diff --git a/e2e/next/src/next-appdir.test.ts b/e2e/next/src/next-appdir.test.ts
index 9a7b47e327..bc21eb5f3d 100644
--- a/e2e/next/src/next-appdir.test.ts
+++ b/e2e/next/src/next-appdir.test.ts
@@ -1,18 +1,11 @@
 import {
   cleanupProject,
-  isNotWindows,
-  killPorts,
   newProject,
   runCLI,
-  runCommandUntil,
-  tmpProjPath,
   uniq,
   updateFile,
 } from '@nx/e2e/utils';
-import { getData } from 'ajv/dist/compile/validate';
-import { detectPackageManager } from 'nx/src/utils/package-manager';
 import { checkApp } from './utils';
-import { p } from 'vitest/dist/types-b7007192';
 
 describe('Next.js App Router', () => {
   let proj: string;
diff --git a/e2e/next/src/next-styles.test.ts b/e2e/next/src/next-styles.test.ts
index 6e1002c7fd..5ba0700d4e 100644
--- a/e2e/next/src/next-styles.test.ts
+++ b/e2e/next/src/next-styles.test.ts
@@ -58,6 +58,19 @@ describe('Next.js apps', () => {
       checkExport: false,
     });
 
+    const scAppWithAppRouter = uniq('app');
+
+    runCLI(
+      `generate @nx/next:app ${scAppWithAppRouter} --no-interactive --style=styled-components --appDir=true`
+    );
+
+    await checkApp(scAppWithAppRouter, {
+      checkUnitTest: false, // No unit tests for app router
+      checkLint: false,
+      checkE2E: false,
+      checkExport: false,
+    });
+
     const emotionApp = uniq('app');
 
     runCLI(
diff --git a/packages/next/src/generators/application/application.spec.ts b/packages/next/src/generators/application/application.spec.ts
index ad9d253cb7..923ed2aaeb 100644
--- a/packages/next/src/generators/application/application.spec.ts
+++ b/packages/next/src/generators/application/application.spec.ts
@@ -15,7 +15,122 @@ describe('app', () => {
     tree = createTreeWithEmptyWorkspace({ layout: 'apps-libs' });
   });
 
-  describe('not nested', () => {
+  it('should add a .gitkeep file to the public directory', async () => {
+    await applicationGenerator(tree, {
+      name: 'myApp',
+      style: 'css',
+    });
+
+    expect(tree.exists('apps/my-app/public/.gitkeep')).toBe(true);
+  });
+
+  it('should update tags and implicit dependencies', async () => {
+    await applicationGenerator(tree, {
+      name: 'myApp',
+      style: 'css',
+      tags: 'one,two',
+    });
+
+    const projects = Object.fromEntries(getProjects(tree));
+
+    expect(projects).toMatchObject({
+      'my-app': {
+        tags: ['one', 'two'],
+      },
+      'my-app-e2e': {
+        tags: [],
+        implicitDependencies: ['my-app'],
+      },
+    });
+  });
+
+  it('should extend from root tsconfig.json when no tsconfig.base.json', async () => {
+    tree.rename('tsconfig.base.json', 'tsconfig.json');
+
+    await applicationGenerator(tree, {
+      name: 'myApp',
+      style: 'css',
+    });
+
+    const tsConfig = readJson(tree, 'apps/my-app/tsconfig.json');
+    expect(tsConfig.extends).toBe('../../tsconfig.json');
+  });
+
+  describe('App Router', () => {
+    it('should generate files for app layout', async () => {
+      await applicationGenerator(tree, {
+        name: 'testApp',
+        style: 'css',
+      });
+
+      const tsConfig = readJson(tree, 'apps/test-app/tsconfig.json');
+      expect(tsConfig.include).toEqual([
+        '**/*.ts',
+        '**/*.tsx',
+        '**/*.js',
+        '**/*.jsx',
+        '../../apps/test-app/.next/types/**/*.ts',
+        '../../dist/apps/test-app/.next/types/**/*.ts',
+        'next-env.d.ts',
+      ]);
+      expect(tree.exists('apps/test-app/pages/styles.css')).toBeFalsy();
+      expect(tree.exists('apps/test-app/app/global.css')).toBeTruthy();
+      expect(tree.exists('apps/test-app/app/page.tsx')).toBeTruthy();
+      expect(tree.exists('apps/test-app/app/layout.tsx')).toBeTruthy();
+      expect(tree.exists('apps/test-app/app/api/hello/route.ts')).toBeTruthy();
+      expect(tree.exists('apps/test-app/app/page.module.css')).toBeTruthy();
+      expect(tree.exists('apps/test-app/public/favicon.ico')).toBeTruthy();
+    });
+
+    it('should add layout types correctly for standalone apps', async () => {
+      await applicationGenerator(tree, {
+        name: 'testApp',
+        style: 'css',
+        appDir: true,
+        rootProject: true,
+      });
+
+      const tsConfig = readJson(tree, 'tsconfig.json');
+      expect(tsConfig.include).toEqual([
+        '**/*.ts',
+        '**/*.tsx',
+        '**/*.js',
+        '**/*.jsx',
+        '.next/types/**/*.ts',
+        'dist/test-app/.next/types/**/*.ts',
+        'next-env.d.ts',
+      ]);
+    });
+
+    it('should generate an unstyled component page', async () => {
+      await applicationGenerator(tree, {
+        name: 'testApp',
+        style: 'none',
+        appDir: true,
+        rootProject: true,
+      });
+
+      const content = tree.read('app/page.tsx').toString();
+
+      expect(content).not.toContain('import styles from');
+      expect(content).not.toContain('const StyledPage');
+      expect(content).not.toContain('className={styles.page}');
+    });
+  });
+
+  describe('Pages Router', () => {
+    it('should generate files for pages layout', async () => {
+      await applicationGenerator(tree, {
+        name: 'myApp',
+        style: 'css',
+        appDir: false,
+      });
+      expect(tree.exists('apps/my-app/tsconfig.json')).toBeTruthy();
+      expect(tree.exists('apps/my-app/pages/index.tsx')).toBeTruthy();
+      expect(tree.exists('apps/my-app/specs/index.spec.tsx')).toBeTruthy();
+      expect(tree.exists('apps/my-app/pages/index.module.css')).toBeTruthy();
+    });
+
     it('should update configurations', async () => {
       await applicationGenerator(tree, {
         name: 'myApp',
@@ -43,70 +158,6 @@ describe('app', () => {
       expect(content).not.toContain('const StyledPage');
       expect(content).not.toContain('className={styles.page}');
     });
-
-    it('should update tags and implicit dependencies', async () => {
-      await applicationGenerator(tree, {
-        name: 'myApp',
-        style: 'css',
-        tags: 'one,two',
-      });
-
-      const projects = Object.fromEntries(getProjects(tree));
-
-      expect(projects).toMatchObject({
-        'my-app': {
-          tags: ['one', 'two'],
-        },
-        'my-app-e2e': {
-          tags: [],
-          implicitDependencies: ['my-app'],
-        },
-      });
-    });
-
-    it('should generate files for app router layout', async () => {
-      await applicationGenerator(tree, {
-        name: 'myApp',
-        style: 'css',
-      });
-      expect(tree.exists('apps/my-app/tsconfig.json')).toBeTruthy();
-      expect(tree.exists('apps/my-app/app/page.tsx')).toBeTruthy();
-      expect(tree.exists('apps/my-app/app/page.module.css')).toBeTruthy();
-    });
-
-    it('should generate files for pages layout', async () => {
-      await applicationGenerator(tree, {
-        name: 'myApp',
-        style: 'css',
-        appDir: false,
-      });
-      expect(tree.exists('apps/my-app/tsconfig.json')).toBeTruthy();
-      expect(tree.exists('apps/my-app/pages/index.tsx')).toBeTruthy();
-      expect(tree.exists('apps/my-app/specs/index.spec.tsx')).toBeTruthy();
-      expect(tree.exists('apps/my-app/pages/index.module.css')).toBeTruthy();
-    });
-
-    it('should extend from root tsconfig.base.json', async () => {
-      await applicationGenerator(tree, {
-        name: 'myApp',
-        style: 'css',
-      });
-
-      const tsConfig = readJson(tree, 'apps/my-app/tsconfig.json');
-      expect(tsConfig.extends).toBe('../../tsconfig.base.json');
-    });
-
-    it('should extend from root tsconfig.json when no tsconfig.base.json', async () => {
-      tree.rename('tsconfig.base.json', 'tsconfig.json');
-
-      await applicationGenerator(tree, {
-        name: 'myApp',
-        style: 'css',
-      });
-
-      const tsConfig = readJson(tree, 'apps/my-app/tsconfig.json');
-      expect(tsConfig.extends).toBe('../../tsconfig.json');
-    });
   });
 
   describe('--style scss', () => {
@@ -121,6 +172,28 @@ describe('app', () => {
 
       const indexContent = tree.read('apps/my-app/app/page.tsx', 'utf-8');
       expect(indexContent).toContain(`import styles from './page.module.scss'`);
+      expect(tree.read('apps/my-app/app/layout.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "import './global.css';
+
+        export const metadata = {
+          title: 'Welcome to my-app',
+          description: 'Generated by create-nx-workspace',
+        };
+
+        export default function RootLayout({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          return (
+            <html lang="en">
+              <body>{children}</body>
+            </html>
+          );
+        }
+        "
+      `);
     });
   });
 
@@ -136,6 +209,28 @@ describe('app', () => {
 
       const indexContent = tree.read('apps/my-app/app/page.tsx', 'utf-8');
       expect(indexContent).toContain(`import styles from './page.module.less'`);
+      expect(tree.read('apps/my-app/app/layout.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "import './global.less';
+
+        export const metadata = {
+          title: 'Welcome to my-app',
+          description: 'Generated by create-nx-workspace',
+        };
+
+        export default function RootLayout({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          return (
+            <html lang="en">
+              <body>{children}</body>
+            </html>
+          );
+        }
+        "
+      `);
     });
   });
 
@@ -155,7 +250,7 @@ describe('app', () => {
   });
 
   describe('--style styled-components', () => {
-    it('should generate scss styles', async () => {
+    it('should generate styles', async () => {
       await applicationGenerator(tree, {
         name: 'myApp',
         style: 'styled-components',
@@ -169,11 +264,73 @@ describe('app', () => {
       const indexContent = tree.read('apps/my-app/app/page.tsx', 'utf-8');
       expect(indexContent).not.toContain(`import styles from './page.module`);
       expect(indexContent).toContain(`import styled from 'styled-components'`);
+      expect(tree.read('apps/my-app/app/layout.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "import './global.css';
+        import { StyledComponentsRegistry } from './registry';
+
+        export const metadata = {
+          title: 'Welcome to demo2',
+          description: 'Generated by create-nx-workspace',
+        };
+
+        export default function RootLayout({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          return (
+            <html lang="en">
+              <body>
+                <StyledComponentsRegistry>{children}</StyledComponentsRegistry>
+              </body>
+            </html>
+          );
+        }
+        "
+      `);
+      expect(tree.read('apps/my-app/app/registry.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "'use client';
+
+        import React, { useState } from 'react';
+        import { useServerInsertedHTML } from 'next/navigation';
+        import { ServerStyleSheet, StyleSheetManager } from 'styled-components';
+
+        export function StyledComponentsRegistry({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          // Only create stylesheet once with lazy initial state
+          // x-ref: https://reactjs.org/docs/hooks-reference.html#lazy-initial-state
+          const [styledComponentsStyleSheet] = useState(() => new ServerStyleSheet());
+
+          useServerInsertedHTML(() => {
+            const styles = styledComponentsStyleSheet.getStyleElement();
+
+            // Types are out of date, clearTag is not defined.
+            // See: https://github.com/DefinitelyTyped/DefinitelyTyped/issues/65021
+            (styledComponentsStyleSheet.instance as any).clearTag();
+
+            return <>{styles}</>;
+          });
+
+          if (typeof window !== 'undefined') return <>{children}</>;
+
+          return (
+            <StyleSheetManager sheet={styledComponentsStyleSheet.instance}>
+              {children}
+            </StyleSheetManager>
+          );
+        }
+        "
+      `);
     });
   });
 
   describe('--style @emotion/styled', () => {
-    it('should generate scss styles', async () => {
+    it('should generate styles', async () => {
       await applicationGenerator(tree, {
         name: 'myApp',
         style: '@emotion/styled',
@@ -187,6 +344,28 @@ describe('app', () => {
       const indexContent = tree.read('apps/my-app/app/page.tsx', 'utf-8');
       expect(indexContent).not.toContain(`import styles from './page.module`);
       expect(indexContent).toContain(`import styled from '@emotion/styled'`);
+      expect(tree.read('apps/my-app/app/layout.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "import './global.css';
+
+        export const metadata = {
+          title: 'Welcome to my-app',
+          description: 'Generated by create-nx-workspace',
+        };
+
+        export default function RootLayout({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          return (
+            <html lang="en">
+              <body>{children}</body>
+            </html>
+          );
+        }
+        "
+      `);
     });
 
     it('should add jsxImportSource in tsconfig.json', async () => {
@@ -220,6 +399,49 @@ describe('app', () => {
       expect(indexContent).not.toContain(
         `import styled from 'styled-components'`
       );
+      expect(tree.read('apps/my-app/app/layout.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "import './global.css';
+        import { StyledJsxRegistry } from './registry';
+
+        export default function RootLayout({
+          children,
+        }: {
+          children: React.ReactNode;
+        }) {
+          return (
+            <html>
+              <body>
+                <StyledJsxRegistry>{children}</StyledJsxRegistry>
+              </body>
+            </html>
+          );
+        }
+        "
+      `);
+      expect(tree.read('apps/my-app/app/registry.tsx', 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "'use client';
+
+        import React, { useState } from 'react';
+        import { useServerInsertedHTML } from 'next/navigation';
+        import { StyleRegistry, createStyleRegistry } from 'styled-jsx';
+
+        export function StyledJsxRegistry({ children }: { children: React.ReactNode }) {
+          // Only create stylesheet once with lazy initial state
+          // x-ref: https://reactjs.org/docs/hooks-reference.html#lazy-initial-state
+          const [jsxStyleRegistry] = useState(() => createStyleRegistry());
+
+          useServerInsertedHTML(() => {
+            const styles = jsxStyleRegistry.styles();
+            jsxStyleRegistry.flush();
+            return <>{styles}</>;
+          });
+
+          return <StyleRegistry registry={jsxStyleRegistry}>{children}</StyleRegistry>;
+        }
+        "
+      `);
     });
   });
 
@@ -245,7 +467,7 @@ describe('app', () => {
     );
   });
 
-  it('should set up the nrwl next build builder', async () => {
+  it('should set up the nx next build builder', async () => {
     await applicationGenerator(tree, {
       name: 'my-app',
       style: 'css',
@@ -260,7 +482,7 @@ describe('app', () => {
     });
   });
 
-  it('should set up the nrwl next server builder', async () => {
+  it('should set up the nx next server builder', async () => {
     await applicationGenerator(tree, {
       name: 'my-app',
       style: 'css',
@@ -283,7 +505,7 @@ describe('app', () => {
     });
   });
 
-  it('should set up the nrwl next export builder', async () => {
+  it('should set up the nx next export builder', async () => {
     await applicationGenerator(tree, {
       name: 'my-app',
       style: 'css',
@@ -448,76 +670,4 @@ describe('app', () => {
       expect(tsConfigApp.exclude).not.toContain('**/*.spec.js');
     });
   });
-
-  it('should add a .gitkeep file to the public directory', async () => {
-    await applicationGenerator(tree, {
-      name: 'myApp',
-      style: 'css',
-    });
-
-    expect(tree.exists('apps/my-app/public/.gitkeep')).toBe(true);
-  });
-
-  describe('--appDir', () => {
-    it('should generate app directory instead of pages', async () => {
-      await applicationGenerator(tree, {
-        name: 'testApp',
-        style: 'css',
-        appDir: true,
-      });
-
-      const tsConfig = readJson(tree, 'apps/test-app/tsconfig.json');
-      expect(tsConfig.include).toEqual([
-        '**/*.ts',
-        '**/*.tsx',
-        '**/*.js',
-        '**/*.jsx',
-        '../../apps/test-app/.next/types/**/*.ts',
-        '../../dist/apps/test-app/.next/types/**/*.ts',
-        'next-env.d.ts',
-      ]);
-      expect(tree.exists('apps/test-app/pages/styles.css')).toBeFalsy();
-      expect(tree.exists('apps/test-app/app/global.css')).toBeTruthy();
-      expect(tree.exists('apps/test-app/app/page.tsx')).toBeTruthy();
-      expect(tree.exists('apps/test-app/app/layout.tsx')).toBeTruthy();
-      expect(tree.exists('apps/test-app/app/api/hello/route.ts')).toBeTruthy();
-      expect(tree.exists('apps/test-app/app/page.module.css')).toBeTruthy();
-      expect(tree.exists('apps/test-app/public/favicon.ico')).toBeTruthy();
-    });
-
-    it('should add layout types correctly for standalone apps', async () => {
-      await applicationGenerator(tree, {
-        name: 'testApp',
-        style: 'css',
-        appDir: true,
-        rootProject: true,
-      });
-
-      const tsConfig = readJson(tree, 'tsconfig.json');
-      expect(tsConfig.include).toEqual([
-        '**/*.ts',
-        '**/*.tsx',
-        '**/*.js',
-        '**/*.jsx',
-        '.next/types/**/*.ts',
-        'dist/test-app/.next/types/**/*.ts',
-        'next-env.d.ts',
-      ]);
-    });
-
-    it('should generate an unstyled component page', async () => {
-      await applicationGenerator(tree, {
-        name: 'testApp',
-        style: 'none',
-        appDir: true,
-        rootProject: true,
-      });
-
-      const content = tree.read('app/page.tsx').toString();
-
-      expect(content).not.toContain('import styles from');
-      expect(content).not.toContain('const StyledPage');
-      expect(content).not.toContain('className={styles.page}');
-    });
-  });
 });
diff --git a/packages/next/src/generators/application/files/app/layout.tsx__tmpl__ b/packages/next/src/generators/application/files/app-default-layout/layout.tsx__tmpl__
similarity index 100%
rename from packages/next/src/generators/application/files/app/layout.tsx__tmpl__
rename to packages/next/src/generators/application/files/app-default-layout/layout.tsx__tmpl__
diff --git a/packages/next/src/generators/application/files/app-styled-components/layout.tsx__tmpl__ b/packages/next/src/generators/application/files/app-styled-components/layout.tsx__tmpl__
new file mode 100644
index 0000000000..38ac98e0d2
--- /dev/null
+++ b/packages/next/src/generators/application/files/app-styled-components/layout.tsx__tmpl__
@@ -0,0 +1,21 @@
+import './global.<%= stylesExt %>';
+import { StyledComponentsRegistry } from './registry';
+
+export const metadata = {
+  title: 'Welcome to demo2',
+  description: 'Generated by create-nx-workspace',
+};
+
+export default function RootLayout({
+  children,
+}: {
+  children: React.ReactNode;
+}) {
+  return (
+    <html lang="en">
+      <body>
+        <StyledComponentsRegistry>{children}</StyledComponentsRegistry>
+      </body>
+    </html>
+  );
+}
diff --git a/packages/next/src/generators/application/files/app-styled-components/registry.tsx__tmpl__ b/packages/next/src/generators/application/files/app-styled-components/registry.tsx__tmpl__
new file mode 100644
index 0000000000..35e10cce27
--- /dev/null
+++ b/packages/next/src/generators/application/files/app-styled-components/registry.tsx__tmpl__
@@ -0,0 +1,33 @@
+'use client';
+
+import React, { useState } from 'react';
+import { useServerInsertedHTML } from 'next/navigation';
+import { ServerStyleSheet, StyleSheetManager } from 'styled-components';
+
+export function StyledComponentsRegistry({
+  children,
+}: {
+  children: React.ReactNode;
+}) {
+  // Only create stylesheet once with lazy initial state
+  // x-ref: https://reactjs.org/docs/hooks-reference.html#lazy-initial-state
+  const [styledComponentsStyleSheet] = useState(() => new ServerStyleSheet());
+
+  useServerInsertedHTML(() => {
+    const styles = styledComponentsStyleSheet.getStyleElement();
+
+    // Types are out of date, clearTag is not defined.
+    // See: https://github.com/DefinitelyTyped/DefinitelyTyped/issues/65021
+    (styledComponentsStyleSheet.instance as any).clearTag();
+
+    return <>{styles}</>;
+  });
+
+  if (typeof window !== 'undefined') return <>{children}</>;
+
+  return (
+    <StyleSheetManager sheet={styledComponentsStyleSheet.instance}>
+      {children}
+    </StyleSheetManager>
+  );
+}
diff --git a/packages/next/src/generators/application/files/app-styled-jsx/layout.tsx__tmpl__ b/packages/next/src/generators/application/files/app-styled-jsx/layout.tsx__tmpl__
new file mode 100644
index 0000000000..791aa9f2e7
--- /dev/null
+++ b/packages/next/src/generators/application/files/app-styled-jsx/layout.tsx__tmpl__
@@ -0,0 +1,16 @@
+import './global.<%= stylesExt %>';
+import { StyledJsxRegistry } from './registry';
+
+export default function RootLayout({
+  children,
+}: {
+  children: React.ReactNode;
+}) {
+  return (
+    <html>
+      <body>
+        <StyledJsxRegistry>{children}</StyledJsxRegistry>
+      </body>
+    </html>
+  );
+}
diff --git a/packages/next/src/generators/application/files/app-styled-jsx/registry.tsx__tmpl__ b/packages/next/src/generators/application/files/app-styled-jsx/registry.tsx__tmpl__
new file mode 100644
index 0000000000..db1ed18cfa
--- /dev/null
+++ b/packages/next/src/generators/application/files/app-styled-jsx/registry.tsx__tmpl__
@@ -0,0 +1,23 @@
+'use client';
+
+import React, { useState } from 'react';
+import { useServerInsertedHTML } from 'next/navigation';
+import { StyleRegistry, createStyleRegistry } from 'styled-jsx';
+
+export function StyledJsxRegistry({
+  children,
+}: {
+  children: React.ReactNode;
+}) {
+  // Only create stylesheet once with lazy initial state
+  // x-ref: https://reactjs.org/docs/hooks-reference.html#lazy-initial-state
+  const [jsxStyleRegistry] = useState(() => createStyleRegistry());
+
+  useServerInsertedHTML(() => {
+    const styles = jsxStyleRegistry.styles();
+    jsxStyleRegistry.flush();
+    return <>{styles}</>;
+  });
+
+  return <StyleRegistry registry={jsxStyleRegistry}>{children}</StyleRegistry>;
+}
diff --git a/packages/next/src/generators/application/files/common/next.config.js__tmpl__ b/packages/next/src/generators/application/files/common/next.config.js__tmpl__
index eaecc4924c..76477fe502 100644
--- a/packages/next/src/generators/application/files/common/next.config.js__tmpl__
+++ b/packages/next/src/generators/application/files/common/next.config.js__tmpl__
@@ -62,6 +62,17 @@ const nextConfig = {
     // See: https://github.com/gregberge/svgr
     svgr: false,
   },
+  <% if (style === 'styled-components') { %>
+  compiler: {
+    // For other options, see https://styled-components.com/docs/tooling#babel-plugin
+    styledComponents: true,
+  },
+  <% } else if (style === '@emotion/styled') { %>
+  compiler: {
+    // For other options, see https://nextjs.org/docs/architecture/nextjs-compiler#emotion
+    emotion: true,
+  },
+  <% } %>
 };
 
 const plugins = [
diff --git a/packages/next/src/generators/application/lib/create-application-files.ts b/packages/next/src/generators/application/lib/create-application-files.ts
index ba7d46fab7..5068cc2e9f 100644
--- a/packages/next/src/generators/application/lib/create-application-files.ts
+++ b/packages/next/src/generators/application/lib/create-application-files.ts
@@ -65,6 +65,8 @@ export function createApplicationFiles(host: Tree, options: NormalizedSchema) {
       join(options.appProjectRoot, 'app'),
       templateVariables
     );
+
+    // RSC is not possible to unit test without extra helpers for data fetching. Leaving it to the user to figure out.
     host.delete(
       joinPathFragments(
         options.appProjectRoot,
@@ -72,6 +74,29 @@ export function createApplicationFiles(host: Tree, options: NormalizedSchema) {
         `index.spec.${options.js ? 'jsx' : 'tsx'}`
       )
     );
+
+    if (options.style === 'styled-components') {
+      generateFiles(
+        host,
+        join(__dirname, '../files/app-styled-components'),
+        join(options.appProjectRoot, 'app'),
+        templateVariables
+      );
+    } else if (options.style === 'styled-jsx') {
+      generateFiles(
+        host,
+        join(__dirname, '../files/app-styled-jsx'),
+        join(options.appProjectRoot, 'app'),
+        templateVariables
+      );
+    } else {
+      generateFiles(
+        host,
+        join(__dirname, '../files/app-default-layout'),
+        join(options.appProjectRoot, 'app'),
+        templateVariables
+      );
+    }
   } else {
     generateFiles(
       host,
diff --git a/packages/next/src/generators/application/lib/show-possible-warnings.ts b/packages/next/src/generators/application/lib/show-possible-warnings.ts
index 39eb119623..c73a8e0b3f 100644
--- a/packages/next/src/generators/application/lib/show-possible-warnings.ts
+++ b/packages/next/src/generators/application/lib/show-possible-warnings.ts
@@ -4,7 +4,7 @@ import { NormalizedSchema } from './normalize-options';
 export function showPossibleWarnings(tree: Tree, options: NormalizedSchema) {
   if (options.style === '@emotion/styled' && options.appDir) {
     logger.warn(
-      `Emotion may not work with the App Router. See: https://beta.nextjs.org/docs/styling/css-in-js`
+      `Emotion may not work with the App Router. See: https://nextjs.org/docs/app/building-your-application/styling/css-in-js`
     );
   }
 }