diff --git a/packages/nx/bin/init-local.spec.ts b/packages/nx/bin/init-local.spec.ts
new file mode 100644
index 00000000000000..25f3c56c30e447
--- /dev/null
+++ b/packages/nx/bin/init-local.spec.ts
@@ -0,0 +1,25 @@
+import { commandsObject } from '../src/command-line/nx-commands';
+import { initLocal } from './init-local';
+
+describe('initLocal', () => {
+  it('should call commandsObject.parse with args wrapped in quotes if value contains space', () => {
+    const spy = jest.spyOn(commandsObject, 'parse');
+    process.argv = ['nx', 'g', 'app', '--name=my app'];
+    initLocal({ type: 'nx', dir: 'root' });
+    expect(spy).toHaveBeenCalledWith(['app', '--name="my app"']);
+  });
+
+  it('should call commandsObject.parse with args wrapped in quotes if it is a string with space', () => {
+    const spy = jest.spyOn(commandsObject, 'parse');
+    process.argv = ['nx', 'g', 'app', 'random string'];
+    initLocal({ type: 'nx', dir: 'root' });
+    expect(spy).toHaveBeenCalledWith(['app', '"random string"']);
+  });
+
+  it('should call commandsObject.parse with args not wrapped in quotes if it is one word', () => {
+    const spy = jest.spyOn(commandsObject, 'parse');
+    process.argv = ['nx', 'g', 'app', '--name=app'];
+    initLocal({ type: 'nx', dir: 'root' });
+    expect(spy).toHaveBeenCalledWith(['app', '--name=app']);
+  });
+});
diff --git a/packages/nx/bin/init-local.ts b/packages/nx/bin/init-local.ts
index 13a98b054ae052..f83d6b9609de4c 100644
--- a/packages/nx/bin/init-local.ts
+++ b/packages/nx/bin/init-local.ts
@@ -31,7 +31,7 @@ export function initLocal(workspace: WorkspaceTypeAndRoot) {
 
     const command = process.argv[2];
     if (command === 'run' || command === 'g' || command === 'generate') {
-      commandsObject.parse(process.argv.slice(2));
+      commandsObject.parse(wrapArgsIntoQuotesIfNeeded(process.argv.slice(2)));
     } else if (isKnownCommand(command)) {
       const newArgs = rewriteTargetsAndProjects(process.argv);
       const help = newArgs.indexOf('--help');
@@ -39,10 +39,10 @@ export function initLocal(workspace: WorkspaceTypeAndRoot) {
       if (help > -1 && (split === -1 || split > help)) {
         commandsObject.showHelp();
       } else {
-        commandsObject.parse(newArgs);
+        commandsObject.parse(wrapArgsIntoQuotesIfNeeded(newArgs));
       }
     } else {
-      commandsObject.parse(process.argv.slice(2));
+      commandsObject.parse(wrapArgsIntoQuotesIfNeeded(process.argv.slice(2)));
     }
   } catch (e) {
     console.error(e.message);
@@ -81,8 +81,20 @@ export function rewriteTargetsAndProjects(args: string[]) {
   return newArgs;
 }
 
-function wrapIntoQuotesIfNeeded(arg: string) {
-  return arg.indexOf(':') > -1 ? `"${arg}"` : arg;
+function wrapArgsIntoQuotesIfNeeded(args: string[]): string[] {
+  return args.map((arg: string) => {
+    if (arg.includes('=')) {
+      const [key, value] = arg.split('=');
+      if (key.startsWith('--') && value.includes(' ') && !value.includes('"')) {
+        return `${key}="${value}"`;
+      }
+      return arg;
+    } else if (arg.includes(' ')) {
+      return `"${arg}"`;
+    } else {
+      return arg;
+    }
+  });
 }
 
 function isKnownCommand(command: string) {