diff --git a/packages/expo/src/generators/application/application.spec.ts b/packages/expo/src/generators/application/application.spec.ts
index 24ce4173ec20e..0ca0bcb614c1e 100644
--- a/packages/expo/src/generators/application/application.spec.ts
+++ b/packages/expo/src/generators/application/application.spec.ts
@@ -405,6 +405,7 @@ describe('app', () => {
             "noUnusedLocals": false,
             "outDir": "out-tsc/my-app",
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/my-app/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
             ],
diff --git a/packages/express/src/generators/application/application.spec.ts b/packages/express/src/generators/application/application.spec.ts
index 7de92c58e455d..733799d4004d2 100644
--- a/packages/express/src/generators/application/application.spec.ts
+++ b/packages/express/src/generators/application/application.spec.ts
@@ -260,6 +260,7 @@ describe('app', () => {
             "moduleResolution": "nodenext",
             "outDir": "out-tsc/myapp",
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
               "express",
diff --git a/packages/js/src/utils/typescript/ts-solution-setup.ts b/packages/js/src/utils/typescript/ts-solution-setup.ts
index c726556004337..86a2749b4e0be 100644
--- a/packages/js/src/utils/typescript/ts-solution-setup.ts
+++ b/packages/js/src/utils/typescript/ts-solution-setup.ts
@@ -10,7 +10,7 @@ import {
 } from '@nx/devkit';
 import { FsTree } from 'nx/src/generators/tree';
 import { isUsingPackageManagerWorkspaces } from '../package-manager-workspaces';
-import { relative } from 'node:path/posix';
+import { basename, join, relative } from 'node:path/posix';
 
 export function isUsingTypeScriptPlugin(tree: Tree): boolean {
   const nxJson = readNxJson(tree);
@@ -141,6 +141,22 @@ export function updateTsconfigFiles(
         ...compilerOptions,
       };
 
+      if (rootDir && rootDir !== '.') {
+        // when rootDir is different from '.', the tsbuildinfo file is output
+        // at `<outDir>/<relative path to config from rootDir>/`, so we need
+        // to set it explicitly to ensure it's output to the outDir
+        // https://www.typescriptlang.org/tsconfig/#tsBuildInfoFile
+        json.compilerOptions.tsBuildInfoFile = join(
+          'out-tsc',
+          projectRoot.split('/').at(-1),
+          basename(runtimeTsconfigFileName, '.json') + '.tsbuildinfo'
+        );
+      } else if (json.compilerOptions.tsBuildInfoFile) {
+        // when rootDir is '.' or not set, it would be output to the outDir, so
+        // we don't need to set it explicitly
+        delete json.compilerOptions.tsBuildInfoFile;
+      }
+
       const excludeSet: Set<string> = json.exclude
         ? new Set(['dist', ...json.exclude, ...exclude])
         : new Set(exclude);
diff --git a/packages/nest/src/generators/application/application.spec.ts b/packages/nest/src/generators/application/application.spec.ts
index de6999353a90c..7ff0c9c045ccb 100644
--- a/packages/nest/src/generators/application/application.spec.ts
+++ b/packages/nest/src/generators/application/application.spec.ts
@@ -286,6 +286,7 @@ describe('application generator', () => {
             "outDir": "out-tsc/myapp",
             "rootDir": "src",
             "target": "es2021",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
             ],
diff --git a/packages/next/src/generators/application/application.spec.ts b/packages/next/src/generators/application/application.spec.ts
index a1977fc601f22..a40cd7a3c6340 100644
--- a/packages/next/src/generators/application/application.spec.ts
+++ b/packages/next/src/generators/application/application.spec.ts
@@ -949,6 +949,7 @@ describe('app (legacy)', () => {
             "resolveJsonModule": true,
             "rootDir": "src",
             "strict": true,
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.tsbuildinfo",
             "types": [
               "jest",
               "node",
diff --git a/packages/node/src/generators/application/application.spec.ts b/packages/node/src/generators/application/application.spec.ts
index 3c64143e1b473..cdb87747de3e0 100644
--- a/packages/node/src/generators/application/application.spec.ts
+++ b/packages/node/src/generators/application/application.spec.ts
@@ -662,6 +662,7 @@ describe('app', () => {
             "moduleResolution": "nodenext",
             "outDir": "out-tsc/myapp",
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
             ],
diff --git a/packages/nuxt/src/generators/application/application.spec.ts b/packages/nuxt/src/generators/application/application.spec.ts
index d5c222c75a2d1..0821310fc66d1 100644
--- a/packages/nuxt/src/generators/application/application.spec.ts
+++ b/packages/nuxt/src/generators/application/application.spec.ts
@@ -267,6 +267,7 @@ describe('app', () => {
             "outDir": "out-tsc/myapp",
             "resolveJsonModule": true,
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
           },
           "exclude": [
             "dist",
diff --git a/packages/react-native/src/generators/application/application.spec.ts b/packages/react-native/src/generators/application/application.spec.ts
index 51f3fc653e930..de3c282e2e3db 100644
--- a/packages/react-native/src/generators/application/application.spec.ts
+++ b/packages/react-native/src/generators/application/application.spec.ts
@@ -330,6 +330,7 @@ describe('app', () => {
             "noUnusedLocals": false,
             "outDir": "out-tsc/my-app",
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/my-app/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
             ],
diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index 3da3698851e8e..2c30887ebb644 100644
--- a/packages/react/src/generators/application/application.spec.ts
+++ b/packages/react/src/generators/application/application.spec.ts
@@ -1331,7 +1331,7 @@ describe('app', () => {
             "moduleResolution": "bundler",
             "outDir": "out-tsc/myapp",
             "rootDir": "src",
-            "tsBuildInfoFile": "dist/tsconfig.lib.tsbuildinfo",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
               "@nx/react/typings/cssmodule.d.ts",
diff --git a/packages/react/src/generators/host/host.rspack.spec.ts b/packages/react/src/generators/host/host.rspack.spec.ts
index 032ab68ce10d6..fa2f2cac27b54 100644
--- a/packages/react/src/generators/host/host.rspack.spec.ts
+++ b/packages/react/src/generators/host/host.rspack.spec.ts
@@ -508,7 +508,7 @@ describe('hostGenerator', () => {
             "moduleResolution": "bundler",
             "outDir": "out-tsc/myapp",
             "rootDir": "src",
-            "tsBuildInfoFile": "dist/tsconfig.lib.tsbuildinfo",
+            "tsBuildInfoFile": "out-tsc/myapp/tsconfig.app.tsbuildinfo",
             "types": [
               "node",
               "@nx/react/typings/cssmodule.d.ts",
diff --git a/packages/react/src/generators/library/library.spec.ts b/packages/react/src/generators/library/library.spec.ts
index 13a46b13c809d..d41d9fb337085 100644
--- a/packages/react/src/generators/library/library.spec.ts
+++ b/packages/react/src/generators/library/library.spec.ts
@@ -1039,6 +1039,7 @@ module.exports = withNx(
             "moduleResolution": "bundler",
             "outDir": "out-tsc/mylib",
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/mylib/tsconfig.lib.tsbuildinfo",
             "types": [
               "node",
               "@nx/react/typings/cssmodule.d.ts",
diff --git a/packages/vue/src/generators/application/application.spec.ts b/packages/vue/src/generators/application/application.spec.ts
index 7aa6caa4ff498..7ba61c6a6ce47 100644
--- a/packages/vue/src/generators/application/application.spec.ts
+++ b/packages/vue/src/generators/application/application.spec.ts
@@ -206,6 +206,7 @@ describe('application generator', () => {
             "outDir": "out-tsc/test",
             "resolveJsonModule": true,
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/test/tsconfig.app.tsbuildinfo",
             "types": [
               "vite/client",
             ],
diff --git a/packages/vue/src/generators/library/library.spec.ts b/packages/vue/src/generators/library/library.spec.ts
index 79ebba4e39a17..0dd3ac12d0079 100644
--- a/packages/vue/src/generators/library/library.spec.ts
+++ b/packages/vue/src/generators/library/library.spec.ts
@@ -526,6 +526,7 @@ module.exports = [
             "outDir": "out-tsc/my-lib",
             "resolveJsonModule": true,
             "rootDir": "src",
+            "tsBuildInfoFile": "out-tsc/my-lib/tsconfig.lib.tsbuildinfo",
             "types": [
               "vite/client",
             ],