diff --git a/packages/create-nx-workspace/src/create-empty-workspace.ts b/packages/create-nx-workspace/src/create-empty-workspace.ts
index 2e91ef7470edd..168815b9bc800 100644
--- a/packages/create-nx-workspace/src/create-empty-workspace.ts
+++ b/packages/create-nx-workspace/src/create-empty-workspace.ts
@@ -32,7 +32,8 @@ export async function createEmptyWorkspace<T extends CreateWorkspaceOptions>(
     options.packageManager = packageManager;
   }
 
-  const directory = getFileName(name);
+  options.name = getFileName(name);
+  const directory = options.name;
 
   const args = unparse({
     ...options,
@@ -40,7 +41,7 @@ export async function createEmptyWorkspace<T extends CreateWorkspaceOptions>(
 
   const pmc = getPackageManagerCommand(packageManager);
 
-  const command = `new ${directory} ${args}`;
+  const command = `new ${args}`;
 
   const workingDir = process.cwd().replace(/\\/g, '/');
   let nxWorkspaceRoot = `"${workingDir}"`;
diff --git a/packages/workspace/src/generators/new/new.ts b/packages/workspace/src/generators/new/new.ts
index 9c83395d3a5e7..9fdba08932b3c 100644
--- a/packages/workspace/src/generators/new/new.ts
+++ b/packages/workspace/src/generators/new/new.ts
@@ -120,7 +120,7 @@ function normalizeOptions(options: Schema): NormalizedSchema {
 
   normalized.name = names(options.name).fileName;
   if (!options.directory) {
-    normalized.directory = options.name;
+    normalized.directory = normalized.name;
   }
 
   const parsed = parsePresetName(options.preset);