diff --git a/docs/shared/reference/project-configuration.md b/docs/shared/reference/project-configuration.md
index 7c9806e70ab58..5ba16a9bc71fb 100644
--- a/docs/shared/reference/project-configuration.md
+++ b/docs/shared/reference/project-configuration.md
@@ -276,6 +276,9 @@ result in `mylib`'s dependencies being built as well.
 
 You can also express the same configuration using:
 
+{% tabs %}
+{% tab label="Version < 16" %}
+
 ```json
 "build": {
   "dependsOn": [{ "projects": "dependencies", "target": "build" }]
@@ -285,8 +288,26 @@ You can also express the same configuration using:
 }
 ```
 
+{% /tab %}
+{% tab label="Version 16+" %}
+
+```json
+"build": {
+  "dependsOn": [{ "projects": "{dependencies}", "target": "build" }]
+},
+"test": {
+  "dependsOn": [{ "projects": "{self}", "target": "build" }]
+}
+```
+
+{% /tab %}
+{% /tabs %}
+
 With the expanded syntax, you also have a third option available to configure how to handle the params passed to the target. You can either forward them or you can ignore them (default).
 
+{% tabs %}
+{% tab label="Version < 16" %}
+
 ```json
 "build": {
    // forward params passed to this target to the dependency targets
@@ -302,8 +323,32 @@ With the expanded syntax, you also have a third option available to configure ho
 }
 ```
 
+{% /tab %}
+{% tab label="Version 16+" %}
+
+```json
+"build": {
+   // forward params passed to this target to the dependency targets
+  "dependsOn": [{ "projects": "{dependencies}", "target": "build", "params": "forward" }]
+},
+"test": {
+  // ignore params passed to this target, won't be forwarded to the dependency targets
+  "dependsOn": [{ "projects": "{dependencies}", "target": "build", "params": "ignore" }]
+}
+"lint": {
+  // ignore params passed to this target, won't be forwarded to the dependency targets
+  "dependsOn": [{ "projects": "{dependencies}", "target": "build" }]
+}
+```
+
+{% /tab %}
+{% /tabs %}
+
 Obviously this also works when defining a relation for the target of the project itself using `"projects": "self"`:
 
+{% tabs %}
+{% tab label="Version < 16" %}
+
 ```json
 "build": {
    // forward params passed to this target to the project target
@@ -311,6 +356,28 @@ Obviously this also works when defining a relation for the target of the project
 }
 ```
 
+{% /tab %}
+{% tab label="Version 16+" %}
+
+```json
+"build": {
+   // forward params passed to this target to the project target
+  "dependsOn": [{ "projects": "{self}", "target": "pre-build", "params": "forward" }]
+}
+```
+
+{% /tab %}
+{% /tabs %}
+
+Additionally, when using the expanded object syntax, you can specify individual projects in version 16 or greater.
+
+```json
+"build": {
+   // Run is-even:pre-build and is-odd:pre-build before this target
+  "dependsOn": [{ "projects": ["is-even", "is-odd"], "target": "pre-build" }]
+}
+```
+
 This configuration is usually not needed. Nx comes with reasonable defaults (imported in `nx.json`) which implement the
 configuration above.
 
diff --git a/packages/nx/migrations.json b/packages/nx/migrations.json
index d944ff976f5a1..3c4178b0a9d42 100644
--- a/packages/nx/migrations.json
+++ b/packages/nx/migrations.json
@@ -59,6 +59,12 @@
       "version": "16.0.0-beta.0",
       "description": "Remove @nrwl/cli.",
       "implementation": "./src/migrations/update-16-0-0/remove-nrwl-cli"
+    },
+    "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.",
+      "implementation": "./src/migrations/update-16-0-0/update-depends-on-to-tokens"
     }
   }
 }
diff --git a/packages/nx/schemas/nx-schema.json b/packages/nx/schemas/nx-schema.json
index 2e774f2cc5e77..f852c44be585f 100644
--- a/packages/nx/schemas/nx-schema.json
+++ b/packages/nx/schemas/nx-schema.json
@@ -247,9 +247,19 @@
                 "type": "object",
                 "properties": {
                   "projects": {
-                    "type": "string",
-                    "description": "The projects that the targets belong to.",
-                    "enum": ["self", "dependencies"]
+                    "oneOf": [
+                      {
+                        "type": "string",
+                        "description": "{self}, {dependencies}, or a project name."
+                      },
+                      {
+                        "type": "array",
+                        "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                        "items": {
+                          "type": "string"
+                        }
+                      }
+                    ]
                   },
                   "target": {
                     "type": "string",
diff --git a/packages/nx/schemas/project-schema.json b/packages/nx/schemas/project-schema.json
index c57b50dd14de6..4c8cdc862c609 100644
--- a/packages/nx/schemas/project-schema.json
+++ b/packages/nx/schemas/project-schema.json
@@ -55,9 +55,19 @@
                   "type": "object",
                   "properties": {
                     "projects": {
-                      "type": "string",
-                      "description": "The projects that the targets belong to.",
-                      "enum": ["self", "dependencies"]
+                      "oneOf": [
+                        {
+                          "type": "string",
+                          "description": "{self}, {dependencies}, or a project name."
+                        },
+                        {
+                          "type": "array",
+                          "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                          "items": {
+                            "type": "string"
+                          }
+                        }
+                      ]
                     },
                     "target": {
                       "type": "string",
diff --git a/packages/nx/schemas/workspace-schema.json b/packages/nx/schemas/workspace-schema.json
index 24a5a89ce4d1c..df2cc3d6b7eb6 100644
--- a/packages/nx/schemas/workspace-schema.json
+++ b/packages/nx/schemas/workspace-schema.json
@@ -65,9 +65,19 @@
                                   "type": "object",
                                   "properties": {
                                     "projects": {
-                                      "type": "string",
-                                      "description": "The projects that the targets belong to.",
-                                      "enum": ["self", "dependencies"]
+                                      "oneOf": [
+                                        {
+                                          "type": "string",
+                                          "description": "{self}, {dependencies}, or a project name."
+                                        },
+                                        {
+                                          "type": "array",
+                                          "description": "An array of project specifiers: {self}, {dependencies}, or a project name.",
+                                          "items": {
+                                            "type": "string"
+                                          }
+                                        }
+                                      ]
                                     },
                                     "target": {
                                       "type": "string",
diff --git a/packages/nx/src/config/workspace-json-project-json.ts b/packages/nx/src/config/workspace-json-project-json.ts
index 431a3238fb825..2212dec313b79 100644
--- a/packages/nx/src/config/workspace-json-project-json.ts
+++ b/packages/nx/src/config/workspace-json-project-json.ts
@@ -102,12 +102,15 @@ export interface ProjectConfiguration {
 
 export interface TargetDependencyConfig {
   /**
-   * This the projects that the targets belong to
+   * 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
-   * 'deps': This target depends on targets of the projects of it's deps.
+   * - '{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.
    */
-  projects: 'self' | 'dependencies';
+  projects: string[] | string;
 
   /**
    * The name of the target
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
new file mode 100644
index 0000000000000..86c66a9dbd3c2
--- /dev/null
+++ b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.spec.ts
@@ -0,0 +1,104 @@
+import {
+  addProjectConfiguration,
+  getProjects,
+  readNxJson,
+  readProjectConfiguration,
+} from '../../generators/utils/project-configuration';
+import { Tree } from '../../generators/tree';
+
+import update from './update-depends-on-to-tokens';
+import { updateJson, writeJson } from 'nx/src/devkit-exports';
+import { createTreeWithEmptyWorkspace } from '../../generators/testing-utils/create-tree-with-empty-workspace';
+
+describe('update-depends-on-to-tokens', () => {
+  it('should update nx.json', async () => {
+    const tree = createTreeWithEmptyWorkspace();
+    updateJson(tree, 'nx.json', (json) => {
+      json.targetDefaults = {
+        build: {
+          dependsOn: [
+            {
+              projects: 'self',
+            },
+          ],
+        },
+        test: {
+          dependsOn: [
+            {
+              projects: 'dependencies',
+            },
+          ],
+        },
+        other: {
+          dependsOn: ['^deps'],
+        },
+      };
+      return json;
+    });
+    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}');
+    expect(nxJson.targetDefaults.other.dependsOn).toEqual(['^deps']);
+  });
+
+  it('should update project configurations', async () => {
+    const tree = createTreeWithEmptyWorkspace();
+    addProjectConfiguration(tree, 'proj1', {
+      root: 'proj1',
+      targets: {
+        build: {
+          dependsOn: [
+            {
+              projects: 'self',
+              target: 'build',
+            },
+          ],
+        },
+        test: {
+          dependsOn: [
+            {
+              projects: 'dependencies',
+              target: 'test',
+            },
+          ],
+        },
+        other: {
+          dependsOn: ['^deps'],
+        },
+      },
+    });
+    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}');
+    expect(project.targets.other.dependsOn).toEqual(['^deps']);
+  });
+
+  it('should not throw on nulls', async () => {
+    const tree = createTreeWithEmptyWorkspace();
+    addProjectConfiguration(tree, 'proj1', {
+      root: 'proj1',
+    });
+    addProjectConfiguration(tree, 'proj2', {
+      root: 'proj2',
+      targets: {
+        build: {},
+      },
+    });
+    writeJson(tree, 'nx.json', {});
+    let promise = update(tree);
+    await expect(promise).resolves.toBeUndefined();
+    writeJson(tree, 'nx.json', {
+      targetDefaults: {
+        build: {},
+      },
+    });
+    promise = update(tree);
+    await expect(promise).resolves.toBeUndefined();
+  });
+});
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
new file mode 100644
index 0000000000000..8c68b5289de23
--- /dev/null
+++ b/packages/nx/src/migrations/update-16-0-0/update-depends-on-to-tokens.ts
@@ -0,0 +1,56 @@
+import {
+  getProjects,
+  readNxJson,
+  updateNxJson,
+  updateProjectConfiguration,
+} from '../../generators/utils/project-configuration';
+import { Tree } from '../../generators/tree';
+
+export default async function (tree: Tree) {
+  updateDependsOnInsideNxJson(tree);
+
+  const projectsConfigurations = getProjects(tree);
+  for (const [projectName, projectConfiguration] of projectsConfigurations) {
+    let projectChanged = false;
+    for (const [targetName, targetConfiguration] of Object.entries(
+      projectConfiguration.targets ?? {}
+    )) {
+      for (const dependency of targetConfiguration.dependsOn ?? []) {
+        if (typeof dependency !== 'string') {
+          if (dependency.projects === 'self') {
+            dependency.projects = '{self}';
+            projectChanged = true;
+          } else if (dependency.projects === 'dependencies') {
+            dependency.projects = '{dependencies}';
+            projectChanged = true;
+          }
+        }
+      }
+    }
+    if (projectChanged) {
+      updateProjectConfiguration(tree, projectName, projectConfiguration);
+    }
+  }
+}
+function updateDependsOnInsideNxJson(tree: Tree) {
+  const nxJson = readNxJson(tree);
+  let nxJsonChanged = false;
+  for (const [target, defaults] of Object.entries(
+    nxJson?.targetDefaults ?? {}
+  )) {
+    for (const dependency of defaults.dependsOn ?? []) {
+      if (typeof dependency !== 'string') {
+        if (dependency.projects === 'self') {
+          dependency.projects = '{self}';
+          nxJsonChanged = true;
+        } else if (dependency.projects === 'dependencies') {
+          dependency.projects = '{dependencies}';
+          nxJsonChanged = true;
+        }
+      }
+    }
+  }
+  if (nxJsonChanged) {
+    updateNxJson(tree, nxJson);
+  }
+}
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 584baeaaeaabf..992dd1221b51f 100644
--- a/packages/nx/src/tasks-runner/create-task-graph.spec.ts
+++ b/packages/nx/src/tasks-runner/create-task-graph.spec.ts
@@ -17,17 +17,24 @@ describe('createTaskGraph', () => {
               prebuild: {
                 executor: 'nx:run-commands',
               },
+              prebuild2: {
+                executor: 'nx:run-commands',
+              },
               build: {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                   },
                   {
-                    projects: 'self',
+                    projects: '{self}',
                     target: 'prebuild',
                   },
+                  {
+                    projects: 'app1',
+                    target: 'prebuild2',
+                  },
                 ],
               },
               test: {
@@ -166,7 +173,7 @@ describe('createTaskGraph', () => {
                 },
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                   },
                 ],
@@ -189,7 +196,7 @@ describe('createTaskGraph', () => {
                 defaultConfiguration: 'libDefault',
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                   },
                 ],
@@ -330,7 +337,7 @@ describe('createTaskGraph', () => {
                 executor: 'my-executor',
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                   },
                 ],
@@ -501,11 +508,11 @@ describe('createTaskGraph', () => {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                     params: 'forward',
                   },
-                  { projects: 'self', target: 'prebuild', params: 'forward' },
+                  { projects: '{self}', target: 'prebuild', params: 'forward' },
                 ],
               },
               test: {
@@ -528,7 +535,7 @@ describe('createTaskGraph', () => {
                 executor: 'nx:run-commands',
                 dependsOn: [
                   {
-                    projects: 'dependencies',
+                    projects: '{dependencies}',
                     target: 'build',
                     params: 'ignore',
                   },
@@ -640,7 +647,7 @@ describe('createTaskGraph', () => {
     );
     // prebuild should also be in here
     expect(taskGraph).toEqual({
-      roots: ['lib1:build', 'app1:prebuild'],
+      roots: ['lib1:build', 'app1:prebuild', 'app1:prebuild2'],
       tasks: {
         'app1:build': {
           id: 'app1:build',
@@ -664,6 +671,17 @@ describe('createTaskGraph', () => {
           },
           projectRoot: 'app1-root',
         },
+        'app1:prebuild2': {
+          id: 'app1:prebuild2',
+          target: {
+            project: 'app1',
+            target: 'prebuild2',
+          },
+          overrides: {
+            __overrides_unparsed__: [],
+          },
+          projectRoot: 'app1-root',
+        },
         'lib1:build': {
           id: 'lib1:build',
           target: {
@@ -677,8 +695,9 @@ describe('createTaskGraph', () => {
         },
       },
       dependencies: {
-        'app1:build': ['lib1:build', 'app1:prebuild'],
+        'app1:build': ['lib1:build', 'app1:prebuild', 'app1:prebuild2'],
         'app1:prebuild': [],
+        'app1:prebuild2': [],
         'lib1:build': [],
       },
     });
@@ -697,7 +716,7 @@ describe('createTaskGraph', () => {
     );
     // prebuild should also be in here
     expect(taskGraph).toEqual({
-      roots: ['app1:prebuild', 'lib1:build'],
+      roots: ['app1:prebuild', 'lib1:build', 'app1:prebuild2'],
       tasks: {
         'app1:build': {
           id: 'app1:build',
@@ -721,6 +740,17 @@ describe('createTaskGraph', () => {
           },
           projectRoot: 'app1-root',
         },
+        'app1:prebuild2': {
+          id: 'app1:prebuild2',
+          target: {
+            project: 'app1',
+            target: 'prebuild2',
+          },
+          overrides: {
+            __overrides_unparsed__: [],
+          },
+          projectRoot: 'app1-root',
+        },
         'lib1:build': {
           id: 'lib1:build',
           target: {
@@ -734,8 +764,9 @@ describe('createTaskGraph', () => {
         },
       },
       dependencies: {
-        'app1:build': ['lib1:build', 'app1:prebuild'],
+        'app1:build': ['lib1:build', 'app1:prebuild', 'app1:prebuild2'],
         'app1:prebuild': [],
+        'app1:prebuild2': [],
         'lib1:build': [],
       },
     });
@@ -813,7 +844,7 @@ describe('createTaskGraph', () => {
       {
         build: [
           {
-            projects: 'dependencies',
+            projects: '{dependencies}',
             target: 'build',
           },
         ],
@@ -974,9 +1005,9 @@ describe('createTaskGraph', () => {
       {
         build: ['^build'],
         apply: [
-          { projects: 'dependencies', target: 'build' },
+          { projects: '{dependencies}', target: 'build' },
           {
-            projects: 'dependencies',
+            projects: '{dependencies}',
             target: 'apply',
             params: 'forward',
           },
@@ -1052,11 +1083,11 @@ describe('createTaskGraph', () => {
             targets: {
               build: {
                 executor: 'nx:run-commands',
-                dependsOn: [{ target: 'test', projects: 'self' }],
+                dependsOn: [{ target: 'test', projects: '{self}' }],
               },
               test: {
                 executor: 'nx:run-commands',
-                dependsOn: [{ target: 'build', projects: 'self' }],
+                dependsOn: [{ target: 'build', projects: '{self}' }],
               },
             },
           },
@@ -1161,7 +1192,7 @@ describe('createTaskGraph', () => {
     const taskGraph = createTaskGraph(
       projectGraph,
       {
-        build: [{ target: 'build', projects: 'dependencies' }],
+        build: [{ target: 'build', projects: '{dependencies}' }],
       },
       ['app1'],
       ['build'],
@@ -1252,7 +1283,7 @@ describe('createTaskGraph', () => {
     const taskGraph = createTaskGraph(
       projectGraph,
       {
-        build: [{ target: 'build', projects: 'dependencies' }],
+        build: [{ target: 'build', projects: '{dependencies}' }],
       },
       ['app1'],
       ['build'],
@@ -1307,8 +1338,8 @@ describe('createTaskGraph', () => {
               build: {
                 executor: 'nx:run-commands',
                 dependsOn: [
-                  { target: 'prebuild', projects: 'self' },
-                  { target: 'build', projects: 'dependencies' },
+                  { target: 'prebuild', projects: '{self}' },
+                  { target: 'build', projects: '{dependencies}' },
                 ],
               },
               prebuild: {
diff --git a/packages/nx/src/tasks-runner/create-task-graph.ts b/packages/nx/src/tasks-runner/create-task-graph.ts
index 06f269be5724e..ff31a05658d72 100644
--- a/packages/nx/src/tasks-runner/create-task-graph.ts
+++ b/packages/nx/src/tasks-runner/create-task-graph.ts
@@ -6,6 +6,7 @@ import {
 } from '../utils/project-graph-utils';
 import { Task, TaskGraph } from '../config/task-graph';
 import { TargetDependencies } from '../config/nx-json';
+import { TargetDependencyConfig } from '../devkit-exports';
 
 export class ProcessTasks {
   private readonly seen = new Set<string>();
@@ -104,92 +105,150 @@ 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.
+        // 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;
+
+          this.processTasksForSingleProject(
+            task,
+            projectName,
+            dependencyConfig,
+            configuration,
+            taskOverrides,
+            overrides
+          );
+        }
+      }
+    }
+  }
 
-      if (dependencyConfig.projects === 'dependencies') {
-        for (const dep of this.projectGraph.dependencies[
-          projectUsedToDeriveDependencies
-        ]) {
-          const depProject = this.projectGraph.nodes[
-            dep.target
-          ] as ProjectGraphProjectNode;
+  private processTasksForSingleProject(
+    task: Task,
+    projectName: string,
+    dependencyConfig: TargetDependencyConfig,
+    configuration: string,
+    taskOverrides: Object | { __overrides_unparsed__: any[] },
+    overrides: Object
+  ) {
+    const selfProject = this.projectGraph.nodes[
+      projectName
+    ] as ProjectGraphProjectNode;
+
+    if (projectHasTarget(selfProject, dependencyConfig.target)) {
+      const resolvedConfiguration = this.resolveConfiguration(
+        selfProject,
+        dependencyConfig.target,
+        configuration
+      );
+      const selfTaskId = this.getId(
+        selfProject.name,
+        dependencyConfig.target,
+        resolvedConfiguration
+      );
+      if (task.id !== selfTaskId) {
+        this.dependencies[task.id].push(selfTaskId);
+      }
+      if (!this.tasks[selfTaskId]) {
+        const newTask = this.createTask(
+          selfTaskId,
+          selfProject,
+          dependencyConfig.target,
+          resolvedConfiguration,
+          taskOverrides
+        );
+        this.tasks[selfTaskId] = newTask;
+        this.dependencies[selfTaskId] = [];
+        this.processTask(
+          newTask,
+          newTask.target.project,
+          configuration,
+          overrides
+        );
+      }
+    }
+  }
 
-          // this is to handle external dependencies
-          if (!depProject) continue;
+  private processTasksForDependencies(
+    projectUsedToDeriveDependencies: string,
+    dependencyConfig: TargetDependencyConfig,
+    configuration: string,
+    task: Task,
+    taskOverrides: Object | { __overrides_unparsed__: any[] },
+    overrides: Object
+  ) {
+    for (const dep of this.projectGraph.dependencies[
+      projectUsedToDeriveDependencies
+    ]) {
+      const depProject = this.projectGraph.nodes[
+        dep.target
+      ] as ProjectGraphProjectNode;
 
-          if (projectHasTarget(depProject, dependencyConfig.target)) {
-            const resolvedConfiguration = this.resolveConfiguration(
-              depProject,
-              dependencyConfig.target,
-              configuration
-            );
-            const depTargetId = this.getId(
-              depProject.name,
-              dependencyConfig.target,
-              resolvedConfiguration
-            );
+      // this is to handle external dependencies
+      if (!depProject) continue;
 
-            if (task.id !== depTargetId) {
-              this.dependencies[task.id].push(depTargetId);
-            }
-            if (!this.tasks[depTargetId]) {
-              const newTask = this.createTask(
-                depTargetId,
-                depProject,
-                dependencyConfig.target,
-                resolvedConfiguration,
-                taskOverrides
-              );
-              this.tasks[depTargetId] = newTask;
-              this.dependencies[depTargetId] = [];
+      if (projectHasTarget(depProject, dependencyConfig.target)) {
+        const resolvedConfiguration = this.resolveConfiguration(
+          depProject,
+          dependencyConfig.target,
+          configuration
+        );
+        const depTargetId = this.getId(
+          depProject.name,
+          dependencyConfig.target,
+          resolvedConfiguration
+        );
 
-              this.processTask(
-                newTask,
-                newTask.target.project,
-                configuration,
-                overrides
-              );
-            }
-          } else {
-            this.processTask(task, depProject.name, configuration, overrides);
-          }
+        if (task.id !== depTargetId) {
+          this.dependencies[task.id].push(depTargetId);
         }
-      } else {
-        const selfProject = this.projectGraph.nodes[
-          task.target.project
-        ] as ProjectGraphProjectNode;
-
-        if (projectHasTarget(selfProject, dependencyConfig.target)) {
-          const resolvedConfiguration = this.resolveConfiguration(
-            selfProject,
+        if (!this.tasks[depTargetId]) {
+          const newTask = this.createTask(
+            depTargetId,
+            depProject,
             dependencyConfig.target,
-            configuration
+            resolvedConfiguration,
+            taskOverrides
           );
-          const selfTaskId = this.getId(
-            selfProject.name,
-            dependencyConfig.target,
-            resolvedConfiguration
+          this.tasks[depTargetId] = newTask;
+          this.dependencies[depTargetId] = [];
+
+          this.processTask(
+            newTask,
+            newTask.target.project,
+            configuration,
+            overrides
           );
-          if (task.id !== selfTaskId) {
-            this.dependencies[task.id].push(selfTaskId);
-          }
-          if (!this.tasks[selfTaskId]) {
-            const newTask = this.createTask(
-              selfTaskId,
-              selfProject,
-              dependencyConfig.target,
-              resolvedConfiguration,
-              taskOverrides
-            );
-            this.tasks[selfTaskId] = newTask;
-            this.dependencies[selfTaskId] = [];
-            this.processTask(
-              newTask,
-              newTask.target.project,
-              configuration,
-              overrides
-            );
-          }
         }
+      } else {
+        this.processTask(task, depProject.name, configuration, overrides);
       }
     }
   }
diff --git a/packages/nx/src/tasks-runner/utils.ts b/packages/nx/src/tasks-runner/utils.ts
index 0ebd2714c49b1..0f98ff049fc77 100644
--- a/packages/nx/src/tasks-runner/utils.ts
+++ b/packages/nx/src/tasks-runner/utils.ts
@@ -32,17 +32,26 @@ export function getDependencyConfigs(
       []
   );
   for (const dependencyConfig of dependencyConfigs) {
-    if (
-      dependencyConfig.projects !== 'dependencies' &&
-      dependencyConfig.projects !== 'self'
-    ) {
-      output.error({
-        title: `dependsOn is improperly configured for ${project}:${target}`,
-        bodyLines: [
-          `dependsOn.projects is "${dependencyConfig.projects}" but should be "self" or "dependencies"`,
-        ],
-      });
-      process.exit(1);
+    const specifiers =
+      typeof dependencyConfig.projects === 'string'
+        ? [dependencyConfig.projects]
+        : dependencyConfig.projects;
+    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
+        )
+      ) {
+        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.`,
+          ],
+        });
+        process.exit(1);
+      }
     }
   }
   return dependencyConfigs;
@@ -54,9 +63,9 @@ function expandDependencyConfigSyntaxSugar(
   return deps.map((d) => {
     if (typeof d === 'string') {
       if (d.startsWith('^')) {
-        return { projects: 'dependencies', target: d.substring(1) };
+        return { projects: '{dependencies}', target: d.substring(1) };
       } else {
-        return { projects: 'self', target: d };
+        return { projects: '{self}', target: d };
       }
     } else {
       return d;