diff --git a/docs/shared/reference/project-configuration.md b/docs/shared/reference/project-configuration.md
index 143038da6a4fa..6921290657b58 100644
--- a/docs/shared/reference/project-configuration.md
+++ b/docs/shared/reference/project-configuration.md
@@ -163,7 +163,7 @@ _Named Inputs_
 Examples:
 
 - `inputs: ["production"]`
-- same as `inputs: [{input: "production", projects: "self"}]`
+- same as `"inputs": [{"input": "production", "projects": "self"}]` in versions prior to Nx 16, or `"inputs": [{"input": "production"}]` after version 16.
 
 Often the same glob will appear in many places (e.g., prod fileset will exclude spec files for all projects). Because
 keeping them in sync is error-prone, we recommend defining `namedInputs`, which you can then reference in all of those
@@ -174,7 +174,7 @@ places.
 Examples:
 
 - `inputs: ["^production"]`
-- same as `inputs: [{input: "production", projects: "dependencies"}]`
+- same as `inputs: [{"input": "production", "projects": "dependencies"}]` prior to Nx 16, or `"inputs": [{"input": "production", "dependencies": true }]` after version 16.
 
 Similar to `dependsOn`, the "^" symbols means "dependencies". This is a very important idea, so let's illustrate it with
 an example.
@@ -290,12 +290,37 @@ You can also express task dependencies with an object syntax:
 ```
 
 {% /tab %}
-{% tab label="Version 16+" %}
+{% tab label="Version 16+ (self)" %}
+
+```json
+"build": {
+  "dependsOn": [{
+    "target": "build", // target name
+    "params": "ignore" // "forward" or "ignore", defaults to "ignore"
+  }]
+}
+```
+
+{% /tab %}
+{% tab label="Version 16+ (dependencies)" %}
 
 ```json
 "build": {
   "dependsOn": [{
-    "projects": "{dependencies}", // "{dependencies}", "{self}" or "project-name"
+    "dependencies": true, // Run this target on all dependencies first
+    "target": "build", // target name
+    "params": "ignore" // "forward" or "ignore", defaults to "ignore"
+  }]
+}
+```
+
+{% /tab %}
+{% tab label="Version 16+ (specific projects)" %}
+
+```json
+"build": {
+  "dependsOn": [{
+    "projects": ["my-app"], // Run build on "my-app" first
     "target": "build", // target name
     "params": "ignore" // "forward" or "ignore", defaults to "ignore"
   }]
@@ -326,10 +351,10 @@ You can write the shorthand configuration above in the object syntax like this:
 
 ```json
 "build": {
-  "dependsOn": [{ "projects": "{dependencies}", "target": "build" }]
+  "dependsOn": [{ "dependencies": true, "target": "build" }] // Run build on my dependencies first
 },
 "test": {
-  "dependsOn": [{ "projects": "{self}", "target": "build" }]
+  "dependsOn": [{ "target": "build" }] // Run build on myself first
 }
 ```
 
@@ -395,7 +420,7 @@ This also works when defining a relation for the target of the project itself us
 ```json
 "build": {
    // forward params passed to this target to the project target
-  "dependsOn": [{ "projects": "{self}", "target": "pre-build", "params": "forward" }]
+  "dependsOn": [{ "target": "pre-build", "params": "forward" }]
 }
 ```
 
diff --git a/packages/nx/migrations.json b/packages/nx/migrations.json
index a51cba374ef77..435d8b795782a 100644
--- a/packages/nx/migrations.json
+++ b/packages/nx/migrations.json
@@ -62,8 +62,8 @@
     },
     "16.0.0-tokens-for-depends-on": {
       "cli": "nx",
-      "version": "16.0.0-beta.0",
-      "description": "Replace `dependsOn.projects` with {self} or {dependencies} tokens so that it matches the new expected formatting.",
+      "version": "16.0.0-beta.9",
+      "description": "Replace `dependsOn.projects` and `inputs` definitions with new configuration format.",
       "implementation": "./src/migrations/update-16-0-0/update-depends-on-to-tokens"
     },
     "16.0.0-update-nx-cloud-runner": {
diff --git a/packages/nx/schemas/nx-schema.json b/packages/nx/schemas/nx-schema.json
index 19bc1ffb15885..5a9c255927789 100644
--- a/packages/nx/schemas/nx-schema.json
+++ b/packages/nx/schemas/nx-schema.json
@@ -98,15 +98,44 @@
             "type": "object",
             "properties": {
               "projects": {
-                "type": "string",
-                "description": "The projects that the targets belong to.",
-                "enum": ["self", "dependencies"]
+                "oneOf": [
+                  {
+                    "type": "string",
+                    "description": "The project that the targets belong to."
+                  },
+                  {
+                    "type": "array",
+                    "description": "The projects that the targets belong to.",
+                    "items": { "type": "string" }
+                  }
+                ]
+              },
+              "dependencies": {
+                "type": "boolean",
+                "description": "Include files belonging to the input for all the project dependencies of this target."
               },
               "input": {
                 "type": "string",
                 "description": "The name of the input."
               }
             },
+            "oneOf": [
+              {
+                "required": ["projects", "input"]
+              },
+              {
+                "required": ["dependencies", "input"]
+              },
+              {
+                "required": ["input"],
+                "not": {
+                  "anyOf": [
+                    { "required": ["projects"] },
+                    { "required": ["dependencies"] }
+                  ]
+                }
+              }
+            ],
             "additionalProperties": false
           },
           {
@@ -211,17 +240,20 @@
                     "oneOf": [
                       {
                         "type": "string",
-                        "description": "{self}, {dependencies}, or a project name."
+                        "description": "A project name"
                       },
                       {
                         "type": "array",
-                        "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                        "description": "An array of project names",
                         "items": {
                           "type": "string"
                         }
                       }
                     ]
                   },
+                  "dependencies": {
+                    "type": "boolean"
+                  },
                   "target": {
                     "type": "string",
                     "description": "The name of the target."
@@ -233,8 +265,24 @@
                     "default": "ignore"
                   }
                 },
-                "additionalProperties": false,
-                "required": ["projects", "target"]
+                "oneOf": [
+                  {
+                    "required": ["projects", "target"]
+                  },
+                  {
+                    "required": ["dependencies", "target"]
+                  },
+                  {
+                    "required": ["target"],
+                    "not": {
+                      "anyOf": [
+                        { "required": ["projects"] },
+                        { "required": ["dependencies"] }
+                      ]
+                    }
+                  }
+                ],
+                "additionalProperties": false
               }
             ]
           }
diff --git a/packages/nx/schemas/project-schema.json b/packages/nx/schemas/project-schema.json
index 4c8cdc862c609..34e9305c998f7 100644
--- a/packages/nx/schemas/project-schema.json
+++ b/packages/nx/schemas/project-schema.json
@@ -58,17 +58,20 @@
                       "oneOf": [
                         {
                           "type": "string",
-                          "description": "{self}, {dependencies}, or a project name."
+                          "description": "A project name"
                         },
                         {
                           "type": "array",
-                          "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                          "description": "An array of project names",
                           "items": {
                             "type": "string"
                           }
                         }
                       ]
                     },
+                    "dependencies": {
+                      "type": "boolean"
+                    },
                     "target": {
                       "type": "string",
                       "description": "The name of the target."
@@ -80,8 +83,24 @@
                       "default": "ignore"
                     }
                   },
-                  "additionalProperties": false,
-                  "required": ["projects", "target"]
+                  "oneOf": [
+                    {
+                      "required": ["projects", "target"]
+                    },
+                    {
+                      "required": ["dependencies", "target"]
+                    },
+                    {
+                      "required": ["target"],
+                      "not": {
+                        "anyOf": [
+                          { "required": ["projects"] },
+                          { "required": ["dependencies"] }
+                        ]
+                      }
+                    }
+                  ],
+                  "additionalProperties": false
                 }
               ]
             }
@@ -128,15 +147,44 @@
             "type": "object",
             "properties": {
               "projects": {
-                "type": "string",
-                "description": "The projects that the input belong to.",
-                "enum": ["self", "dependencies"]
+                "oneOf": [
+                  {
+                    "type": "string",
+                    "description": "The project that the targets belong to."
+                  },
+                  {
+                    "type": "array",
+                    "description": "The projects that the targets belong to.",
+                    "items": { "type": "string" }
+                  }
+                ]
+              },
+              "dependencies": {
+                "type": "boolean",
+                "description": "Include files belonging to the input for all the project dependencies of this target."
               },
               "input": {
                 "type": "string",
-                "description": "Named input."
+                "description": "The name of the input."
               }
             },
+            "oneOf": [
+              {
+                "required": ["projects", "input"]
+              },
+              {
+                "required": ["dependencies", "input"]
+              },
+              {
+                "required": ["input"],
+                "not": {
+                  "anyOf": [
+                    { "required": ["projects"] },
+                    { "required": ["dependencies"] }
+                  ]
+                }
+              }
+            ],
             "additionalProperties": false
           },
           {
diff --git a/packages/nx/schemas/workspace-schema.json b/packages/nx/schemas/workspace-schema.json
index df2cc3d6b7eb6..3b31a61fd6f0c 100644
--- a/packages/nx/schemas/workspace-schema.json
+++ b/packages/nx/schemas/workspace-schema.json
@@ -68,17 +68,20 @@
                                       "oneOf": [
                                         {
                                           "type": "string",
-                                          "description": "{self}, {dependencies}, or a project name."
+                                          "description": "A project name"
                                         },
                                         {
                                           "type": "array",
-                                          "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                                          "description": "An array of project names",
                                           "items": {
                                             "type": "string"
                                           }
                                         }
                                       ]
                                     },
+                                    "dependencies": {
+                                      "type": "boolean"
+                                    },
                                     "target": {
                                       "type": "string",
                                       "description": "The name of the target."
@@ -90,8 +93,24 @@
                                       "default": "ignore"
                                     }
                                   },
-                                  "additionalProperties": false,
-                                  "required": ["projects", "target"]
+                                  "oneOf": [
+                                    {
+                                      "required": ["projects", "target"]
+                                    },
+                                    {
+                                      "required": ["dependencies", "target"]
+                                    },
+                                    {
+                                      "required": ["target"],
+                                      "not": {
+                                        "anyOf": [
+                                          { "required": ["projects"] },
+                                          { "required": ["dependencies"] }
+                                        ]
+                                      }
+                                    }
+                                  ],
+                                  "additionalProperties": false
                                 }
                               ]
                             }
diff --git a/packages/nx/src/config/workspace-json-project-json.ts b/packages/nx/src/config/workspace-json-project-json.ts
index 901bb779b5ed2..f0a5a8efa7c87 100644
--- a/packages/nx/src/config/workspace-json-project-json.ts
+++ b/packages/nx/src/config/workspace-json-project-json.ts
@@ -102,18 +102,20 @@ export interface ProjectConfiguration {
 
 export interface TargetDependencyConfig {
   /**
-   * A list of projects that have `target`. Supports project names or two special values:
-   *
-   * - '{self}': This target depends on another target of the same project
-   * - '{dependencies}': This target depends on targets of the projects of it's deps.
-   *
-   * The special values {self}/{dependencies} should be preferred - they prevent cases where a project
-   * that needs to be built is missed.
+   * A list of projects that have `target`.
+   * Should not be specified together with `dependencies`.
+   */
+  projects?: string[] | string;
+
+  /**
+   * If true, the target will be executed for each project that this project depends on.
+   * Should not be specified together with `projects`.
    */
-  projects: string[] | string;
+  dependencies?: boolean;
 
   /**
-   * The name of the target
+   * The name of the target to run. If `projects` and `dependencies` are not specified,
+   * the target will be executed for the same project the the current target is running on`.
    */
   target: string;
 
@@ -124,7 +126,9 @@ export interface TargetDependencyConfig {
 }
 
 export type InputDefinition =
-  | { input: string; projects: 'self' | 'dependencies' }
+  | { input: string; projects: string | string[] }
+  | { input: string; dependencies: true }
+  | { input: string }
   | { fileset: string }
   | { runtime: string }
   | { env: string };
diff --git a/packages/nx/src/hasher/hasher.spec.ts b/packages/nx/src/hasher/hasher.spec.ts
index 3947154338236..833e45ee6b032 100644
--- a/packages/nx/src/hasher/hasher.spec.ts
+++ b/packages/nx/src/hasher/hasher.spec.ts
@@ -88,12 +88,22 @@ describe('Hasher', () => {
                     { runtime: 'echo runtime123' },
                     { env: 'TESTENV' },
                     { env: 'NONEXISTENTENV' },
+                    { input: 'default', projects: ['unrelated'] },
                   ],
                 },
               },
               files: [{ file: '/file', hash: 'file.hash' }],
             },
           },
+          unrelated: {
+            name: 'unrelated',
+            type: 'lib',
+            data: {
+              root: 'libs/unrelated',
+              targets: { build: {} },
+              files: [{ file: 'libs/unrelated/filec.ts', hash: 'filec.hash' }],
+            },
+          },
         },
         dependencies: {
           parent: [],
@@ -121,12 +131,15 @@ describe('Hasher', () => {
     expect(hash.value).toContain('runtime123');
     expect(hash.value).toContain('runtime456');
     expect(hash.value).toContain('env123');
+    expect(hash.value).toContain('filec.hash');
 
     expect(hash.details.command).toEqual('parent|build||{"prop":"prop-value"}');
     expect(hash.details.nodes).toEqual({
       'parent:{projectRoot}/**/*':
-        '/file|file.hash|{"root":"libs/parent","targets":{"build":{"executor":"unknown","inputs":["default","^default",{"runtime":"echo runtime123"},{"env":"TESTENV"},{"env":"NONEXISTENTENV"}]}}}|{"compilerOptions":{"paths":{"@nx/parent":["libs/parent/src/index.ts"],"@nx/child":["libs/child/src/index.ts"]}}}',
+        '/file|file.hash|{"root":"libs/parent","targets":{"build":{"executor":"unknown","inputs":["default","^default",{"runtime":"echo runtime123"},{"env":"TESTENV"},{"env":"NONEXISTENTENV"},{"input":"default","projects":["unrelated"]}]}}}|{"compilerOptions":{"paths":{"@nx/parent":["libs/parent/src/index.ts"],"@nx/child":["libs/child/src/index.ts"]}}}',
       parent: 'unknown',
+      'unrelated:{projectRoot}/**/*':
+        'libs/unrelated/filec.ts|filec.hash|{"root":"libs/unrelated","targets":{"build":{}}}|{"compilerOptions":{"paths":{"@nx/parent":["libs/parent/src/index.ts"],"@nx/child":["libs/child/src/index.ts"]}}}',
       '{workspaceRoot}/nx.json': 'nx.json.hash',
       '{workspaceRoot}/.gitignore': '',
       '{workspaceRoot}/.nxignore': '',
@@ -774,7 +787,7 @@ describe('Hasher', () => {
       const expanded = expandNamedInput('c', {
         a: ['a.txt', { fileset: 'myfileset' }],
         b: ['b.txt'],
-        c: ['a', { input: 'b', projects: 'self' }],
+        c: ['a', { input: 'b' }],
       });
       expect(expanded).toEqual([
         { fileset: 'a.txt' },
@@ -787,7 +800,7 @@ describe('Hasher', () => {
       expect(() => expandNamedInput('c', {})).toThrow();
       expect(() =>
         expandNamedInput('b', {
-          b: [{ input: 'c', projects: 'self' }],
+          b: [{ input: 'c' }],
         })
       ).toThrow();
     });
diff --git a/packages/nx/src/hasher/hasher.ts b/packages/nx/src/hasher/hasher.ts
index b52784c7cbd06..1174462e7cab7 100644
--- a/packages/nx/src/hasher/hasher.ts
+++ b/packages/nx/src/hasher/hasher.ts
@@ -164,11 +164,10 @@ export class Hasher {
 
 const DEFAULT_INPUTS: ReadonlyArray<InputDefinition> = [
   {
-    projects: 'self',
     fileset: '{projectRoot}/**/*',
   },
   {
-    projects: 'dependencies',
+    dependencies: true,
     input: 'default',
   },
 ];
@@ -201,15 +200,19 @@ class TaskHasher {
       const targetDefaults = (this.nxJson.targetDefaults || {})[
         task.target.target
       ];
-      const { selfInputs, depsInputs } = splitInputsIntoSelfAndDependencies(
-        targetData.inputs || targetDefaults?.inputs || (DEFAULT_INPUTS as any),
-        namedInputs
-      );
+      const { selfInputs, depsInputs, projectInputs } =
+        splitInputsIntoSelfAndDependencies(
+          targetData.inputs ||
+            targetDefaults?.inputs ||
+            (DEFAULT_INPUTS as any),
+          namedInputs
+        );
 
       const selfAndInputs = await this.hashSelfAndDepsInputs(
         task.target.project,
         selfInputs,
         depsInputs,
+        projectInputs,
         visited
       );
 
@@ -224,7 +227,7 @@ class TaskHasher {
     });
   }
 
-  private async hashNamedInput(
+  private async hashNamedInputForDependencies(
     projectName: string,
     namedInput: string,
     visited: string[]
@@ -240,11 +243,12 @@ class TaskHasher {
     };
 
     const selfInputs = expandNamedInput(namedInput, namedInputs);
-    const depsInputs = [{ input: namedInput }];
+    const depsInputs = [{ input: namedInput, dependencies: true as true }]; // true is boolean by default
     return this.hashSelfAndDepsInputs(
       projectName,
       selfInputs,
       depsInputs,
+      [],
       visited
     );
   }
@@ -252,19 +256,21 @@ class TaskHasher {
   private async hashSelfAndDepsInputs(
     projectName: string,
     selfInputs: ExpandedSelfInput[],
-    depsInputs: { input: string }[],
+    depsInputs: { input: string; dependencies: true }[],
+    projectInputs: { input: string; projects: string[] }[],
     visited: string[]
   ) {
     const projectGraphDeps = this.projectGraph.dependencies[projectName] ?? [];
     // we don't want random order of dependencies to change the hash
     projectGraphDeps.sort((a, b) => a.target.localeCompare(b.target));
 
-    const self = await this.hashSelfInputs(projectName, selfInputs);
+    const self = await this.hashSingleProjectInputs(projectName, selfInputs);
     const deps = await this.hashDepsInputs(
       depsInputs,
       projectGraphDeps,
       visited
     );
+    const projects = await this.hashProjectInputs(projectInputs, visited);
 
     let details = {};
     for (const s of self) {
@@ -273,10 +279,14 @@ class TaskHasher {
     for (const s of deps) {
       details = { ...details, ...s.details };
     }
+    for (const s of projects) {
+      details = { ...details, ...s.details };
+    }
 
     const value = this.hashing.hashArray([
       ...self.map((d) => d.value),
       ...deps.map((d) => d.value),
+      ...projects.map((d) => d.value),
     ]);
 
     return { value, details };
@@ -296,7 +306,7 @@ class TaskHasher {
                 return null;
               } else {
                 visited.push(d.target);
-                return await this.hashNamedInput(
+                return await this.hashNamedInputForDependencies(
                   d.target,
                   input.input || 'default',
                   visited
@@ -366,7 +376,7 @@ class TaskHasher {
     };
   }
 
-  private async hashSelfInputs(
+  private async hashSingleProjectInputs(
     projectName: string,
     inputs: ExpandedSelfInput[]
   ): Promise<PartialHash[]> {
@@ -422,6 +432,29 @@ class TaskHasher {
     ]);
   }
 
+  private async hashProjectInputs(
+    projectInputs: { input: string; projects: string[] }[],
+    visited: string[]
+  ): Promise<PartialHash[]> {
+    const partialHashes: Promise<PartialHash[]>[] = [];
+    for (const input of projectInputs) {
+      for (const project of input.projects) {
+        const namedInputs = getNamedInputs(
+          this.nxJson,
+          this.projectGraph.nodes[project]
+        );
+        const expandedInput = expandSingleProjectInputs(
+          [{ input: input.input }],
+          namedInputs
+        );
+        partialHashes.push(
+          this.hashSingleProjectInputs(project, expandedInput)
+        );
+      }
+    }
+    return Promise.all(partialHashes).then((hashes) => hashes.flat());
+  }
+
   private async hashRootFileset(fileset: string): Promise<PartialHash> {
     const mapKey = fileset;
     const withoutWorkspaceRoot = fileset.substring(16);
@@ -559,30 +592,55 @@ export function splitInputsIntoSelfAndDependencies(
   inputs: ReadonlyArray<InputDefinition | string>,
   namedInputs: { [inputName: string]: ReadonlyArray<InputDefinition | string> }
 ): {
-  depsInputs: { input: string }[];
+  depsInputs: { input: string; dependencies: true }[];
+  projectInputs: { input: string; projects: string[] }[];
   selfInputs: ExpandedSelfInput[];
 } {
-  const depsInputs = [];
+  const depsInputs: { input: string; dependencies: true }[] = [];
+  const projectInputs: { input: string; projects: string[] }[] = [];
   const selfInputs = [];
   for (const d of inputs) {
     if (typeof d === 'string') {
       if (d.startsWith('^')) {
-        depsInputs.push({ input: d.substring(1) });
+        depsInputs.push({ input: d.substring(1), dependencies: true });
       } else {
         selfInputs.push(d);
       }
     } else {
-      if ((d as any).projects === 'dependencies') {
-        depsInputs.push(d as any);
+      if (
+        ('dependencies' in d && d.dependencies) ||
+        // Todo(@AgentEnder): Remove check in v17
+        ('projects' in d &&
+          typeof d.projects === 'string' &&
+          d.projects === 'dependencies')
+      ) {
+        depsInputs.push({
+          input: d.input,
+          dependencies: true,
+        });
+      } else if (
+        'projects' in d &&
+        d.projects &&
+        // Todo(@AgentEnder): Remove check in v17
+        !(d.projects === 'self')
+      ) {
+        projectInputs.push({
+          input: d.input,
+          projects: Array.isArray(d.projects) ? d.projects : [d.projects],
+        });
       } else {
         selfInputs.push(d);
       }
     }
   }
-  return { depsInputs, selfInputs: expandSelfInputs(selfInputs, namedInputs) };
+  return {
+    depsInputs,
+    projectInputs,
+    selfInputs: expandSingleProjectInputs(selfInputs, namedInputs),
+  };
 }
 
-function expandSelfInputs(
+function expandSingleProjectInputs(
   inputs: ReadonlyArray<InputDefinition | string>,
   namedInputs: { [inputName: string]: ReadonlyArray<InputDefinition | string> }
 ): ExpandedSelfInput[] {
@@ -598,9 +656,9 @@ function expandSelfInputs(
         expanded.push({ fileset: d });
       }
     } else {
-      if ((d as any).projects === 'dependencies') {
+      if ((d as any).projects || (d as any).dependencies) {
         throw new Error(
-          `namedInputs definitions cannot contain any inputs with projects == 'dependencies'`
+          `namedInputs definitions can only refer to other namedInputs definitions within the same project.`
         );
       }
       if ((d as any).fileset || (d as any).env || (d as any).runtime) {
@@ -619,7 +677,7 @@ export function expandNamedInput(
 ): ExpandedSelfInput[] {
   namedInputs ||= {};
   if (!namedInputs[input]) throw new Error(`Input '${input}' is not defined`);
-  return expandSelfInputs(namedInputs[input], namedInputs);
+  return expandSingleProjectInputs(namedInputs[input], namedInputs);
 }
 
 export function filterUsingGlobPatterns(
diff --git a/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.spec.ts b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.spec.ts
index 8f80e43c9496f..70daa8bdceced 100644
--- a/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.spec.ts
+++ b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.spec.ts
@@ -19,6 +19,7 @@ describe('update-depends-on-to-tokens', () => {
               projects: 'self',
             },
           ],
+          inputs: [{ projects: 'self', input: 'someInput' }],
         },
         test: {
           dependsOn: [
@@ -26,6 +27,7 @@ describe('update-depends-on-to-tokens', () => {
               projects: 'dependencies',
             },
           ],
+          inputs: [{ projects: 'dependencies', input: 'someInput' }],
         },
         other: {
           dependsOn: ['^deps'],
@@ -35,10 +37,21 @@ describe('update-depends-on-to-tokens', () => {
     });
     await update(tree);
     const nxJson = readNxJson(tree);
-    const build = nxJson.targetDefaults.build.dependsOn[0] as any;
-    const test = nxJson.targetDefaults.test.dependsOn[0] as any;
-    expect(build.projects).toEqual('{self}');
-    expect(test.projects).toEqual('{dependencies}');
+    const buildDependencyConfiguration = nxJson.targetDefaults.build
+      .dependsOn[0] as any;
+    const testDependencyConfiguration = nxJson.targetDefaults.test
+      .dependsOn[0] as any;
+    const buildInputConfiguration = nxJson.targetDefaults.build
+      .inputs[0] as any;
+    const testInputConfiguration = nxJson.targetDefaults.test.inputs[0] as any;
+    expect(buildDependencyConfiguration.projects).not.toBeDefined();
+    expect(buildDependencyConfiguration.dependencies).not.toBeDefined();
+    expect(buildInputConfiguration.projects).not.toBeDefined();
+    expect(buildInputConfiguration.dependencies).not.toBeDefined();
+    expect(testInputConfiguration.projects).not.toBeDefined();
+    expect(testInputConfiguration.dependencies).toEqual(true);
+    expect(testDependencyConfiguration.projects).not.toBeDefined();
+    expect(testDependencyConfiguration.dependencies).toEqual(true);
     expect(nxJson.targetDefaults.other.dependsOn).toEqual(['^deps']);
   });
 
@@ -54,6 +67,7 @@ describe('update-depends-on-to-tokens', () => {
               target: 'build',
             },
           ],
+          inputs: [{ projects: 'self', input: 'someInput' }],
         },
         test: {
           dependsOn: [
@@ -62,6 +76,7 @@ describe('update-depends-on-to-tokens', () => {
               target: 'test',
             },
           ],
+          inputs: [{ projects: 'dependencies', input: 'someInput' }],
         },
         other: {
           dependsOn: ['^deps'],
@@ -70,11 +85,22 @@ describe('update-depends-on-to-tokens', () => {
     });
     await update(tree);
     const project = readProjectConfiguration(tree, 'proj1');
-    const build = project.targets.build.dependsOn[0] as any;
-    const test = project.targets.test.dependsOn[0] as any;
-    expect(build.projects).toEqual('{self}');
-    expect(test.projects).toEqual('{dependencies}');
+    const buildDependencyConfiguration = project.targets.build
+      .dependsOn[0] as any;
+    const testDependencyConfiguration = project.targets.test
+      .dependsOn[0] as any;
+    const buildInputConfiguration = project.targets.build.inputs[0] as any;
+    const testInputConfiguration = project.targets.test.inputs[0] as any;
+    expect(buildDependencyConfiguration.projects).not.toBeDefined();
+    expect(buildDependencyConfiguration.dependencies).not.toBeDefined();
+    expect(buildInputConfiguration.projects).not.toBeDefined();
+    expect(buildInputConfiguration.dependencies).not.toBeDefined();
+    expect(testDependencyConfiguration.projects).not.toBeDefined();
+    expect(testDependencyConfiguration.dependencies).toEqual(true);
+    expect(testInputConfiguration.projects).not.toBeDefined();
+    expect(testInputConfiguration.dependencies).toEqual(true);
     expect(project.targets.other.dependsOn).toEqual(['^deps']);
+    expect(project.targets.other.inputs).not.toBeDefined();
   });
 
   it('should not throw on nulls', async () => {
diff --git a/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.ts b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.ts
index 8c68b5289de23..fa7f68b55a2da 100644
--- a/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.ts
+++ b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.ts
@@ -7,7 +7,7 @@ import {
 import { Tree } from '../../generators/tree';
 
 export default async function (tree: Tree) {
-  updateDependsOnInsideNxJson(tree);
+  updateDependsOnAndInputsInsideNxJson(tree);
 
   const projectsConfigurations = getProjects(tree);
   for (const [projectName, projectConfiguration] of projectsConfigurations) {
@@ -17,11 +17,41 @@ export default async function (tree: Tree) {
     )) {
       for (const dependency of targetConfiguration.dependsOn ?? []) {
         if (typeof dependency !== 'string') {
-          if (dependency.projects === 'self') {
-            dependency.projects = '{self}';
+          if (
+            dependency.projects === 'self' ||
+            dependency.projects === '{self}'
+          ) {
+            delete dependency.projects;
             projectChanged = true;
-          } else if (dependency.projects === 'dependencies') {
-            dependency.projects = '{dependencies}';
+          } else if (
+            dependency.projects === 'dependencies' ||
+            dependency.projects === '{dependencies}'
+          ) {
+            delete dependency.projects;
+            dependency.dependencies = true;
+            projectChanged = true;
+          }
+        }
+      }
+      for (let i = 0; i < targetConfiguration.inputs?.length ?? 0; i++) {
+        const input = targetConfiguration.inputs[i];
+        if (typeof input !== 'string') {
+          if (
+            'projects' in input &&
+            (input.projects === 'self' || input.projects === '{self}')
+          ) {
+            delete input.projects;
+            projectChanged = true;
+          } else if (
+            'projects' in input &&
+            (input.projects === 'dependencies' ||
+              input.projects === '{dependencies}')
+          ) {
+            delete input.projects;
+            targetConfiguration.inputs[i] = {
+              ...input,
+              dependencies: true,
+            };
             projectChanged = true;
           }
         }
@@ -32,7 +62,7 @@ export default async function (tree: Tree) {
     }
   }
 }
-function updateDependsOnInsideNxJson(tree: Tree) {
+function updateDependsOnAndInputsInsideNxJson(tree: Tree) {
   const nxJson = readNxJson(tree);
   let nxJsonChanged = false;
   for (const [target, defaults] of Object.entries(
@@ -40,11 +70,41 @@ function updateDependsOnInsideNxJson(tree: Tree) {
   )) {
     for (const dependency of defaults.dependsOn ?? []) {
       if (typeof dependency !== 'string') {
-        if (dependency.projects === 'self') {
-          dependency.projects = '{self}';
+        if (
+          dependency.projects === 'self' ||
+          dependency.projects === '{self}'
+        ) {
+          delete dependency.projects;
+          nxJsonChanged = true;
+        } else if (
+          dependency.projects === 'dependencies' ||
+          dependency.projects === '{dependencies}'
+        ) {
+          delete dependency.projects;
+          dependency.dependencies = true;
+          nxJsonChanged = true;
+        }
+      }
+    }
+    for (let i = 0; i < defaults.inputs?.length ?? 0; i++) {
+      const input = defaults.inputs[i];
+      if (typeof input !== 'string') {
+        if (
+          'projects' in input &&
+          (input.projects === 'self' || input.projects === '{self}')
+        ) {
+          delete input.projects;
           nxJsonChanged = true;
-        } else if (dependency.projects === 'dependencies') {
-          dependency.projects = '{dependencies}';
+        } else if (
+          'projects' in input &&
+          (input.projects === 'dependencies' ||
+            input.projects === '{dependencies}')
+        ) {
+          delete input.projects;
+          defaults.inputs[i] = {
+            ...input,
+            dependencies: true,
+          };
           nxJsonChanged = true;
         }
       }
diff --git a/packages/nx/src/tasks-runner/create-task-graph.spec.ts b/packages/nx/src/tasks-runner/create-task-graph.spec.ts
index 992dd1221b51f..9ee524d83bf71 100644
--- a/packages/nx/src/tasks-runner/create-task-graph.spec.ts
+++ b/packages/nx/src/tasks-runner/create-task-graph.spec.ts
@@ -24,11 +24,10 @@ describe('createTaskGraph', () => {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                   },
                   {
-                    projects: '{self}',
                     target: 'prebuild',
                   },
                   {
@@ -173,7 +172,7 @@ describe('createTaskGraph', () => {
                 },
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                   },
                 ],
@@ -196,7 +195,7 @@ describe('createTaskGraph', () => {
                 defaultConfiguration: 'libDefault',
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                   },
                 ],
@@ -337,7 +336,7 @@ describe('createTaskGraph', () => {
                 executor: 'my-executor',
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                   },
                 ],
@@ -508,11 +507,11 @@ describe('createTaskGraph', () => {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                     params: 'forward',
                   },
-                  { projects: '{self}', target: 'prebuild', params: 'forward' },
+                  { target: 'prebuild', params: 'forward' },
                 ],
               },
               test: {
@@ -535,7 +534,7 @@ describe('createTaskGraph', () => {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: '{dependencies}',
+                    dependencies: true,
                     target: 'build',
                     params: 'ignore',
                   },
@@ -844,7 +843,7 @@ describe('createTaskGraph', () => {
       {
         build: [
           {
-            projects: '{dependencies}',
+            dependencies: true,
             target: 'build',
           },
         ],
@@ -1005,9 +1004,9 @@ describe('createTaskGraph', () => {
       {
         build: ['^build'],
         apply: [
-          { projects: '{dependencies}', target: 'build' },
+          { dependencies: true, target: 'build' },
           {
-            projects: '{dependencies}',
+            dependencies: true,
             target: 'apply',
             params: 'forward',
           },
@@ -1083,11 +1082,11 @@ describe('createTaskGraph', () => {
             targets: {
               build: {
                 executor: 'nx:run-commands',
-                dependsOn: [{ target: 'test', projects: '{self}' }],
+                dependsOn: [{ target: 'test' }],
               },
               test: {
                 executor: 'nx:run-commands',
-                dependsOn: [{ target: 'build', projects: '{self}' }],
+                dependsOn: [{ target: 'build' }],
               },
             },
           },
@@ -1192,7 +1191,7 @@ describe('createTaskGraph', () => {
     const taskGraph = createTaskGraph(
       projectGraph,
       {
-        build: [{ target: 'build', projects: '{dependencies}' }],
+        build: [{ target: 'build', dependencies: true }],
       },
       ['app1'],
       ['build'],
@@ -1283,7 +1282,7 @@ describe('createTaskGraph', () => {
     const taskGraph = createTaskGraph(
       projectGraph,
       {
-        build: [{ target: 'build', projects: '{dependencies}' }],
+        build: [{ target: 'build', dependencies: true }],
       },
       ['app1'],
       ['build'],
@@ -1338,8 +1337,8 @@ describe('createTaskGraph', () => {
               build: {
                 executor: 'nx:run-commands',
                 dependsOn: [
-                  { target: 'prebuild', projects: '{self}' },
-                  { target: 'build', projects: '{dependencies}' },
+                  { target: 'prebuild' },
+                  { target: 'build', dependencies: true },
                 ],
               },
               prebuild: {
diff --git a/packages/nx/src/tasks-runner/create-task-graph.ts b/packages/nx/src/tasks-runner/create-task-graph.ts
index ff31a05658d72..9022b7906a789 100644
--- a/packages/nx/src/tasks-runner/create-task-graph.ts
+++ b/packages/nx/src/tasks-runner/create-task-graph.ts
@@ -105,47 +105,83 @@ export class ProcessTasks {
         dependencyConfig.params === 'forward'
           ? overrides
           : { __overrides_unparsed__: [] };
-      const targetProjectSpecifiers =
-        typeof dependencyConfig.projects === 'string'
-          ? [dependencyConfig.projects]
-          : dependencyConfig.projects;
-      for (const projectSpecifier of targetProjectSpecifiers) {
-        // Lerna uses `dependencies` in `prepNxOptions`, so we need to maintain
-        // support for it until lerna can be updated to use the new tokens.
+      if (dependencyConfig.projects) {
+        this.processTasksForMatchingProjects(
+          dependencyConfig,
+          projectUsedToDeriveDependencies,
+          configuration,
+          task,
+          taskOverrides,
+          overrides
+        );
+      } else if (dependencyConfig.dependencies) {
+        this.processTasksForDependencies(
+          projectUsedToDeriveDependencies,
+          dependencyConfig,
+          configuration,
+          task,
+          taskOverrides,
+          overrides
+        );
+      } else {
+        this.processTasksForSingleProject(
+          task,
+          task.target.project,
+          dependencyConfig,
+          configuration,
+          taskOverrides,
+          overrides
+        );
+      }
+    }
+  }
+
+  private processTasksForMatchingProjects(
+    dependencyConfig: TargetDependencyConfig,
+    projectUsedToDeriveDependencies: string,
+    configuration: string,
+    task: Task,
+    taskOverrides: Object | { __overrides_unparsed__: any[] },
+    overrides: Object
+  ) {
+    const targetProjectSpecifiers =
+      typeof dependencyConfig.projects === 'string'
+        ? [dependencyConfig.projects]
+        : dependencyConfig.projects;
+    for (const projectSpecifier of targetProjectSpecifiers) {
+      // Lerna uses `dependencies` in `prepNxOptions`, so we need to maintain
+      // support for it until lerna can be updated to use the syntax.
+      // TODO(@agentender): Remove this part in v17
+      if (
+        projectSpecifier === 'dependencies' &&
+        !this.projectGraph.nodes[projectSpecifier]
+      ) {
+        this.processTasksForDependencies(
+          projectUsedToDeriveDependencies,
+          dependencyConfig,
+          configuration,
+          task,
+          taskOverrides,
+          overrides
+        );
+      } else {
+        // Since we need to maintain support for dependencies, it is more coherent
+        // that we also support self.
         // TODO(@agentender): Remove this part in v17
-        if (
-          projectSpecifier === '{dependencies}' ||
-          (projectSpecifier === 'dependencies' &&
-            !this.projectGraph.nodes[projectSpecifier])
-        ) {
-          this.processTasksForDependencies(
-            projectUsedToDeriveDependencies,
-            dependencyConfig,
-            configuration,
-            task,
-            taskOverrides,
-            overrides
-          );
-        } else {
-          // Since we need to maintain support for dependencies, it is more coherent
-          // that we also support self.
-          // TODO(@agentender): Remove this part in v17
-          const projectName =
-            projectSpecifier === '{self}' ||
-            (projectSpecifier === 'self' &&
-              !this.projectGraph.nodes[projectSpecifier])
-              ? task.target.project
-              : projectSpecifier;
+        const projectName =
+          projectSpecifier === 'self' &&
+          !this.projectGraph.nodes[projectSpecifier]
+            ? task.target.project
+            : projectSpecifier;
 
-          this.processTasksForSingleProject(
-            task,
-            projectName,
-            dependencyConfig,
-            configuration,
-            taskOverrides,
-            overrides
-          );
-        }
+        this.processTasksForSingleProject(
+          task,
+          projectName,
+          dependencyConfig,
+          configuration,
+          taskOverrides,
+          overrides
+        );
       }
     }
   }
diff --git a/packages/nx/src/tasks-runner/utils.ts b/packages/nx/src/tasks-runner/utils.ts
index 0f98ff049fc77..f81a95be0a5b5 100644
--- a/packages/nx/src/tasks-runner/utils.ts
+++ b/packages/nx/src/tasks-runner/utils.ts
@@ -36,23 +36,30 @@ export function getDependencyConfigs(
       typeof dependencyConfig.projects === 'string'
         ? [dependencyConfig.projects]
         : dependencyConfig.projects;
-    for (const specifier of specifiers) {
+    for (const specifier of specifiers ?? []) {
       if (
         !(specifier in projectGraph.nodes) &&
-        // Todo(@agentender): Remove the non-token forms of these for v17
-        !['{self}', '{dependencies}', 'self', 'dependencies'].includes(
-          specifier
-        )
+        // Todo(@agentender): Remove the check for self / dependencies in v17
+        !['self', 'dependencies'].includes(specifier)
       ) {
         output.error({
           title: `dependsOn is improperly configured for ${project}:${target}`,
           bodyLines: [
-            `${specifier} in dependsOn.projects is invalid. It should be "{self}", "{dependencies}", or a project name.`,
+            `${specifier} in dependsOn.projects is invalid. It should be "self", "dependencies", or a project name.`,
           ],
         });
         process.exit(1);
       }
     }
+    if (dependencyConfig.projects && dependencyConfig.dependencies) {
+      output.error({
+        title: `dependsOn is improperly configured for ${project}:${target}`,
+        bodyLines: [
+          `dependsOn.projects and dependsOn.dependencies cannot be used together.`,
+        ],
+      });
+      process.exit(1);
+    }
   }
   return dependencyConfigs;
 }
@@ -63,9 +70,9 @@ function expandDependencyConfigSyntaxSugar(
   return deps.map((d) => {
     if (typeof d === 'string') {
       if (d.startsWith('^')) {
-        return { projects: '{dependencies}', target: d.substring(1) };
+        return { dependencies: true, target: d.substring(1) };
       } else {
-        return { projects: '{self}', target: d };
+        return { target: d };
       }
     } else {
       return d;