diff --git a/e2e/node/src/node.test.ts b/e2e/node/src/node.test.ts
index 95e0068f65..e34416f235 100644
--- a/e2e/node/src/node.test.ts
+++ b/e2e/node/src/node.test.ts
@@ -264,7 +264,7 @@ module.exports = {
     }
   }, 120_000);
 
-  xit('should be able to generate a nest application', async () => {
+  it('should be able to generate a nest application', async () => {
     const nestapp = uniq('nestapp');
     const port = 3335;
     runCLI(`generate @nx/nest:app ${nestapp} --linter=eslint`);
@@ -278,49 +278,32 @@ module.exports = {
       'Test Suites: 2 passed, 2 total'
     );
 
-    await runCLIAsync(`build ${nestapp}`);
+    const buildResult = runCLI(`build ${nestapp}`);
 
     checkFilesExist(
       `dist/apps/${nestapp}/main.js`,
-      `dist/apps/${nestapp}/assets/file.txt`,
-      `dist/apps/${nestapp}/main.js.map`
+      `dist/apps/${nestapp}/assets/file.txt`
     );
 
-    const server = exec(`node ./dist/apps/${nestapp}/main.js`, {
-      cwd: tmpProjPath(),
-    });
-    expect(server).toBeTruthy();
-
-    // checking build
-    await new Promise((resolve) => {
-      server.stdout.on('data', async (data) => {
-        const message = data.toString();
-        if (message.includes(`Listening at http://localhost:${port}`)) {
-          const result = await getData(port);
-
-          expect(result.message).toEqual(`Welcome to ${nestapp}!`);
-          server.kill();
-          resolve(null);
-        }
-      });
-    });
+    expect(buildResult).toContain(
+      `Successfully ran target build for project ${nestapp}`
+    );
 
     // checking serve
     const p = await runCommandUntil(
       `serve ${nestapp} --port=${port}`,
       (output) => {
         process.stdout.write(output);
-        return output.includes(`Listening at http://localhost:${port}`);
+        return output.includes(`listening on ws://localhost:${port}`);
       }
     );
-    const result = await getData(port);
-    expect(result.message).toEqual(`Welcome to ${nestapp}!`);
-    try {
-      await promisifiedTreeKill(p.pid, 'SIGKILL');
-      expect(await killPorts(port)).toBeTruthy();
-    } catch (err) {
-      expect(err).toBeFalsy();
-    }
+
+    const e2eRsult = await runCLIAsync(`e2e ${nestapp}-e2e`);
+
+    expect(e2eRsult.combinedOutput).toContain('Test Suites: 1 passed, 1 total');
+
+    await killPorts(port);
+    p.kill();
   }, 120000);
 
   // TODO(crystal, @ndcunningham): how do we handle this now?
diff --git a/packages/js/src/executors/node/node.impl.ts b/packages/js/src/executors/node/node.impl.ts
index db76e58ba9..b2f0648dea 100644
--- a/packages/js/src/executors/node/node.impl.ts
+++ b/packages/js/src/executors/node/node.impl.ts
@@ -21,6 +21,7 @@ import { calculateProjectBuildableDependencies } from '../../utils/buildable-lib
 import { killTree } from './lib/kill-tree';
 import { fileExists } from 'nx/src/utils/fileutils';
 import { getRelativeDirectoryToProjectRoot } from '../../utils/get-main-file-dir';
+import { interpolate } from 'nx/src/tasks-runner/utils';
 
 interface ActiveTask {
   id: string;
@@ -69,6 +70,7 @@ export async function* nodeExecutor(
   const buildOptions: Record<string, any> = {
     ...readTargetOptions(buildTarget, context),
     ...options.buildTargetOptions,
+    target: buildTarget.target,
   };
 
   if (options.waitUntilTargets && options.waitUntilTargets.length > 0) {
@@ -364,7 +366,21 @@ function getFileToRun(
   // If using run-commands or another custom executor, then user should set
   // outputFileName, but we can try the default value that we use.
   if (!buildOptions?.outputPath && !buildOptions?.outputFileName) {
+    // If we are using crystal for infering the target, we can use the output path from the target.
+    // Since the output path has a token for the project name, we need to interpolate it.
+    // {workspaceRoot}/dist/{projectRoot} -> dist/my-app
+    const outputPath = project.data.targets[buildOptions.target]?.outputs?.[0];
+
+    if (outputPath) {
+      const outputFilePath = interpolate(outputPath, {
+        projectName: project.name,
+        projectRoot: project.data.root,
+        workspaceRoot: '',
+      });
+      return path.join(outputFilePath, 'main.js');
+    }
     const fallbackFile = path.join('dist', project.data.root, 'main.js');
+
     logger.warn(
       `Build option ${chalk.bold('outputFileName')} not set for ${chalk.bold(
         project.name
diff --git a/packages/webpack/src/plugins/plugin.ts b/packages/webpack/src/plugins/plugin.ts
index 1ce11bddcd..c733b193ae 100644
--- a/packages/webpack/src/plugins/plugin.ts
+++ b/packages/webpack/src/plugins/plugin.ts
@@ -8,7 +8,7 @@ import {
   workspaceRoot,
   writeJsonFile,
 } from '@nx/devkit';
-import { dirname, isAbsolute, join, relative } from 'path';
+import { dirname, isAbsolute, join, relative, resolve } from 'path';
 import { getNamedInputs } from '@nx/devkit/src/utils/get-named-inputs';
 import { WebpackExecutorOptions } from '../executors/webpack/schema';
 import { WebDevServerOptions } from '../executors/dev-server/schema';
@@ -187,7 +187,14 @@ function normalizeOutputPath(
     }
   } else {
     if (isAbsolute(outputPath)) {
-      return `{workspaceRoot}/${relative(workspaceRoot, outputPath)}`;
+      /**
+       * If outputPath is absolute, we need to resolve it relative to the workspaceRoot first.
+       * After that, we can use the relative path to the workspaceRoot token {workspaceRoot} to generate the output path.
+       */
+      return `{workspaceRoot}/${relative(
+        workspaceRoot,
+        resolve(workspaceRoot, outputPath)
+      )}`;
     } else {
       if (outputPath.startsWith('..')) {
         return join('{workspaceRoot}', join(projectRoot, outputPath));