diff --git a/docs/generated/packages/react.json b/docs/generated/packages/react.json
index 66edd8e954cdd3..d70ec3980ee9af 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,
@@ -243,7 +248,7 @@
           "bundler": {
             "description": "The bundler to use.",
             "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"
           }
         },
@@ -418,11 +423,16 @@
             "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
             "type": "boolean"
           },
+          "bundler": {
+            "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 5d9932dd397988..999d9fbc48a3eb 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..a25810d88d2598 100644
--- a/e2e/react/src/react-package.test.ts
+++ b/e2e/react/src/react-package.test.ts
@@ -252,4 +252,20 @@ 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}/index.js`,
+      `dist/libs/${libName}/index.mjs`
+    );
+  });
 });
diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index 8c612c41d1736a..247cd596521f2d 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',
diff --git a/packages/react/src/generators/application/application.ts b/packages/react/src/generators/application/application.ts
index cf5ffe7c68e55a..1504bf5cb7b1b2 100644
--- a/packages/react/src/generators/application/application.ts
+++ b/packages/react/src/generators/application/application.ts
@@ -77,6 +77,7 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   const initTask = await reactInitGenerator(host, {
     ...options,
     skipFormat: true,
+    skipBabelConfig: options.bundler === 'vite',
   });
 
   tasks.push(initTask);
@@ -108,9 +109,11 @@ 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..d91fc48782d3ec 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: {
@@ -40,6 +41,7 @@ export function setDefaults(host: Tree, options: NormalizedSchema) {
         style: options.style,
         unitTestRunner: options.unitTestRunner,
         linter: options.linter,
+        bundler: options.bundler,
         ...prev.library,
       },
     },
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 040af31521bd6f..85b2c93bbaa2da 100644
--- a/packages/react/src/generators/application/schema.json
+++ b/packages/react/src/generators/application/schema.json
@@ -184,7 +184,7 @@
     "bundler": {
       "description": "The bundler to use.",
       "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/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/lib/package.json__tmpl__ b/packages/react/src/generators/library/files/common/package.json__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/package.json__tmpl__
rename to packages/react/src/generators/library/files/common/package.json__tmpl__
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/.babelrc__tmpl__ b/packages/react/src/generators/library/files/rollup-babel/.babelrc__tmpl__
similarity index 100%
rename from packages/react/src/generators/library/files/lib/.babelrc__tmpl__
rename to packages/react/src/generators/library/files/rollup-babel/.babelrc__tmpl__
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/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.ts b/packages/react/src/generators/library/library.ts
index 25d4c356b7fcc3..83a0e834a920cd 100644
--- a/packages/react/src/generators/library/library.ts
+++ b/packages/react/src/generators/library/library.ts
@@ -44,10 +44,10 @@ 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;
@@ -72,10 +72,11 @@ 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 +91,17 @@ 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 +122,10 @@ 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 +314,37 @@ 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
+    );
+  } else if (options.bundler === 'rollup' && options.compiler === 'babel') {
+    generateFiles(
+      host,
+      joinPathFragments(__dirname, './files/rollup-babel'),
+      options.projectRoot,
+      substitutions
+    );
+  }
+
   if (!options.publishable && !options.buildable) {
     host.delete(`${options.projectRoot}/package.json`);
   }
@@ -435,6 +465,9 @@ function normalizeOptions(host: Tree, options: Schema): NormalizedSchema {
 
   const normalized: NormalizedSchema = {
     ...options,
+    buildable: options.buildable || options.publishable,
+    compiler: options.compiler ?? 'babel',
+    bundler: options.bundler ?? 'rollup',
     fileName,
     routePath: `/${name}`,
     name: projectName,
@@ -444,6 +477,12 @@ function normalizeOptions(host: Tree, options: Schema): NormalizedSchema {
     importPath,
   };
 
+  // If lib is not buildable then there is no reason to use a bundler or compiler.
+  if (!normalized.buildable) {
+    delete normalized.compiler;
+    delete normalized.bundler;
+  }
+
   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..0a9cd0bbe805a0 100644
--- a/packages/react/src/generators/library/schema.d.ts
+++ b/packages/react/src/generators/library/schema.d.ts
@@ -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..f0efb39396bae8 100644
--- a/packages/react/src/generators/library/schema.json
+++ b/packages/react/src/generators/library/schema.json
@@ -161,11 +161,16 @@
       "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
       "type": "boolean"
     },
+    "bundler": {
+      "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/generators/configuration/configuration.spec.ts b/packages/vite/src/generators/configuration/configuration.spec.ts
index c95a8b30d49205..d64756800e1296 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',
+        mode: 'lib',
+        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 9d2eb82821ae7d..e3cec79a5d7610 100644
--- a/packages/vite/src/generators/vitest/vitest.spec.ts
+++ b/packages/vite/src/generators/vitest/vitest.spec.ts
@@ -116,6 +116,7 @@ describe('vitest generator', () => {
                   }),
                 ],
                 
+                
                 test: {
             globals: true,
             environment: 'jsdom',
diff --git a/packages/vite/src/utils/generator-utils.ts b/packages/vite/src/utils/generator-utils.ts
index 46623ffc3a38f2..f52bbf260910cf 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,
-        },
       },
     };
   }
@@ -356,17 +358,40 @@ export function writeViteConfig(tree: Tree, options: Schema) {
 
   let viteConfigContent = '';
 
-  const testOption = `test: {
+  const testOption = options.includeVitest
+    ? `test: {
     globals: true,
     environment: 'jsdom',
     ${
       options.inSourceTests ? `includeSource: ['src/**/*.{js,ts,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: '${options.project}',
+            fileName: 'index',
+            formats: ['es', 'cjs']
+          },
+          rollupOptions: {
+            // External packages that should not be bundled into your library.
+            external: [${options.uiFramework === 'react' ? "'react'" : ''}]
+          }
+        },`
+    : '';
 
   switch (options.uiFramework) {
     case 'react':
@@ -384,8 +409,9 @@ ${options.includeVitest ? '/// <reference types="vitest" />' : ''}
             projects: ['tsconfig.base.json'],
           }),
         ],
-        ${options.inSourceTests ? defineOption : ''}
-        ${options.includeVitest ? testOption : ''}
+        ${buildOption}
+        ${defineOption}
+        ${testOption}
       });`;
       break;
     case 'none':
@@ -401,8 +427,9 @@ ${options.includeVitest ? '/// <reference types="vitest" />' : ''}
             projects: ['tsconfig.base.json'],
           }),
         ],
-        ${options.inSourceTests ? defineOption : ''}
-        ${options.includeVitest ? testOption : ''}
+        ${buildOption}
+        ${defineOption}
+        ${testOption}
       });`;
       break;
     default:
diff --git a/packages/web/src/generators/application/application.ts b/packages/web/src/generators/application/application.ts
index 3e658531b5cde1..70dbf01dad3d0e 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);
 
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": []