diff --git a/packages/nx/src/command-line/init/implementation/utils.ts b/packages/nx/src/command-line/init/implementation/utils.ts
index 4f51fb17f0f9f..40f624709fc34 100644
--- a/packages/nx/src/command-line/init/implementation/utils.ts
+++ b/packages/nx/src/command-line/init/implementation/utils.ts
@@ -16,7 +16,7 @@ import {
 } from '../../../utils/package-manager';
 import { joinPathFragments } from '../../../utils/path';
 import { nxVersion } from '../../../utils/versions';
-import { readFileSync, writeFileSync } from 'fs';
+import { existsSync, readFileSync, writeFileSync } from 'fs';
 
 export function createNxJsonFile(
   repoRoot: string,
@@ -223,3 +223,14 @@ export function printFinalMessage({
     ].filter(Boolean),
   });
 }
+
+export function isMonorepo(packageJson: PackageJson) {
+  if (!!packageJson.workspaces) return true;
+
+  if (existsSync('pnpm-workspace.yaml') || existsSync('pnpm-workspace.yml'))
+    return true;
+
+  if (existsSync('lerna.json')) return true;
+
+  return false;
+}
diff --git a/packages/nx/src/command-line/init/init-v1.ts b/packages/nx/src/command-line/init/init-v1.ts
index 4ffac5738d9d4..468f2207dc3a0 100644
--- a/packages/nx/src/command-line/init/init-v1.ts
+++ b/packages/nx/src/command-line/init/init-v1.ts
@@ -12,6 +12,7 @@ import { runNxSync } from '../../utils/child-process';
 import { directoryExists, readJsonFile } from '../../utils/fileutils';
 import { PackageJson } from '../../utils/package-json';
 import { nxVersion } from '../../utils/versions';
+import { isMonorepo } from './implementation/utils';
 
 export interface InitArgs {
   addE2e: boolean;
@@ -106,17 +107,6 @@ function isNestCLI(packageJson: PackageJson) {
   );
 }
 
-function isMonorepo(packageJson: PackageJson) {
-  if (!!packageJson.workspaces) return true;
-
-  if (existsSync('pnpm-workspace.yaml') || existsSync('pnpm-workspace.yml'))
-    return true;
-
-  if (existsSync('lerna.json')) return true;
-
-  return false;
-}
-
 function setupDotNxInstallation(version: string) {
   if (process.platform !== 'win32') {
     console.log(
diff --git a/packages/nx/src/command-line/init/init-v2.ts b/packages/nx/src/command-line/init/init-v2.ts
index 011fddb2ea296..30f6a955e84e3 100644
--- a/packages/nx/src/command-line/init/init-v2.ts
+++ b/packages/nx/src/command-line/init/init-v2.ts
@@ -10,6 +10,7 @@ import { nxVersion } from '../../utils/versions';
 import {
   addDepsToPackageJson,
   createNxJsonFile,
+  isMonorepo,
   runInstall,
   updateGitIgnore,
 } from './implementation/utils';
@@ -19,6 +20,7 @@ import { addNxToAngularCliRepo } from './implementation/angular';
 import { globWithWorkspaceContext } from '../../utils/workspace-context';
 import { connectExistingRepoToNxCloudPrompt } from '../connect/connect-to-nx-cloud';
 import { addNxToNpmRepo } from './implementation/add-nx-to-npm-repo';
+import { addNxToMonorepo } from './implementation/add-nx-to-monorepo';
 
 export interface InitArgs {
   interactive: boolean;
@@ -59,22 +61,17 @@ export async function initHandler(options: InitArgs): Promise<void> {
     return;
   }
 
-  const repoRoot = process.cwd();
-  const cacheableOperations: string[] = [];
-  createNxJsonFile(repoRoot, [], cacheableOperations, {});
-
-  const pmc = getPackageManagerCommand();
-
-  updateGitIgnore(repoRoot);
-
   const detectPluginsResponse = await detectPlugins();
 
   if (!detectPluginsResponse?.plugins.length) {
     // If no plugins are detected/chosen, guide users to setup
     // their targetDefaults correctly so their package scripts will work.
-    await addNxToNpmRepo({
-      interactive: options.interactive,
-    });
+    const packageJson: PackageJson = readJsonFile('package.json');
+    if (isMonorepo(packageJson)) {
+      await addNxToMonorepo({ interactive: options.interactive });
+    } else {
+      await addNxToNpmRepo({ interactive: options.interactive });
+    }
   } else {
     const useNxCloud =
       options.nxCloud ??
@@ -82,6 +79,12 @@ export async function initHandler(options: InitArgs): Promise<void> {
         ? await connectExistingRepoToNxCloudPrompt()
         : false);
 
+    const repoRoot = process.cwd();
+    const pmc = getPackageManagerCommand();
+
+    createNxJsonFile(repoRoot, [], [], {});
+    updateGitIgnore(repoRoot);
+
     addDepsToPackageJson(repoRoot, detectPluginsResponse?.plugins ?? []);
 
     output.log({ title: '📦 Installing Nx' });