diff --git a/e2e/release/src/independent-projects.test.ts b/e2e/release/src/independent-projects.test.ts
index f630be84be..52e89f769b 100644
--- a/e2e/release/src/independent-projects.test.ts
+++ b/e2e/release/src/independent-projects.test.ts
@@ -191,6 +191,7 @@ describe('nx release - independent projects', () => {
         {project-name} 📄 Resolved the current version as 0.0.0 from {project-name}/package.json
         {project-name} 📄 Using the provided version specifier "999.9.9-package.3".
         {project-name} ✍️  New version 999.9.9-package.3 written to {project-name}/package.json
+        {project-name} ✍️  Applying new version 999.9.9-package.3 to 1 package which depends on {project-name}
 
 
         "name": "@proj/{project-name}",
diff --git a/packages/js/src/generators/release-version/release-version.ts b/packages/js/src/generators/release-version/release-version.ts
index c426bbe4a1..592a410873 100644
--- a/packages/js/src/generators/release-version/release-version.ts
+++ b/packages/js/src/generators/release-version/release-version.ts
@@ -619,7 +619,7 @@ To fix this you will either need to add a package.json file at that location, or
       const allDependentProjects = Object.values(localPackageDependencies)
         .flat()
         .filter((localPackageDependency) => {
-          return localPackageDependency.target === project.name;
+          return localPackageDependency.target === projectName;
         });
 
       const includeTransitiveDependents =
@@ -643,10 +643,14 @@ To fix this you will either need to add a package.json file at that location, or
       const dependentProjectsOutsideCurrentBatch = [];
       // Track circular dependencies using value of project1:project2
       const circularDependencies = new Set<string>();
+      const projectsDependOnCurrentProject =
+        localPackageDependencies[projectName]?.map(
+          (localPackageDependencies) => localPackageDependencies.target
+        ) ?? [];
 
       for (const dependentProject of allDependentProjects) {
         // Track circular dependencies (add both directions for easy look up)
-        if (dependentProject.target === projectName) {
+        if (projectsDependOnCurrentProject.includes(dependentProject.source)) {
           circularDependencies.add(
             `${dependentProject.source}:${dependentProject.target}`
           );