diff --git a/packages/vite/package.json b/packages/vite/package.json
index 4a4eb6a9324dfd..59a2e6e432f2ec 100644
--- a/packages/vite/package.json
+++ b/packages/vite/package.json
@@ -34,7 +34,8 @@
     "dotenv": "~10.0.0",
     "enquirer": "~2.3.6",
     "@nx/devkit": "file:../devkit",
-    "@nx/js": "file:../js"
+    "@nx/js": "file:../js",
+    "tsconfig-paths": "^4.1.2"
   },
   "peerDependencies": {
     "vite": "^4.3.4",
@@ -53,6 +54,7 @@
     "./executors": "./executors.js",
     "./src/executors/*/schema.json": "./src/executors/*/schema.json",
     "./src/executors/*.impl": "./src/executors/*.impl.js",
-    "./src/executors/*/compat": "./src/executors/*/compat.js"
+    "./src/executors/*/compat": "./src/executors/*/compat.js",
+    "./plugins/nx-tsconfig-paths.plugin": "./plugins/nx-tsconfig-paths.plugin.js"
   }
 }
diff --git a/packages/vite/plugins/nx-tsconfig-paths.plugin.ts b/packages/vite/plugins/nx-tsconfig-paths.plugin.ts
new file mode 100644
index 00000000000000..159c58bb790243
--- /dev/null
+++ b/packages/vite/plugins/nx-tsconfig-paths.plugin.ts
@@ -0,0 +1,60 @@
+import { stripIndents, workspaceRoot } from '@nx/devkit';
+import { existsSync } from 'node:fs';
+import { relative, join, resolve, posix } from 'node:path';
+import { loadConfig, createMatchPath, MatchPath } from 'tsconfig-paths';
+
+// TODO(caleb): should we provide a way to override anything for the plugin?
+
+export function nxViteTsPaths() {
+  let matchTsPath: MatchPath;
+
+  return {
+    name: 'nx-vite-ts-paths',
+    configResolved(config: any) {
+      const projectRoot = config.root;
+      // TODO(caleb): verify on windows to see what type of paths vite returns posix vs win32
+      const projectRootFromWorkspaceRoot = relative(workspaceRoot, projectRoot);
+
+      const foundTsConfigPath = getTsConfig(projectRootFromWorkspaceRoot);
+      if (!foundTsConfigPath) {
+        throw new Error(stripIndents`Unable to find a tsconfig in the workspace! 
+There should at least be a tsconfig.base.json or tsconfig.json in the root of the workspace ${workspaceRoot}`);
+      }
+      const parsed = loadConfig(foundTsConfigPath);
+
+      if (parsed.resultType === 'failed') {
+        throw new Error(`Failed loading tsonfig at ${foundTsConfigPath}`);
+      }
+
+      matchTsPath = createMatchPath(parsed.absoluteBaseUrl, parsed.paths, [
+        ['exports', '.', 'import'],
+      ]);
+    },
+    resolveId(source: string) {
+      const resolvedFile = matchTsPath(source);
+
+      if (!resolvedFile) {
+        console.warn(
+          `[Nx Vite TsPaths] Unable to resolve ${source} with tsconfig paths`
+        );
+      }
+
+      return resolvedFile;
+    },
+  };
+}
+
+function getTsConfig(
+  projectRoot: string,
+  tmpTsConfigName = 'tsconfig.generated.json'
+): string {
+  return [
+    resolve(join(workspaceRoot, 'tmp', projectRoot, tmpTsConfigName)),
+    resolve(join(workspaceRoot, 'tsconfig.base.json')),
+    resolve(join(workspaceRoot, 'tsconfig.json')),
+  ].find((tsPath) => {
+    if (existsSync(tsPath)) {
+      return tsPath;
+    }
+  });
+}
diff --git a/packages/vite/src/executors/build/build.impl.ts b/packages/vite/src/executors/build/build.impl.ts
index 015177879c8dda..8f3313c46c91a0 100644
--- a/packages/vite/src/executors/build/build.impl.ts
+++ b/packages/vite/src/executors/build/build.impl.ts
@@ -25,6 +25,7 @@ export async function* viteBuildExecutor(
   const projectRoot =
     context.projectsConfigurations.projects[context.projectName].root;
 
+  // TODO(caleb): do we need to register the paths anymore or just make tsconfig?
   registerPaths(projectRoot, options, context);
 
   const normalizedOptions = normalizeOptions(options);
diff --git a/packages/vite/src/executors/dev-server/dev-server.impl.ts b/packages/vite/src/executors/dev-server/dev-server.impl.ts
index f43342fa396627..7507400e57a240 100644
--- a/packages/vite/src/executors/dev-server/dev-server.impl.ts
+++ b/packages/vite/src/executors/dev-server/dev-server.impl.ts
@@ -20,6 +20,7 @@ export async function* viteDevServerExecutor(
   const projectRoot =
     context.projectsConfigurations.projects[context.projectName].root;
 
+  // TODO(caleb): do we need to register the paths anymore or just make tsconfig?
   registerPaths(projectRoot, options, context);
 
   // Retrieve the option for the configured buildTarget.
diff --git a/packages/vite/src/utils/executor-utils.ts b/packages/vite/src/utils/executor-utils.ts
index 470f1ff73d8038..11308e1e2f0d45 100644
--- a/packages/vite/src/utils/executor-utils.ts
+++ b/packages/vite/src/utils/executor-utils.ts
@@ -35,7 +35,9 @@ export function registerPaths(
   const tsConfig = resolve(projectRoot, 'tsconfig.json');
   options.buildLibsFromSource ??= true;
 
-  if (!options.buildLibsFromSource) {
+  if (options.buildLibsFromSource) {
+    registerTsConfigPaths(tsConfig);
+  } else {
     const { dependencies } = calculateProjectDependencies(
       context.projectGraph,
       context.root,
@@ -49,9 +51,6 @@ export function registerPaths(
       projectRoot,
       dependencies
     );
-
     registerTsConfigPaths(tmpTsConfig);
-  } else {
-    registerTsConfigPaths(tsConfig);
   }
 }
diff --git a/packages/vite/src/utils/generator-utils.ts b/packages/vite/src/utils/generator-utils.ts
index 7c5ee1deec5703..4430ec762888d8 100644
--- a/packages/vite/src/utils/generator-utils.ts
+++ b/packages/vite/src/utils/generator-utils.ts
@@ -583,13 +583,14 @@ export function createOrEditViteConfig(
       host: 'localhost',
     },`;
 
+  // viteTsConfigPaths({
+  //   root: '${offsetFromRoot(projectConfig.root)}',
+  // }),
   const pluginOption = `
     plugins: [
       ${dtsPlugin}
       ${reactPlugin}
-      viteTsConfigPaths({
-        root: '${offsetFromRoot(projectConfig.root)}',
-      }),
+      nxViteTsPaths(),
     ],
     `;
 
@@ -628,7 +629,7 @@ export function createOrEditViteConfig(
       /// <reference types="vitest" />
       import { defineConfig } from 'vite';
       ${reactPluginImportLine}
-      import viteTsConfigPaths from 'vite-tsconfig-paths';
+      import { nxViteTsPaths } from '@nx/vite/plugins/nx-tsconfig-paths.plugin';
       ${dtsImportLine}
       
       export default defineConfig({