diff --git a/packages/angular/src/generators/karma-project/__snapshots__/karma-project.spec.ts.snap b/packages/angular/src/generators/karma-project/__snapshots__/karma-project.spec.ts.snap
index 9aab0ae357096..946578a2c0b52 100644
--- a/packages/angular/src/generators/karma-project/__snapshots__/karma-project.spec.ts.snap
+++ b/packages/angular/src/generators/karma-project/__snapshots__/karma-project.spec.ts.snap
@@ -1,8 +1,75 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
+exports[`karmaProject --root-project should generate the right karma.conf.js file for a nested project in a workspace with a project at the root 1`] = `
+"// Karma configuration file, see link for more information
+// https://karma-runner.github.io/6.4/config/configuration-file.html
+
+const { join } = require('path');
+const setBaseKarmaConfig = require('../../karma.conf');
+
+module.exports = function (config) {
+  setBaseKarmaConfig(config);
+
+  config.set({
+    coverageReporter: {
+      dir: join(__dirname, '../../coverage/libs/nested-lib')
+    }
+  });
+};
+"
+`;
+
+exports[`karmaProject --root-project should support a project located at the root 1`] = `
+"// Karma configuration file, see link for more information
+// https://karma-runner.github.io/6.4/config/configuration-file.html
+
+const { constants } = require('karma');
+const { join } = require('path');
+
+module.exports = (config) => {
+  config.set({
+    basePath: '',
+    frameworks: ['jasmine', '@angular-devkit/build-angular'],
+    plugins: [
+      require('karma-jasmine'),
+      require('karma-chrome-launcher'),
+      require('karma-jasmine-html-reporter'),
+      require('karma-coverage'),
+      require('@angular-devkit/build-angular/plugins/karma'),
+    ],
+    client: {
+      jasmine: {
+        // you can add configuration options for Jasmine here
+        // the possible options are listed at https://jasmine.github.io/api/edge/Configuration.html
+        // for example, you can disable the random execution with \`random: false\`
+        // or set a specific seed with \`seed: 4321\`
+      },
+      clearContext: false, // leave Jasmine Spec Runner output visible in browser
+    },
+    jasmineHtmlReporter: {
+      suppressAll: true, // removes the duplicated traces
+    },
+    coverageReporter: {
+      dir: join(__dirname, 'coverage/root-app'),
+      subdir: '.',
+      reporters: [{ type: 'html' }, { type: 'text-summary' }],
+    },
+    reporters: ['progress', 'kjhtml'],
+    port: 9876,
+    colors: true,
+    logLevel: constants.LOG_INFO,
+    autoWatch: true,
+    browsers: ['Chrome'],
+    singleRun: true,
+    restartOnFileChange: true,
+  });
+};
+"
+`;
+
 exports[`karmaProject should create a karma.conf.js 1`] = `
 "// Karma configuration file, see link for more information
-// https://karma-runner.github.io/1.0/config/configuration-file.html
+// https://karma-runner.github.io/6.4/config/configuration-file.html
 
 const { join } = require('path');
 const getBaseKarmaConfig = require('../../karma.conf');
diff --git a/packages/angular/src/generators/karma-project/files/karma.conf.js__tmpl__ b/packages/angular/src/generators/karma-project/files/common/karma.conf.js__tmpl__
similarity index 87%
rename from packages/angular/src/generators/karma-project/files/karma.conf.js__tmpl__
rename to packages/angular/src/generators/karma-project/files/common/karma.conf.js__tmpl__
index 4f4dc3f195375..6ed7fd01a7eb9 100644
--- a/packages/angular/src/generators/karma-project/files/karma.conf.js__tmpl__
+++ b/packages/angular/src/generators/karma-project/files/common/karma.conf.js__tmpl__
@@ -1,5 +1,5 @@
 // Karma configuration file, see link for more information
-// https://karma-runner.github.io/1.0/config/configuration-file.html
+// https://karma-runner.github.io/6.4/config/configuration-file.html
 
 const { join } = require('path');
 const getBaseKarmaConfig = require('<%= offsetFromRoot %>karma.conf');
diff --git a/packages/angular/src/generators/karma-project/files/tsconfig.spec.json b/packages/angular/src/generators/karma-project/files/common/tsconfig.spec.json
similarity index 100%
rename from packages/angular/src/generators/karma-project/files/tsconfig.spec.json
rename to packages/angular/src/generators/karma-project/files/common/tsconfig.spec.json
diff --git a/packages/angular/src/generators/karma-project/files/root-project/karma.conf.js__tmpl__ b/packages/angular/src/generators/karma-project/files/root-project/karma.conf.js__tmpl__
new file mode 100644
index 0000000000000..c82ce2458b2ad
--- /dev/null
+++ b/packages/angular/src/generators/karma-project/files/root-project/karma.conf.js__tmpl__
@@ -0,0 +1,44 @@
+// Karma configuration file, see link for more information
+// https://karma-runner.github.io/6.4/config/configuration-file.html
+
+const { constants } = require('karma');
+const { join } = require('path');
+
+module.exports = (config) => {
+  config.set({
+    basePath: '',
+    frameworks: ['jasmine', '@angular-devkit/build-angular'],
+    plugins: [
+      require('karma-jasmine'),
+      require('karma-chrome-launcher'),
+      require('karma-jasmine-html-reporter'),
+      require('karma-coverage'),
+      require('@angular-devkit/build-angular/plugins/karma'),
+    ],
+    client: {
+      jasmine: {
+        // you can add configuration options for Jasmine here
+        // the possible options are listed at https://jasmine.github.io/api/edge/Configuration.html
+        // for example, you can disable the random execution with `random: false`
+        // or set a specific seed with `seed: 4321`
+      },
+      clearContext: false, // leave Jasmine Spec Runner output visible in browser
+    },
+    jasmineHtmlReporter: {
+      suppressAll: true, // removes the duplicated traces
+    },
+    coverageReporter: {
+      dir: join(__dirname, 'coverage/<%= projectName %>'),
+      subdir: '.',
+      reporters: [{ type: 'html' }, { type: 'text-summary' }],
+    },
+    reporters: ['progress', 'kjhtml'],
+    port: 9876,
+    colors: true,
+    logLevel: constants.LOG_INFO,
+    autoWatch: true,
+    browsers: ['Chrome'],
+    singleRun: true,
+    restartOnFileChange: true,
+  });
+};
diff --git a/packages/angular/src/generators/karma-project/files/workspace-with-root-project/karma.conf.js__tmpl__ b/packages/angular/src/generators/karma-project/files/workspace-with-root-project/karma.conf.js__tmpl__
new file mode 100644
index 0000000000000..dbbdf05ed972a
--- /dev/null
+++ b/packages/angular/src/generators/karma-project/files/workspace-with-root-project/karma.conf.js__tmpl__
@@ -0,0 +1,15 @@
+// Karma configuration file, see link for more information
+// https://karma-runner.github.io/6.4/config/configuration-file.html
+
+const { join } = require('path');
+const setBaseKarmaConfig = require('<%= offsetFromRoot %>karma.conf');
+
+module.exports = function (config) {
+  setBaseKarmaConfig(config);
+
+  config.set({
+    coverageReporter: {
+      dir: join(__dirname, '<%= offsetFromRoot %>coverage/<%= projectRoot %>')
+    }
+  });
+};
diff --git a/packages/angular/src/generators/karma-project/karma-project.spec.ts b/packages/angular/src/generators/karma-project/karma-project.spec.ts
index f7f0d8c8b32b1..22432dbf05828 100644
--- a/packages/angular/src/generators/karma-project/karma-project.spec.ts
+++ b/packages/angular/src/generators/karma-project/karma-project.spec.ts
@@ -209,4 +209,50 @@ describe('karmaProject', () => {
       });
     });
   });
+
+  describe('--root-project', () => {
+    it('should support a project located at the root', async () => {
+      await applicationGenerator(tree, {
+        name: 'root-app',
+        unitTestRunner: UnitTestRunner.None,
+        rootProject: true,
+      });
+      await karmaProjectGenerator(tree, { project: 'root-app' });
+
+      expect(tree.exists('karma.conf.js')).toBe(true);
+      expect(tree.read('karma.conf.js', 'utf-8')).toMatchSnapshot();
+      expect(tree.exists('tsconfig.spec.json')).toBe(true);
+      const { references } = devkit.readJson(tree, 'tsconfig.json');
+      expect(references).toContainEqual({
+        path: './tsconfig.spec.json',
+      });
+      const project = devkit.readProjectConfiguration(tree, 'root-app');
+      expect(project.targets.test.options).toStrictEqual({
+        polyfills: ['zone.js', 'zone.js/testing'],
+        tsConfig: 'tsconfig.spec.json',
+        karmaConfig: 'karma.conf.js',
+        styles: [],
+        scripts: [],
+        assets: [],
+      });
+    });
+
+    it('should generate the right karma.conf.js file for a nested project in a workspace with a project at the root', async () => {
+      await applicationGenerator(tree, {
+        name: 'root-app',
+        unitTestRunner: UnitTestRunner.Karma,
+        rootProject: true,
+      });
+      await libraryGenerator(tree, {
+        name: 'nested-lib',
+        unitTestRunner: UnitTestRunner.None,
+      });
+      await karmaProjectGenerator(tree, { project: 'nested-lib' });
+
+      expect(tree.exists('libs/nested-lib/karma.conf.js')).toBe(true);
+      expect(
+        tree.read('libs/nested-lib/karma.conf.js', 'utf-8')
+      ).toMatchSnapshot();
+    });
+  });
 });
diff --git a/packages/angular/src/generators/karma-project/karma-project.ts b/packages/angular/src/generators/karma-project/karma-project.ts
index d8a4f1feca93b..cfb0718e4453f 100644
--- a/packages/angular/src/generators/karma-project/karma-project.ts
+++ b/packages/angular/src/generators/karma-project/karma-project.ts
@@ -1,4 +1,4 @@
-import type { Tree } from '@nrwl/devkit';
+import type { GeneratorCallback, Tree } from '@nrwl/devkit';
 import { formatFiles } from '@nrwl/devkit';
 import { checkProjectTestTarget } from './lib/check-test-target';
 import { generateKarmaProjectFiles } from './lib/generate-karma-project-files';
@@ -10,15 +10,18 @@ import { karmaGenerator } from '../karma/karma';
 export async function karmaProjectGenerator(
   tree: Tree,
   options: KarmaProjectOptions
-) {
-  karmaGenerator(tree, options);
+): Promise<GeneratorCallback> {
+  const installTask = karmaGenerator(tree, options);
   checkProjectTestTarget(tree, options.project);
   generateKarmaProjectFiles(tree, options.project);
   updateTsConfigs(tree, options.project);
   updateWorkspaceConfig(tree, options.project);
+
   if (!options.skipFormat) {
     await formatFiles(tree);
   }
+
+  return installTask;
 }
 
 export default karmaProjectGenerator;
diff --git a/packages/angular/src/generators/karma-project/lib/generate-karma-project-files.ts b/packages/angular/src/generators/karma-project/lib/generate-karma-project-files.ts
index 4ec1dac486e08..f446583bfcb40 100644
--- a/packages/angular/src/generators/karma-project/lib/generate-karma-project-files.ts
+++ b/packages/angular/src/generators/karma-project/lib/generate-karma-project-files.ts
@@ -1,6 +1,7 @@
 import type { Tree } from '@nrwl/devkit';
 import {
   generateFiles,
+  getProjects,
   joinPathFragments,
   offsetFromRoot,
   readProjectConfiguration,
@@ -10,13 +11,51 @@ export function generateKarmaProjectFiles(tree: Tree, project: string): void {
   const projectConfig = readProjectConfiguration(tree, project);
   generateFiles(
     tree,
-    joinPathFragments(__dirname, '..', 'files'),
+    joinPathFragments(__dirname, '..', 'files', 'common'),
     projectConfig.root,
     {
       tmpl: '',
       projectRoot: projectConfig.root,
-      isLibrary: projectConfig.projectType === 'library',
       offsetFromRoot: offsetFromRoot(projectConfig.root),
     }
   );
+
+  if (projectConfig.root === '' || projectConfig.root === '.') {
+    generateFiles(
+      tree,
+      joinPathFragments(__dirname, '..', 'files', 'root-project'),
+      projectConfig.root,
+      {
+        tmpl: '',
+        projectName: project,
+      }
+    );
+  } else if (isWorkspaceWithProjectAtRoot(tree)) {
+    generateFiles(
+      tree,
+      joinPathFragments(
+        __dirname,
+        '..',
+        'files',
+        'workspace-with-root-project'
+      ),
+      projectConfig.root,
+      {
+        tmpl: '',
+        projectRoot: projectConfig.root,
+        offsetFromRoot: offsetFromRoot(projectConfig.root),
+      }
+    );
+  }
+}
+
+function isWorkspaceWithProjectAtRoot(tree: Tree): boolean {
+  const projects = getProjects(tree);
+  for (const [, project] of projects) {
+    if (project.root === '.' || project.root === '') {
+      return true;
+    }
+  }
+
+  return false;
 }
diff --git a/packages/angular/src/generators/utils/path.spec.ts b/packages/angular/src/generators/utils/path.spec.ts
index 1943ba56f72de..cc377bb1ea94d 100644
--- a/packages/angular/src/generators/utils/path.spec.ts
+++ b/packages/angular/src/generators/utils/path.spec.ts
@@ -13,5 +13,9 @@ describe('path helpers', () => {
     it('should return true regardless if path has relative path chars', () => {
       expect(pathStartsWith(`lib1/src/app`, `./lib1/src/app`)).toBeTruthy();
     });
+
+    it('should return true for a root path', () => {
+      expect(pathStartsWith('lib1/src/app', '.')).toBe(true);
+    });
   });
 });
diff --git a/packages/angular/src/generators/utils/path.ts b/packages/angular/src/generators/utils/path.ts
index cc3fb0bf15cd0..85559e8c831b2 100644
--- a/packages/angular/src/generators/utils/path.ts
+++ b/packages/angular/src/generators/utils/path.ts
@@ -1,11 +1,11 @@
-import { joinPathFragments } from '@nrwl/devkit';
-import { basename, dirname, normalize, relative } from 'path';
+import { joinPathFragments, workspaceRoot } from '@nrwl/devkit';
+import { basename, dirname, relative } from 'path';
 
-export function pathStartsWith(path1: string, path2: string) {
-  path1 = normalize(path1).replace(/\\/g, '/');
-  path2 = normalize(path2).replace(/\\/g, '/');
+export function pathStartsWith(path1: string, path2: string): boolean {
+  const normalizedPath1 = joinPathFragments(workspaceRoot, path1);
+  const normalizedPath2 = joinPathFragments(workspaceRoot, path2);
 
-  return path1.startsWith(path2);
+  return normalizedPath1.startsWith(normalizedPath2);
 }
 
 export function getRelativeImportToFile(