diff --git a/docs/generated/packages/node.json b/docs/generated/packages/node.json
index 71e6fb4796..b0b3126583 100644
--- a/docs/generated/packages/node.json
+++ b/docs/generated/packages/node.json
@@ -138,6 +138,136 @@
       "implementation": "/packages/node/src/generators/application/application.ts",
       "hidden": false,
       "path": "/packages/node/src/generators/application/schema.json"
+    },
+    {
+      "name": "library",
+      "factory": "./src/generators/library/library",
+      "schema": {
+        "$schema": "http://json-schema.org/schema",
+        "cli": "nx",
+        "$id": "NxNodeLibrary",
+        "title": "Create a Node Library for Nx",
+        "description": "Create a Node Library for an Nx workspace.",
+        "type": "object",
+        "examples": [
+          {
+            "command": "nx g lib mylib --directory=myapp",
+            "description": "Generate `libs/myapp/mylib`"
+          }
+        ],
+        "properties": {
+          "name": {
+            "type": "string",
+            "description": "Library name",
+            "$default": { "$source": "argv", "index": 0 },
+            "x-prompt": "What name would you like to use for the library?"
+          },
+          "directory": {
+            "type": "string",
+            "description": "A directory where the lib is placed",
+            "alias": "dir"
+          },
+          "simpleModuleName": {
+            "description": "Keep the module name simple (when using `--directory`).",
+            "type": "boolean",
+            "default": false
+          },
+          "linter": {
+            "description": "The tool to use for running lint checks.",
+            "type": "string",
+            "enum": ["eslint"],
+            "default": "eslint"
+          },
+          "unitTestRunner": {
+            "type": "string",
+            "enum": ["jest", "none"],
+            "description": "Test runner to use for unit tests.",
+            "default": "jest"
+          },
+          "tags": {
+            "type": "string",
+            "description": "Add tags to the library (used for linting).",
+            "alias": "t"
+          },
+          "skipFormat": {
+            "description": "Skip formatting files.",
+            "type": "boolean",
+            "default": false
+          },
+          "skipTsConfig": {
+            "type": "boolean",
+            "default": false,
+            "description": "Do not update `tsconfig.base.json` for development experience."
+          },
+          "publishable": {
+            "type": "boolean",
+            "description": "Create a publishable library."
+          },
+          "buildable": {
+            "type": "boolean",
+            "default": false,
+            "description": "Generate a buildable library."
+          },
+          "compiler": {
+            "type": "string",
+            "enum": ["tsc", "swc"],
+            "default": "tsc",
+            "description": "The compiler used by the build and test targets."
+          },
+          "importPath": {
+            "type": "string",
+            "description": "The library name used to import it, like `@myorg/my-awesome-lib`. Must be a valid npm name."
+          },
+          "rootDir": {
+            "type": "string",
+            "description": "Sets the `rootDir` for TypeScript compilation. When not defined, it uses the project's root property, or `srcRootForCompilationRoot` if it is defined."
+          },
+          "testEnvironment": {
+            "type": "string",
+            "enum": ["jsdom", "node"],
+            "description": "The test environment to use if `unitTestRunner` is set to `jest`.",
+            "default": "jsdom"
+          },
+          "babelJest": {
+            "type": "boolean",
+            "description": "Use `babel` instead of `ts-jest`.",
+            "default": false
+          },
+          "pascalCaseFiles": {
+            "type": "boolean",
+            "description": "Use pascal case file names.",
+            "alias": "P",
+            "default": false
+          },
+          "js": {
+            "type": "boolean",
+            "description": "Generate JavaScript files rather than TypeScript files.",
+            "default": false
+          },
+          "strict": {
+            "type": "boolean",
+            "description": "Whether to enable tsconfig strict mode or not.",
+            "default": false
+          },
+          "standaloneConfig": {
+            "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
+            "type": "boolean"
+          },
+          "setParserOptionsProject": {
+            "type": "boolean",
+            "description": "Whether or not to configure the ESLint `parserOptions.project`. We do not do this by default for lint performance reasons.",
+            "default": false
+          }
+        },
+        "required": ["name"],
+        "presets": []
+      },
+      "aliases": ["lib"],
+      "x-type": "library",
+      "description": "Create a node library.",
+      "implementation": "/packages/node/src/generators/library/library.ts",
+      "hidden": false,
+      "path": "/packages/node/src/generators/library/schema.json"
     }
   ],
   "executors": [
diff --git a/docs/packages.json b/docs/packages.json
index 15b125c0e8..05953b238e 100644
--- a/docs/packages.json
+++ b/docs/packages.json
@@ -248,7 +248,7 @@
     "path": "generated/packages/node.json",
     "schemas": {
       "executors": ["webpack", "node"],
-      "generators": ["init", "application"]
+      "generators": ["init", "application", "library"]
     }
   },
   {
diff --git a/nx-dev/nx-dev-e2e/src/integration/packages.spec.ts b/nx-dev/nx-dev-e2e/src/integration/packages.spec.ts
index 7f6d5b6adf..2a2735dec2 100644
--- a/nx-dev/nx-dev-e2e/src/integration/packages.spec.ts
+++ b/nx-dev/nx-dev-e2e/src/integration/packages.spec.ts
@@ -296,6 +296,7 @@ describe('nx-dev: Packages Section', () => {
       title: '@nrwl/node:application',
       path: '/packages/node/generators/application',
     },
+    { title: '@nrwl/node:library', path: '/packages/node/generators/library' },
     { title: '@nrwl/node:webpack', path: '/packages/node/executors/webpack' },
     { title: '@nrwl/node:node', path: '/packages/node/executors/node' },
     { title: 'nx', path: '/packages/nx' },
diff --git a/packages/node/generators.json b/packages/node/generators.json
index 6ff3796c18..77bc307983 100644
--- a/packages/node/generators.json
+++ b/packages/node/generators.json
@@ -1,7 +1,7 @@
 {
   "name": "nx/node",
   "version": "0.1",
-  "extends": ["@nrwl/js"],
+  "extends": ["@nrwl/workspace"],
   "generators": {
     "init": {
       "factory": "./src/generators/init/init",
@@ -16,6 +16,13 @@
       "aliases": ["app"],
       "x-type": "application",
       "description": "Create a node application."
+    },
+    "library": {
+      "factory": "./src/generators/library/library",
+      "schema": "./src/generators/library/schema.json",
+      "aliases": ["lib"],
+      "x-type": "library",
+      "description": "Create a node library."
     }
   },
   "schematics": {
@@ -32,6 +39,13 @@
       "aliases": ["app"],
       "x-type": "application",
       "description": "Create a node application."
+    },
+    "library": {
+      "factory": "./src/generators/library/library#librarySchematic",
+      "schema": "./src/generators/library/schema.json",
+      "aliases": ["lib"],
+      "x-type": "library",
+      "description": "Create a node library."
     }
   }
 }
diff --git a/packages/node/index.ts b/packages/node/index.ts
index 17f0a02049..642dd5b126 100644
--- a/packages/node/index.ts
+++ b/packages/node/index.ts
@@ -1,8 +1,3 @@
-import { libraryGenerator } from '@nrwl/js';
-
-// backwards compat
-// TODO(jack): Remove in Nx 16
-export { libraryGenerator };
-
 export { applicationGenerator } from './src/generators/application/application';
+export { libraryGenerator } from './src/generators/library/library';
 export { initGenerator } from './src/generators/init/init';
diff --git a/packages/node/src/generators/library/files/lib/package.json__tmpl__ b/packages/node/src/generators/library/files/lib/package.json__tmpl__
new file mode 100644
index 0000000000..e3a3ad83c4
--- /dev/null
+++ b/packages/node/src/generators/library/files/lib/package.json__tmpl__
@@ -0,0 +1,4 @@
+{
+  "name": "<%= importPath %>",
+  "version": "0.0.1"
+}
diff --git a/packages/node/src/generators/library/files/lib/src/lib/__fileName__.spec.ts__tmpl__ b/packages/node/src/generators/library/files/lib/src/lib/__fileName__.spec.ts__tmpl__
new file mode 100644
index 0000000000..35b0948b95
--- /dev/null
+++ b/packages/node/src/generators/library/files/lib/src/lib/__fileName__.spec.ts__tmpl__
@@ -0,0 +1,7 @@
+import { <%= propertyName %> } from './<%= fileName %>';
+
+describe('<%= propertyName %>', () => {
+    it('should work', () => {
+        expect(<%= propertyName %>()).toEqual('<%= name %>');
+    })
+})
\ No newline at end of file
diff --git a/packages/node/src/generators/library/files/lib/src/lib/__fileName__.ts__tmpl__ b/packages/node/src/generators/library/files/lib/src/lib/__fileName__.ts__tmpl__
new file mode 100644
index 0000000000..87f0f45f16
--- /dev/null
+++ b/packages/node/src/generators/library/files/lib/src/lib/__fileName__.ts__tmpl__
@@ -0,0 +1,3 @@
+export function <%= propertyName %>(): string {
+    return '<%= name %>';
+}
\ No newline at end of file
diff --git a/packages/node/src/generators/library/files/lib/tsconfig.lib.json b/packages/node/src/generators/library/files/lib/tsconfig.lib.json
new file mode 100644
index 0000000000..fc6648159e
--- /dev/null
+++ b/packages/node/src/generators/library/files/lib/tsconfig.lib.json
@@ -0,0 +1,11 @@
+{
+  "extends": "./tsconfig.json",
+  "compilerOptions": {
+    "module": "commonjs",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
+    "declaration": true,
+    "types": ["node"]
+  },
+  "exclude": ["jest.config.ts", "**/*.spec.ts", "**/*.test.ts"],
+  "include": ["**/*.ts"]
+}
diff --git a/packages/node/src/generators/library/library.spec.ts b/packages/node/src/generators/library/library.spec.ts
new file mode 100644
index 0000000000..d986f20539
--- /dev/null
+++ b/packages/node/src/generators/library/library.spec.ts
@@ -0,0 +1,582 @@
+import {
+  getProjects,
+  NxJsonConfiguration,
+  readJson,
+  readProjectConfiguration,
+  Tree,
+} from '@nrwl/devkit';
+import { createTreeWithEmptyV1Workspace } from '@nrwl/devkit/testing';
+
+import { Schema } from './schema.d';
+import { libraryGenerator } from './library';
+
+const baseLibraryConfig = {
+  name: 'myLib',
+  standaloneConfig: false,
+  compiler: 'tsc' as const,
+};
+
+describe('lib', () => {
+  let tree: Tree;
+
+  beforeEach(() => {
+    tree = createTreeWithEmptyV1Workspace();
+  });
+
+  describe('not nested', () => {
+    it('should update workspace.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const workspaceJson = readJson(tree, '/workspace.json');
+      expect(workspaceJson.projects['my-lib'].root).toEqual('libs/my-lib');
+      expect(workspaceJson.projects['my-lib'].architect.build).toBeUndefined();
+      expect(workspaceJson.projects['my-lib'].architect.lint).toEqual({
+        builder: '@nrwl/linter:eslint',
+        outputs: ['{options.outputFile}'],
+        options: {
+          lintFilePatterns: ['libs/my-lib/**/*.ts'],
+        },
+      });
+      expect(workspaceJson.projects['my-lib'].architect.test).toEqual({
+        builder: '@nrwl/jest:jest',
+        outputs: ['{workspaceRoot}/coverage/{projectRoot}'],
+        options: {
+          jestConfig: 'libs/my-lib/jest.config.ts',
+          passWithNoTests: true,
+        },
+      });
+    });
+
+    it('adds srcRootForCompilationRoot in workspace.json', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        rootDir: './src',
+        buildable: true,
+      });
+      const workspaceJson = readJson(tree, '/workspace.json');
+      expect(
+        workspaceJson.projects['my-lib'].architect.build.options
+          .srcRootForCompilationRoot
+      ).toEqual('./src');
+    });
+
+    it('should update tags', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        tags: 'one,two',
+      });
+      const projects = Object.fromEntries(getProjects(tree));
+      expect(projects).toMatchObject({
+        'my-lib': {
+          tags: ['one', 'two'],
+        },
+      });
+    });
+
+    it('should update root tsconfig.base.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const tsconfigJson = readJson(tree, '/tsconfig.base.json');
+      expect(tsconfigJson.compilerOptions.paths['@proj/my-lib']).toEqual([
+        'libs/my-lib/src/index.ts',
+      ]);
+    });
+
+    it('should create a local tsconfig.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const tsconfigJson = readJson(tree, 'libs/my-lib/tsconfig.json');
+      expect(tsconfigJson).toMatchInlineSnapshot(`
+        Object {
+          "extends": "../../tsconfig.base.json",
+          "files": Array [],
+          "include": Array [],
+          "references": Array [
+            Object {
+              "path": "./tsconfig.lib.json",
+            },
+            Object {
+              "path": "./tsconfig.spec.json",
+            },
+          ],
+        }
+      `);
+    });
+
+    it('should extend the local tsconfig.json with tsconfig.spec.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const tsconfigJson = readJson(tree, 'libs/my-lib/tsconfig.spec.json');
+      expect(tsconfigJson.extends).toEqual('./tsconfig.json');
+    });
+
+    it('should extend the local tsconfig.json with tsconfig.lib.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const tsconfigJson = readJson(tree, 'libs/my-lib/tsconfig.lib.json');
+      expect(tsconfigJson.compilerOptions.types).toContain('node');
+      expect(tsconfigJson.extends).toEqual('./tsconfig.json');
+    });
+
+    it('should exclude test files from tsconfig.lib.json', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      const tsconfigJson = readJson(tree, 'libs/my-lib/tsconfig.lib.json');
+      expect(tsconfigJson.exclude).toEqual([
+        'jest.config.ts',
+        '**/*.spec.ts',
+        '**/*.test.ts',
+      ]);
+    });
+
+    it('should generate files', async () => {
+      await libraryGenerator(tree, baseLibraryConfig);
+      expect(tree.exists(`libs/my-lib/jest.config.ts`)).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/index.ts')).toBeTruthy();
+
+      const eslintrc = readJson(tree, 'libs/my-lib/.eslintrc.json');
+      expect(eslintrc).toMatchInlineSnapshot(`
+        Object {
+          "extends": Array [
+            "../../.eslintrc.json",
+          ],
+          "ignorePatterns": Array [
+            "!**/*",
+          ],
+          "overrides": Array [
+            Object {
+              "files": Array [
+                "*.ts",
+                "*.tsx",
+                "*.js",
+                "*.jsx",
+              ],
+              "rules": Object {},
+            },
+            Object {
+              "files": Array [
+                "*.ts",
+                "*.tsx",
+              ],
+              "rules": Object {},
+            },
+            Object {
+              "files": Array [
+                "*.js",
+                "*.jsx",
+              ],
+              "rules": Object {},
+            },
+          ],
+        }
+      `);
+    });
+  });
+
+  describe('nested', () => {
+    it('should update tags', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+        tags: 'one',
+      });
+      let projects = Object.fromEntries(getProjects(tree));
+      expect(projects).toMatchObject({
+        'my-dir-my-lib': {
+          tags: ['one'],
+        },
+      });
+
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        name: 'myLib2',
+        directory: 'myDir',
+        tags: 'one,two',
+      });
+      projects = Object.fromEntries(getProjects(tree));
+      expect(projects).toMatchObject({
+        'my-dir-my-lib': {
+          tags: ['one'],
+        },
+        'my-dir-my-lib2': {
+          tags: ['one', 'two'],
+        },
+      });
+    });
+
+    it('should generate files', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+      });
+      expect(tree.exists(`libs/my-dir/my-lib/jest.config.ts`)).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/index.ts')).toBeTruthy();
+    });
+
+    it('should update workspace.json', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+      });
+      const workspaceJson = readJson(tree, '/workspace.json');
+
+      expect(workspaceJson.projects['my-dir-my-lib'].root).toEqual(
+        'libs/my-dir/my-lib'
+      );
+      expect(workspaceJson.projects['my-dir-my-lib'].architect.lint).toEqual({
+        builder: '@nrwl/linter:eslint',
+        outputs: ['{options.outputFile}'],
+        options: {
+          lintFilePatterns: ['libs/my-dir/my-lib/**/*.ts'],
+        },
+      });
+    });
+
+    it('should update tsconfig.json', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+      });
+      const tsconfigJson = readJson(tree, '/tsconfig.base.json');
+      expect(tsconfigJson.compilerOptions.paths['@proj/my-dir/my-lib']).toEqual(
+        ['libs/my-dir/my-lib/src/index.ts']
+      );
+      expect(
+        tsconfigJson.compilerOptions.paths['my-dir-my-lib/*']
+      ).toBeUndefined();
+    });
+
+    it('should throw an exception when not passing importPath when using --publishable', async () => {
+      expect.assertions(1);
+
+      try {
+        await libraryGenerator(tree, {
+          ...baseLibraryConfig,
+          directory: 'myDir',
+          publishable: true,
+        });
+      } catch (e) {
+        expect(e.message).toContain(
+          'For publishable libs you have to provide a proper "--importPath" which needs to be a valid npm package name (e.g. my-awesome-lib or @myorg/my-lib)'
+        );
+      }
+    });
+
+    it('should create a local tsconfig.json', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+      });
+
+      const tsconfigJson = readJson(tree, 'libs/my-dir/my-lib/tsconfig.json');
+      expect(tsconfigJson.extends).toEqual('../../../tsconfig.base.json');
+      expect(tsconfigJson.references).toEqual([
+        {
+          path: './tsconfig.lib.json',
+        },
+        {
+          path: './tsconfig.spec.json',
+        },
+      ]);
+    });
+
+    it('should generate filenames that do not contain directory with --simpleModuleName', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        directory: 'myDir',
+        simpleModuleName: true,
+      });
+      expect(tree.exists(`libs/my-dir/my-lib/jest.config.ts`)).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/index.ts')).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/lib/my-lib.ts')).toBeTruthy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/my-lib.spec.ts')
+      ).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/index.ts')).toBeTruthy();
+      expect(tree.exists(`libs/my-dir/my-lib/.eslintrc.json`)).toBeTruthy();
+    });
+  });
+
+  describe('--compiler', () => {
+    it('should specify tsc as compiler', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        compiler: 'tsc',
+        buildable: true,
+      });
+
+      const { build } = readProjectConfiguration(tree, 'my-lib').targets;
+
+      expect(build.executor).toEqual('@nrwl/js:tsc');
+    });
+
+    it('should specify swc as compiler', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        compiler: 'swc',
+        buildable: true,
+      });
+
+      const { build } = readProjectConfiguration(tree, 'my-lib').targets;
+
+      expect(build.executor).toEqual('@nrwl/js:swc');
+    });
+  });
+
+  describe('--unit-test-runner none', () => {
+    it('should not generate test configuration', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        unitTestRunner: 'none',
+      });
+      expect(tree.exists('libs/my-lib/tsconfig.spec.json')).toBeFalsy();
+      expect(tree.exists('libs/my-lib/jest.config.ts')).toBeFalsy();
+      expect(tree.exists('libs/my-lib/lib/my-lib.spec.ts')).toBeFalsy();
+      const workspaceJson = readJson(tree, 'workspace.json');
+      expect(workspaceJson.projects['my-lib'].architect.test).toBeUndefined();
+      const tsconfigJson = readJson(tree, 'libs/my-lib/tsconfig.json');
+      expect(tsconfigJson.extends).toEqual('../../tsconfig.base.json');
+      expect(tsconfigJson.references).toEqual([
+        {
+          path: './tsconfig.lib.json',
+        },
+      ]);
+      expect(workspaceJson.projects['my-lib'].architect.lint)
+        .toMatchInlineSnapshot(`
+        Object {
+          "builder": "@nrwl/linter:eslint",
+          "options": Object {
+            "lintFilePatterns": Array [
+              "libs/my-lib/**/*.ts",
+            ],
+          },
+          "outputs": Array [
+            "{options.outputFile}",
+          ],
+        }
+      `);
+    });
+  });
+
+  describe('buildable package', () => {
+    it('should have a builder defined', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        buildable: true,
+      });
+      const workspaceJson = readJson(tree, '/workspace.json');
+
+      expect(workspaceJson.projects['my-lib'].root).toEqual('libs/my-lib');
+
+      expect(workspaceJson.projects['my-lib'].architect.build)
+        .toMatchInlineSnapshot(`
+        Object {
+          "builder": "@nrwl/js:tsc",
+          "options": Object {
+            "assets": Array [
+              "libs/my-lib/*.md",
+            ],
+            "main": "libs/my-lib/src/index.ts",
+            "outputPath": "dist/libs/my-lib",
+            "packageJson": "libs/my-lib/package.json",
+            "tsConfig": "libs/my-lib/tsconfig.lib.json",
+          },
+          "outputs": Array [
+            "{options.outputPath}",
+          ],
+        }
+      `);
+    });
+  });
+
+  describe('publishable package', () => {
+    it('should have a builder defined', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        publishable: true,
+        importPath: '@proj/mylib',
+      });
+      const workspaceJson = readJson(tree, '/workspace.json');
+
+      expect(workspaceJson.projects['my-lib'].root).toEqual('libs/my-lib');
+
+      expect(workspaceJson.projects['my-lib'].architect.build).toBeDefined();
+    });
+
+    it('should update package.json', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        name: 'mylib',
+        publishable: true,
+        importPath: '@proj/mylib',
+      });
+
+      let packageJsonContent = readJson(tree, 'libs/mylib/package.json');
+
+      expect(packageJsonContent.name).toEqual('@proj/mylib');
+    });
+  });
+
+  describe('--importPath', () => {
+    it('should update the package.json & tsconfig with the given import path', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        publishable: true,
+        directory: 'myDir',
+        importPath: '@myorg/lib',
+      });
+      const packageJson = readJson(tree, 'libs/my-dir/my-lib/package.json');
+      const tsconfigJson = readJson(tree, '/tsconfig.base.json');
+
+      expect(packageJson.name).toBe('@myorg/lib');
+      expect(
+        tsconfigJson.compilerOptions.paths[packageJson.name]
+      ).toBeDefined();
+    });
+
+    it('should fail if the same importPath has already been used', async () => {
+      await libraryGenerator(tree, {
+        ...baseLibraryConfig,
+        name: 'myLib1',
+        publishable: true,
+        importPath: '@myorg/lib',
+      });
+
+      try {
+        await libraryGenerator(tree, {
+          ...baseLibraryConfig,
+          name: 'myLib2',
+          publishable: true,
+          importPath: '@myorg/lib',
+        });
+      } catch (e) {
+        expect(e.message).toContain(
+          'You already have a library using the import path'
+        );
+      }
+
+      expect.assertions(1);
+    });
+  });
+
+  describe(`--babelJest`, () => {
+    it('should use babel for jest', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        babelJest: true,
+      } as Schema);
+
+      expect(tree.read(`libs/my-lib/jest.config.ts`, 'utf-8'))
+        .toMatchInlineSnapshot(`
+        "/* eslint-disable */
+        export default {
+          displayName: 'my-lib',
+          preset: '../../jest.preset.js',
+          testEnvironment: 'node',
+          transform: {
+            '^.+\\\\\\\\.[tj]sx?$': 'babel-jest'
+          },
+          moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx'],
+          coverageDirectory: '../../coverage/libs/my-lib'
+        };
+        "
+      `);
+    });
+  });
+  describe('--js flag', () => {
+    it('should generate js files instead of ts files', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        js: true,
+      } as Schema);
+
+      expect(tree.exists(`libs/my-lib/jest.config.js`)).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/index.js')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.js')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.spec.js')).toBeTruthy();
+
+      expect(
+        readJson(tree, 'libs/my-lib/tsconfig.json').compilerOptions
+      ).toEqual({
+        allowJs: true,
+      });
+      expect(readJson(tree, 'libs/my-lib/tsconfig.lib.json').include).toEqual([
+        '**/*.ts',
+        '**/*.js',
+      ]);
+      expect(readJson(tree, 'libs/my-lib/tsconfig.lib.json').exclude).toEqual([
+        'jest.config.ts',
+        '**/*.spec.ts',
+        '**/*.test.ts',
+        '**/*.spec.js',
+        '**/*.test.js',
+      ]);
+    });
+
+    it('should update root tsconfig.json with a js file path', async () => {
+      await libraryGenerator(tree, { name: 'myLib', js: true } as Schema);
+      const tsconfigJson = readJson(tree, '/tsconfig.base.json');
+      expect(tsconfigJson.compilerOptions.paths['@proj/my-lib']).toEqual([
+        'libs/my-lib/src/index.js',
+      ]);
+    });
+
+    it('should update architect builder when --buildable', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        buildable: true,
+        js: true,
+      } as Schema);
+      const workspaceJson = readJson(tree, '/workspace.json');
+
+      expect(workspaceJson.projects['my-lib'].root).toEqual('libs/my-lib');
+
+      expect(
+        workspaceJson.projects['my-lib'].architect.build.options.main
+      ).toEqual('libs/my-lib/src/index.js');
+    });
+
+    it('should generate js files for nested libs as well', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        directory: 'myDir',
+        js: true,
+      } as Schema);
+      expect(tree.exists(`libs/my-dir/my-lib/jest.config.js`)).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/index.js')).toBeTruthy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.js')
+      ).toBeTruthy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.spec.js')
+      ).toBeTruthy();
+    });
+  });
+
+  describe('--pascalCaseFiles', () => {
+    it('should generate files with upper case names', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        pascalCaseFiles: true,
+      } as Schema);
+      expect(tree.exists('libs/my-lib/src/lib/MyLib.ts')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/MyLib.spec.ts')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.spec.ts')).toBeFalsy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.ts')).toBeFalsy();
+    });
+
+    it('should generate files with upper case names for nested libs as well', async () => {
+      await libraryGenerator(tree, {
+        name: 'myLib',
+        directory: 'myDir',
+        pascalCaseFiles: true,
+      } as Schema);
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/MyDirMyLib.ts')
+      ).toBeTruthy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/MyDirMyLib.spec.ts')
+      ).toBeTruthy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.ts')
+      ).toBeFalsy();
+      expect(
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.spec.ts')
+      ).toBeFalsy();
+    });
+  });
+});
diff --git a/packages/node/src/generators/library/library.ts b/packages/node/src/generators/library/library.ts
new file mode 100644
index 0000000000..5e987ea36b
--- /dev/null
+++ b/packages/node/src/generators/library/library.ts
@@ -0,0 +1,156 @@
+import {
+  convertNxGenerator,
+  formatFiles,
+  generateFiles,
+  getWorkspaceLayout,
+  joinPathFragments,
+  names,
+  offsetFromRoot,
+  readProjectConfiguration,
+  toJS,
+  Tree,
+  updateProjectConfiguration,
+  updateTsConfigsToJs,
+} from '@nrwl/devkit';
+import { getImportPath } from 'nx/src/utils/path';
+import { Schema } from './schema';
+import { libraryGenerator as workspaceLibraryGenerator } from '@nrwl/workspace/generators';
+import { join } from 'path';
+
+export interface NormalizedSchema extends Schema {
+  name: string;
+  prefix: string;
+  fileName: string;
+  projectRoot: string;
+  projectDirectory: string;
+  parsedTags: string[];
+  compiler: 'swc' | 'tsc';
+}
+
+export async function libraryGenerator(tree: Tree, schema: Schema) {
+  const options = normalizeOptions(tree, schema);
+
+  if (options.publishable === true && !schema.importPath) {
+    throw new Error(
+      `For publishable libs you have to provide a proper "--importPath" which needs to be a valid npm package name (e.g. my-awesome-lib or @myorg/my-lib)`
+    );
+  }
+
+  const libraryInstall = await workspaceLibraryGenerator(tree, {
+    ...schema,
+    importPath: options.importPath,
+    testEnvironment: 'node',
+    skipFormat: true,
+    setParserOptionsProject: options.setParserOptionsProject,
+  });
+  createFiles(tree, options);
+
+  if (options.js) {
+    updateTsConfigsToJs(tree, options);
+  }
+  updateProject(tree, options);
+
+  if (!schema.skipFormat) {
+    await formatFiles(tree);
+  }
+
+  return libraryInstall;
+}
+
+export default libraryGenerator;
+export const librarySchematic = convertNxGenerator(libraryGenerator);
+
+function normalizeOptions(tree: Tree, options: Schema): NormalizedSchema {
+  const { npmScope, libsDir } = getWorkspaceLayout(tree);
+  const name = names(options.name).fileName;
+  const projectDirectory = options.directory
+    ? `${names(options.directory).fileName}/${name}`
+    : name;
+
+  const projectName = projectDirectory.replace(new RegExp('/', 'g'), '-');
+  const fileName = getCaseAwareFileName({
+    fileName: options.simpleModuleName ? name : projectName,
+    pascalCaseFiles: options.pascalCaseFiles,
+  });
+  const projectRoot = joinPathFragments(libsDir, projectDirectory);
+
+  const parsedTags = options.tags
+    ? options.tags.split(',').map((s) => s.trim())
+    : [];
+
+  const importPath =
+    options.importPath || getImportPath(npmScope, projectDirectory);
+
+  return {
+    ...options,
+    prefix: npmScope, // we could also allow customizing this
+    fileName,
+    name: projectName,
+    projectRoot,
+    projectDirectory,
+    parsedTags,
+    importPath,
+  };
+}
+
+function getCaseAwareFileName(options: {
+  pascalCaseFiles: boolean;
+  fileName: string;
+}) {
+  const normalized = names(options.fileName);
+
+  return options.pascalCaseFiles ? normalized.className : normalized.fileName;
+}
+
+function createFiles(tree: Tree, options: NormalizedSchema) {
+  const { className, name, propertyName } = names(options.fileName);
+
+  generateFiles(tree, join(__dirname, './files/lib'), options.projectRoot, {
+    ...options,
+    className,
+    name,
+    propertyName,
+    tmpl: '',
+    offsetFromRoot: offsetFromRoot(options.projectRoot),
+  });
+
+  if (options.unitTestRunner === 'none') {
+    tree.delete(
+      join(options.projectRoot, `./src/lib/${options.fileName}.spec.ts`)
+    );
+  }
+  if (!options.publishable && !options.buildable) {
+    tree.delete(join(options.projectRoot, 'package.json'));
+  }
+  if (options.js) {
+    toJS(tree);
+  }
+}
+
+function updateProject(tree: Tree, options: NormalizedSchema) {
+  if (!options.publishable && !options.buildable) {
+    return;
+  }
+
+  const project = readProjectConfiguration(tree, options.name);
+  const { libsDir } = getWorkspaceLayout(tree);
+
+  project.targets = project.targets || {};
+  project.targets.build = {
+    executor: `@nrwl/js:${options.compiler}`,
+    outputs: ['{options.outputPath}'],
+    options: {
+      outputPath: `dist/${libsDir}/${options.projectDirectory}`,
+      tsConfig: `${options.projectRoot}/tsconfig.lib.json`,
+      packageJson: `${options.projectRoot}/package.json`,
+      main: `${options.projectRoot}/src/index` + (options.js ? '.js' : '.ts'),
+      assets: [`${options.projectRoot}/*.md`],
+    },
+  };
+
+  if (options.rootDir) {
+    project.targets.build.options.srcRootForCompilationRoot = options.rootDir;
+  }
+
+  updateProjectConfiguration(tree, options.name, project);
+}
diff --git a/packages/node/src/generators/library/schema.d.ts b/packages/node/src/generators/library/schema.d.ts
new file mode 100644
index 0000000000..682a1c3a1e
--- /dev/null
+++ b/packages/node/src/generators/library/schema.d.ts
@@ -0,0 +1,24 @@
+import { Linter } from '@nrwl/linter';
+
+export interface Schema {
+  name: string;
+  directory?: string;
+  simpleModuleName?: boolean;
+  skipTsConfig?: boolean;
+  skipFormat?: boolean;
+  tags?: string;
+  unitTestRunner?: 'jest' | 'none';
+  linter?: Linter;
+  buildable?: boolean;
+  publishable?: boolean;
+  importPath?: string;
+  testEnvironment?: 'jsdom' | 'node';
+  rootDir?: string;
+  babelJest?: boolean;
+  js?: boolean;
+  pascalCaseFiles?: boolean;
+  strict?: boolean;
+  standaloneConfig?: boolean;
+  setParserOptionsProject?: boolean;
+  compiler: 'tsc' | 'swc';
+}
diff --git a/packages/node/src/generators/library/schema.json b/packages/node/src/generators/library/schema.json
new file mode 100644
index 0000000000..d0100170fa
--- /dev/null
+++ b/packages/node/src/generators/library/schema.json
@@ -0,0 +1,122 @@
+{
+  "$schema": "http://json-schema.org/schema",
+  "cli": "nx",
+  "$id": "NxNodeLibrary",
+  "title": "Create a Node Library for Nx",
+  "description": "Create a Node Library for an Nx workspace.",
+  "type": "object",
+  "examples": [
+    {
+      "command": "nx g lib mylib --directory=myapp",
+      "description": "Generate `libs/myapp/mylib`"
+    }
+  ],
+  "properties": {
+    "name": {
+      "type": "string",
+      "description": "Library name",
+      "$default": {
+        "$source": "argv",
+        "index": 0
+      },
+      "x-prompt": "What name would you like to use for the library?"
+    },
+    "directory": {
+      "type": "string",
+      "description": "A directory where the lib is placed",
+      "alias": "dir"
+    },
+    "simpleModuleName": {
+      "description": "Keep the module name simple (when using `--directory`).",
+      "type": "boolean",
+      "default": false
+    },
+    "linter": {
+      "description": "The tool to use for running lint checks.",
+      "type": "string",
+      "enum": ["eslint"],
+      "default": "eslint"
+    },
+    "unitTestRunner": {
+      "type": "string",
+      "enum": ["jest", "none"],
+      "description": "Test runner to use for unit tests.",
+      "default": "jest"
+    },
+    "tags": {
+      "type": "string",
+      "description": "Add tags to the library (used for linting).",
+      "alias": "t"
+    },
+    "skipFormat": {
+      "description": "Skip formatting files.",
+      "type": "boolean",
+      "default": false
+    },
+    "skipTsConfig": {
+      "type": "boolean",
+      "default": false,
+      "description": "Do not update `tsconfig.base.json` for development experience."
+    },
+    "publishable": {
+      "type": "boolean",
+      "description": "Create a publishable library."
+    },
+    "buildable": {
+      "type": "boolean",
+      "default": false,
+      "description": "Generate a buildable library."
+    },
+    "compiler": {
+      "type": "string",
+      "enum": ["tsc", "swc"],
+      "default": "tsc",
+      "description": "The compiler used by the build and test targets."
+    },
+    "importPath": {
+      "type": "string",
+      "description": "The library name used to import it, like `@myorg/my-awesome-lib`. Must be a valid npm name."
+    },
+    "rootDir": {
+      "type": "string",
+      "description": "Sets the `rootDir` for TypeScript compilation. When not defined, it uses the project's root property, or `srcRootForCompilationRoot` if it is defined."
+    },
+    "testEnvironment": {
+      "type": "string",
+      "enum": ["jsdom", "node"],
+      "description": "The test environment to use if `unitTestRunner` is set to `jest`.",
+      "default": "jsdom"
+    },
+    "babelJest": {
+      "type": "boolean",
+      "description": "Use `babel` instead of `ts-jest`.",
+      "default": false
+    },
+    "pascalCaseFiles": {
+      "type": "boolean",
+      "description": "Use pascal case file names.",
+      "alias": "P",
+      "default": false
+    },
+    "js": {
+      "type": "boolean",
+      "description": "Generate JavaScript files rather than TypeScript files.",
+      "default": false
+    },
+    "strict": {
+      "type": "boolean",
+      "description": "Whether to enable tsconfig strict mode or not.",
+      "default": false
+    },
+    "standaloneConfig": {
+      "description": "Split the project configuration into `<projectRoot>/project.json` rather than including it inside `workspace.json`.",
+      "type": "boolean"
+    },
+    "setParserOptionsProject": {
+      "type": "boolean",
+      "description": "Whether or not to configure the ESLint `parserOptions.project`. We do not do this by default for lint performance reasons.",
+      "default": false
+    }
+  },
+  "required": ["name"]
+}