diff --git a/packages/react/src/generators/component-cypress-spec/component-cypress-spec.ts b/packages/react/src/generators/component-cypress-spec/component-cypress-spec.ts
index ffc9119fa6..4ba434fe52 100644
--- a/packages/react/src/generators/component-cypress-spec/component-cypress-spec.ts
+++ b/packages/react/src/generators/component-cypress-spec/component-cypress-spec.ts
@@ -10,7 +10,7 @@ import type * as ts from 'typescript';
 import {
   findExportDeclarationsForJsx,
   getComponentNode,
-  getComponentPropsInterface,
+  parseComponentPropsInfo,
 } from '../../utils/ast-utils';
 import { ensureTypescript } from '@nx/js/src/utils/typescript/ensure-typescript';
 
@@ -47,7 +47,7 @@ export function getArgsDefaultValue(property: ts.SyntaxKind): string {
   };
 
   const resolvedValue = typeNameToDefault[property];
-  if (typeof resolvedValue === undefined) {
+  if (resolvedValue === undefined) {
     return '';
   } else if (typeof resolvedValue === 'string') {
     return resolvedValue.replace(/\s/g, '+');
@@ -138,18 +138,24 @@ function findPropsAndGenerateFileForCypress(
   js: boolean,
   fromNodeArray?: boolean
 ) {
-  const propsInterface = getComponentPropsInterface(sourceFile, cmpDeclaration);
+  const info = parseComponentPropsInfo(sourceFile, cmpDeclaration);
 
   let props: {
     name: string;
     defaultValue: any;
   }[] = [];
 
-  if (propsInterface) {
-    props = propsInterface.members.map((member: ts.PropertySignature) => {
+  if (info) {
+    if (!tsModule) {
+      tsModule = ensureTypescript();
+    }
+
+    props = info.props.map((member) => {
       return {
         name: (member.name as ts.Identifier).text,
-        defaultValue: getArgsDefaultValue(member.type.kind),
+        defaultValue: tsModule.isBindingElement(member)
+          ? getArgsDefaultValue(member.kind)
+          : getArgsDefaultValue(member.type.kind),
       };
     });
   }
diff --git a/packages/react/src/generators/component-story/__snapshots__/component-story.spec.ts.snap b/packages/react/src/generators/component-story/__snapshots__/component-story.spec.ts.snap
index 397b6af856..55b29dd23c 100644
--- a/packages/react/src/generators/component-story/__snapshots__/component-story.spec.ts.snap
+++ b/packages/react/src/generators/component-story/__snapshots__/component-story.spec.ts.snap
@@ -717,6 +717,42 @@ const meta: Meta<typeof Test> = {
 export default meta;
 type Story = StoryObj<typeof Test>;
 
+export const Primary = {
+  args: {
+    name: '',
+    displayAge: false,
+    style: '',
+  },
+};
+
+export const Heading: Story = {
+  args: {
+    name: '',
+    displayAge: false,
+    style: '',
+  },
+  play: async ({ canvasElement }) => {
+    const canvas = within(canvasElement);
+    expect(canvas.getByText(/Welcome to Test!/gi)).toBeTruthy();
+  },
+};
+"
+`;
+
+exports[`react:component-story default setup component with props should setup controls based on the component destructured props defined in an inline literal type 1`] = `
+"import type { Meta, StoryObj } from '@storybook/react';
+import { Test } from './test-ui-lib';
+
+import { within } from '@storybook/testing-library';
+import { expect } from '@storybook/jest';
+
+const meta: Meta<typeof Test> = {
+  component: Test,
+  title: 'Test',
+};
+export default meta;
+type Story = StoryObj<typeof Test>;
+
 export const Primary = {
   args: {
     name: '',
@@ -737,7 +773,109 @@ export const Heading: Story = {
 "
 `;
 
-exports[`react:component-story default setup component with props should setup controls based on the component props 1`] = `
+exports[`react:component-story default setup component with props should setup controls based on the component destructured props without type 1`] = `
+"import type { Meta, StoryObj } from '@storybook/react';
+import { Test } from './test-ui-lib';
+
+import { within } from '@storybook/testing-library';
+import { expect } from '@storybook/jest';
+
+const meta: Meta<typeof Test> = {
+  component: Test,
+  title: 'Test',
+};
+export default meta;
+type Story = StoryObj<typeof Test>;
+
+export const Primary = {
+  args: {
+    name: '',
+    displayAge: '',
+  },
+};
+
+export const Heading: Story = {
+  args: {
+    name: '',
+    displayAge: '',
+  },
+  play: async ({ canvasElement }) => {
+    const canvas = within(canvasElement);
+    expect(canvas.getByText(/Welcome to Test!/gi)).toBeTruthy();
+  },
+};
+"
+`;
+
+exports[`react:component-story default setup component with props should setup controls based on the component props defined in a literal type 1`] = `
+"import type { Meta, StoryObj } from '@storybook/react';
+import { Test } from './test-ui-lib';
+
+import { within } from '@storybook/testing-library';
+import { expect } from '@storybook/jest';
+
+const meta: Meta<typeof Test> = {
+  component: Test,
+  title: 'Test',
+};
+export default meta;
+type Story = StoryObj<typeof Test>;
+
+export const Primary = {
+  args: {
+    name: '',
+    displayAge: false,
+  },
+};
+
+export const Heading: Story = {
+  args: {
+    name: '',
+    displayAge: false,
+  },
+  play: async ({ canvasElement }) => {
+    const canvas = within(canvasElement);
+    expect(canvas.getByText(/Welcome to Test!/gi)).toBeTruthy();
+  },
+};
+"
+`;
+
+exports[`react:component-story default setup component with props should setup controls based on the component props defined in an inline literal type 1`] = `
+"import type { Meta, StoryObj } from '@storybook/react';
+import { Test } from './test-ui-lib';
+
+import { within } from '@storybook/testing-library';
+import { expect } from '@storybook/jest';
+
+const meta: Meta<typeof Test> = {
+  component: Test,
+  title: 'Test',
+};
+export default meta;
+type Story = StoryObj<typeof Test>;
+
+export const Primary = {
+  args: {
+    name: '',
+    displayAge: false,
+  },
+};
+
+export const Heading: Story = {
+  args: {
+    name: '',
+    displayAge: false,
+  },
+  play: async ({ canvasElement }) => {
+    const canvas = within(canvasElement);
+    expect(canvas.getByText(/Welcome to Test!/gi)).toBeTruthy();
+  },
+};
+"
+`;
+
+exports[`react:component-story default setup component with props should setup controls based on the component props defined in an interface 1`] = `
 "import type { Meta, StoryObj } from '@storybook/react';
 import { Test } from './test-ui-lib';
 
diff --git a/packages/react/src/generators/component-story/component-story.spec.ts b/packages/react/src/generators/component-story/component-story.spec.ts
index 3945b70569..397a5b6c0b 100644
--- a/packages/react/src/generators/component-story/component-story.spec.ts
+++ b/packages/react/src/generators/component-story/component-story.spec.ts
@@ -126,24 +126,16 @@ describe('react:component-story', () => {
     });
 
     describe('component with props', () => {
-      beforeEach(async () => {
+      it('should setup controls based on the component props defined in an interface', async () => {
         appTree.write(
           cmpPath,
-          `import React from 'react';
-
-          import './test.scss';
-
-          export interface TestProps {
+          `export interface TestProps {
             name: string;
             displayAge: boolean;
           }
 
           export const Test = (props: TestProps) => {
-            return (
-              <div>
-                <h1>Welcome to test component, {props.name}</h1>
-              </div>
-            );
+            return <h1>Welcome to test component, {props.name}</h1>;
           };
 
           export default Test;
@@ -154,9 +146,88 @@ describe('react:component-story', () => {
           componentPath: 'lib/test-ui-lib.tsx',
           project: 'test-ui-lib',
         });
+
+        expect(appTree.read(storyFilePath, 'utf-8')).toMatchSnapshot();
       });
 
-      it('should setup controls based on the component props', () => {
+      it('should setup controls based on the component props defined in a literal type', async () => {
+        appTree.write(
+          cmpPath,
+          `export type TestProps = {
+            name: string;
+            displayAge: boolean;
+          }
+
+          export const Test = (props: TestProps) => {
+            return <h1>Welcome to test component, {props.name}</h1>;
+          };
+
+          export default Test;
+          `
+        );
+
+        await componentStoryGenerator(appTree, {
+          componentPath: 'lib/test-ui-lib.tsx',
+          project: 'test-ui-lib',
+        });
+
+        expect(appTree.read(storyFilePath, 'utf-8')).toMatchSnapshot();
+      });
+
+      it('should setup controls based on the component props defined in an inline literal type', async () => {
+        appTree.write(
+          cmpPath,
+          `export const Test = (props: { name: string; displayAge: boolean }) => {
+            return <h1>Welcome to test component, {props.name}</h1>;
+          };
+
+          export default Test;
+          `
+        );
+
+        await componentStoryGenerator(appTree, {
+          componentPath: 'lib/test-ui-lib.tsx',
+          project: 'test-ui-lib',
+        });
+
+        expect(appTree.read(storyFilePath, 'utf-8')).toMatchSnapshot();
+      });
+
+      it('should setup controls based on the component destructured props defined in an inline literal type', async () => {
+        appTree.write(
+          cmpPath,
+          `export const Test = ({ name, displayAge }: { name: string; displayAge: boolean }) => {
+            return <h1>Welcome to test component, {props.name}</h1>;
+          };
+
+          export default Test;
+          `
+        );
+
+        await componentStoryGenerator(appTree, {
+          componentPath: 'lib/test-ui-lib.tsx',
+          project: 'test-ui-lib',
+        });
+
+        expect(appTree.read(storyFilePath, 'utf-8')).toMatchSnapshot();
+      });
+
+      it('should setup controls based on the component destructured props without type', async () => {
+        appTree.write(
+          cmpPath,
+          `export const Test = ({ name, displayAge }) => {
+            return <h1>Welcome to test component, {props.name}</h1>;
+          };
+
+          export default Test;
+          `
+        );
+
+        await componentStoryGenerator(appTree, {
+          componentPath: 'lib/test-ui-lib.tsx',
+          project: 'test-ui-lib',
+        });
+
         expect(appTree.read(storyFilePath, 'utf-8')).toMatchSnapshot();
       });
     });
diff --git a/packages/react/src/generators/component-story/component-story.ts b/packages/react/src/generators/component-story/component-story.ts
index 29bc3ed0a0..d4b913d449 100644
--- a/packages/react/src/generators/component-story/component-story.ts
+++ b/packages/react/src/generators/component-story/component-story.ts
@@ -11,7 +11,7 @@ import {
   findExportDeclarationsForJsx,
   getComponentNode,
 } from '../../utils/ast-utils';
-import { getDefaultsForComponent } from '../../utils/component-props';
+import { getComponentPropDefaults } from '../../utils/component-props';
 import { ensureTypescript } from '@nx/js/src/utils/typescript/ensure-typescript';
 
 let tsModule: typeof import('typescript');
@@ -108,7 +108,7 @@ export function findPropsAndGenerateFile(
   isPlainJs: boolean,
   fromNodeArray?: boolean
 ) {
-  const { propsTypeName, props, argTypes } = getDefaultsForComponent(
+  const { props, argTypes } = getComponentPropDefaults(
     sourceFile,
     cmpDeclaration
   );
@@ -123,7 +123,6 @@ export function findPropsAndGenerateFile(
         ? `${name}--${(cmpDeclaration as any).name.text}`
         : name,
       componentImportFileName: name,
-      propsTypeName,
       props,
       argTypes,
       componentName: (cmpDeclaration as any).name.text,
diff --git a/packages/react/src/generators/component-test/__snapshots__/component-test.spec.ts.snap b/packages/react/src/generators/component-test/__snapshots__/component-test.spec.ts.snap
index 05450ac5e3..1addc57900 100644
--- a/packages/react/src/generators/component-test/__snapshots__/component-test.spec.ts.snap
+++ b/packages/react/src/generators/component-test/__snapshots__/component-test.spec.ts.snap
@@ -138,6 +138,36 @@ describe(AnotherCmp.name, () => {
 "
 `;
 
+exports[`componentTestGenerator single component per file should handle destructured props with no type 1`] = `
+"import * as React from 'react'
+import { AnotherCmp } from './some-lib'
+
+
+describe(AnotherCmp.name, () => {
+  let props: {
+handleClick: unknown;
+text: unknown;
+count: unknown;
+isOkay: unknown;
+};
+
+  beforeEach(() => {
+    props = {
+      handleClick: '',
+      text: '',
+      count: '',
+      isOkay: '',
+    }
+  })
+
+  it('renders', () => {
+    cy.mount(<AnotherCmp {...props}/>)
+  })
+})
+
+"
+`;
+
 exports[`componentTestGenerator single component per file should handle named exports 1`] = `
 "import * as React from 'react'
 import { AnotherCmpProps, AnotherCmp } from './some-lib'
@@ -201,3 +231,33 @@ describe(AnotherCmp.name, () => {
 
 "
 `;
+
+exports[`componentTestGenerator single component per file should handle props with inline type 1`] = `
+"import * as React from 'react'
+import { AnotherCmp } from './some-lib'
+
+
+describe(AnotherCmp.name, () => {
+  let props: {
+  handleClick: () => void;
+  text: string;
+  count: number;
+  isOkay: boolean;
+};
+
+  beforeEach(() => {
+    props = {
+      text: '',
+      count: 0,
+      isOkay: false,
+      handleClick: undefined
+    }
+  })
+
+  it('renders', () => {
+    cy.mount(<AnotherCmp {...props}/>)
+  })
+})
+
+"
+`;
diff --git a/packages/react/src/generators/component-test/component-test.spec.ts b/packages/react/src/generators/component-test/component-test.spec.ts
index b6b64387a8..c738c4470f 100644
--- a/packages/react/src/generators/component-test/component-test.spec.ts
+++ b/packages/react/src/generators/component-test/component-test.spec.ts
@@ -321,6 +321,79 @@ export function AnotherCmp(props: AnotherCmpProps) {
         tree.read('some-lib/src/lib/some-lib.cy.tsx', 'utf-8')
       ).toMatchSnapshot();
     });
+
+    it('should handle props with inline type', async () => {
+      mockedAssertMinimumCypressVersion.mockReturnValue();
+      await libraryGenerator(tree, {
+        linter: Linter.EsLint,
+        name: 'some-lib',
+        skipFormat: true,
+        skipTsConfig: false,
+        style: 'scss',
+        unitTestRunner: 'none',
+        component: true,
+        projectNameAndRootFormat: 'as-provided',
+      });
+
+      tree.write(
+        'some-lib/src/lib/some-lib.tsx',
+        `export function AnotherCmp(props: {
+  handleClick: () => void;
+  text: string;
+  count: number;
+  isOkay: boolean;
+}) {
+ return <button onClick='{handleClick}'>{props.text}</button>;
+}
+`
+      );
+      await componentTestGenerator(tree, {
+        project: 'some-lib',
+        componentPath: 'some-lib/src/lib/some-lib.tsx',
+      });
+
+      expect(tree.exists('some-lib/src/lib/some-lib.cy.tsx')).toBeTruthy();
+      expect(
+        tree.read('some-lib/src/lib/some-lib.cy.tsx', 'utf-8')
+      ).toMatchSnapshot();
+    });
+
+    it('should handle destructured props with no type', async () => {
+      mockedAssertMinimumCypressVersion.mockReturnValue();
+      await libraryGenerator(tree, {
+        linter: Linter.EsLint,
+        name: 'some-lib',
+        skipFormat: true,
+        skipTsConfig: false,
+        style: 'scss',
+        unitTestRunner: 'none',
+        component: true,
+        projectNameAndRootFormat: 'as-provided',
+      });
+
+      tree.write(
+        'some-lib/src/lib/some-lib.tsx',
+        `export function AnotherCmp({
+  handleClick,
+  text,
+  count,
+  isOkay,
+}) {
+ return <button onClick='{handleClick}'>{props.text}</button>;
+}
+`
+      );
+      await componentTestGenerator(tree, {
+        project: 'some-lib',
+        componentPath: 'some-lib/src/lib/some-lib.tsx',
+      });
+
+      expect(tree.exists('some-lib/src/lib/some-lib.cy.tsx')).toBeTruthy();
+      expect(
+        tree.read('some-lib/src/lib/some-lib.cy.tsx', 'utf-8')
+      ).toMatchSnapshot();
+    });
+
     it('should handle no props', async () => {
       // this is the default behavior of the library component generator
       mockedAssertMinimumCypressVersion.mockReturnValue();
diff --git a/packages/react/src/generators/component-test/component-test.ts b/packages/react/src/generators/component-test/component-test.ts
index a7e462517b..a46fc85b00 100644
--- a/packages/react/src/generators/component-test/component-test.ts
+++ b/packages/react/src/generators/component-test/component-test.ts
@@ -10,7 +10,7 @@ import {
   findExportDeclarationsForJsx,
   getComponentNode,
 } from '../../utils/ast-utils';
-import { getDefaultsForComponent } from '../../utils/component-props';
+import { getComponentPropDefaults } from '../../utils/component-props';
 import { nxVersion } from '../../utils/versions';
 import { ComponentTestSchema } from './schema';
 import { ensureTypescript } from '@nx/js/src/utils/typescript/ensure-typescript';
@@ -72,7 +72,7 @@ function generateSpecsForComponents(tree: Tree, filePath: string) {
 
   if (cmpNodes?.length) {
     const components = cmpNodes.map((cmp) => {
-      const defaults = getDefaultsForComponent(sourceFile, cmp);
+      const defaults = getComponentPropDefaults(sourceFile, cmp);
       const isDefaultExport = defaultExport
         ? (defaultExport as any).name.text === (cmp as any).name.text
         : false;
@@ -81,6 +81,7 @@ function generateSpecsForComponents(tree: Tree, filePath: string) {
         props: [...defaults.props, ...defaults.argTypes],
         name: (cmp as any).name.text as string,
         typeName: defaults.propsTypeName,
+        inlineTypeString: defaults.inlineTypeString,
       };
     });
     const namedImports = components
diff --git a/packages/react/src/generators/component-test/files/__fileName__.cy__ext__ b/packages/react/src/generators/component-test/files/__fileName__.cy__ext__
index 16d05f81b5..0a4a9b820e 100644
--- a/packages/react/src/generators/component-test/files/__fileName__.cy__ext__
+++ b/packages/react/src/generators/component-test/files/__fileName__.cy__ext__
@@ -2,8 +2,8 @@ import * as React from 'react'
 <%- importStatement %>
 
 <% for (let cmp of components) { %>
-describe(<%= cmp.name %>.name, () => {<% if (cmp.typeName) { %>
-  let props: <%= cmp.typeName%>;
+describe(<%= cmp.name %>.name, () => {<% if (cmp.props.length > 0) { %>
+  let props: <% if (cmp.typeName) { %><%= cmp.typeName %><% } else if (cmp.inlineTypeString) { %><%- cmp.inlineTypeString %><% } else { %>unknown<% } %>;
 
   beforeEach(() => {
     props = {<% for (let prop of cmp.props) { %>
diff --git a/packages/react/src/generators/stories/__snapshots__/stories.app.spec.ts.snap b/packages/react/src/generators/stories/__snapshots__/stories.app.spec.ts.snap
index cdbb8fc9eb..61f2da04d5 100644
--- a/packages/react/src/generators/stories/__snapshots__/stories.app.spec.ts.snap
+++ b/packages/react/src/generators/stories/__snapshots__/stories.app.spec.ts.snap
@@ -15,11 +15,15 @@ export default meta;
 type Story = StoryObj<typeof NxWelcome>;
 
 export const Primary = {
-  args: {},
+  args: {
+    title: '',
+  },
 };
 
 export const Heading: Story = {
-  args: {},
+  args: {
+    title: '',
+  },
   play: async ({ canvasElement }) => {
     const canvas = within(canvasElement);
     expect(canvas.getByText(/Welcome to NxWelcome!/gi)).toBeTruthy();
@@ -74,7 +78,9 @@ export default meta;
 type Story = StoryObj<typeof NxWelcome>;
 
 export const Primary = {
-  args: {},
+  args: {
+    title: '',
+  },
 };
 "
 `;
diff --git a/packages/react/src/utils/ast-utils.spec.ts b/packages/react/src/utils/ast-utils.spec.ts
index d97b3b3e53..55e69314de 100644
--- a/packages/react/src/utils/ast-utils.spec.ts
+++ b/packages/react/src/utils/ast-utils.spec.ts
@@ -592,3 +592,221 @@ describe('getComponentNode', () => {
     expect(result).toBeNull();
   });
 });
+
+describe('parseComponentPropsInfo', () => {
+  it('should parse props from a function with typed props using an interface', () => {
+    const sourceCode = `export interface TestProps {
+      name: string;
+      age: number;
+    }
+    export function Test(props: TestProps) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[1]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBe('TestProps');
+    expect(result.inlineTypeString).toBeNull();
+  });
+
+  it('should parse props from a function with destructured typed props using an interface', () => {
+    const sourceCode = `export interface TestProps {
+      name: string;
+      age: number;
+    }
+    export function Test({ name, age }: TestProps) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[1]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBe('TestProps');
+    expect(result.inlineTypeString).toBeNull();
+  });
+
+  it('should parse props from a function with typed props using a literal type', () => {
+    const sourceCode = `export type TestProps = {
+      name: string;
+      age: number;
+    }
+    export function Test(props: TestProps) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[1]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBe('TestProps');
+    expect(result.inlineTypeString).toBeNull();
+  });
+
+  it('should parse props from a function with destructured typed props using a literal type', () => {
+    const sourceCode = `export type TestProps = {
+      name: string;
+      age: number;
+    }
+    export function Test({ name, age }: TestProps) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[1]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBe('TestProps');
+    expect(result.inlineTypeString).toBeNull();
+  });
+
+  it('should parse props from a function with typed props using an inline type', () => {
+    const sourceCode = `export function Test(props: { name: string; age: number }) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[0]);
+
+    expect(result).toBeDefined();
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBeNull();
+    expect(result.inlineTypeString).toMatchInlineSnapshot(
+      `"{ name: string; age: number }"`
+    );
+  });
+
+  it('should parse props from a function with destructured typed props using an inline type', () => {
+    const sourceCode = `export function Test({ name, age }: { name: string; age: number }) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[0]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect((result.props[0] as ts.PropertySignature).type.getText()).toBe(
+      'string'
+    );
+    expect(result.props[1].name.getText()).toBe('age');
+    expect((result.props[1] as ts.PropertySignature).type.getText()).toBe(
+      'number'
+    );
+    expect(result.propsTypeName).toBeNull();
+    expect(result.inlineTypeString).toMatchInlineSnapshot(
+      `"{ name: string; age: number }"`
+    );
+  });
+
+  it('should parse props from a function with no type', () => {
+    const sourceCode = `export function Test({ name, age }) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[0]);
+
+    expect(result.props.length).toBe(2);
+    expect(result.props[0].name.getText()).toBe('name');
+    expect(result.props[1].name.getText()).toBe('age');
+    expect(result.propsTypeName).toBeNull();
+    expect(result.inlineTypeString).toMatchInlineSnapshot(`
+      "{
+      name: unknown;
+      age: unknown;
+      }"
+    `);
+  });
+
+  it('should return null when the props are not destructured and have not type', () => {
+    const sourceCode = `export function Test(props) {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[0]);
+
+    expect(result).toBeNull();
+  });
+
+  it('should return null when there are no props', () => {
+    const sourceCode = `export function Test() {}`;
+    const source = ts.createSourceFile(
+      'some-component.tsx',
+      sourceCode,
+      ts.ScriptTarget.Latest,
+      true
+    );
+
+    const result = utils.parseComponentPropsInfo(source, source.statements[0]);
+
+    expect(result).toBeNull();
+  });
+});
diff --git a/packages/react/src/utils/ast-utils.ts b/packages/react/src/utils/ast-utils.ts
index 40f53e83ed..3afa85aab1 100644
--- a/packages/react/src/utils/ast-utils.ts
+++ b/packages/react/src/utils/ast-utils.ts
@@ -665,44 +665,70 @@ export function getComponentNode(sourceFile: ts.SourceFile): ts.Node | null {
   return defaultExport;
 }
 
-export function getComponentPropsInterface(
+export function parseComponentPropsInfo(
   sourceFile: ts.SourceFile,
   cmpDeclaration: ts.Node
-): ts.InterfaceDeclaration | null {
+): {
+  props: Array<ts.PropertySignature | ts.BindingElement>;
+  propsTypeName: string | null;
+  inlineTypeString: string | null;
+} | null {
   if (!tsModule) {
     tsModule = ensureTypescript();
   }
   let propsTypeName: string = null;
+  let inlineTypeString: string = null;
+  const props: Array<ts.PropertySignature | ts.BindingElement> = [];
+
+  const processParameters = (
+    parameters: ts.NodeArray<ts.ParameterDeclaration>
+  ): boolean => {
+    if (!parameters.length) {
+      return null;
+    }
+
+    const propsParam = parameters[0];
+    if (propsParam.type) {
+      if (tsModule.isTypeReferenceNode(propsParam.type)) {
+        // function Cmp(props: Props) {}
+        propsTypeName = propsParam.type.typeName.getText();
+      } else if (tsModule.isTypeLiteralNode(propsParam.type)) {
+        // function Cmp(props: {a: string, b: number}) {}
+        props.push(
+          ...(propsParam.type.members as ts.NodeArray<ts.PropertySignature>)
+        );
+        inlineTypeString = propsParam.type.getText();
+      } else {
+        // we don't support other types (e.g. union types)
+        return false;
+      }
+    } else if (tsModule.isObjectBindingPattern(propsParam.name)) {
+      // function Cmp({a, b}) {}
+      props.push(...propsParam.name.elements);
+      inlineTypeString = `{\n${propsParam.name.elements
+        .map((x) => `${x.name.getText()}: unknown;\n`)
+        .join('')}}`;
+    } else {
+      // function Cmp(props) {}
+      return false;
+    }
+
+    return true;
+  };
 
   if (tsModule.isFunctionDeclaration(cmpDeclaration)) {
-    const propsParam: ts.ParameterDeclaration = cmpDeclaration.parameters.find(
-      (x) =>
-        tsModule.isParameter(x) && (x.name as ts.Identifier).text === 'props'
-    );
-
-    if (propsParam?.type?.['typeName']) {
-      propsTypeName = (
-        (propsParam.type as ts.TypeReferenceNode).typeName as ts.Identifier
-      ).text;
+    const result = processParameters(cmpDeclaration.parameters);
+    if (!result) {
+      return null;
     }
   } else if (
-    (cmpDeclaration as ts.VariableDeclaration).initializer &&
-    tsModule.isArrowFunction(
-      (cmpDeclaration as ts.VariableDeclaration).initializer
-    )
+    tsModule.isVariableDeclaration(cmpDeclaration) &&
+    cmpDeclaration.initializer &&
+    tsModule.isArrowFunction(cmpDeclaration.initializer)
   ) {
-    const arrowFn = (cmpDeclaration as ts.VariableDeclaration)
-      .initializer as ts.ArrowFunction;
-
-    const propsParam: ts.ParameterDeclaration = arrowFn.parameters.find(
-      (x) =>
-        tsModule.isParameter(x) && (x.name as ts.Identifier).text === 'props'
-    );
-
-    if (propsParam?.type?.['typeName']) {
-      propsTypeName = (
-        (propsParam.type as ts.TypeReferenceNode).typeName as ts.Identifier
-      ).text;
+    const result = processParameters(cmpDeclaration.initializer.parameters);
+    if (!result) {
+      return null;
     }
   } else if (
     // do we have a class component extending from React.Component
@@ -731,12 +757,68 @@ export function getComponentPropsInterface(
   }
 
   if (propsTypeName) {
-    return findNodes(sourceFile, tsModule.SyntaxKind.InterfaceDeclaration).find(
-      (x: ts.InterfaceDeclaration) => {
-        return (x.name as ts.Identifier).getText() === propsTypeName;
-      }
-    ) as ts.InterfaceDeclaration;
-  } else {
+    const foundProps = getPropsFromTypeName(sourceFile, propsTypeName);
+    if (!foundProps) {
+      return null;
+    }
+
+    for (const prop of foundProps) {
+      props.push(prop);
+    }
+  }
+
+  return {
+    propsTypeName,
+    props,
+    inlineTypeString,
+  };
+}
+
+function getPropsFromTypeName(
+  sourceFile: ts.SourceFile,
+  propsTypeName: string
+): Array<ts.PropertySignature | ts.BindingElement> {
+  const matchingNode = findNodes(sourceFile, [
+    tsModule.SyntaxKind.InterfaceDeclaration,
+    tsModule.SyntaxKind.TypeAliasDeclaration,
+  ]).find((x): x is ts.InterfaceDeclaration | ts.TypeAliasDeclaration => {
+    if (
+      tsModule.isTypeAliasDeclaration(x) ||
+      tsModule.isInterfaceDeclaration(x)
+    ) {
+      return x.name.getText() === propsTypeName;
+    }
+
+    return false;
+  });
+
+  if (!matchingNode) {
     return null;
   }
+
+  const props: Array<ts.PropertySignature | ts.BindingElement> = [];
+  if (tsModule.isTypeAliasDeclaration(matchingNode)) {
+    if (tsModule.isTypeLiteralNode(matchingNode.type)) {
+      for (const prop of matchingNode.type.members) {
+        props.push(prop as ts.PropertySignature);
+      }
+    } else if (tsModule.isTypeReferenceNode(matchingNode.type)) {
+      const result = getPropsFromTypeName(
+        sourceFile,
+        matchingNode.type.typeName.getText()
+      );
+      if (result) {
+        props.push(...result);
+      }
+    } else {
+      // we don't support other types of type aliases (e.g. union types)
+      return null;
+    }
+  } else {
+    for (const prop of matchingNode.members) {
+      props.push(prop as ts.PropertySignature);
+    }
+  }
+
+  return props;
 }
diff --git a/packages/react/src/utils/component-props.ts b/packages/react/src/utils/component-props.ts
index 655be8b17d..c1776ed205 100644
--- a/packages/react/src/utils/component-props.ts
+++ b/packages/react/src/utils/component-props.ts
@@ -1,6 +1,6 @@
 import { ensureTypescript } from '@nx/js/src/utils/typescript/ensure-typescript';
 import type * as ts from 'typescript';
-import { getComponentPropsInterface } from './ast-utils';
+import { parseComponentPropsInfo } from './ast-utils';
 
 let tsModule: typeof import('typescript');
 
@@ -16,18 +16,19 @@ export function getArgsDefaultValue(property: ts.SyntaxKind): string {
   };
 
   const resolvedValue = typeNameToDefault[property];
-  if (typeof resolvedValue === undefined) {
+  if (resolvedValue === undefined) {
     return "''";
   } else {
     return resolvedValue;
   }
 }
 
-export function getDefaultsForComponent(
+export function getComponentPropDefaults(
   sourceFile: ts.SourceFile,
   cmpDeclaration: ts.Node
 ): {
-  propsTypeName: string;
+  propsTypeName: string | null;
+  inlineTypeString: string | null;
   props: {
     name: string;
     defaultValue: any;
@@ -41,9 +42,11 @@ export function getDefaultsForComponent(
   if (!tsModule) {
     tsModule = ensureTypescript();
   }
-  const propsInterface = getComponentPropsInterface(sourceFile, cmpDeclaration);
+
+  const info = parseComponentPropsInfo(sourceFile, cmpDeclaration);
 
   let propsTypeName: string = null;
+  let inlineTypeString: string = null;
   let props: {
     name: string;
     defaultValue: any;
@@ -54,25 +57,35 @@ export function getDefaultsForComponent(
     actionText: string;
   }[] = [];
 
-  if (propsInterface) {
-    propsTypeName = propsInterface.name.text;
-    props = propsInterface.members.map((member: ts.PropertySignature) => {
-      if (member.type.kind === tsModule.SyntaxKind.FunctionType) {
-        argTypes.push({
-          name: (member.name as ts.Identifier).text,
-          type: 'action',
-          actionText: `${(member.name as ts.Identifier).text} executed!`,
-        });
+  if (info) {
+    propsTypeName = info.propsTypeName;
+    inlineTypeString = info.inlineTypeString;
+    props = info.props.map((member) => {
+      if (tsModule.isPropertySignature(member)) {
+        if (member.type.kind === tsModule.SyntaxKind.FunctionType) {
+          argTypes.push({
+            name: member.name.getText(),
+            type: 'action',
+            actionText: `${member.name.getText()} executed!`,
+          });
+        } else {
+          return {
+            name: member.name.getText(),
+            defaultValue: getArgsDefaultValue(member.type.kind),
+          };
+        }
       } else {
+        // it's a binding element, which doesn't have a type, e.g.:
+        // const Cmp = ({ a, b }) => {}
         return {
-          name: (member.name as ts.Identifier).text,
-          defaultValue: getArgsDefaultValue(member.type.kind),
+          name: member.name.getText(),
+          defaultValue: getArgsDefaultValue(member.kind),
         };
       }
     });
     props = props.filter((p) => p && p.defaultValue !== undefined);
   }
-  return { propsTypeName, props, argTypes };
+  return { propsTypeName, inlineTypeString, props, argTypes };
 }
 
 export function getImportForType(sourceFile: ts.SourceFile, typeName: string) {