diff --git a/docs/shared/packages/webpack/webpack-plugins.md b/docs/shared/packages/webpack/webpack-plugins.md
index 40fb33bc59..ae9c012eb4 100644
--- a/docs/shared/packages/webpack/webpack-plugins.md
+++ b/docs/shared/packages/webpack/webpack-plugins.md
@@ -95,6 +95,10 @@ Type: `boolean`
 
 Delete the output path before building.
 
+**`Deprecated`**
+
+Use [`output.clean`](https://webpack.js.org/guides/output-management/#cleaning-up-the-dist-folder) instead.
+
 ##### deployUrl
 
 Type: `string`
diff --git a/e2e/rspack/tests/rspack.spec.ts b/e2e/rspack/tests/rspack.spec.ts
index d97b61b814..cbe7b82f32 100644
--- a/e2e/rspack/tests/rspack.spec.ts
+++ b/e2e/rspack/tests/rspack.spec.ts
@@ -57,6 +57,8 @@ describe('rspack e2e', () => {
           module.exports = {
             output: {
               path: join(__dirname, '../../dist/${appName}'),
+              // do not remove dist, so files between builds will remain
+              clean: false,
             },
             devServer: {
               port: 4200,
@@ -91,6 +93,11 @@ describe('rspack e2e', () => {
       expect(result).toContain(
         `Successfully ran target build for project ${appName}`
       );
+
+      // Ensure dist is not removed between builds since output.clean === false
+      createFile(`dist/apps/${appName}/extra.js`);
+      runCLI(`build ${appName} --skip-nx-cache`);
+      checkFilesExist(`dist/apps/${appName}/extra.js`);
     });
 
     it('should support a standard function that returns a config object', () => {
diff --git a/e2e/webpack/src/webpack.test.ts b/e2e/webpack/src/webpack.test.ts
index 0bb2a15bec..367ee724c9 100644
--- a/e2e/webpack/src/webpack.test.ts
+++ b/e2e/webpack/src/webpack.test.ts
@@ -153,7 +153,9 @@ describe('Webpack Plugin', () => {
       module.exports = {
         target: 'node',
         output: {
-          path: path.join(__dirname, '../../dist/apps/${appName}')
+          path: path.join(__dirname, '../../dist/apps/${appName}'),
+          // do not remove dist, so files between builds will remain
+          clean: false,
         },
         plugins: [
           new NxAppWebpackPlugin({
@@ -179,6 +181,11 @@ describe('Webpack Plugin', () => {
     expect(runCommand(`node dist/apps/${appName}/main.js`)).toMatch(/Hello/);
     expect(runCommand(`node dist/apps/${appName}/foo.js`)).toMatch(/Foo/);
     expect(runCommand(`node dist/apps/${appName}/bar.js`)).toMatch(/Bar/);
+
+    // Ensure dist is not removed between builds since output.clean === false
+    createFile(`dist/apps/${appName}/extra.js`);
+    runCLI(`build ${appName} --skip-nx-cache`);
+    checkFilesExist(`dist/apps/${appName}/extra.js`);
   }, 500_000);
 
   it('should bundle in NX_PUBLIC_ environment variables', () => {
diff --git a/packages/rspack/src/plugins/nx-app-rspack-plugin/nx-app-rspack-plugin.ts b/packages/rspack/src/plugins/nx-app-rspack-plugin/nx-app-rspack-plugin.ts
index a20f114cb9..9a0c04f590 100644
--- a/packages/rspack/src/plugins/nx-app-rspack-plugin/nx-app-rspack-plugin.ts
+++ b/packages/rspack/src/plugins/nx-app-rspack-plugin/nx-app-rspack-plugin.ts
@@ -42,6 +42,12 @@ export class NxAppRspackPlugin {
     ) {
       compiler.options.entry = {};
     }
+
+    // Prefer `clean` option from Rspack config over our own.
+    if (typeof compiler.options.output.clean !== 'undefined') {
+      this.options.deleteOutputPath = false;
+    }
+
     applyBaseConfig(this.options, compiler.options, {
       useNormalizedEntry: true,
     });
diff --git a/packages/rspack/src/plugins/utils/apply-base-config.ts b/packages/rspack/src/plugins/utils/apply-base-config.ts
index c5f86fa2db..d37ab15094 100644
--- a/packages/rspack/src/plugins/utils/apply-base-config.ts
+++ b/packages/rspack/src/plugins/utils/apply-base-config.ts
@@ -121,7 +121,7 @@ function applyNxIndependentConfig(
     hashFunction: config.output?.hashFunction ?? 'xxhash64',
     // Disabled for performance
     pathinfo: config.output?.pathinfo ?? false,
-    clean: options.deleteOutputPath,
+    clean: config.output?.clean ?? options.deleteOutputPath,
   };
 
   config.watch = options.watch;
diff --git a/packages/rspack/src/plugins/utils/models.ts b/packages/rspack/src/plugins/utils/models.ts
index e61967cd08..1d7317c049 100644
--- a/packages/rspack/src/plugins/utils/models.ts
+++ b/packages/rspack/src/plugins/utils/models.ts
@@ -74,7 +74,9 @@ export interface NxAppRspackPluginOptions {
 
   /**
    * Delete the output path before building.
+   * @deprecated Use the `output.clean` option in Rspack. https://rspack.dev/config/output#outputclean
    */
+  // TODO(v22): Add migration to remove this option and remove it.
   deleteOutputPath?: boolean;
   /**
    * The deploy path for the application. e.g. `/my-app/`
diff --git a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
index dd3018fb3d..a5d8147a5a 100644
--- a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
+++ b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
@@ -82,7 +82,9 @@ export interface NxAppWebpackPluginOptions {
   crossOrigin?: 'none' | 'anonymous' | 'use-credentials';
   /**
    * Delete the output path before building.
+   * @deprecated Use the `output.clean` option in Webpack. https://webpack.js.org/guides/output-management/#cleaning-up-the-dist-folder
    */
+  // TODO(v22): Add migration to remove this option and remove it.
   deleteOutputPath?: boolean;
   /**
    * The deploy path for the application. e.g. `/my-app/`
diff --git a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin.ts b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin.ts
index 31c0937f72..beafc52b28 100644
--- a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin.ts
+++ b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin.ts
@@ -36,6 +36,11 @@ export class NxAppWebpackPlugin {
       this.options.target = target;
     }
 
+    // Prefer `clean` option from Webpack config over our own.
+    if (typeof compiler.options.output?.clean !== 'undefined') {
+      this.options.deleteOutputPath = false;
+    }
+
     applyBaseConfig(this.options, compiler.options, {
       useNormalizedEntry: true,
     });