diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index 9939900410..7ba5704f4b 100644
--- a/packages/react/src/generators/application/application.spec.ts
+++ b/packages/react/src/generators/application/application.spec.ts
@@ -941,7 +941,10 @@ describe('app', () => {
 
     it('should create correct tsconfig compilerOptions', () => {
       const tsconfigJson = readJson(viteAppTree, '/apps/my-app/tsconfig.json');
-      expect(tsconfigJson.compilerOptions.types).toMatchObject(['vite/client']);
+      expect(tsconfigJson.compilerOptions.types).toMatchObject([
+        'vite/client',
+        'vitest',
+      ]);
     });
 
     it('should create index.html and vite.config file at the root of the app', () => {
diff --git a/packages/react/src/utils/create-ts-config.ts b/packages/react/src/utils/create-ts-config.ts
index 363ddaa85c..6a1ea02232 100644
--- a/packages/react/src/utils/create-ts-config.ts
+++ b/packages/react/src/utils/create-ts-config.ts
@@ -11,6 +11,7 @@ export function createTsConfig(
     style?: string;
     bundler?: string;
     rootProject?: boolean;
+    unitTestRunner?: string;
   },
   relativePathToRootTsConfig: string
 ) {
@@ -36,7 +37,10 @@ export function createTsConfig(
   }
 
   if (options.bundler === 'vite') {
-    json.compilerOptions.types = ['vite/client'];
+    json.compilerOptions.types =
+      options.unitTestRunner === 'vitest'
+        ? ['vite/client', 'vitest']
+        : ['vite/client'];
   }
 
   // inline tsconfig.base.json into the project
diff --git a/packages/storybook/src/generators/configuration/configuration-nested.spec.ts b/packages/storybook/src/generators/configuration/configuration-nested.spec.ts
index 640c9a2f2a..7f3e0bfd9a 100644
--- a/packages/storybook/src/generators/configuration/configuration-nested.spec.ts
+++ b/packages/storybook/src/generators/configuration/configuration-nested.spec.ts
@@ -36,7 +36,7 @@ describe('@nrwl/storybook:configuration for workspaces with Root project', () =>
           skipLibCheck: true,
           strict: true,
           target: 'ESNext',
-          types: ['vite/client'],
+          types: ['vite/client', 'vitest'],
           useDefineForClassFields: true,
           noImplicitOverride: true,
           noPropertyAccessFromIndexSignature: true,
diff --git a/packages/vite/src/generators/configuration/__snapshots__/configuration.spec.ts.snap b/packages/vite/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
index c2208d8dac..1072a02cc3 100644
--- a/packages/vite/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
+++ b/packages/vite/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
@@ -2,7 +2,6 @@
 
 exports[`@nrwl/vite:configuration library mode should add config for building library 1`] = `
 "
-      
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -49,7 +48,6 @@ import { join } from 'path';
 
 exports[`@nrwl/vite:configuration library mode should set up non buildable library correctly 1`] = `
 "
-      /// <reference types=\\"vitest\\" />
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -295,7 +293,8 @@ exports[`@nrwl/vite:configuration transform React app to use Vite by providing c
           \\"builder\\": \\"@nrwl/vite:dev-server\\",
           \\"defaultConfiguration\\": \\"development\\",
           \\"options\\": {
-            \\"buildTarget\\": \\"my-test-mixed-react-app:build\\"
+            \\"buildTarget\\": \\"my-test-mixed-react-app:build\\",
+            \\"hmr\\": true
           },
           \\"configurations\\": {
             \\"development\\": {
@@ -339,7 +338,6 @@ exports[`@nrwl/vite:configuration transform React app to use Vite by providing c
 
 exports[`@nrwl/vite:configuration transform React app to use Vite should create vite.config file at the root of the app 1`] = `
 "
-      
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -429,7 +427,8 @@ exports[`@nrwl/vite:configuration transform React app to use Vite should transfo
           \\"builder\\": \\"@nrwl/vite:dev-server\\",
           \\"defaultConfiguration\\": \\"development\\",
           \\"options\\": {
-            \\"buildTarget\\": \\"my-test-react-app:build\\"
+            \\"buildTarget\\": \\"my-test-react-app:build\\",
+            \\"hmr\\": true
           },
           \\"configurations\\": {
             \\"development\\": {
@@ -473,7 +472,6 @@ exports[`@nrwl/vite:configuration transform React app to use Vite should transfo
 
 exports[`@nrwl/vite:configuration transform Web app to use Vite should create vite.config file at the root of the app 1`] = `
 "
-      
       import { defineConfig } from 'vite';
       
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -597,7 +595,6 @@ exports[`@nrwl/vite:configuration transform Web app to use Vite should transform
 
 exports[`@nrwl/vite:configuration vitest should create a vitest configuration if "includeVitest" is true 1`] = `
 "
-      /// <reference types=\\"vitest\\" />
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
diff --git a/packages/vite/src/generators/configuration/configuration.ts b/packages/vite/src/generators/configuration/configuration.ts
index b46c359fbb..8c14566c85 100644
--- a/packages/vite/src/generators/configuration/configuration.ts
+++ b/packages/vite/src/generators/configuration/configuration.ts
@@ -16,6 +16,7 @@ import {
   handleUnsupportedUserProvidedTargets,
   handleUnknownExecutors,
   UserProvidedTargetName,
+  TargetFlags,
 } from '../../utils/generator-utils';
 
 import initGenerator from '../init/init';
@@ -39,6 +40,7 @@ export async function viteConfigurationGenerator(tree: Tree, schema: Schema) {
    * This is for when we are convering an existing project
    * to use the vite executors.
    *  */
+  let projectAlreadyHasViteTargets: TargetFlags;
   if (!schema.newProject) {
     const userProvidedTargetName: UserProvidedTargetName = {
       build: schema.buildTarget,
@@ -50,8 +52,9 @@ export async function viteConfigurationGenerator(tree: Tree, schema: Schema) {
       validFoundTargetName,
       projectContainsUnsupportedExecutor,
       userProvidedTargetIsUnsupported,
+      alreadyHasNxViteTargets,
     } = findExistingTargetsInProject(targets, userProvidedTargetName);
-
+    projectAlreadyHasViteTargets = alreadyHasNxViteTargets;
     /**
      * This means that we only found unsupported build targets in that project.
      * The only way that buildTarget is defined, means that it is supported.
@@ -68,6 +71,20 @@ export async function viteConfigurationGenerator(tree: Tree, schema: Schema) {
       );
     }
 
+    if (
+      alreadyHasNxViteTargets.build &&
+      (alreadyHasNxViteTargets.serve ||
+        (!alreadyHasNxViteTargets.serve && projectType === 'library')) &&
+      alreadyHasNxViteTargets.test
+    ) {
+      throw new Error(
+        `The project ${schema.project} is aready configured to use the @nrwl/vite executors.
+        Please try a different project, or remove the existing targets 
+        and re-run this generator to reset the existing Vite Configuration.
+        `
+      );
+    }
+
     /**
      * This means that we did not find any supported executors
      * so we don't have any valid target names.
@@ -84,7 +101,7 @@ export async function viteConfigurationGenerator(tree: Tree, schema: Schema) {
       !validFoundTargetName.serve &&
       !validFoundTargetName.test
     ) {
-      await handleUnknownExecutors();
+      await handleUnknownExecutors(schema.project);
     }
 
     /**
@@ -127,13 +144,15 @@ export async function viteConfigurationGenerator(tree: Tree, schema: Schema) {
   });
   tasks.push(initTask);
 
-  addOrChangeBuildTarget(tree, schema, buildTargetName);
+  if (!projectAlreadyHasViteTargets?.build) {
+    addOrChangeBuildTarget(tree, schema, buildTargetName);
+  }
 
-  if (!schema.includeLib) {
+  if (!schema.includeLib && !projectAlreadyHasViteTargets?.serve) {
     addOrChangeServeTarget(tree, schema, serveTargetName);
   }
 
-  createOrEditViteConfig(tree, schema);
+  createOrEditViteConfig(tree, schema, false, projectAlreadyHasViteTargets);
 
   if (schema.includeVitest) {
     const vitestTask = await vitestGenerator(tree, {
diff --git a/packages/vite/src/generators/vitest/__snapshots__/vitest.spec.ts.snap b/packages/vite/src/generators/vitest/__snapshots__/vitest.spec.ts.snap
index 30a9a740b4..8c214be827 100644
--- a/packages/vite/src/generators/vitest/__snapshots__/vitest.spec.ts.snap
+++ b/packages/vite/src/generators/vitest/__snapshots__/vitest.spec.ts.snap
@@ -2,7 +2,6 @@
 
 exports[`vitest generator insourceTests should add the insourceSource option in the vite config 1`] = `
 "
-      /// <reference types=\\"vitest\\" />
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -37,7 +36,6 @@ exports[`vitest generator insourceTests should add the insourceSource option in
 
 exports[`vitest generator vite.config should create correct vite.config.ts file for apps 1`] = `
 "
-      /// <reference types=\\"vitest\\" />
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -70,7 +68,6 @@ exports[`vitest generator vite.config should create correct vite.config.ts file
 
 exports[`vitest generator vite.config should create correct vite.config.ts file for non buildable libs 1`] = `
 "
-      /// <reference types=\\"vitest\\" />
       import { defineConfig } from 'vite';
       import react from '@vitejs/plugin-react';
       import viteTsConfigPaths from 'vite-tsconfig-paths';
diff --git a/packages/vite/src/generators/vitest/vitest-generator.ts b/packages/vite/src/generators/vitest/vitest-generator.ts
index 6c6e90f545..1900936bee 100644
--- a/packages/vite/src/generators/vitest/vitest-generator.ts
+++ b/packages/vite/src/generators/vitest/vitest-generator.ts
@@ -96,6 +96,17 @@ function updateTsConfig(
         path: './tsconfig.spec.json',
       });
     }
+
+    if (!json.compilerOptions?.types?.includes('vitest')) {
+      if (json.compilerOptions?.types) {
+        json.compilerOptions.types.push('vitest');
+      } else {
+        if (!json.compilerOptions) {
+          json.compilerOptions = {};
+        }
+        json.compilerOptions.types = ['vitest'];
+      }
+    }
     return json;
   });
 
diff --git a/packages/vite/src/utils/__snapshots__/vite-config-edit-utils.spec.ts.snap b/packages/vite/src/utils/__snapshots__/vite-config-edit-utils.spec.ts.snap
index 5af4f8747e..d5711c5162 100644
--- a/packages/vite/src/utils/__snapshots__/vite-config-edit-utils.spec.ts.snap
+++ b/packages/vite/src/utils/__snapshots__/vite-config-edit-utils.spec.ts.snap
@@ -1,6 +1,54 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
-exports[`generator utils ensureBuildOptionsInViteConfig should add build options if build options don't exist 1`] = `
+exports[`ensureBuildOptionsInViteConfig should add build and test options if defineConfig is empty 1`] = `
+"import dts from 'vite-plugin-dts';
+import { join } from 'path';
+
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+    
+    // Configuration for building your library.
+    // See: https://vitejs.dev/guide/build.html#library-mode
+    build: {
+      lib: {
+        // Could also be a dictionary or array of multiple entry points.
+        entry: 'src/index.ts',
+        name: 'my-app',
+        fileName: 'index',
+        // Change this to the formats you want to support.
+        // Don't forgot to update your package.json as well.
+        formats: ['es', 'cjs']
+      },
+      rollupOptions: {
+        // External packages that should not be bundled into your library.
+        external: [\\"'react', 'react-dom', 'react/jsx-runtime'\\"]
+      }
+    },plugins: [
+      dts({
+      tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
+      // Faster builds by skipping tests. Set this to false to enable type checking.
+      skipDiagnostics: true,
+    }),
+      react(),
+      viteTsConfigPaths({
+        root: '../../',
+      }),
+    ],
+    test: {
+        globals: true,
+        cache: {
+          dir: '../node_modules/.vitest'
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+    },});
+    "
+`;
+
+exports[`ensureBuildOptionsInViteConfig should add build option but not update test option if test already setup 1`] = `
 "import dts from 'vite-plugin-dts';
 import { join } from 'path';
 import { defineConfig } from 'vite';
@@ -52,16 +100,15 @@ import { defineConfig } from 'vite';
     "
 `;
 
-exports[`generator utils ensureBuildOptionsInViteConfig should add build options if defineConfig is empty 1`] = `
+exports[`ensureBuildOptionsInViteConfig should add build options if build options don't exist 1`] = `
 "import dts from 'vite-plugin-dts';
 import { join } from 'path';
-
-    import { defineConfig } from 'vite';
+import { defineConfig } from 'vite';
     import react from '@vitejs/plugin-react';
     import viteTsConfigPaths from 'vite-tsconfig-paths';
 
     export default defineConfig({
-    
+      
     // Configuration for building your library.
     // See: https://vitejs.dev/guide/build.html#library-mode
     build: {
@@ -79,21 +126,33 @@ import { join } from 'path';
         external: [\\"'react', 'react-dom', 'react/jsx-runtime'\\"]
       }
     },plugins: [
-      dts({
+                    ...[
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+                    dts({
       tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
       // Faster builds by skipping tests. Set this to false to enable type checking.
       skipDiagnostics: true,
     }),
-      react(),
-      viteTsConfigPaths({
-        root: '../../',
-      }),
-    ],
+                ],
+
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+
     });
     "
 `;
 
-exports[`generator utils ensureBuildOptionsInViteConfig should add build options if defineConfig is not used 1`] = `
+exports[`ensureBuildOptionsInViteConfig should add build options if defineConfig is not used 1`] = `
 "import dts from 'vite-plugin-dts';
 import { join } from 'path';
 import { defineConfig } from 'vite';
@@ -117,6 +176,13 @@ import { defineConfig } from 'vite';
         // External packages that should not be bundled into your library.
         external: [\\"'react', 'react-dom', 'react/jsx-runtime'\\"]
       }
+    },test: {
+        globals: true,
+        cache: {
+          dir: '../node_modules/.vitest'
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
     },
       plugins: [
                     ...[
@@ -135,7 +201,7 @@ import { defineConfig } from 'vite';
     "
 `;
 
-exports[`generator utils ensureBuildOptionsInViteConfig should add build options if it is using conditional config 1`] = `
+exports[`ensureBuildOptionsInViteConfig should add build options if it is using conditional config - do nothing for test 1`] = `
 "
     import { defineConfig } from 'vite';
     export default defineConfig(({ command, mode, ssrBuild }) => {
@@ -157,7 +223,7 @@ exports[`generator utils ensureBuildOptionsInViteConfig should add build options
     "
 `;
 
-exports[`generator utils ensureBuildOptionsInViteConfig should add new build options if some build options already exist 1`] = `
+exports[`ensureBuildOptionsInViteConfig should add new build options if some build options already exist 1`] = `
 "import dts from 'vite-plugin-dts';
 import { join } from 'path';
 import { defineConfig } from 'vite';
@@ -199,4 +265,93 @@ import { defineConfig } from 'vite';
     "
 `;
 
-exports[`generator utils ensureBuildOptionsInViteConfig should not do anything if cannot understand syntax of vite config 1`] = `"console.log('Unknown syntax')"`;
+exports[`ensureBuildOptionsInViteConfig should not do anything if cannot understand syntax of vite config 1`] = `"console.log('Unknown syntax')"`;
+
+exports[`ensureBuildOptionsInViteConfig should not do anything if project has everything setup already 1`] = `
+"
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        dts({
+          tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
+          // Faster builds by skipping tests. Set this to false to enable type checking.
+          skipDiagnostics: true,
+        }),
+        react(),
+        viteTsConfigPaths({
+          root: '../../../',
+        }),
+      ],
+    
+      // Configuration for building your library.
+      // See: https://vitejs.dev/guide/build.html#library-mode
+      build: {
+        lib: {
+          // Could also be a dictionary or array of multiple entry points.
+          entry: 'src/index.ts',
+          name: 'pure-libs-react-vite',
+          fileName: 'index',
+          // Change this to the formats you want to support.
+          // Don't forgot to update your package.json as well.
+          formats: ['es', 'cjs'],
+        },
+        rollupOptions: {
+          // External packages that should not be bundled into your library.
+          external: ['react', 'react-dom', 'react/jsx-runtime'],
+        },
+      },
+    
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+    });
+    "
+`;
+
+exports[`ensureBuildOptionsInViteConfig should update both test and build options - keep existing settings 1`] = `
+"import dts from 'vite-plugin-dts';
+import { join } from 'path';
+import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+                    ...[
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+                    dts({
+      tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
+      // Faster builds by skipping tests. Set this to false to enable type checking.
+      skipDiagnostics: true,
+    }),
+                ],
+
+      test: {
+                  ...{
+        my: 'option',
+      },
+                  ...{\\"globals\\":true,\\"cache\\":{\\"dir\\":\\"../node_modules/.vitest\\"},\\"environment\\":\\"jsdom\\",\\"include\\":[\\"src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}\\"]}
+               },
+
+      build: {
+                  ...{
+        my: 'option',
+      },
+                  ...{\\"lib\\":{\\"entry\\":\\"src/index.ts\\",\\"name\\":\\"my-app\\",\\"fileName\\":\\"index\\",\\"formats\\":[\\"es\\",\\"cjs\\"]},\\"rollupOptions\\":{\\"external\\":[\\"'react', 'react-dom', 'react/jsx-runtime'\\"]}}
+               }
+
+    });
+    "
+`;
diff --git a/packages/vite/src/utils/generator-utils.ts b/packages/vite/src/utils/generator-utils.ts
index b24ea348ec..ebdffbd3be 100644
--- a/packages/vite/src/utils/generator-utils.ts
+++ b/packages/vite/src/utils/generator-utils.ts
@@ -15,7 +15,7 @@ import { VitestExecutorOptions } from '../executors/test/schema';
 import { Schema } from '../generators/configuration/schema';
 import { ensureBuildOptionsInViteConfig } from './vite-config-edit-utils';
 
-export interface UserProvidedTargetIsUnsupported {
+export interface TargetFlags {
   build?: boolean;
   serve?: boolean;
   test?: boolean;
@@ -41,7 +41,8 @@ export function findExistingTargetsInProject(
 ): {
   validFoundTargetName: ValidFoundTargetName;
   projectContainsUnsupportedExecutor?: boolean;
-  userProvidedTargetIsUnsupported?: UserProvidedTargetIsUnsupported;
+  userProvidedTargetIsUnsupported?: TargetFlags;
+  alreadyHasNxViteTargets?: TargetFlags;
 } {
   let validFoundBuildTarget: string | undefined,
     validFoundServeTarget: string | undefined,
@@ -49,7 +50,10 @@ export function findExistingTargetsInProject(
     projectContainsUnsupportedExecutor: boolean | undefined,
     unsupportedUserProvidedTargetBuild: boolean | undefined,
     unsupportedUserProvidedTargetServe: boolean | undefined,
-    unsupportedUserProvidedTargetTest: boolean | undefined;
+    unsupportedUserProvidedTargetTest: boolean | undefined,
+    alreadyHasNxViteTargetBuild: boolean | undefined,
+    alreadyHasNxViteTargetServe: boolean | undefined,
+    alreadyHasNxViteTargetTest: boolean | undefined;
 
   const arrayOfSupportedBuilders = [
     '@nxext/vite:build',
@@ -82,6 +86,12 @@ export function findExistingTargetsInProject(
     '@nrwl/js:tsc',
   ];
 
+  const arrayOfNxViteExecutors = [
+    '@nrwl/vite:build',
+    '@nrwl/vite:dev-server',
+    '@nrwl/vite:test',
+  ];
+
   // First, we check if the user has provided a target
   // If they have, we check if the executor the target is using is supported
   // If it's not supported, then we set the unsupported flag to true for that target
@@ -134,6 +144,17 @@ export function findExistingTargetsInProject(
     ) {
       break;
     }
+
+    if (targets[target].executor === '@nrwl/vite:build') {
+      alreadyHasNxViteTargetBuild = true;
+    }
+    if (targets[target].executor === '@nrwl/vite:dev-server') {
+      alreadyHasNxViteTargetServe = true;
+    }
+    if (targets[target].executor === '@nrwl/vite:test') {
+      alreadyHasNxViteTargetTest = true;
+    }
+
     if (
       !validFoundBuildTarget &&
       arrayOfSupportedBuilders.includes(targets[target].executor)
@@ -152,7 +173,10 @@ export function findExistingTargetsInProject(
     ) {
       validFoundTestTarget = target;
     }
-    if (arrayofUnsupportedExecutors.includes(targets[target].executor)) {
+    if (
+      !arrayOfNxViteExecutors.includes(targets[target].executor) &&
+      arrayofUnsupportedExecutors.includes(targets[target].executor)
+    ) {
       projectContainsUnsupportedExecutor = true;
     }
   }
@@ -169,6 +193,11 @@ export function findExistingTargetsInProject(
       serve: unsupportedUserProvidedTargetServe,
       test: unsupportedUserProvidedTargetTest,
     },
+    alreadyHasNxViteTargets: {
+      build: alreadyHasNxViteTargetBuild,
+      serve: alreadyHasNxViteTargetServe,
+      test: alreadyHasNxViteTargetTest,
+    },
   };
 }
 
@@ -270,6 +299,9 @@ export function addOrChangeServeTarget(
     }
     project.targets[target].options = {
       ...serveOptions,
+      https: project.targets[target].options?.https,
+      hmr: project.targets[target].options?.hmr,
+      open: project.targets[target].options?.open,
     };
     project.targets[target].executor = '@nrwl/vite:dev-server';
   } else {
@@ -308,6 +340,7 @@ export function editTsConfig(tree: Tree, options: Schema) {
       config.compilerOptions = {
         target: 'ESNext',
         useDefineForClassFields: true,
+        module: 'ESNext',
         lib: ['DOM', 'DOM.Iterable', 'ESNext'],
         allowJs: false,
         skipLibCheck: true,
@@ -315,13 +348,14 @@ export function editTsConfig(tree: Tree, options: Schema) {
         allowSyntheticDefaultImports: true,
         strict: true,
         forceConsistentCasingInFileNames: true,
-        module: 'ESNext',
         moduleResolution: 'Node',
         resolveJsonModule: true,
         isolatedModules: true,
         noEmit: true,
         jsx: 'react-jsx',
-        types: ['vite/client'],
+        types: options.includeVitest
+          ? ['vite/client', 'vitest']
+          : ['vite/client'],
       };
       config.include = [...config.include, 'src'];
       break;
@@ -331,17 +365,19 @@ export function editTsConfig(tree: Tree, options: Schema) {
         useDefineForClassFields: true,
         module: 'ESNext',
         lib: ['ESNext', 'DOM'],
-        moduleResolution: 'Node',
+        skipLibCheck: true,
+        esModuleInterop: true,
         strict: true,
+        moduleResolution: 'Node',
         resolveJsonModule: true,
         isolatedModules: true,
-        esModuleInterop: true,
         noEmit: true,
         noUnusedLocals: true,
         noUnusedParameters: true,
         noImplicitReturns: true,
-        skipLibCheck: true,
-        types: ['vite/client'],
+        types: options.includeVitest
+          ? ['vite/client', 'vitest']
+          : ['vite/client'],
       };
       config.include = [...config.include, 'src'];
       break;
@@ -418,7 +454,8 @@ export function moveAndEditIndexHtml(
 export function createOrEditViteConfig(
   tree: Tree,
   options: Schema,
-  onlyVitest?: boolean
+  onlyVitest?: boolean,
+  projectAlreadyHasViteTargets?: TargetFlags
 ) {
   const projectConfig = readProjectConfiguration(tree, options.project);
 
@@ -484,9 +521,6 @@ export function createOrEditViteConfig(
     }
   },`
     : '';
-  const vitestTypes = options.includeVitest
-    ? `/// <reference types="vitest" />`
-    : '';
 
   const defineOption = options.inSourceTests
     ? `define: {
@@ -529,13 +563,15 @@ export function createOrEditViteConfig(
       buildOption,
       dtsPlugin,
       dtsImportLine,
-      pluginOption
+      pluginOption,
+      testOption,
+      offsetFromRoot(projectConfig.root),
+      projectAlreadyHasViteTargets
     );
     return;
   }
 
   viteConfigContent = `
-      ${vitestTypes}
       import { defineConfig } from 'vite';
       ${reactPluginImportLine}
       import viteTsConfigPaths from 'vite-tsconfig-paths';
@@ -588,7 +624,7 @@ export function getViteConfigPathForProject(
 }
 
 export async function handleUnsupportedUserProvidedTargets(
-  userProvidedTargetIsUnsupported: UserProvidedTargetIsUnsupported,
+  userProvidedTargetIsUnsupported: TargetFlags,
   userProvidedTargetName: UserProvidedTargetName,
   validFoundTargetName: ValidFoundTargetName
 ) {
@@ -654,10 +690,10 @@ async function handleUnsupportedUserProvidedTargetsErrors(
   }
 }
 
-export async function handleUnknownExecutors() {
+export async function handleUnknownExecutors(projectName: string) {
   logger.warn(
     `
-      We could not find any targets in your project that use executors which 
+      We could not find any targets in project ${projectName} that use executors which 
       can be converted to the @nrwl/vite executors.
 
       This either means that your project may not have a target 
@@ -691,8 +727,15 @@ function handleViteConfigFileExists(
   buildOption: string,
   dtsPlugin: string,
   dtsImportLine: string,
-  pluginOption: string
+  pluginOption: string,
+  testOption: string,
+  offsetFromRoot: string,
+  projectAlreadyHasViteTargets?: TargetFlags
 ) {
+  if (projectAlreadyHasViteTargets.build && projectAlreadyHasViteTargets.test) {
+    return;
+  }
+
   logger.info(`vite.config.ts already exists for project ${options.project}.`);
   const buildOptionObject = {
     lib: {
@@ -709,6 +752,16 @@ function handleViteConfigFileExists(
       ],
     },
   };
+
+  const testOptionObject = {
+    globals: true,
+    cache: {
+      dir: `${offsetFromRoot}node_modules/.vitest`,
+    },
+    environment: 'jsdom',
+    include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+  };
+
   const changed = ensureBuildOptionsInViteConfig(
     tree,
     viteConfigPath,
@@ -716,7 +769,10 @@ function handleViteConfigFileExists(
     buildOptionObject,
     dtsPlugin,
     dtsImportLine,
-    pluginOption
+    pluginOption,
+    testOption,
+    testOptionObject,
+    projectAlreadyHasViteTargets
   );
 
   if (!changed) {
@@ -729,7 +785,7 @@ function handleViteConfigFileExists(
     );
   } else {
     logger.info(`
-      Vite configuration file (${viteConfigPath}) has been updated with the required settings for build.
+      Vite configuration file (${viteConfigPath}) has been updated with the required settings for the new target(s).
       `);
   }
 }
diff --git a/packages/vite/src/utils/test-files/test-vite-configs.ts b/packages/vite/src/utils/test-files/test-vite-configs.ts
new file mode 100644
index 0000000000..b900420038
--- /dev/null
+++ b/packages/vite/src/utils/test-files/test-vite-configs.ts
@@ -0,0 +1,254 @@
+export const noBuildOptions = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+
+    });
+    `;
+
+export const someBuildOptions = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+
+      build: {
+        my: 'option',
+      }
+
+    });
+    `;
+
+export const noContentDefineConfig = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({});
+    `;
+
+export const conditionalConfig = `
+    import { defineConfig } from 'vite';
+    export default defineConfig(({ command, mode, ssrBuild }) => {
+      if (command === 'serve') {
+        return {
+          port: 4200,
+          host: 'localhost',
+        }
+      } else {
+        // command === 'build'
+        return {
+          my: 'option',
+        }
+      }
+    })
+    `;
+
+export const configNoDefineConfig = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default {
+      plugins: [
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+    };
+    `;
+
+export const noBuildOptionsHasTestOption = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+
+    });
+    `;
+
+export const someBuildOptionsSomeTestOption = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        react(),
+        viteTsConfigPaths({
+          root: '../../',
+        }),
+      ],
+
+      test: {
+        my: 'option',
+      },
+
+      build: {
+        my: 'option',
+      }
+
+    });
+    `;
+
+export const hasEverything = `
+    import { defineConfig } from 'vite';
+    import react from '@vitejs/plugin-react';
+    import viteTsConfigPaths from 'vite-tsconfig-paths';
+
+    export default defineConfig({
+      plugins: [
+        dts({
+          tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
+          // Faster builds by skipping tests. Set this to false to enable type checking.
+          skipDiagnostics: true,
+        }),
+        react(),
+        viteTsConfigPaths({
+          root: '../../../',
+        }),
+      ],
+    
+      // Configuration for building your library.
+      // See: https://vitejs.dev/guide/build.html#library-mode
+      build: {
+        lib: {
+          // Could also be a dictionary or array of multiple entry points.
+          entry: 'src/index.ts',
+          name: 'pure-libs-react-vite',
+          fileName: 'index',
+          // Change this to the formats you want to support.
+          // Don't forgot to update your package.json as well.
+          formats: ['es', 'cjs'],
+        },
+        rollupOptions: {
+          // External packages that should not be bundled into your library.
+          external: ['react', 'react-dom', 'react/jsx-runtime'],
+        },
+      },
+    
+      test: {
+        globals: true,
+        cache: {
+          dir: '../../../node_modules/.vitest',
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+      },
+    });
+    `;
+
+export const buildOption = `
+    // Configuration for building your library.
+    // See: https://vitejs.dev/guide/build.html#library-mode
+    build: {
+      lib: {
+        // Could also be a dictionary or array of multiple entry points.
+        entry: 'src/index.ts',
+        name: 'my-app',
+        fileName: 'index',
+        // Change this to the formats you want to support.
+        // Don't forgot to update your package.json as well.
+        formats: ['es', 'cjs']
+      },
+      rollupOptions: {
+        // External packages that should not be bundled into your library.
+        external: ["'react', 'react-dom', 'react/jsx-runtime'"]
+      }
+    },`;
+export const buildOptionObject = {
+  lib: {
+    entry: 'src/index.ts',
+    name: 'my-app',
+    fileName: 'index',
+    formats: ['es', 'cjs'],
+  },
+  rollupOptions: {
+    external: ["'react', 'react-dom', 'react/jsx-runtime'"],
+  },
+};
+
+export const testOption = `test: {
+        globals: true,
+        cache: {
+          dir: '../node_modules/.vitest'
+        },
+        environment: 'jsdom',
+        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+    },`;
+
+export const testOptionObject = {
+  globals: true,
+  cache: {
+    dir: `../node_modules/.vitest`,
+  },
+  environment: 'jsdom',
+  include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
+};
+
+export const dtsPlugin = `dts({
+      tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
+      // Faster builds by skipping tests. Set this to false to enable type checking.
+      skipDiagnostics: true,
+    }),`;
+export const dtsImportLine = `import dts from 'vite-plugin-dts';\nimport { join } from 'path';`;
+
+export const pluginOption = `
+    plugins: [
+      ${dtsPlugin}
+      react(),
+      viteTsConfigPaths({
+        root: '../../',
+      }),
+    ],
+    `;
diff --git a/packages/vite/src/utils/test-utils.ts b/packages/vite/src/utils/test-utils.ts
index ed26b92d83..9752bdd1bb 100644
--- a/packages/vite/src/utils/test-utils.ts
+++ b/packages/vite/src/utils/test-utils.ts
@@ -1,4 +1,4 @@
-import { parseJson, Tree, writeJson } from '@nrwl/devkit';
+import { Tree, writeJson } from '@nrwl/devkit';
 import * as reactAppConfig from './test-files/react-project.config.json';
 import * as reactViteConfig from './test-files/react-vite-project.config.json';
 import * as webAppConfig from './test-files/web-project.config.json';
@@ -90,8 +90,7 @@ export function mockViteReactAppGenerator(tree: Tree): Tree {
 
   tree.write(
     `apps/${appName}/vite.config.ts`,
-    `/// <reference types="vitest" />
-    import { defineConfig } from 'vite';
+    `import { defineConfig } from 'vite';
     import react from '@vitejs/plugin-react';
     import tsconfigPaths from 'vite-tsconfig-paths';
     
@@ -534,9 +533,7 @@ export function mockReactLibNonBuildableVitestRunnerGenerator(
 
   tree.write(
     `libs/${libName}/vite.config.ts`,
-    `
-    /// <reference types="vitest" />
-    import { defineConfig } from 'vite';
+    `import { defineConfig } from 'vite';
     import react from '@vitejs/plugin-react';
     import viteTsConfigPaths from 'vite-tsconfig-paths';
 
diff --git a/packages/vite/src/utils/vite-config-edit-utils.spec.ts b/packages/vite/src/utils/vite-config-edit-utils.spec.ts
index c790283851..69aefaadc2 100644
--- a/packages/vite/src/utils/vite-config-edit-utils.spec.ts
+++ b/packages/vite/src/utils/vite-config-edit-utils.spec.ts
@@ -1,281 +1,221 @@
 import { Tree } from '@nrwl/devkit';
 import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
 import { tsquery } from '@phenomnomnominal/tsquery';
-
+import {
+  buildOption,
+  buildOptionObject,
+  conditionalConfig,
+  configNoDefineConfig,
+  dtsImportLine,
+  dtsPlugin,
+  hasEverything,
+  noBuildOptions,
+  noBuildOptionsHasTestOption,
+  noContentDefineConfig,
+  pluginOption,
+  someBuildOptions,
+  someBuildOptionsSomeTestOption,
+  testOption,
+  testOptionObject,
+} from './test-files/test-vite-configs';
 import { ensureBuildOptionsInViteConfig } from './vite-config-edit-utils';
 
-describe('generator utils', () => {
+describe('ensureBuildOptionsInViteConfig', () => {
   let tree: Tree;
 
   beforeEach(() => {
     tree = createTreeWithEmptyV1Workspace();
   });
 
-  describe('ensureBuildOptionsInViteConfig', () => {
-    let tree: Tree;
+  it("should add build options if build options don't exist", () => {
+    tree.write('apps/my-app/vite.config.ts', noBuildOptions);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: true, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    const file = tsquery.ast(appFileContent);
+    const buildNode = tsquery.query(
+      file,
+      'PropertyAssignment:has(Identifier[name="build"])'
+    );
+    expect(buildNode).toBeDefined();
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    const buildOption = `
-    // Configuration for building your library.
-    // See: https://vitejs.dev/guide/build.html#library-mode
-    build: {
-      lib: {
-        // Could also be a dictionary or array of multiple entry points.
-        entry: 'src/index.ts',
-        name: 'my-app',
-        fileName: 'index',
-        // Change this to the formats you want to support.
-        // Don't forgot to update your package.json as well.
-        formats: ['es', 'cjs']
-      },
-      rollupOptions: {
-        // External packages that should not be bundled into your library.
-        external: ["'react', 'react-dom', 'react/jsx-runtime'"]
-      }
-    },`;
-    const buildOptionObject = {
-      lib: {
-        entry: 'src/index.ts',
-        name: 'my-app',
-        fileName: 'index',
-        formats: ['es', 'cjs'],
-      },
-      rollupOptions: {
-        external: ["'react', 'react-dom', 'react/jsx-runtime'"],
-      },
-    };
-    const dtsPlugin = `dts({
-      tsConfigFilePath: join(__dirname, 'tsconfig.lib.json'),
-      // Faster builds by skipping tests. Set this to false to enable type checking.
-      skipDiagnostics: true,
-    }),`;
-    const dtsImportLine = `import dts from 'vite-plugin-dts';\nimport { join } from 'path';`;
+  it('should add new build options if some build options already exist', () => {
+    tree.write('apps/my-app/vite.config.ts', someBuildOptions);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: true, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    const file = tsquery.ast(appFileContent);
+    const buildNode = tsquery.query(
+      file,
+      'PropertyAssignment:has(Identifier[name="build"])'
+    );
+    expect(buildNode).toBeDefined();
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    const pluginOption = `
-    plugins: [
-      ${dtsPlugin}
-      react(),
-      viteTsConfigPaths({
-        root: '../../',
-      }),
-    ],
-    `;
+  it('should add build and test options if defineConfig is empty', () => {
+    tree.write('apps/my-app/vite.config.ts', noContentDefineConfig);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: false, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    const file = tsquery.ast(appFileContent);
+    const buildNode = tsquery.query(
+      file,
+      'PropertyAssignment:has(Identifier[name="build"])'
+    );
+    expect(buildNode).toBeDefined();
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    const noBuildOptions = `
-    import { defineConfig } from 'vite';
-    import react from '@vitejs/plugin-react';
-    import viteTsConfigPaths from 'vite-tsconfig-paths';
+  it('should add build options if it is using conditional config - do nothing for test', () => {
+    tree.write('apps/my-app/vite.config.ts', conditionalConfig);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: false, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    const file = tsquery.ast(appFileContent);
+    const buildNode = tsquery.query(
+      file,
+      'PropertyAssignment:has(Identifier[name="build"])'
+    );
+    expect(buildNode).toBeDefined();
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    export default defineConfig({
-      plugins: [
-        react(),
-        viteTsConfigPaths({
-          root: '../../',
-        }),
-      ],
+  it('should add build options if defineConfig is not used', () => {
+    tree.write('apps/my-app/vite.config.ts', configNoDefineConfig);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: false, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    const file = tsquery.ast(appFileContent);
+    const buildNode = tsquery.query(
+      file,
+      'PropertyAssignment:has(Identifier[name="build"])'
+    );
+    expect(buildNode).toBeDefined();
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-      test: {
-        globals: true,
-        cache: {
-          dir: '../../node_modules/.vitest',
-        },
-        environment: 'jsdom',
-        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
-      },
+  it('should not do anything if cannot understand syntax of vite config', () => {
+    tree.write('apps/my-app/vite.config.ts', `console.log('Unknown syntax')`);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: false, serve: false }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    });
-    `;
+  it('should not do anything if project has everything setup already', () => {
+    tree.write('apps/my-app/vite.config.ts', hasEverything);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: true, test: true, serve: true }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    const someBuildOptions = `
-    import { defineConfig } from 'vite';
-    import react from '@vitejs/plugin-react';
-    import viteTsConfigPaths from 'vite-tsconfig-paths';
+  it('should add build option but not update test option if test already setup', () => {
+    tree.write('apps/my-app/vite.config.ts', noBuildOptionsHasTestOption);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: true, serve: true }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    expect(appFileContent).toMatchSnapshot();
+  });
 
-    export default defineConfig({
-      plugins: [
-        react(),
-        viteTsConfigPaths({
-          root: '../../',
-        }),
-      ],
-
-      test: {
-        globals: true,
-        cache: {
-          dir: '../../node_modules/.vitest',
-        },
-        environment: 'jsdom',
-        include: ['src/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
-      },
-
-      build: {
-        my: 'option',
-      }
-
-    });
-    `;
-
-    const noContentDefineConfig = `
-    import { defineConfig } from 'vite';
-    import react from '@vitejs/plugin-react';
-    import viteTsConfigPaths from 'vite-tsconfig-paths';
-
-    export default defineConfig({});
-    `;
-
-    const conditionalConfig = `
-    import { defineConfig } from 'vite';
-    export default defineConfig(({ command, mode, ssrBuild }) => {
-      if (command === 'serve') {
-        return {
-          port: 4200,
-          host: 'localhost',
-        }
-      } else {
-        // command === 'build'
-        return {
-          my: 'option',
-        }
-      }
-    })
-    `;
-
-    const configNoDefineConfig = `
-    import { defineConfig } from 'vite';
-    import react from '@vitejs/plugin-react';
-    import viteTsConfigPaths from 'vite-tsconfig-paths';
-
-    export default {
-      plugins: [
-        react(),
-        viteTsConfigPaths({
-          root: '../../',
-        }),
-      ],
-    };
-    `;
-
-    beforeEach(() => {
-      tree = createTreeWithEmptyV1Workspace();
-    });
-
-    it("should add build options if build options don't exist", () => {
-      tree.write('apps/my-app/vite.config.ts', noBuildOptions);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      const file = tsquery.ast(appFileContent);
-      const buildNode = tsquery.query(
-        file,
-        'PropertyAssignment:has(Identifier[name="build"])'
-      );
-      expect(buildNode).toBeDefined();
-      expect(appFileContent).toMatchSnapshot();
-    });
-
-    it('should add new build options if some build options already exist', () => {
-      tree.write('apps/my-app/vite.config.ts', someBuildOptions);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      const file = tsquery.ast(appFileContent);
-      const buildNode = tsquery.query(
-        file,
-        'PropertyAssignment:has(Identifier[name="build"])'
-      );
-      expect(buildNode).toBeDefined();
-      expect(appFileContent).toMatchSnapshot();
-    });
-
-    it('should add build options if defineConfig is empty', () => {
-      tree.write('apps/my-app/vite.config.ts', noContentDefineConfig);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      const file = tsquery.ast(appFileContent);
-      const buildNode = tsquery.query(
-        file,
-        'PropertyAssignment:has(Identifier[name="build"])'
-      );
-      expect(buildNode).toBeDefined();
-      expect(appFileContent).toMatchSnapshot();
-    });
-
-    it('should add build options if it is using conditional config', () => {
-      tree.write('apps/my-app/vite.config.ts', conditionalConfig);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      const file = tsquery.ast(appFileContent);
-      const buildNode = tsquery.query(
-        file,
-        'PropertyAssignment:has(Identifier[name="build"])'
-      );
-      expect(buildNode).toBeDefined();
-      expect(appFileContent).toMatchSnapshot();
-    });
-
-    it('should add build options if defineConfig is not used', () => {
-      tree.write('apps/my-app/vite.config.ts', configNoDefineConfig);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      const file = tsquery.ast(appFileContent);
-      const buildNode = tsquery.query(
-        file,
-        'PropertyAssignment:has(Identifier[name="build"])'
-      );
-      expect(buildNode).toBeDefined();
-      expect(appFileContent).toMatchSnapshot();
-    });
-
-    it('should not do anything if cannot understand syntax of vite config', () => {
-      tree.write('apps/my-app/vite.config.ts', `console.log('Unknown syntax')`);
-      ensureBuildOptionsInViteConfig(
-        tree,
-        'apps/my-app/vite.config.ts',
-        buildOption,
-        buildOptionObject,
-        dtsPlugin,
-        dtsImportLine,
-        pluginOption
-      );
-      const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
-      expect(appFileContent).toMatchSnapshot();
-    });
+  it('should update both test and build options - keep existing settings', () => {
+    tree.write('apps/my-app/vite.config.ts', someBuildOptionsSomeTestOption);
+    ensureBuildOptionsInViteConfig(
+      tree,
+      'apps/my-app/vite.config.ts',
+      buildOption,
+      buildOptionObject,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption,
+      testOption,
+      testOptionObject,
+      { build: false, test: false, serve: true }
+    );
+    const appFileContent = tree.read('apps/my-app/vite.config.ts', 'utf-8');
+    expect(appFileContent).toMatchSnapshot();
   });
 });
diff --git a/packages/vite/src/utils/vite-config-edit-utils.ts b/packages/vite/src/utils/vite-config-edit-utils.ts
index c65a8f888d..de446fe71f 100644
--- a/packages/vite/src/utils/vite-config-edit-utils.ts
+++ b/packages/vite/src/utils/vite-config-edit-utils.ts
@@ -2,59 +2,77 @@ import { applyChangesToString, ChangeType, Tree } from '@nrwl/devkit';
 import { findNodes } from 'nx/src/utils/typescript';
 import ts = require('typescript');
 import { tsquery } from '@phenomnomnominal/tsquery';
+import { TargetFlags } from './generator-utils';
 
 export function ensureBuildOptionsInViteConfig(
   tree: Tree,
   path: string,
-  buildConfigContent: string,
+  buildConfigString: string,
   buildConfigObject: {},
   dtsPlugin: string,
   dtsImportLine: string,
-  pluginOption: string
+  pluginOption: string,
+  testConfigString: string,
+  testConfigObject: {},
+  projectAlreadyHasViteTargets?: TargetFlags
 ): boolean {
   const fileContent = tree.read(path, 'utf-8');
-  const file = tsquery.ast(fileContent);
-  const newContent = handlePluginNode(
-    file,
-    fileContent,
-    dtsPlugin,
-    dtsImportLine,
-    pluginOption
-  );
 
-  const buildUpdatedContent = handleBuildNode(
-    newContent ?? fileContent,
-    buildConfigContent,
-    buildConfigObject
-  );
+  let updatedContent = undefined;
 
-  if (buildUpdatedContent) {
-    tree.write(path, buildUpdatedContent);
+  if (!projectAlreadyHasViteTargets?.test && testConfigString?.length) {
+    updatedContent = handleBuildOrTestNode(
+      fileContent,
+      testConfigString,
+      testConfigObject,
+      'test'
+    );
+  }
+
+  if (!projectAlreadyHasViteTargets?.build && buildConfigString?.length) {
+    updatedContent = handlePluginNode(
+      updatedContent ?? fileContent,
+      dtsPlugin,
+      dtsImportLine,
+      pluginOption
+    );
+
+    updatedContent = handleBuildOrTestNode(
+      updatedContent ?? fileContent,
+      buildConfigString,
+      buildConfigObject,
+      'build'
+    );
+  }
+
+  if (updatedContent) {
+    tree.write(path, updatedContent);
     return true;
   } else {
     return false;
   }
 }
 
-function handleBuildNode(
+function handleBuildOrTestNode(
   updatedFileContent: string,
-  buildConfigContent: string,
-  buildConfigObject: {}
+  configContentString: string,
+  configContentObject: {},
+  name: 'build' | 'test'
 ): string | undefined {
   const buildNode = tsquery.query(
     updatedFileContent,
-    'PropertyAssignment:has(Identifier[name="build"])'
+    `PropertyAssignment:has(Identifier[name="${name}"])`
   );
 
   if (buildNode.length) {
     return tsquery.replace(
       updatedFileContent,
-      'PropertyAssignment:has(Identifier[name="build"])',
+      `PropertyAssignment:has(Identifier[name="${name}"])`,
       (node: ts.Node) => {
         const found = tsquery.query(node, 'ObjectLiteralExpression');
-        return `build: {
+        return `${name}: {
                   ...${found?.[0].getText()},
-                  ...${JSON.stringify(buildConfigObject)}
+                  ...${JSON.stringify(configContentObject)}
                }`;
       }
     );
@@ -71,11 +89,16 @@ function handleBuildNode(
       );
 
       if (conditionalConfig.length) {
-        return transformConditionalConfig(
-          conditionalConfig,
-          updatedFileContent,
-          buildConfigContent
-        );
+        if (name === 'build') {
+          return transformConditionalConfig(
+            conditionalConfig,
+            updatedFileContent,
+            configContentString
+          );
+        } else {
+          // no test config in conditional config
+          return undefined;
+        }
       } else {
         const propertyAssignments = tsquery.query(
           foundDefineConfig[0],
@@ -87,7 +110,7 @@ function handleBuildNode(
             {
               type: ChangeType.Insert,
               index: propertyAssignments[0].getStart(),
-              text: buildConfigContent,
+              text: configContentString,
             },
           ]);
         } else {
@@ -95,7 +118,7 @@ function handleBuildNode(
             {
               type: ChangeType.Insert,
               index: foundDefineConfig[0].getStart() + 14,
-              text: buildConfigContent,
+              text: configContentString,
             },
           ]);
         }
@@ -117,7 +140,7 @@ function handleBuildNode(
           {
             type: ChangeType.Insert,
             index: startOfObject + 1,
-            text: buildConfigContent,
+            text: configContentString,
           },
         ]);
       } catch {
@@ -131,7 +154,6 @@ function transformCurrentBuildObject(
   index: number,
   returnStatements: ts.ReturnStatement[],
   appFileContent: string,
-
   buildConfigObject: {}
 ): string | undefined {
   if (!returnStatements?.[index]) {
@@ -244,12 +266,12 @@ function transformConditionalConfig(
 }
 
 function handlePluginNode(
-  file: ts.SourceFile,
   appFileContent: string,
   dtsPlugin: string,
   dtsImportLine: string,
   pluginOption: string
 ): string | undefined {
+  const file = tsquery.ast(appFileContent);
   const pluginsNode = tsquery.query(
     file,
     'PropertyAssignment:has(Identifier[name="plugins"])'
@@ -341,15 +363,7 @@ function handlePluginNode(
 
   if (writeFile) {
     if (!appFileContent.includes(`import dts from 'vite-plugin-dts'`)) {
-      if (appFileContent.includes('/// <reference types="vitest" />')) {
-        return appFileContent.replace(
-          '/// <reference types="vitest" />',
-          `/// <reference types="vitest" />
-            ${dtsImportLine}\n`
-        );
-      } else {
-        return dtsImportLine + '\n' + appFileContent;
-      }
+      return dtsImportLine + '\n' + appFileContent;
     }
     return appFileContent;
   }
diff --git a/packages/web/src/generators/application/application.spec.ts b/packages/web/src/generators/application/application.spec.ts
index 00fab792bb..9589fd2988 100644
--- a/packages/web/src/generators/application/application.spec.ts
+++ b/packages/web/src/generators/application/application.spec.ts
@@ -160,7 +160,10 @@ describe('app', () => {
           path: './tsconfig.spec.json',
         },
       ]);
-      expect(tsconfig.compilerOptions.types).toMatchObject(['vite/client']);
+      expect(tsconfig.compilerOptions.types).toMatchObject([
+        'vite/client',
+        'vitest',
+      ]);
 
       expect(tree.exists('apps/my-app-e2e/cypress.config.ts')).toBeTruthy();
       expect(tree.exists('apps/my-app/index.html')).toBeTruthy();
@@ -563,7 +566,10 @@ describe('app', () => {
 
     it('should create correct tsconfig compilerOptions', () => {
       const tsconfigJson = readJson(viteAppTree, '/apps/my-app/tsconfig.json');
-      expect(tsconfigJson.compilerOptions.types).toMatchObject(['vite/client']);
+      expect(tsconfigJson.compilerOptions.types).toMatchObject([
+        'vite/client',
+        'vitest',
+      ]);
     });
 
     it('should create index.html and vite.config file at the root of the app', () => {