diff --git a/docs/generated/packages/react.json b/docs/generated/packages/react.json
index da3d285d6c3e40..25baffbb285df9 100644
--- a/docs/generated/packages/react.json
+++ b/docs/generated/packages/react.json
@@ -48,6 +48,11 @@
             "type": "boolean",
             "default": false
           },
+          "skipBabelConfig": {
+            "description": "Do not generate a root babel.config.json (if babel is not needed).",
+            "type": "boolean",
+            "default": false
+          },
           "js": {
             "type": "boolean",
             "default": false,
@@ -244,7 +249,7 @@
             "description": "The bundler to use.",
             "type": "string",
             "enum": ["vite", "webpack"],
-            "x-prompt": "Which bundler do you want to use?",
+            "x-prompt": "Which bundler do you want to use to build the application?",
             "default": "webpack"
           }
         },
@@ -339,8 +344,7 @@
           "unitTestRunner": {
             "type": "string",
             "enum": ["jest", "vitest", "none"],
-            "description": "Test runner to use for unit tests.",
-            "default": "jest"
+            "description": "Test runner to use for unit tests."
           },
           "inSourceTests": {
             "type": "boolean",
@@ -384,7 +388,7 @@
           "buildable": {
             "type": "boolean",
             "default": false,
-            "description": "Generate a buildable library."
+            "description": "Generate a buildable library. If a bundler is set then the library is buildable by default."
           },
           "importPath": {
             "type": "string",
@@ -419,11 +423,17 @@
             "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
             "type": "boolean"
           },
+          "bundler": {
+            "type": "string",
+            "description": "The bundler to use.",
+            "enum": ["vite", "rollup"],
+            "default": "rollup"
+          },
           "compiler": {
             "type": "string",
             "enum": ["babel", "swc"],
             "default": "babel",
-            "description": "Which compiler to use."
+            "description": "Which compiler to use. Does not apply if bundler is set to Vite."
           },
           "skipPackageJson": {
             "description": "Do not add dependencies to `package.json`.",
diff --git a/docs/generated/packages/vite.json b/docs/generated/packages/vite.json
index b489b5f889f34e..d2b8b07285ce60 100644
--- a/docs/generated/packages/vite.json
+++ b/docs/generated/packages/vite.json
@@ -60,6 +60,12 @@
             "x-dropdown": "project",
             "x-prompt": "What is the name of the project to set up a webpack for?"
           },
+          "includeLib": {
+            "type": "boolean",
+            "description": "Add a library build option.",
+            "default": false,
+            "x-prompt": "Does this project contain a buildable library?"
+          },
           "uiFramework": {
             "type": "string",
             "description": "UI Framework to use for Vite.",
diff --git a/docs/generated/packages/web.json b/docs/generated/packages/web.json
index aba85caa4b0e63..d614412071f40a 100644
--- a/docs/generated/packages/web.json
+++ b/docs/generated/packages/web.json
@@ -53,6 +53,11 @@
             "description": "Do not add dependencies to `package.json`.",
             "type": "boolean",
             "default": false
+          },
+          "skipBabelConfig": {
+            "description": "Do not generate a root babel.config.json (if babel is not needed).",
+            "type": "boolean",
+            "default": false
           }
         },
         "required": [],
diff --git a/e2e/react/src/react-package.test.ts b/e2e/react/src/react-package.test.ts
index 89e39cf70a6492..76c19c8b2f4bb1 100644
--- a/e2e/react/src/react-package.test.ts
+++ b/e2e/react/src/react-package.test.ts
@@ -252,4 +252,22 @@ export async function h() { return 'c'; }
       }).toThrow();
     }, 250000);
   });
+
+  it('should support bundling with Vite', async () => {
+    const libName = uniq('lib');
+
+    runCLI(
+      `generate @nrwl/react:lib ${libName} --buildable --bundler=vite --no-interactive`
+    );
+
+    const result = await runCLIAsync(`build ${libName}`);
+
+    expect(result).toMatch(/Vite builder finished/);
+
+    checkFilesExist(
+      `dist/libs/${libName}/package.json`,
+      `dist/libs/${libName}/index.js`,
+      `dist/libs/${libName}/index.mjs`
+    );
+  });
 });
diff --git a/e2e/vite/src/vite.test.ts b/e2e/vite/src/vite.test.ts
index 498e509250cd28..a94d2da0308780 100644
--- a/e2e/vite/src/vite.test.ts
+++ b/e2e/vite/src/vite.test.ts
@@ -1,4 +1,5 @@
 import {
+  checkFilesExist,
   cleanupProject,
   createFile,
   exists,
@@ -32,38 +33,23 @@ describe('Vite Plugin', () => {
           `apps/${myApp}/index.html`,
           `
     <!DOCTYPE html>
-    <html lang="en">
+    <html lang='en'>
       <head>
-        <meta charset="utf-8" />
+        <meta charset='utf-8' />
         <title>My App</title>
-        <base href="/" />
+        <base href='/' />
 
-        <meta name="viewport" content="width=device-width, initial-scale=1" />
-        <link rel="icon" type="image/x-icon" href="favicon.ico" />
+        <meta name='viewport' content='width=device-width, initial-scale=1' />
+        <link rel='icon' type='image/x-icon' href='favicon.ico' />
       </head>
       <body>
-        <div id="root"></div>
-        <script type="module" src="src/main.tsx"></script>
+        <div id='root'></div>
+        <script type='module' src='src/main.tsx'></script>
       </body>
     </html>
     `
         );
 
-        createFile(
-          `apps/${myApp}/src/environments/environment.prod.ts`,
-          `export const environment = {
-        production: true,
-        myTestVar: 'MyProductionValue',
-      };`
-        );
-        createFile(
-          `apps/${myApp}/src/environments/environment.ts`,
-          `export const environment = {
-        production: false,
-        myTestVar: 'MyDevelopmentValue',
-      };`
-        );
-
         updateFile(
           `apps/${myApp}/src/app/app.tsx`,
           `
@@ -169,20 +155,6 @@ describe('Vite Plugin', () => {
         });
       });
 
-      it('should build application and replace files', async () => {
-        runCLI(`build ${myApp}`);
-        expect(readFile(`dist/apps/${myApp}/index.html`)).toBeDefined();
-        const fileArray = listFiles(`dist/apps/${myApp}/assets`);
-        const mainBundle = fileArray.find((file) => file.endsWith('.js'));
-        expect(readFile(`dist/apps/${myApp}/assets/${mainBundle}`)).toContain(
-          'MyProductionValue'
-        );
-        expect(
-          readFile(`dist/apps/${myApp}/assets/${mainBundle}`)
-        ).not.toContain('MyDevelopmentValue');
-        rmDist();
-      }, 200000);
-
       it('should serve application in dev mode', async () => {
         const port = 4212;
         const p = await runCommandUntil(
@@ -207,76 +179,11 @@ describe('Vite Plugin', () => {
       });
     });
 
-    describe('set up new React app with --bundler=vite option', () => {
-      beforeEach(() => {
-        proj = newProject();
-        runCLI(`generate @nrwl/react:app ${myApp} --bundler=vite`);
-        updateFile(
-          `apps/${myApp}/src/environments/environment.prod.ts`,
-          `export const environment = {
-        production: true,
-        myTestVar: 'MyProductionValue',
-      };`
-        );
-        updateFile(
-          `apps/${myApp}/src/environments/environment.ts`,
-          `export const environment = {
-        production: false,
-        myTestVar: 'MyDevelopmentValue',
-      };`
-        );
-
-        updateFile(
-          `apps/${myApp}/src/app/app.tsx`,
-          `
-        import { environment } from './../environments/environment';
-        export function App() {
-          return (
-            <>
-              <h1>{environment.myTestVar}</h1>
-              <p>Welcome ${myApp}!</p>
-            </>
-          );
-        }
-        export default App;
-      `
-        );
-      });
-      afterEach(() => cleanupProject());
-      it('should build application and replace files', async () => {
-        runCLI(`build ${myApp}`);
-        expect(readFile(`dist/apps/${myApp}/index.html`)).toBeDefined();
-        const fileArray = listFiles(`dist/apps/${myApp}/assets`);
-        const mainBundle = fileArray.find((file) => file.endsWith('.js'));
-        expect(readFile(`dist/apps/${myApp}/assets/${mainBundle}`)).toContain(
-          'MyProductionValue'
-        );
-        expect(
-          readFile(`dist/apps/${myApp}/assets/${mainBundle}`)
-        ).not.toContain('MyDevelopmentValue');
-        rmDist();
-      }, 200000);
-    });
-
     describe('convert React webpack app to vite using the vite:configuration generator', () => {
       beforeEach(() => {
         proj = newProject();
         runCLI(`generate @nrwl/react:app ${myApp} --bundler=webpack`);
         runCLI(`generate @nrwl/vite:configuration ${myApp}`);
-        updateFile(
-          `apps/${myApp}/src/environments/environment.prod.ts`,
-          `export const environment = {
-        production: true,
-        myTestVar: 'MyProductionValue',
-      };`
-        );
-        updateFile(
-          `apps/${myApp}/src/environments/environment.ts`,
-          `export const environment = {
-        production: false,
-        myTestVar: 'MyDevelopmentValue',
-      };`
-        );
 
         updateFile(
           `apps/${myApp}/src/app/app.tsx`,
@@ -295,18 +202,6 @@ describe('Vite Plugin', () => {
         );
       });
       afterEach(() => cleanupProject());
-      it('should build application and replace files', async () => {
-        runCLI(`build ${myApp}`);
-        expect(readFile(`dist/apps/${myApp}/index.html`)).toBeDefined();
-        const fileArray = listFiles(`dist/apps/${myApp}/assets`);
-        const mainBundle = fileArray.find((file) => file.endsWith('.js'));
-        expect(readFile(`dist/apps/${myApp}/assets/${mainBundle}`)).toContain(
-          'MyProductionValue'
-        );
-        expect(
-          readFile(`dist/apps/${myApp}/assets/${mainBundle}`)
-        ).not.toContain('MyDevelopmentValue');
-      }, 200000);
 
       it('should serve application in dev mode', async () => {
         const port = 4212;
diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index 8c612c41d1736a..f34524051f3c27 100644
--- a/packages/react/src/generators/application/application.spec.ts
+++ b/packages/react/src/generators/application/application.spec.ts
@@ -19,7 +19,6 @@ describe('app', () => {
     compiler: 'babel',
     e2eTestRunner: 'cypress',
     skipFormat: false,
-    unitTestRunner: 'jest',
     name: 'myApp',
     linter: Linter.EsLint,
     style: 'css',
@@ -381,6 +380,12 @@ describe('app', () => {
     expect(targetConfig.build.options).toEqual({
       outputPath: 'dist/apps/my-app',
     });
+    expect(
+      appTree.exists(`apps/my-app/environments/environment.ts`)
+    ).toBeFalsy();
+    expect(
+      appTree.exists(`apps/my-app/environments/environment.prod.ts`)
+    ).toBeFalsy();
   });
 
   it('should setup the nrwl web dev server builder', async () => {
diff --git a/packages/react/src/generators/application/application.ts b/packages/react/src/generators/application/application.ts
index f50c528fb79189..278383a3177521 100644
--- a/packages/react/src/generators/application/application.ts
+++ b/packages/react/src/generators/application/application.ts
@@ -80,6 +80,7 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   const initTask = await reactInitGenerator(host, {
     ...options,
     skipFormat: true,
+    skipBabelConfig: options.bundler === 'vite',
   });
 
   tasks.push(initTask);
@@ -88,6 +89,10 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   addProject(host, options);
 
   if (options.bundler === 'vite') {
+    // We recommend users use `import.meta.env.MODE` and other variables in their code to differentiate between production and development.
+    // See: https://vitejs.dev/guide/env-and-mode.html
+    host.delete(joinPathFragments(options.appProjectRoot, 'src/environments'));
+
     const viteTask = await viteConfigurationGenerator(host, {
       uiFramework: 'react',
       project: options.projectName,
@@ -111,9 +116,11 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
 
   const cypressTask = await addCypress(host, options);
   tasks.push(cypressTask);
-  const jestTask = await addJest(host, options);
-  tasks.push(jestTask);
-  updateSpecConfig(host, options);
+  if (options.unitTestRunner === 'jest') {
+    const jestTask = await addJest(host, options);
+    tasks.push(jestTask);
+    updateSpecConfig(host, options);
+  }
   const styledTask = addStyledModuleDependencies(host, options.styledModule);
   tasks.push(styledTask);
   const routingTask = addRouting(host, options);
diff --git a/packages/react/src/generators/application/lib/normalize-options.ts b/packages/react/src/generators/application/lib/normalize-options.ts
index 27e3a60ddd3cbb..cffc5efb7f8646 100644
--- a/packages/react/src/generators/application/lib/normalize-options.ts
+++ b/packages/react/src/generators/application/lib/normalize-options.ts
@@ -40,20 +40,7 @@ export function normalizeOptions(
 
   assertValidStyle(options.style);
 
-  if (options.bundler === 'vite') {
-    options.unitTestRunner = 'vitest';
-  }
-
-  options.routing = options.routing ?? false;
-  options.strict = options.strict ?? true;
-  options.classComponent = options.classComponent ?? false;
-  options.unitTestRunner = options.unitTestRunner ?? 'jest';
-  options.e2eTestRunner = options.e2eTestRunner ?? 'cypress';
-  options.compiler = options.compiler ?? 'babel';
-  options.bundler = options.bundler ?? 'webpack';
-  options.devServerPort ??= findFreePort(host);
-
-  return {
+  const normalized = {
     ...options,
     name: names(options.name).fileName,
     projectName: appProjectName,
@@ -63,5 +50,18 @@ export function normalizeOptions(
     fileName,
     styledModule,
     hasStyles: options.style !== 'none',
-  };
+  } as NormalizedSchema;
+
+  normalized.routing = normalized.routing ?? false;
+  normalized.strict = normalized.strict ?? true;
+  normalized.classComponent = normalized.classComponent ?? false;
+  normalized.compiler = normalized.compiler ?? 'babel';
+  normalized.bundler = normalized.bundler ?? 'webpack';
+  normalized.unitTestRunner =
+    normalized.unitTestRunner ??
+    (normalized.bundler === 'vite' ? 'vitest' : 'jest');
+  normalized.e2eTestRunner = normalized.e2eTestRunner ?? 'cypress';
+  normalized.devServerPort ??= findFreePort(host);
+
+  return normalized;
 }
diff --git a/packages/react/src/generators/application/lib/set-defaults.ts b/packages/react/src/generators/application/lib/set-defaults.ts
index 435b9b130753bc..a9b71ee6a9710b 100644
--- a/packages/react/src/generators/application/lib/set-defaults.ts
+++ b/packages/react/src/generators/application/lib/set-defaults.ts
@@ -30,6 +30,7 @@ export function setDefaults(host: Tree, options: NormalizedSchema) {
         style: options.style,
         unitTestRunner: options.unitTestRunner,
         linter: options.linter,
+        bundler: options.bundler,
         ...prev.application,
       },
       component: {
diff --git a/packages/react/src/generators/application/schema.d.ts b/packages/react/src/generators/application/schema.d.ts
index 7d5f4e49c6b07a..ead0831abf0917 100644
--- a/packages/react/src/generators/application/schema.d.ts
+++ b/packages/react/src/generators/application/schema.d.ts
@@ -7,7 +7,7 @@ export interface Schema {
   skipFormat: boolean;
   directory?: string;
   tags?: string;
-  unitTestRunner: 'jest' | 'vitest' | 'none';
+  unitTestRunner?: 'jest' | 'vitest' | 'none';
   inSourceTests?: boolean;
   /**
    * @deprecated
@@ -41,4 +41,5 @@ export interface NormalizedSchema extends Schema {
   fileName: string;
   styledModule: null | SupportedStyles;
   hasStyles: boolean;
+  unitTestRunner: 'jest' | 'vitest' | 'none';
 }
diff --git a/packages/react/src/generators/application/schema.json b/packages/react/src/generators/application/schema.json
index dc0ff922fdd636..63b40df77f0327 100644
--- a/packages/react/src/generators/application/schema.json
+++ b/packages/react/src/generators/application/schema.json
@@ -185,7 +185,7 @@
       "description": "The bundler to use.",
       "type": "string",
       "enum": ["vite", "webpack"],
-      "x-prompt": "Which bundler do you want to use?",
+      "x-prompt": "Which bundler do you want to use to build the application?",
       "default": "webpack"
     }
   },
diff --git a/packages/react/src/generators/init/schema.d.ts b/packages/react/src/generators/init/schema.d.ts
index 7fccc4697c21c4..65431d3fac869c 100644
--- a/packages/react/src/generators/init/schema.d.ts
+++ b/packages/react/src/generators/init/schema.d.ts
@@ -1,6 +1,7 @@
 export interface InitSchema {
   unitTestRunner?: 'jest' | 'vitest' | 'none';
   e2eTestRunner?: 'cypress' | 'none';
+  skipBabelConfig?: boolean;
   skipFormat?: boolean;
   skipPackageJson?: boolean;
   js?: boolean;
diff --git a/packages/react/src/generators/init/schema.json b/packages/react/src/generators/init/schema.json
index 7fe840439b54f9..458ee719ee2b6b 100644
--- a/packages/react/src/generators/init/schema.json
+++ b/packages/react/src/generators/init/schema.json
@@ -28,6 +28,11 @@
       "type": "boolean",
       "default": false
     },
+    "skipBabelConfig": {
+      "description": "Do not generate a root babel.config.json (if babel is not needed).",
+      "type": "boolean",
+      "default": false
+    },
     "js": {
       "type": "boolean",
       "default": false,
diff --git a/packages/react/src/generators/library/files/lib/.babelrc__tmpl__ b/packages/react/src/generators/library/files/common/.babelrc__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/.babelrc__tmpl__
rename to packages/react/src/generators/library/files/common/.babelrc__tmpl__
diff --git a/packages/react/src/generators/library/files/lib/README.md b/packages/react/src/generators/library/files/common/README.md
similarity index 100%
rename from packages/react/src/generators/library/files/lib/README.md
rename to packages/react/src/generators/library/files/common/README.md
diff --git a/packages/react/src/generators/library/files/common/package.json__tmpl__ b/packages/react/src/generators/library/files/common/package.json__tmpl__
new file mode 100644
index 00000000000000..12d37480dfcb9e
--- /dev/null
+++ b/packages/react/src/generators/library/files/common/package.json__tmpl__
@@ -0,0 +1,12 @@
+{
+  "name": "<%= name %>",
+  "version": "0.0.1",
+  "main": "./index.js",
+  "module": "./index.mjs",
+  "exports": {
+    ".": {
+      "import": "./index.mjs",
+      "require": "./index.js"
+    }
+  }
+}
diff --git a/packages/react/src/generators/library/files/lib/src/index.ts__tmpl__ b/packages/react/src/generators/library/files/common/src/index.ts__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/src/index.ts__tmpl__
rename to packages/react/src/generators/library/files/common/src/index.ts__tmpl__
diff --git a/packages/react/src/generators/library/files/lib/tsconfig.json__tmpl__ b/packages/react/src/generators/library/files/common/tsconfig.json__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/tsconfig.json__tmpl__
rename to packages/react/src/generators/library/files/common/tsconfig.json__tmpl__
diff --git a/packages/react/src/generators/library/files/lib/tsconfig.lib.json__tmpl__ b/packages/react/src/generators/library/files/common/tsconfig.lib.json__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/tsconfig.lib.json__tmpl__
rename to packages/react/src/generators/library/files/common/tsconfig.lib.json__tmpl__
diff --git a/packages/react/src/generators/library/files/lib/package.json__tmpl__ b/packages/react/src/generators/library/files/lib/package.json__tmpl__
deleted file mode 100644
index fa518765a372fc..00000000000000
--- a/packages/react/src/generators/library/files/lib/package.json__tmpl__
+++ /dev/null
@@ -1,4 +0,0 @@
-{
-  "name": "<%= name %>",
-  "version": "0.0.1"
-}
diff --git a/packages/react/src/generators/library/files/vite/index.html__tmpl__ b/packages/react/src/generators/library/files/vite/index.html__tmpl__
new file mode 100644
index 00000000000000..4c4c81ceb583c2
--- /dev/null
+++ b/packages/react/src/generators/library/files/vite/index.html__tmpl__
@@ -0,0 +1,15 @@
+<!DOCTYPE html>
+<html lang="en">
+  <head>
+    <meta charset="utf-8" />
+    <title><%= className %> Demo</title>
+    <base href="/" />
+
+    <meta name="viewport" content="width=device-width, initial-scale=1" />
+    <link rel="icon" type="image/x-icon" href="favicon.ico" />
+  </head>
+  <body>
+    <div id="root"></div>
+    <script type="module" src="./src/demo.tsx"></script>
+  </body>
+</html>
diff --git a/packages/react/src/generators/library/files/vite/package.json__tmpl__ b/packages/react/src/generators/library/files/vite/package.json__tmpl__
new file mode 100644
index 00000000000000..28c580ee8ec3a6
--- /dev/null
+++ b/packages/react/src/generators/library/files/vite/package.json__tmpl__
@@ -0,0 +1,11 @@
+{
+  "name": "<%= name %>",
+  "version": "0.0.1",
+  "main": "./index.js",
+  "exports": {
+    ".": {
+      "import": "./index.mjs",
+      "require": "./index.js"
+    }
+  }
+}
diff --git a/packages/react/src/generators/library/files/vite/src/demo.tsx__tmpl__ b/packages/react/src/generators/library/files/vite/src/demo.tsx__tmpl__
new file mode 100644
index 00000000000000..617f6a880e9acf
--- /dev/null
+++ b/packages/react/src/generators/library/files/vite/src/demo.tsx__tmpl__
@@ -0,0 +1,19 @@
+/*
+ * This a a demo file that can be helpful when developing components by serving and interacting with them in the browser.
+ */
+<% if (component) { %>
+import * as ReactDOM from 'react-dom/client';
+import { <%= className %> } from './index';
+
+const root = ReactDOM.createRoot(document.getElementById('root') as HTMLElement);
+root.render(
+  <<%= className %> />
+);
+<% } else { %>
+import * as ReactDOM from 'react-dom/client';
+
+const root = ReactDOM.createRoot(document.getElementById('root') as HTMLElement);
+root.render(
+  <h1><%= className %> Demo</h1>
+);
+<% } %>
\ No newline at end of file
diff --git a/packages/react/src/generators/library/library.spec.ts b/packages/react/src/generators/library/library.spec.ts
index ed3952176b2811..1fe21bf25a706b 100644
--- a/packages/react/src/generators/library/library.spec.ts
+++ b/packages/react/src/generators/library/library.spec.ts
@@ -225,7 +225,11 @@ describe('lib', () => {
       `);
     });
     it('should update jest.config.ts for babel', async () => {
-      await libraryGenerator(appTree, { ...defaultSchema, compiler: 'babel' });
+      await libraryGenerator(appTree, {
+        ...defaultSchema,
+        buildable: true,
+        compiler: 'babel',
+      });
       expect(appTree.read('libs/my-lib/jest.config.ts', 'utf-8')).toContain(
         "['babel-jest', { presets: ['@nrwl/react/babel'] }]"
       );
@@ -280,6 +284,7 @@ describe('lib', () => {
       await libraryGenerator(appTree, {
         ...defaultSchema,
         directory: 'myDir',
+        buildable: true,
         compiler: 'babel',
       });
       expect(
@@ -725,6 +730,7 @@ describe('lib', () => {
     it('should install swc dependencies if needed', async () => {
       await libraryGenerator(appTree, {
         ...defaultSchema,
+        buildable: true,
         compiler: 'swc',
       });
       const packageJson = readJson(appTree, 'package.json');
@@ -764,6 +770,7 @@ describe('lib', () => {
       await libraryGenerator(appTree, {
         ...defaultSchema,
         style,
+        compiler: 'babel',
         name: 'myLib',
       });
 
diff --git a/packages/react/src/generators/library/library.ts b/packages/react/src/generators/library/library.ts
index 25d4c356b7fcc3..ad010cb68f8f30 100644
--- a/packages/react/src/generators/library/library.ts
+++ b/packages/react/src/generators/library/library.ts
@@ -44,10 +44,11 @@ import {
   typesReactRouterDomVersion,
 } from '../../utils/versions';
 import componentGenerator from '../component/component';
-import init from '../init/init';
+import initGenerator from '../init/init';
 import { Schema } from './schema';
 import { updateJestConfigContent } from '../../utils/jest-utils';
-import { vitestGenerator } from '@nrwl/vite';
+import { viteConfigurationGenerator, vitestGenerator } from '@nrwl/vite';
+
 export interface NormalizedSchema extends Schema {
   name: string;
   fileName: string;
@@ -57,6 +58,7 @@ export interface NormalizedSchema extends Schema {
   parsedTags: string[];
   appMain?: string;
   appSourceRoot?: string;
+  unitTestRunner: 'jest' | 'vitest' | 'none';
 }
 
 export async function libraryGenerator(host: Tree, schema: Schema) {
@@ -72,10 +74,11 @@ export async function libraryGenerator(host: Tree, schema: Schema) {
     options.style = 'none';
   }
 
-  const initTask = await init(host, {
+  const initTask = await initGenerator(host, {
     ...options,
     e2eTestRunner: 'none',
     skipFormat: true,
+    skipBabelConfig: options.bundler === 'vite',
   });
   tasks.push(initTask);
 
@@ -90,6 +93,17 @@ export async function libraryGenerator(host: Tree, schema: Schema) {
     updateBaseTsConfig(host, options);
   }
 
+  if (options.buildable && options.bundler === 'vite') {
+    const viteTask = await viteConfigurationGenerator(host, {
+      uiFramework: 'react',
+      project: options.name,
+      newProject: true,
+      includeLib: true,
+      includeVitest: true,
+    });
+    tasks.push(viteTask);
+  }
+
   if (options.unitTestRunner === 'jest') {
     const jestTask = await jestProjectGenerator(host, {
       ...options,
@@ -110,7 +124,10 @@ export async function libraryGenerator(host: Tree, schema: Schema) {
       );
       host.write(jestConfigPath, updatedContent);
     }
-  } else if (options.unitTestRunner === 'vitest') {
+  } else if (
+    options.unitTestRunner === 'vitest' &&
+    options.bundler !== 'vite' // tests are already configured if bundler is vite
+  ) {
     const vitestTask = await vitestGenerator(host, {
       uiFramework: 'react',
       project: options.name,
@@ -299,22 +316,34 @@ function updateBaseTsConfig(host: Tree, options: NormalizedSchema) {
 }
 
 function createFiles(host: Tree, options: NormalizedSchema) {
+  const substitutions = {
+    ...options,
+    ...names(options.name),
+    tmpl: '',
+    offsetFromRoot: offsetFromRoot(options.projectRoot),
+    rootTsConfigPath: getRelativePathToRootTsConfig(host, options.projectRoot),
+  };
+
   generateFiles(
     host,
-    joinPathFragments(__dirname, './files/lib'),
+    joinPathFragments(__dirname, './files/common'),
     options.projectRoot,
-    {
-      ...options,
-      ...names(options.name),
-      tmpl: '',
-      offsetFromRoot: offsetFromRoot(options.projectRoot),
-      rootTsConfigPath: getRelativePathToRootTsConfig(
-        host,
-        options.projectRoot
-      ),
-    }
+    substitutions
   );
 
+  if (options.bundler === 'vite') {
+    generateFiles(
+      host,
+      joinPathFragments(__dirname, './files/vite'),
+      options.projectRoot,
+      substitutions
+    );
+
+    if (host.exists(joinPathFragments(options.projectRoot, '.babelrc'))) {
+      host.delete(joinPathFragments(options.projectRoot, '.babelrc'));
+    }
+  }
+
   if (!options.publishable && !options.buildable) {
     host.delete(`${options.projectRoot}/package.json`);
   }
@@ -433,8 +462,10 @@ function normalizeOptions(host: Tree, options: Schema): NormalizedSchema {
   const importPath =
     options.importPath || getImportPath(npmScope, projectDirectory);
 
-  const normalized: NormalizedSchema = {
+  const normalized = {
     ...options,
+    compiler: options.compiler ?? 'babel',
+    bundler: options.bundler ?? 'rollup',
     fileName,
     routePath: `/${name}`,
     name: projectName,
@@ -442,7 +473,16 @@ function normalizeOptions(host: Tree, options: Schema): NormalizedSchema {
     projectDirectory,
     parsedTags,
     importPath,
-  };
+  } as NormalizedSchema;
+
+  // Libraries with a bundler or is publishable must also be buildable.
+  normalized.buildable = Boolean(
+    options.bundler || options.buildable || options.publishable
+  );
+
+  normalized.unitTestRunner =
+    normalized.unitTestRunner ??
+    (normalized.bundler === 'vite' ? 'vitest' : 'jest');
 
   if (options.appProject) {
     const appProjectConfig = getProjects(host).get(options.appProject);
diff --git a/packages/react/src/generators/library/schema.d.ts b/packages/react/src/generators/library/schema.d.ts
index 9adde64ac382d8..3aac2d46fa4296 100644
--- a/packages/react/src/generators/library/schema.d.ts
+++ b/packages/react/src/generators/library/schema.d.ts
@@ -11,7 +11,7 @@ export interface Schema {
   pascalCaseFiles?: boolean;
   routing?: boolean;
   appProject?: string;
-  unitTestRunner: 'jest' | 'vitest' | 'none';
+  unitTestRunner?: 'jest' | 'vitest' | 'none';
   inSourceTests?: boolean;
   linter: Linter;
   component?: boolean;
@@ -24,5 +24,6 @@ export interface Schema {
   setParserOptionsProject?: boolean;
   standaloneConfig?: boolean;
   compiler?: 'babel' | 'swc';
+  bundler?: 'rollup' | 'vite';
   skipPackageJson?: boolean;
 }
diff --git a/packages/react/src/generators/library/schema.json b/packages/react/src/generators/library/schema.json
index ff4ade44655507..f5d12c1c79f7ac 100644
--- a/packages/react/src/generators/library/schema.json
+++ b/packages/react/src/generators/library/schema.json
@@ -81,8 +81,7 @@
     "unitTestRunner": {
       "type": "string",
       "enum": ["jest", "vitest", "none"],
-      "description": "Test runner to use for unit tests.",
-      "default": "jest"
+      "description": "Test runner to use for unit tests."
     },
     "inSourceTests": {
       "type": "boolean",
@@ -126,7 +125,7 @@
     "buildable": {
       "type": "boolean",
       "default": false,
-      "description": "Generate a buildable library."
+      "description": "Generate a buildable library. If a bundler is set then the library is buildable by default."
     },
     "importPath": {
       "type": "string",
@@ -161,11 +160,17 @@
       "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
       "type": "boolean"
     },
+    "bundler": {
+      "type": "string",
+      "description": "The bundler to use.",
+      "enum": ["vite", "rollup"],
+      "default": "rollup"
+    },
     "compiler": {
       "type": "string",
       "enum": ["babel", "swc"],
       "default": "babel",
-      "description": "Which compiler to use."
+      "description": "Which compiler to use. Does not apply if bundler is set to Vite."
     },
     "skipPackageJson": {
       "description": "Do not add dependencies to `package.json`.",
diff --git a/packages/vite/src/executors/build/build.impl.ts b/packages/vite/src/executors/build/build.impl.ts
index f9d1c3fc14569d..69b24b052c6a9e 100644
--- a/packages/vite/src/executors/build/build.impl.ts
+++ b/packages/vite/src/executors/build/build.impl.ts
@@ -4,25 +4,42 @@ import 'dotenv/config';
 import { getBuildConfig } from '../../utils/options-utils';
 import { ViteBuildExecutorOptions } from './schema';
 import { copyAssets } from '@nrwl/js';
+import { existsSync } from 'fs';
+import { join } from 'path';
 
 export default async function viteBuildExecutor(
   options: ViteBuildExecutorOptions,
   context: ExecutorContext
 ) {
-  if (options.assets) {
+  const projectRoot = context.workspace.projects[context.projectName].root;
+  let assets = options.assets;
+
+  // Copy package.json as an asset if it exists
+  if (existsSync(join(projectRoot, 'package.json'))) {
+    assets ??= [];
+    assets.push({
+      input: '.',
+      output: '.',
+      glob: 'package.json',
+    });
+  }
+
+  logger.info(`NX Vite builder starting ...`);
+  const buildResult = await runInstance(await getBuildConfig(options, context));
+  logger.info(`NX Vite builder finished ...`);
+  logger.info(`NX Vite files available in ${options.outputPath}`);
+
+  // TODO(jack): handle watch once we add that option
+  if (assets) {
     await copyAssets(
       {
         outputPath: options.outputPath,
-        assets: options.assets,
+        assets: assets,
       },
       context
     );
   }
 
-  logger.info(`NX Vite builder starting ...`);
-  await runInstance(await getBuildConfig(options, context));
-  logger.info(`NX Vite builder finished ...`);
-  logger.info(`NX Vite files available in ${options.outputPath}`);
   return { success: true };
 }
 
diff --git a/packages/vite/src/generators/configuration/configuration.spec.ts b/packages/vite/src/generators/configuration/configuration.spec.ts
index c95a8b30d49205..fce8b9718829b3 100644
--- a/packages/vite/src/generators/configuration/configuration.spec.ts
+++ b/packages/vite/src/generators/configuration/configuration.spec.ts
@@ -1,4 +1,9 @@
-import { addDependenciesToPackageJson, readJson, Tree } from '@nrwl/devkit';
+import {
+  addDependenciesToPackageJson,
+  addProjectConfiguration,
+  readJson,
+  Tree,
+} from '@nrwl/devkit';
 import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
 import { nxVersion } from '../../utils/versions';
 
@@ -116,4 +121,27 @@ describe('@nrwl/vite:configuration', () => {
       expect(viteConfig).toContain('test');
     });
   });
+
+  describe('library mode', () => {
+    beforeEach(async () => {
+      tree = createTreeWithEmptyV1Workspace();
+      addProjectConfiguration(tree, 'my-lib', {
+        root: 'my-lib',
+      });
+    });
+
+    it('should add config for building library', async () => {
+      await viteConfigurationGenerator(tree, {
+        uiFramework: 'react',
+        includeLib: true,
+        project: 'my-lib',
+        newProject: true,
+      });
+
+      const viteConfig = tree.read('my-lib/vite.config.ts').toString();
+
+      expect(viteConfig).toMatch('build: {');
+      expect(viteConfig).toMatch("external: ['react'");
+    });
+  });
 });
diff --git a/packages/vite/src/generators/configuration/schema.d.ts b/packages/vite/src/generators/configuration/schema.d.ts
index 40b05c200d841c..9533d025cff33e 100644
--- a/packages/vite/src/generators/configuration/schema.d.ts
+++ b/packages/vite/src/generators/configuration/schema.d.ts
@@ -4,4 +4,5 @@ export interface Schema {
   newProject?: boolean;
   includeVitest?: boolean;
   inSourceTests?: boolean;
+  includeLib?: boolean;
 }
diff --git a/packages/vite/src/generators/configuration/schema.json b/packages/vite/src/generators/configuration/schema.json
index 1aab0f1df1336b..c48db6c5e745a4 100644
--- a/packages/vite/src/generators/configuration/schema.json
+++ b/packages/vite/src/generators/configuration/schema.json
@@ -16,6 +16,12 @@
       "x-dropdown": "project",
       "x-prompt": "What is the name of the project to set up a webpack for?"
     },
+    "includeLib": {
+      "type": "boolean",
+      "description": "Add a library build option.",
+      "default": false,
+      "x-prompt": "Does this project contain a buildable library?"
+    },
     "uiFramework": {
       "type": "string",
       "description": "UI Framework to use for Vite.",
diff --git a/packages/vite/src/generators/vitest/vitest.spec.ts b/packages/vite/src/generators/vitest/vitest.spec.ts
index 17a8feff06830a..13b40713e11e59 100644
--- a/packages/vite/src/generators/vitest/vitest.spec.ts
+++ b/packages/vite/src/generators/vitest/vitest.spec.ts
@@ -117,6 +117,7 @@ describe('vitest generator', () => {
                   }),
                 ],
                 
+                
                 test: {
             globals: true,
             environment: 'jsdom',
@@ -150,6 +151,7 @@ describe('vitest generator', () => {
                     projects: [join(__dirname, 'tsconfig.json')],
                   }),
                 ],
+                
                 define: {
             'import.meta.vitest': undefined
           },
diff --git a/packages/vite/src/utils/generator-utils.ts b/packages/vite/src/utils/generator-utils.ts
index d97b13a4506b83..e4e6e6e0dbf9e1 100644
--- a/packages/vite/src/utils/generator-utils.ts
+++ b/packages/vite/src/utils/generator-utils.ts
@@ -150,21 +150,23 @@ export function addOrChangeBuildTarget(
       options: buildOptions,
       configurations: {
         development: {},
-        production: {
-          fileReplacements: [
-            {
-              replace: joinPathFragments(
-                project.sourceRoot,
-                'environments/environment.ts'
-              ),
-              with: joinPathFragments(
-                project.sourceRoot,
-                'environments/environment.prod.ts'
-              ),
+        production: options.includeLib
+          ? {}
+          : {
+              fileReplacements: [
+                {
+                  replace: joinPathFragments(
+                    project.sourceRoot,
+                    'environments/environment.ts'
+                  ),
+                  with: joinPathFragments(
+                    project.sourceRoot,
+                    'environments/environment.prod.ts'
+                  ),
+                },
+              ],
+              sourceMap: false,
             },
-          ],
-          sourceMap: false,
-        },
       },
     };
   }
@@ -356,7 +358,8 @@ export function writeViteConfig(tree: Tree, options: Schema) {
 
   let viteConfigContent = '';
 
-  const testOption = `test: {
+  const testOption = options.includeVitest
+    ? `test: {
     globals: true,
     environment: 'jsdom',
     include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
@@ -365,11 +368,39 @@ export function writeViteConfig(tree: Tree, options: Schema) {
         ? `includeSource: ['src/**/*.{js,mjs,cjs,ts,mts,cts,jsx,tsx}']`
         : ''
     }
-  },`;
+  },`
+    : '';
 
-  const defineOption = `define: {
+  const defineOption = options.inSourceTests
+    ? `define: {
     'import.meta.vitest': undefined
-  },`;
+  },`
+    : '';
+
+  const buildOption = options.includeLib
+    ? `
+        // Configuration for building your library.
+        // See: https://vitejs.dev/guide/build.html#library-mode
+        build: {
+          lib: {
+            // Could also be a dictionary or array of multiple entry points.
+            entry: 'src/index.ts',
+            name: '${options.project}',
+            fileName: 'index',
+            // Change this to the formats you want to support.
+            // Don't forgot to update your package.json as well.
+            formats: ['es', 'cjs']
+          },
+          rollupOptions: {
+            // External packages that should not be bundled into your library.
+            external: [${
+              options.uiFramework === 'react'
+                ? "'react', 'react-dom', 'react/jsx-runtime'"
+                : ''
+            }]
+          }
+        },`
+    : '';
 
   switch (options.uiFramework) {
     case 'react':
@@ -388,8 +419,9 @@ ${options.includeVitest ? '/// <reference types="vitest" />' : ''}
             projects: [join(__dirname, 'tsconfig.json')],
           }),
         ],
-        ${options.inSourceTests ? defineOption : ''}
-        ${options.includeVitest ? testOption : ''}
+        ${buildOption}
+        ${defineOption}
+        ${testOption}
       });`;
       break;
     case 'none':
@@ -406,8 +438,9 @@ ${options.includeVitest ? '/// <reference types="vitest" />' : ''}
             projects: [join(__dirname, 'tsconfig.json')],
           }),
         ],
-        ${options.inSourceTests ? defineOption : ''}
-        ${options.includeVitest ? testOption : ''}
+        ${buildOption}
+        ${defineOption}
+        ${testOption}
       });`;
       break;
     default:
diff --git a/packages/web/src/generators/application/application.spec.ts b/packages/web/src/generators/application/application.spec.ts
index 097c9ad0185bc4..9a6c258f1f39ab 100644
--- a/packages/web/src/generators/application/application.spec.ts
+++ b/packages/web/src/generators/application/application.spec.ts
@@ -168,6 +168,12 @@ describe('app', () => {
       expect(tree.exists('apps/my-app-e2e/cypress.config.ts')).toBeTruthy();
       expect(tree.exists('apps/my-app/index.html')).toBeTruthy();
       expect(tree.exists('apps/my-app/vite.config.ts')).toBeTruthy();
+      expect(
+        tree.exists(`apps/my-app/environments/environment.ts`)
+      ).toBeFalsy();
+      expect(
+        tree.exists(`apps/my-app/environments/environment.prod.ts`)
+      ).toBeFalsy();
     });
 
     it('should extend from root tsconfig.json when no tsconfig.base.json', async () => {
diff --git a/packages/web/src/generators/application/application.ts b/packages/web/src/generators/application/application.ts
index 3e658531b5cde1..bd7cced40f496a 100644
--- a/packages/web/src/generators/application/application.ts
+++ b/packages/web/src/generators/application/application.ts
@@ -192,6 +192,8 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   const webTask = await webInitGenerator(host, {
     ...options,
     skipFormat: true,
+    // Vite does not use babel by default
+    skipBabelConfig: options.bundler === 'vite',
   });
   tasks.push(webTask);
 
@@ -199,6 +201,10 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   await addProject(host, options);
 
   if (options.bundler === 'vite') {
+    // We recommend users use `import.meta.env.MODE` and other variables in their code to differentiate between production and development.
+    // See: https://vitejs.dev/guide/env-and-mode.html
+    host.delete(joinPathFragments(options.appProjectRoot, 'src/environments'));
+
     const viteTask = await viteConfigurationGenerator(host, {
       uiFramework: 'react',
       project: options.projectName,
diff --git a/packages/web/src/generators/init/init.ts b/packages/web/src/generators/init/init.ts
index 3df5faf8b426c9..dfa1ba21492eab 100644
--- a/packages/web/src/generators/init/init.ts
+++ b/packages/web/src/generators/init/init.ts
@@ -42,14 +42,16 @@ function updateDependencies(tree: Tree, schema: Schema) {
   );
 }
 
-function initRootBabelConfig(tree: Tree) {
+function initRootBabelConfig(tree: Tree, schema: Schema) {
   if (tree.exists('/babel.config.json') || tree.exists('/babel.config.js')) {
     return;
   }
 
-  writeJson(tree, '/babel.config.json', {
-    babelrcRoots: ['*'], // Make sure .babelrc files other than root can be loaded in a monorepo
-  });
+  if (!schema.skipBabelConfig) {
+    writeJson(tree, '/babel.config.json', {
+      babelrcRoots: ['*'], // Make sure .babelrc files other than root can be loaded in a monorepo
+    });
+  }
 
   const workspaceConfiguration = readWorkspaceConfiguration(tree);
 
@@ -80,7 +82,7 @@ export async function webInitGenerator(tree: Tree, schema: Schema) {
     const installTask = updateDependencies(tree, schema);
     tasks.push(installTask);
   }
-  initRootBabelConfig(tree);
+  initRootBabelConfig(tree, schema);
   if (!schema.skipFormat) {
     await formatFiles(tree);
   }
diff --git a/packages/web/src/generators/init/schema.d.ts b/packages/web/src/generators/init/schema.d.ts
index 00c2cc6a747670..7276adf217146c 100644
--- a/packages/web/src/generators/init/schema.d.ts
+++ b/packages/web/src/generators/init/schema.d.ts
@@ -4,4 +4,5 @@ export interface Schema {
   e2eTestRunner?: 'cypress' | 'none';
   skipFormat?: boolean;
   skipPackageJson?: boolean;
+  skipBabelConfig?: boolean;
 }
diff --git a/packages/web/src/generators/init/schema.json b/packages/web/src/generators/init/schema.json
index 93f02a32fe7afa..8e7a8daab5367f 100644
--- a/packages/web/src/generators/init/schema.json
+++ b/packages/web/src/generators/init/schema.json
@@ -33,6 +33,11 @@
       "description": "Do not add dependencies to `package.json`.",
       "type": "boolean",
       "default": false
+    },
+    "skipBabelConfig": {
+      "description": "Do not generate a root babel.config.json (if babel is not needed).",
+      "type": "boolean",
+      "default": false
     }
   },
   "required": []