diff --git a/e2e/node/src/node-ts-solution-esbuild.test.ts b/e2e/node/src/node-ts-solution-esbuild.test.ts
new file mode 100644
index 0000000000..aa7de4b87e
--- /dev/null
+++ b/e2e/node/src/node-ts-solution-esbuild.test.ts
@@ -0,0 +1,90 @@
+import { names } from '@nx/devkit';
+import {
+  cleanupProject,
+  getPackageManagerCommand,
+  getSelectedPackageManager,
+  newProject,
+  readFile,
+  runCLI,
+  runCommand,
+  uniq,
+  updateFile,
+  updateJson,
+} from '@nx/e2e/utils';
+
+let originalEnvPort;
+
+describe('Node Esbuild Applications', () => {
+  beforeAll(() => {
+    originalEnvPort = process.env.PORT;
+    newProject({
+      preset: 'ts',
+    });
+  });
+
+  afterAll(() => {
+    process.env.PORT = originalEnvPort;
+    cleanupProject();
+  });
+
+  it('it should generate an app that cosumes a non-buildable ts library', () => {
+    const nodeapp = uniq('nodeapp');
+    const lib = uniq('lib');
+    const port = getRandomPort();
+    process.env.PORT = `${port}`;
+
+    runCLI(
+      `generate @nx/node:app apps/${nodeapp} --port=${port} --bundler=esbuild --framework=fastify --no-interactive`
+    );
+
+    runCLI(
+      `generate @nx/js:lib packages/${lib} --bundler=none --e2eTestRunner=none --unitTestRunner=none`
+    );
+
+    updateFile(
+      `apps/${nodeapp}/src/main.ts`,
+      (content) => `import { ${names(lib).propertyName} } from '@proj/${lib}';
+      
+      console.log(${names(lib).propertyName}());
+
+      ${content}
+      `
+    );
+
+    // App is CJS by default so lets update the lib to follow the same pattern
+    updateJson(`packages/${lib}/tsconfig.lib.json`, (json) => {
+      json.compilerOptions.module = 'commonjs';
+      json.compilerOptions.moduleResolution = 'node';
+      return json;
+    });
+
+    updateJson('tsconfig.base.json', (json) => {
+      json.compilerOptions.moduleResolution = 'node';
+      json.compilerOptions.module = 'esnext';
+      return json;
+    });
+
+    const pm = getSelectedPackageManager();
+    if (pm === 'pnpm') {
+      updateJson(`apps/${nodeapp}/package.json`, (json) => {
+        json.dependencies ??= {};
+        json.dependencies[`@proj/${lib}`] = 'workspace:*';
+        return json;
+      });
+
+      const pmc = getPackageManagerCommand({ packageManager: pm });
+      runCommand(pmc.install);
+    }
+
+    runCLI('sync');
+
+    // check build
+    expect(runCLI(`build ${nodeapp}`)).toContain(
+      `Successfully ran target build for project ${nodeapp}`
+    );
+  });
+});
+
+function getRandomPort() {
+  return Math.floor(1000 + Math.random() * 7000);
+}
diff --git a/packages/esbuild/src/executors/esbuild/lib/build-esbuild-options.ts b/packages/esbuild/src/executors/esbuild/lib/build-esbuild-options.ts
index 32df88ab18..e9839c192f 100644
--- a/packages/esbuild/src/executors/esbuild/lib/build-esbuild-options.ts
+++ b/packages/esbuild/src/executors/esbuild/lib/build-esbuild-options.ts
@@ -1,11 +1,12 @@
 import * as esbuild from 'esbuild';
 import * as path from 'path';
-import { existsSync, mkdirSync, writeFileSync } from 'fs';
+import { existsSync, mkdirSync, writeFileSync, lstatSync } from 'fs';
 import {
   ExecutorContext,
   joinPathFragments,
   normalizePath,
   ProjectGraphProjectNode,
+  readJsonFile,
   workspaceRoot,
 } from '@nx/devkit';
 
@@ -74,7 +75,10 @@ export function buildEsbuildOptions(
   } else if (options.platform === 'node' && format === 'cjs') {
     // When target platform Node and target format is CJS, then also transpile workspace libs used by the app.
     // Provide a `require` override in the main entry file so workspace libs can be loaded when running the app.
-    const paths = getTsConfigCompilerPaths(context);
+    const paths = options.isTsSolutionSetup
+      ? createPathsFromTsConfigReferences(context)
+      : getTsConfigCompilerPaths(context);
+
     const entryPointsFromProjects = getEntryPoints(
       context.projectName,
       context,
@@ -123,6 +127,132 @@ export function buildEsbuildOptions(
   return esbuildOptions;
 }
 
+/**
+ * When using TS project references we need to map the paths to the referenced projects.
+ * This is necessary because esbuild does not support project references out of the box.
+ * @param context ExecutorContext
+ */
+export function createPathsFromTsConfigReferences(
+  context: ExecutorContext
+): Record<string, string[]> {
+  const {
+    findAllProjectNodeDependencies,
+  } = require('nx/src/utils/project-graph-utils');
+  const {
+    isValidPackageJsonBuildConfig,
+  } = require('@nx/js/src/plugins/typescript/util');
+  const { readTsConfig } = require('@nx/js');
+  const {
+    findRuntimeTsConfigName,
+  } = require('@nx/js/src/utils/typescript/ts-solution-setup');
+
+  const deps = findAllProjectNodeDependencies(
+    context.projectName,
+    context.projectGraph
+  );
+  const tsConfig = readJsonFile(
+    joinPathFragments(context.root, 'tsconfig.json')
+  );
+  const referencesAsPaths = new Set(
+    tsConfig.references.reduce((acc, ref) => {
+      if (!ref.path) return acc;
+
+      const fullPath = joinPathFragments(workspaceRoot, ref.path);
+
+      try {
+        if (lstatSync(fullPath).isDirectory()) {
+          acc.push(fullPath);
+        }
+      } catch {
+        // Ignore errors (e.g., path doesn't exist)
+      }
+
+      return acc;
+    }, [])
+  );
+
+  // for each dep we check if it contains a build target
+  // we only want to add the paths for projects that do not have a build target
+  return deps.reduce((acc, dep) => {
+    const projectNode = context.projectGraph.nodes[dep];
+    const projectPath = joinPathFragments(workspaceRoot, projectNode.data.root);
+    const resolvedTsConfigPath =
+      findRuntimeTsConfigName(projectPath) ?? 'tsconfig.json';
+    const projTsConfig = readTsConfig(resolvedTsConfigPath) as any;
+
+    const projectPkgJson = readJsonFile(
+      joinPathFragments(projectPath, 'package.json')
+    );
+
+    if (
+      projTsConfig &&
+      !isValidPackageJsonBuildConfig(
+        projTsConfig,
+        workspaceRoot,
+        projectPath
+      ) &&
+      projectPkgJson?.name
+    ) {
+      const entryPoint = getProjectEntryPoint(projectPkgJson, projectPath);
+      if (referencesAsPaths.has(projectPath)) {
+        acc[projectPkgJson.name] = [path.relative(workspaceRoot, entryPoint)];
+      }
+    }
+
+    return acc;
+  }, {});
+}
+
+// Get the entry point for the project
+function getProjectEntryPoint(projectPkgJson: any, projectPath: string) {
+  let entryPoint = null;
+  if (typeof projectPkgJson.exports === 'string') {
+    // If exports is a string, use it as the entry point
+    entryPoint = path.relative(
+      workspaceRoot,
+      joinPathFragments(projectPath, projectPkgJson.exports)
+    );
+  } else if (
+    typeof projectPkgJson.exports === 'object' &&
+    projectPkgJson.exports['.']
+  ) {
+    // If exports is an object and has a '.' key, process it
+    const exportEntry = projectPkgJson.exports['.'];
+    if (typeof exportEntry === 'object') {
+      entryPoint =
+        exportEntry.import ||
+        exportEntry.require ||
+        exportEntry.default ||
+        null;
+    } else if (typeof exportEntry === 'string') {
+      entryPoint = exportEntry;
+    }
+
+    if (entryPoint) {
+      entryPoint = path.relative(
+        workspaceRoot,
+        joinPathFragments(projectPath, entryPoint)
+      );
+    }
+  }
+
+  // If no exports were found, fall back to main and module
+  if (!entryPoint) {
+    if (projectPkgJson.main) {
+      entryPoint = path.relative(
+        workspaceRoot,
+        joinPathFragments(projectPath, projectPkgJson.main)
+      );
+    } else if (projectPkgJson.module) {
+      entryPoint = path.relative(
+        workspaceRoot,
+        joinPathFragments(projectPath, projectPkgJson.module)
+      );
+    }
+  }
+  return entryPoint;
+}
+
 export function getOutExtension(
   format: 'cjs' | 'esm',
   options: Pick<NormalizedEsBuildExecutorOptions, 'userDefinedBuildOptions'>
diff --git a/packages/js/src/plugins/typescript/plugin.ts b/packages/js/src/plugins/typescript/plugin.ts
index 9d6e6dc72a..1aa26de95a 100644
--- a/packages/js/src/plugins/typescript/plugin.ts
+++ b/packages/js/src/plugins/typescript/plugin.ts
@@ -35,7 +35,11 @@ import { hashArray, hashFile, hashObject } from 'nx/src/hasher/file-hasher';
 import { getLockFileName } from 'nx/src/plugins/js/lock-file/lock-file';
 import { workspaceDataDirectory } from 'nx/src/utils/cache-directory';
 import type { ParsedCommandLine, System } from 'typescript';
-import { addBuildAndWatchDepsTargets } from './util';
+import {
+  addBuildAndWatchDepsTargets,
+  isValidPackageJsonBuildConfig,
+  ParsedTsconfigData,
+} from './util';
 
 export interface TscPluginOptions {
   typecheck?:
@@ -72,12 +76,7 @@ interface NormalizedPluginOptions {
 }
 
 type TscProjectResult = Pick<ProjectConfiguration, 'targets'>;
-type ParsedTsconfigData = Pick<
-  ParsedCommandLine,
-  'options' | 'projectReferences' | 'raw'
-> & {
-  extendedConfigFile: { filePath: string; externalPackage?: string } | null;
-};
+
 type TsconfigCacheData = {
   data: ParsedTsconfigData;
   hash: string;
@@ -756,103 +755,6 @@ function getOutputs(
   return Array.from(outputs);
 }
 
-/**
- * Validates the build configuration of a `package.json` file by ensuring that paths in the `exports`, `module`,
- * and `main` fields reference valid output paths within the `outDir` defined in the TypeScript configuration.
- * Priority is given to the `exports` field, specifically the `.` export if defined. If `exports` is not defined,
- * the function falls back to validating `main` and `module` fields. If `outFile` is specified, it validates that the file
- * is located within the output directory.
- * If no `package.json` file exists, it assumes the configuration is valid.
- *
- * @param tsConfig The TypeScript configuration object.
- * @param workspaceRoot The workspace root path.
- * @param projectRoot The project root path.
- * @returns `true` if the package has a valid build configuration; otherwise, `false`.
- */
-function isValidPackageJsonBuildConfig(
-  tsConfig: ParsedTsconfigData,
-  workspaceRoot: string,
-  projectRoot: string
-): boolean {
-  const packageJsonPath = join(workspaceRoot, projectRoot, 'package.json');
-  if (!existsSync(packageJsonPath)) {
-    // If the package.json file does not exist.
-    // Assume it's valid because it would be using `project.json` instead.
-    return true;
-  }
-  const packageJson = readJsonFile(packageJsonPath);
-
-  const outDir = tsConfig.options.outFile
-    ? dirname(tsConfig.options.outFile)
-    : tsConfig.options.outDir;
-  const resolvedOutDir = outDir
-    ? resolve(workspaceRoot, projectRoot, outDir)
-    : undefined;
-
-  const isPathSourceFile = (path: string): boolean => {
-    if (resolvedOutDir) {
-      const pathToCheck = resolve(workspaceRoot, projectRoot, path);
-      return !pathToCheck.startsWith(resolvedOutDir);
-    }
-
-    const ext = extname(path);
-    // Check that the file extension is a TS file extension. As the source files are in the same directory as the output files.
-    return ['.ts', '.tsx', '.cts', '.mts'].includes(ext);
-  };
-
-  // Checks if the value is a path within the `src` directory.
-  const containsInvalidPath = (
-    value: string | Record<string, string>
-  ): boolean => {
-    if (typeof value === 'string') {
-      return isPathSourceFile(value);
-    } else if (typeof value === 'object') {
-      return Object.entries(value).some(([currentKey, subValue]) => {
-        // Skip types field
-        if (currentKey === 'types') {
-          return false;
-        }
-        if (typeof subValue === 'string') {
-          return isPathSourceFile(subValue);
-        }
-        return false;
-      });
-    }
-    return false;
-  };
-
-  const exports = packageJson?.exports;
-
-  // Check the `.` export if `exports` is defined.
-  if (exports) {
-    if (typeof exports === 'string') {
-      return !isPathSourceFile(exports);
-    }
-    if (typeof exports === 'object' && '.' in exports) {
-      return !containsInvalidPath(exports['.']);
-    }
-
-    // Check other exports if `.` is not defined or valid.
-    for (const key in exports) {
-      if (key !== '.' && containsInvalidPath(exports[key])) {
-        return false;
-      }
-    }
-
-    return true;
-  }
-
-  // If `exports` is not defined, fallback to `main` and `module` fields.
-  const buildPaths = ['main', 'module'];
-  for (const field of buildPaths) {
-    if (packageJson[field] && isPathSourceFile(packageJson[field])) {
-      return false;
-    }
-  }
-
-  return true;
-}
-
 function pathToInputOrOutput(
   path: string,
   workspaceRoot: string,
diff --git a/packages/js/src/plugins/typescript/util.ts b/packages/js/src/plugins/typescript/util.ts
index 6cd334dce8..b9fb1bdcd9 100644
--- a/packages/js/src/plugins/typescript/util.ts
+++ b/packages/js/src/plugins/typescript/util.ts
@@ -1,7 +1,16 @@
 import { readJsonFile, type TargetConfiguration } from '@nx/devkit';
 import { existsSync } from 'node:fs';
+import { dirname, extname, isAbsolute, relative, resolve } from 'node:path';
 import { type PackageManagerCommands } from 'nx/src/utils/package-manager';
 import { join } from 'path';
+import { type ParsedCommandLine } from 'typescript';
+
+export type ParsedTsconfigData = Pick<
+  ParsedCommandLine,
+  'options' | 'projectReferences' | 'raw'
+> & {
+  extendedConfigFile: { filePath: string; externalPackage?: string } | null;
+};
 
 /**
  * Allow uses that use incremental builds to run `nx watch-deps` to continuously build all dependencies.
@@ -39,3 +48,94 @@ export function addBuildAndWatchDepsTargets(
     };
   }
 }
+
+export function isValidPackageJsonBuildConfig(
+  tsConfig: ParsedTsconfigData,
+  workspaceRoot: string,
+  projectRoot: string
+): boolean {
+  const resolvedProjectPath = isAbsolute(projectRoot)
+    ? relative(workspaceRoot, projectRoot)
+    : projectRoot;
+  const packageJsonPath = join(
+    workspaceRoot,
+    resolvedProjectPath,
+    'package.json'
+  );
+  if (!existsSync(packageJsonPath)) {
+    // If the package.json file does not exist.
+    // Assume it's valid because it would be using `project.json` instead.
+    return true;
+  }
+  const packageJson = readJsonFile(packageJsonPath);
+
+  const outDir = tsConfig.options.outFile
+    ? dirname(tsConfig.options.outFile)
+    : tsConfig.options.outDir;
+  const resolvedOutDir = outDir
+    ? resolve(workspaceRoot, resolvedProjectPath, outDir)
+    : undefined;
+
+  const isPathSourceFile = (path: string): boolean => {
+    if (resolvedOutDir) {
+      const pathToCheck = resolve(workspaceRoot, resolvedProjectPath, path);
+      return !pathToCheck.startsWith(resolvedOutDir);
+    }
+
+    const ext = extname(path);
+    // Check that the file extension is a TS file extension. As the source files are in the same directory as the output files.
+    return ['.ts', '.tsx', '.cts', '.mts'].includes(ext);
+  };
+
+  // Checks if the value is a path within the `src` directory.
+  const containsInvalidPath = (
+    value: string | Record<string, string>
+  ): boolean => {
+    if (typeof value === 'string') {
+      return isPathSourceFile(value);
+    } else if (typeof value === 'object') {
+      return Object.entries(value).some(([currentKey, subValue]) => {
+        // Skip types field
+        if (currentKey === 'types') {
+          return false;
+        }
+        if (typeof subValue === 'string') {
+          return isPathSourceFile(subValue);
+        }
+        return false;
+      });
+    }
+    return false;
+  };
+
+  const exports = packageJson?.exports;
+
+  // Check the `.` export if `exports` is defined.
+  if (exports) {
+    if (typeof exports === 'string') {
+      return !isPathSourceFile(exports);
+    }
+    if (typeof exports === 'object' && '.' in exports) {
+      return !containsInvalidPath(exports['.']);
+    }
+
+    // Check other exports if `.` is not defined or valid.
+    for (const key in exports) {
+      if (key !== '.' && containsInvalidPath(exports[key])) {
+        return false;
+      }
+    }
+
+    return true;
+  }
+
+  // If `exports` is not defined, fallback to `main` and `module` fields.
+  const buildPaths = ['main', 'module'];
+  for (const field of buildPaths) {
+    if (packageJson[field] && isPathSourceFile(packageJson[field])) {
+      return false;
+    }
+  }
+
+  return true;
+}
diff --git a/packages/js/src/utils/typescript/ts-solution-setup.ts b/packages/js/src/utils/typescript/ts-solution-setup.ts
index 0aeeea281f..754d86b7e1 100644
--- a/packages/js/src/utils/typescript/ts-solution-setup.ts
+++ b/packages/js/src/utils/typescript/ts-solution-setup.ts
@@ -108,9 +108,10 @@ export function assertNotUsingTsSolutionSetup(
 }
 
 export function findRuntimeTsConfigName(
-  tree: Tree,
-  projectRoot: string
+  projectRoot: string,
+  tree?: Tree
 ): string | null {
+  tree ??= new FsTree(workspaceRoot, false);
   if (tree.exists(joinPathFragments(projectRoot, 'tsconfig.app.json')))
     return 'tsconfig.app.json';
   if (tree.exists(joinPathFragments(projectRoot, 'tsconfig.lib.json')))
diff --git a/packages/storybook/src/generators/configuration/lib/util-functions.ts b/packages/storybook/src/generators/configuration/lib/util-functions.ts
index ee8a71da31..b32ac740e2 100644
--- a/packages/storybook/src/generators/configuration/lib/util-functions.ts
+++ b/packages/storybook/src/generators/configuration/lib/util-functions.ts
@@ -235,7 +235,7 @@ export function createStorybookTsconfigFile(
   };
 
   if (useTsSolution) {
-    const runtimeConfig = findRuntimeTsConfigName(tree, projectRoot);
+    const runtimeConfig = findRuntimeTsConfigName(projectRoot, tree);
     if (runtimeConfig) {
       storybookTsConfig.references ??= [];
       storybookTsConfig.references.push({