diff --git a/packages/devkit/src/utils/move-dir.ts b/packages/devkit/src/utils/move-dir.ts
index 2e4256962d..1148bce3d7 100644
--- a/packages/devkit/src/utils/move-dir.ts
+++ b/packages/devkit/src/utils/move-dir.ts
@@ -1,4 +1,5 @@
 import { Tree } from '@nrwl/tao/src/shared/tree';
+import { relative } from 'path';
 import { visitNotIgnoredFiles } from '../generators/visit-not-ignored-files';
 import { normalizePath } from './path';
 
@@ -11,7 +12,7 @@ export function moveFilesToNewDirectory(
   newDir = normalizePath(newDir);
   visitNotIgnoredFiles(tree, oldDir, (file) => {
     try {
-      tree.rename(file, file.replace(oldDir, newDir));
+      tree.rename(file, `${newDir}/${relative(oldDir, file)}`);
     } catch (e) {
       if (!tree.exists(oldDir)) {
         console.warn(`Path ${oldDir} does not exist`);