluginGenerator(tree, {
     minimal: true,