diff --git a/package.json b/package.json
index 5cdb92a3d7..622514dcff 100644
--- a/package.json
+++ b/package.json
@@ -184,7 +184,7 @@
     "minimatch": "3.0.4",
     "next": "^11.1.2",
     "next-sitemap": "^1.6.108",
-    "ng-packagr": "~12.2.0",
+    "ng-packagr": "~12.2.3",
     "ngrx-store-freeze": "0.2.4",
     "node-fetch": "^2.6.1",
     "npm-run-all": "^4.1.5",
@@ -193,6 +193,7 @@
     "parse5": "4.0.0",
     "postcss": "8.3.0",
     "postcss-import": "14.0.2",
+    "postcss-url": "^10.1.1",
     "precise-commits": "1.0.2",
     "prettier": "2.3.2",
     "pretty-quick": "^3.1.0",
diff --git a/packages/angular/migrations.json b/packages/angular/migrations.json
index 766a62cc5f..4aa7086d29 100644
--- a/packages/angular/migrations.json
+++ b/packages/angular/migrations.json
@@ -90,6 +90,12 @@
       "version": "12.9.0",
       "description": "Fixes invalid importPaths for buildable and publishable libs.",
       "factory": "./src/migrations/update-12-9-0/update-invalid-import-paths"
+    },
+    "add-postcss-import": {
+      "cli": "nx",
+      "version": "13.0.0-beta.1",
+      "description": "Adds postcss-import package if ng-packagr is already installed.",
+      "factory": "./src/migrations/update-13-0-0/add-postcss-import"
     }
   },
   "packageJsonUpdates": {
@@ -880,6 +886,15 @@
           "alwaysAddToPackageJson": false
         }
       }
+    },
+    "13.0.0": {
+      "version": "13.0.0-beta.1",
+      "packages": {
+        "ng-packagr": {
+          "version": "~12.2.3",
+          "alwaysAddToPackageJson": false
+        }
+      }
     }
   }
 }
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/ivy/styles/stylesheet-processor.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/ivy/styles/stylesheet-processor.ts
new file mode 100644
index 0000000000..81156b8346
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/ivy/styles/stylesheet-processor.ts
@@ -0,0 +1,240 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Added the filePath parameter to the cache key.
+ * - Added PostCSS plugins needed to support TailwindCSS.
+ * - Added watch mode parameter.
+ */
+
+import * as browserslist from 'browserslist';
+import * as cacache from 'cacache';
+import { createHash } from 'crypto';
+import * as findCacheDirectory from 'find-cache-dir';
+import { EsbuildExecutor } from 'ng-packagr/lib/esbuild/esbuild-executor';
+import { readFile } from 'ng-packagr/lib/utils/fs';
+import * as log from 'ng-packagr/lib/utils/log';
+import { tmpdir } from 'os';
+import { extname } from 'path';
+import postcss from 'postcss';
+import * as postcssPresetEnv from 'postcss-preset-env';
+import * as postcssUrl from 'postcss-url';
+import { getTailwindPostCssPluginsIfPresent } from '../../utilities/tailwindcss';
+
+export enum CssUrl {
+  inline = 'inline',
+  none = 'none',
+}
+
+export interface Result {
+  css: string;
+  warnings: string[];
+  error?: string;
+}
+
+const cachePath = findCacheDirectory({ name: 'ng-packagr-styles' }) || tmpdir();
+const ngPackagrVersion = require('ng-packagr/package.json').version;
+
+export class StylesheetProcessor {
+  private browserslistData: string[];
+  private postCssProcessor: ReturnType<typeof postcss>;
+  private esbuild = new EsbuildExecutor();
+
+  constructor(
+    private readonly basePath: string,
+    private readonly cssUrl?: CssUrl,
+    private readonly styleIncludePaths?: string[],
+    private readonly watch?: boolean
+  ) {
+    this.browserslistData = browserslist(undefined, { path: this.basePath });
+    this.postCssProcessor = this.createPostCssPlugins();
+  }
+
+  async process(filePath: string): Promise<string> {
+    const content = await readFile(filePath, 'utf8');
+    let key: string | undefined;
+
+    if (!content.includes('@import') && !content.includes('@use')) {
+      // No transitive deps, we can cache more aggressively.
+      key = generateKey(content, this.browserslistData, filePath);
+      const result = await readCacheEntry(cachePath, key);
+      if (result) {
+        result.warnings.forEach((msg) => log.warn(msg));
+        return result.css;
+      }
+    }
+
+    // Render pre-processor language (sass, styl, less)
+    const renderedCss = await this.renderCss(filePath, content);
+
+    // We cannot cache CSS re-rendering phase, because a transitive dependency via (@import) can case different CSS output.
+    // Example a change in a mixin or SCSS variable.
+    if (!key) {
+      key = generateKey(renderedCss, this.browserslistData, filePath);
+    }
+
+    const cachedResult = await readCacheEntry(cachePath, key);
+    if (cachedResult) {
+      cachedResult.warnings.forEach((msg) => log.warn(msg));
+      return cachedResult.css;
+    }
+
+    // Render postcss (autoprefixing and friends)
+    const result = await this.postCssProcessor.process(renderedCss, {
+      from: filePath,
+      to: filePath.replace(extname(filePath), '.css'),
+    });
+
+    const warnings = result.warnings().map((w) => w.toString());
+    const { code, warnings: esBuildWarnings } = await this.esbuild.transform(
+      result.css,
+      {
+        loader: 'css',
+        minify: true,
+        sourcefile: filePath,
+      }
+    );
+
+    if (esBuildWarnings.length > 0) {
+      warnings.push(
+        ...(await this.esbuild.formatMessages(esBuildWarnings, {
+          kind: 'warning',
+        }))
+      );
+    }
+
+    // Add to cache
+    await cacache.put(
+      cachePath,
+      key,
+      JSON.stringify({
+        css: code,
+        warnings,
+      })
+    );
+
+    warnings.forEach((msg) => log.warn(msg));
+
+    return code;
+  }
+
+  private createPostCssPlugins(): ReturnType<typeof postcss> {
+    const postCssPlugins = [];
+    if (this.cssUrl !== CssUrl.none) {
+      postCssPlugins.push(postcssUrl({ url: this.cssUrl }));
+    }
+
+    postCssPlugins.push(
+      ...getTailwindPostCssPluginsIfPresent(
+        this.basePath,
+        this.styleIncludePaths,
+        this.watch
+      )
+    );
+
+    postCssPlugins.push(
+      postcssPresetEnv({
+        browsers: this.browserslistData,
+        autoprefixer: true,
+        stage: 3,
+      })
+    );
+
+    return postcss(postCssPlugins);
+  }
+
+  private async renderCss(filePath: string, css: string): Promise<string> {
+    const ext = extname(filePath);
+
+    switch (ext) {
+      case '.sass':
+      case '.scss': {
+        /*
+         * Please be aware of the few differences in behaviour https://github.com/sass/dart-sass/blob/master/README.md#behavioral-differences-from-ruby-sass
+         * By default `npm install` will install sass.
+         * To use node-sass you need to use:
+         *   Npm:
+         *     `npm install node-sass --save-dev`
+         *   Yarn:
+         *     `yarn add node-sass --dev`
+         */
+        let sassCompiler: any | undefined;
+        try {
+          sassCompiler = require('node-sass'); // Check if node-sass is explicitly included.
+        } catch {
+          sassCompiler = await import('sass');
+        }
+
+        return sassCompiler
+          .renderSync({
+            file: filePath,
+            data: css,
+            indentedSyntax: '.sass' === ext,
+            importer: await import('node-sass-tilde-importer'),
+            includePaths: this.styleIncludePaths,
+          })
+          .css.toString();
+      }
+      case '.less': {
+        const { css: content } = await (
+          await import('less')
+        ).render(css, {
+          filename: filePath,
+          javascriptEnabled: true,
+          paths: this.styleIncludePaths,
+        });
+
+        return content;
+      }
+      case '.styl':
+      case '.stylus': {
+        const stylus = await import('stylus');
+
+        return (
+          stylus(css)
+            // add paths for resolve
+            .set('paths', [
+              this.basePath,
+              '.',
+              ...this.styleIncludePaths,
+              'node_modules',
+            ])
+            // add support for resolving plugins from node_modules
+            .set('filename', filePath)
+            // turn on url resolver in stylus, same as flag --resolve-url
+            .set('resolve url', true)
+            .define('url', stylus.resolver(undefined))
+            .render()
+        );
+      }
+      case '.css':
+      default:
+        return css;
+    }
+  }
+}
+
+function generateKey(
+  content: string,
+  browserslistData: string[],
+  filePath: string
+): string {
+  return createHash('sha1')
+    .update(ngPackagrVersion)
+    .update(content)
+    .update(browserslistData.join(''))
+    .update(filePath)
+    .digest('hex');
+}
+
+async function readCacheEntry(
+  cachePath: string,
+  key: string
+): Promise<Result | undefined> {
+  const entry = await cacache.get.info(cachePath, key);
+  if (entry) {
+    return JSON.parse(await readFile(entry.path, 'utf8'));
+  }
+
+  return undefined;
+}
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.di.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.di.ts
new file mode 100644
index 0000000000..05493c95b2
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.di.ts
@@ -0,0 +1,36 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Use our own compileNgcTransformFactory instead of the one provided by ng-packagr.
+ * - Use NX_STYLESHEET_PROCESSOR instead of STYLESHEET_PROCESSOR.
+ * - Use NX_STYLESHEET_PROCESSOR_TOKEN instead of STYLESHEET_PROCESSOR_TOKEN.
+ */
+
+import { InjectionToken, Provider } from 'injection-js';
+import { Transform } from 'ng-packagr/lib/graph/transform';
+import {
+  provideTransform,
+  TransformProvider,
+} from 'ng-packagr/lib/graph/transform.di';
+import { OPTIONS_TOKEN } from 'ng-packagr/lib/ng-package/options.di';
+import {
+  NX_STYLESHEET_PROCESSOR,
+  NX_STYLESHEET_PROCESSOR_TOKEN,
+} from '../../styles/stylesheet-processor.di';
+import { compileNgcTransformFactory } from './compile-ngc.transform';
+
+export const NX_COMPILE_NGC_TOKEN = new InjectionToken<Transform>(
+  `nx.v1.compileNgcTransform`
+);
+
+export const NX_COMPILE_NGC_TRANSFORM: TransformProvider = provideTransform({
+  provide: NX_COMPILE_NGC_TOKEN,
+  useFactory: compileNgcTransformFactory,
+  deps: [NX_STYLESHEET_PROCESSOR_TOKEN, OPTIONS_TOKEN],
+});
+
+export const NX_COMPILE_NGC_PROVIDERS: Provider[] = [
+  NX_STYLESHEET_PROCESSOR,
+  NX_COMPILE_NGC_TRANSFORM,
+];
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.transform.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.transform.ts
new file mode 100644
index 0000000000..82abf4f471
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/compile-ngc.transform.ts
@@ -0,0 +1,136 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Use our own StylesheetProcessor files instead of the ones provide by ng-packagr.
+ */
+
+import {
+  Transform,
+  transformFromPromise,
+} from 'ng-packagr/lib/graph/transform';
+import * as ivy from 'ng-packagr/lib/ivy';
+import {
+  EntryPointNode,
+  isEntryPoint,
+  isEntryPointInProgress,
+} from 'ng-packagr/lib/ng-package/nodes';
+import { NgPackagrOptions } from 'ng-packagr/lib/ng-package/options.di';
+import { compileSourceFiles } from 'ng-packagr/lib/ngc/compile-source-files';
+import { NgccProcessor } from 'ng-packagr/lib/ngc/ngcc-processor';
+import { setDependenciesTsConfigPaths } from 'ng-packagr/lib/ts/tsconfig';
+import * as ora from 'ora';
+import * as path from 'path';
+import * as ts from 'typescript';
+import { StylesheetProcessor as IvyStylesheetProcessor } from '../../ivy/styles/stylesheet-processor';
+import { StylesheetProcessor as StylesheetProcessorClass } from '../../styles/stylesheet-processor';
+
+function isEnabled(variable: string | undefined): variable is string {
+  return (
+    typeof variable === 'string' &&
+    (variable === '1' || variable.toLowerCase() === 'true')
+  );
+}
+
+export const compileNgcTransformFactory = (
+  StylesheetProcessor: typeof StylesheetProcessorClass,
+  options: NgPackagrOptions
+): Transform => {
+  return transformFromPromise(async (graph) => {
+    const spinner = ora({
+      hideCursor: false,
+      discardStdin: false,
+    });
+
+    try {
+      const entryPoint: EntryPointNode = graph.find(isEntryPointInProgress());
+      const entryPoints: EntryPointNode[] = graph.filter(isEntryPoint);
+      // Add paths mappings for dependencies
+      const tsConfig = setDependenciesTsConfigPaths(
+        entryPoint.data.tsConfig,
+        entryPoints
+      );
+
+      // Compile TypeScript sources
+      const { esm2015, declarations } = entryPoint.data.destinationFiles;
+      const { basePath, cssUrl, styleIncludePaths } =
+        entryPoint.data.entryPoint;
+      const { moduleResolutionCache, ngccProcessingCache } = entryPoint.cache;
+
+      let ngccProcessor: NgccProcessor | undefined;
+      if (tsConfig.options.enableIvy !== false) {
+        spinner.start(
+          `Compiling with Angular sources in Ivy ${
+            tsConfig.options.compilationMode || 'full'
+          } compilation mode.`
+        );
+        ngccProcessor = new NgccProcessor(
+          ngccProcessingCache,
+          tsConfig.project,
+          tsConfig.options,
+          entryPoints
+        );
+        if (!entryPoint.data.entryPoint.isSecondaryEntryPoint) {
+          // Only run the async version of NGCC during the primary entrypoint processing.
+          await ngccProcessor.process();
+        }
+      } else {
+        spinner.start(
+          `Compiling with Angular in legacy View Engine compilation mode.`
+        );
+      }
+
+      if (
+        tsConfig.options.enableIvy !== false &&
+        !isEnabled(process.env['NG_BUILD_LIB_LEGACY'])
+      ) {
+        entryPoint.cache.stylesheetProcessor ??= new IvyStylesheetProcessor(
+          basePath,
+          cssUrl,
+          styleIncludePaths
+        ) as any;
+
+        await ivy.compileSourceFiles(
+          graph,
+          tsConfig,
+          moduleResolutionCache,
+          {
+            outDir: path.dirname(esm2015),
+            declarationDir: path.dirname(declarations),
+            declaration: true,
+            target: ts.ScriptTarget.ES2015,
+          },
+          entryPoint.cache.stylesheetProcessor as any,
+          ngccProcessor,
+          options.watch
+        );
+      } else {
+        entryPoint.cache.stylesheetProcessor ??= new StylesheetProcessor(
+          basePath,
+          cssUrl,
+          styleIncludePaths,
+          options.watch
+        ) as any;
+        await compileSourceFiles(
+          graph,
+          tsConfig,
+          moduleResolutionCache,
+          entryPoint.cache.stylesheetProcessor as any,
+          {
+            outDir: path.dirname(esm2015),
+            declarationDir: path.dirname(declarations),
+            declaration: true,
+            target: ts.ScriptTarget.ES2015,
+          },
+          ngccProcessor
+        );
+      }
+    } catch (error) {
+      spinner.fail();
+      throw error;
+    }
+
+    spinner.succeed();
+    return graph;
+  });
+};
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/entry-point.di.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/entry-point.di.ts
new file mode 100644
index 0000000000..d8070cb478
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/entry-point/entry-point.di.ts
@@ -0,0 +1,48 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Use NX_COMPILE_NGC_TOKEN instead of COMPILE_NGC_TOKEN.
+ * - Use NX_COMPILE_NGC_PROVIDERS instead of COMPILE_NGC_PROVIDERS.
+ */
+
+import { InjectionToken, Provider } from 'injection-js';
+import { Transform } from 'ng-packagr/lib/graph/transform';
+import {
+  provideTransform,
+  TransformProvider,
+} from 'ng-packagr/lib/graph/transform.di';
+import { entryPointTransformFactory } from 'ng-packagr/lib/ng-package/entry-point/entry-point.transform';
+import {
+  WRITE_BUNDLES_TRANSFORM,
+  WRITE_BUNDLES_TRANSFORM_TOKEN,
+} from 'ng-packagr/lib/ng-package/entry-point/write-bundles.di';
+import {
+  WRITE_PACKAGE_TRANSFORM,
+  WRITE_PACKAGE_TRANSFORM_TOKEN,
+} from 'ng-packagr/lib/ng-package/entry-point/write-package.di';
+import {
+  NX_COMPILE_NGC_PROVIDERS,
+  NX_COMPILE_NGC_TOKEN,
+} from './compile-ngc.di';
+
+export const NX_ENTRY_POINT_TRANSFORM_TOKEN = new InjectionToken<Transform>(
+  `nx.v1.entryPointTransform`
+);
+
+export const NX_ENTRY_POINT_TRANSFORM: TransformProvider = provideTransform({
+  provide: NX_ENTRY_POINT_TRANSFORM_TOKEN,
+  useFactory: entryPointTransformFactory,
+  deps: [
+    NX_COMPILE_NGC_TOKEN,
+    WRITE_BUNDLES_TRANSFORM_TOKEN,
+    WRITE_PACKAGE_TRANSFORM_TOKEN,
+  ],
+});
+
+export const NX_ENTRY_POINT_PROVIDERS: Provider[] = [
+  NX_ENTRY_POINT_TRANSFORM,
+  ...NX_COMPILE_NGC_PROVIDERS,
+  WRITE_BUNDLES_TRANSFORM,
+  WRITE_PACKAGE_TRANSFORM,
+];
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/package.di.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/package.di.ts
new file mode 100644
index 0000000000..f1c237a0ea
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/ng-package/package.di.ts
@@ -0,0 +1,53 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Use NX_ENTRY_POINT_TRANSFORM_TOKEN instead of ENTRY_POINT_TRANSFORM_TOKEN.
+ */
+
+import { InjectionToken, Provider } from 'injection-js';
+import { Transform } from 'ng-packagr/lib/graph/transform';
+import {
+  provideTransform,
+  TransformProvider,
+} from 'ng-packagr/lib/graph/transform.di';
+import {
+  ANALYSE_SOURCES_TOKEN,
+  ANALYSE_SOURCES_TRANSFORM,
+} from 'ng-packagr/lib/ng-package/entry-point/analyse-sources.di';
+import {
+  INIT_TS_CONFIG_TOKEN,
+  INIT_TS_CONFIG_TRANSFORM,
+  provideTsConfig,
+} from 'ng-packagr/lib/ng-package/entry-point/init-tsconfig.di';
+import {
+  DEFAULT_OPTIONS_PROVIDER,
+  OPTIONS_TOKEN,
+} from 'ng-packagr/lib/ng-package/options.di';
+import { packageTransformFactory } from 'ng-packagr/lib/ng-package/package.transform';
+import { PROJECT_TOKEN } from 'ng-packagr/lib/project.di';
+import { NX_ENTRY_POINT_TRANSFORM_TOKEN } from './entry-point/entry-point.di';
+
+export const NX_PACKAGE_TRANSFORM_TOKEN = new InjectionToken<Transform>(
+  `nx.v1.packageTransform`
+);
+
+export const NX_PACKAGE_TRANSFORM: TransformProvider = provideTransform({
+  provide: NX_PACKAGE_TRANSFORM_TOKEN,
+  useFactory: packageTransformFactory,
+  deps: [
+    PROJECT_TOKEN,
+    OPTIONS_TOKEN,
+    INIT_TS_CONFIG_TOKEN,
+    ANALYSE_SOURCES_TOKEN,
+    NX_ENTRY_POINT_TRANSFORM_TOKEN,
+  ],
+});
+
+export const NX_PACKAGE_PROVIDERS: Provider[] = [
+  NX_PACKAGE_TRANSFORM,
+  DEFAULT_OPTIONS_PROVIDER,
+  provideTsConfig(),
+  INIT_TS_CONFIG_TRANSFORM,
+  ANALYSE_SOURCES_TRANSFORM,
+];
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor-worker.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor-worker.ts
new file mode 100644
index 0000000000..43723b7ea1
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor-worker.ts
@@ -0,0 +1,250 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Added the filePath parameter to the cache key.
+ * - Added PostCSS plugins needed to support TailwindCSS.
+ * - Added watch mode option.
+ */
+
+import * as cacache from 'cacache';
+import { createHash } from 'crypto';
+import { EsbuildExecutor } from 'ng-packagr/lib/esbuild/esbuild-executor';
+import { readFile } from 'ng-packagr/lib/utils/fs';
+import * as path from 'path';
+import postcss, { LazyResult } from 'postcss';
+import * as postcssPresetEnv from 'postcss-preset-env';
+import * as postcssUrl from 'postcss-url';
+import { parentPort } from 'worker_threads';
+import { getTailwindPostCssPluginsIfPresent } from '../utilities/tailwindcss';
+import { CssUrl, WorkerOptions, WorkerResult } from './stylesheet-processor';
+
+const ngPackagrVersion = require('ng-packagr/package.json').version;
+
+async function processCss({
+  filePath,
+  browserslistData,
+  cssUrl,
+  styleIncludePaths,
+  basePath,
+  cachePath,
+  alwaysUseWasm,
+  watch,
+}: WorkerOptions): Promise<WorkerResult> {
+  const esbuild = new EsbuildExecutor(alwaysUseWasm);
+  const content = await readFile(filePath, 'utf8');
+  let key: string | undefined;
+
+  if (!content.includes('@import') && !content.includes('@use')) {
+    // No transitive deps, we can cache more aggressively.
+    key = generateKey(content, browserslistData, filePath);
+    const result = await readCacheEntry(cachePath, key);
+    if (result) {
+      return result;
+    }
+  }
+
+  // Render pre-processor language (sass, styl, less)
+  const renderedCss = await renderCss(
+    filePath,
+    content,
+    basePath,
+    styleIncludePaths
+  );
+
+  // We cannot cache CSS re-rendering phase, because a transitive dependency via (@import) can case different CSS output.
+  // Example a change in a mixin or SCSS variable.
+  if (!key) {
+    key = generateKey(renderedCss, browserslistData, filePath);
+
+    const cachedResult = await readCacheEntry(cachePath, key);
+    if (cachedResult) {
+      return cachedResult;
+    }
+  }
+
+  // Render postcss (autoprefixing and friends)
+  const result = await optimizeCss(
+    filePath,
+    renderedCss,
+    browserslistData,
+    basePath,
+    styleIncludePaths,
+    cssUrl,
+    watch
+  );
+  const warnings = result.warnings().map((w) => w.toString());
+
+  const { code, warnings: esBuildWarnings } = await esbuild.transform(
+    result.css,
+    {
+      loader: 'css',
+      minify: true,
+      sourcefile: filePath,
+    }
+  );
+
+  if (esBuildWarnings.length > 0) {
+    warnings.push(
+      ...(await esbuild.formatMessages(esBuildWarnings, { kind: 'warning' }))
+    );
+  }
+
+  // Add to cache
+  await cacache.put(
+    cachePath,
+    key,
+    JSON.stringify({
+      css: code,
+      warnings,
+    })
+  );
+
+  return {
+    css: code,
+    warnings,
+  };
+}
+
+async function renderCss(
+  filePath: string,
+  css: string,
+  basePath: string,
+  styleIncludePaths?: string[]
+): Promise<string> {
+  const ext = path.extname(filePath);
+
+  switch (ext) {
+    case '.sass':
+    case '.scss': {
+      /*
+       * Please be aware of the few differences in behaviour https://github.com/sass/dart-sass/blob/master/README.md#behavioral-differences-from-ruby-sass
+       * By default `npm install` will install sass.
+       * To use node-sass you need to use:
+       *   Npm:
+       *     `npm install node-sass --save-dev`
+       *   Yarn:
+       *     `yarn add node-sass --dev`
+       */
+      let sassCompiler: any | undefined;
+      try {
+        sassCompiler = require('node-sass'); // Check if node-sass is explicitly included.
+      } catch {
+        sassCompiler = await import('sass');
+      }
+
+      return sassCompiler
+        .renderSync({
+          file: filePath,
+          data: css,
+          indentedSyntax: '.sass' === ext,
+          importer: await import('node-sass-tilde-importer'),
+          includePaths: styleIncludePaths,
+        })
+        .css.toString();
+    }
+    case '.less': {
+      const { css: content } = await (
+        await import('less')
+      ).render(css, {
+        filename: filePath,
+        javascriptEnabled: true,
+        paths: styleIncludePaths,
+      });
+
+      return content;
+    }
+    case '.styl':
+    case '.stylus': {
+      const stylus = await import('stylus');
+
+      return (
+        stylus(css)
+          // add paths for resolve
+          .set('paths', [basePath, '.', ...styleIncludePaths, 'node_modules'])
+          // add support for resolving plugins from node_modules
+          .set('filename', filePath)
+          // turn on url resolver in stylus, same as flag --resolve-url
+          .set('resolve url', true)
+          .define('url', stylus.resolver(undefined))
+          .render()
+      );
+    }
+    case '.css':
+    default:
+      return css;
+  }
+}
+
+function optimizeCss(
+  filePath: string,
+  css: string,
+  browsers: string[],
+  basePath: string,
+  includePaths?: string[],
+  cssUrl?: CssUrl,
+  watch?: boolean
+): LazyResult {
+  const postCssPlugins = [];
+
+  if (cssUrl !== CssUrl.none) {
+    postCssPlugins.push(postcssUrl({ url: cssUrl }));
+  }
+
+  postCssPlugins.push(
+    ...getTailwindPostCssPluginsIfPresent(basePath, includePaths, watch)
+  );
+
+  postCssPlugins.push(
+    postcssPresetEnv({
+      browsers,
+      autoprefixer: true,
+      stage: 3,
+    })
+  );
+
+  return postcss(postCssPlugins).process(css, {
+    from: filePath,
+    to: filePath.replace(path.extname(filePath), '.css'),
+  });
+}
+
+function generateKey(
+  content: string,
+  browserslistData: string[],
+  filePath: string
+): string {
+  return createHash('sha1')
+    .update(ngPackagrVersion)
+    .update(content)
+    .update(browserslistData.join(''))
+    .update(filePath)
+    .digest('hex');
+}
+
+async function readCacheEntry(
+  cachePath: string,
+  key: string
+): Promise<WorkerResult | undefined> {
+  const entry = await cacache.get.info(cachePath, key);
+  if (entry) {
+    return JSON.parse(await readFile(entry.path, 'utf8'));
+  }
+
+  return undefined;
+}
+
+parentPort.on('message', async ({ signal, port, workerOptions }) => {
+  try {
+    const result = await processCss(workerOptions);
+    port.postMessage({ ...result });
+  } catch (error) {
+    port.postMessage({ error: error.message });
+  } finally {
+    // Change the value of signal[0] to 1
+    Atomics.add(signal, 0, 1);
+    // Unlock the main thread
+    Atomics.notify(signal, 0);
+    port.close();
+  }
+});
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.di.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.di.ts
new file mode 100644
index 0000000000..868e90db24
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.di.ts
@@ -0,0 +1,18 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Use our own StylesheetProcessor instead of the one provided by ng-packagr.
+ */
+
+import { FactoryProvider, InjectionToken } from 'injection-js';
+import { StylesheetProcessor } from './stylesheet-processor';
+
+export const NX_STYLESHEET_PROCESSOR_TOKEN =
+  new InjectionToken<StylesheetProcessor>(`nx.v1.stylesheetProcessor`);
+
+export const NX_STYLESHEET_PROCESSOR: FactoryProvider = {
+  provide: NX_STYLESHEET_PROCESSOR_TOKEN,
+  useFactory: () => StylesheetProcessor,
+  deps: [],
+};
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.ts
new file mode 100644
index 0000000000..9a4abad18a
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/styles/stylesheet-processor.ts
@@ -0,0 +1,102 @@
+/**
+ * Adapted from the original ng-packagr source.
+ *
+ * Changes made:
+ * - Added watch mode parameter.
+ */
+
+import * as browserslist from 'browserslist';
+import * as findCacheDirectory from 'find-cache-dir';
+import { EsbuildExecutor } from 'ng-packagr/lib/esbuild/esbuild-executor';
+import * as log from 'ng-packagr/lib/utils/log';
+import { tmpdir } from 'os';
+import { join } from 'path';
+import { MessageChannel, receiveMessageOnPort, Worker } from 'worker_threads';
+
+export enum CssUrl {
+  inline = 'inline',
+  none = 'none',
+}
+export interface WorkerOptions {
+  filePath: string;
+  basePath: string;
+  browserslistData: string[];
+  cssUrl?: CssUrl;
+  styleIncludePaths?: string[];
+  cachePath: string;
+  alwaysUseWasm: boolean;
+  watch?: boolean;
+}
+
+export interface WorkerResult {
+  css: string;
+  warnings: string[];
+  error?: string;
+}
+
+export class StylesheetProcessor {
+  private browserslistData: string[] | undefined;
+  private worker: Worker | undefined;
+  private readonly cachePath: string;
+  private alwaysUseWasm = !EsbuildExecutor.hasNativeSupport();
+
+  constructor(
+    private readonly basePath: string,
+    private readonly cssUrl?: CssUrl,
+    private readonly styleIncludePaths?: string[],
+    private readonly watch?: boolean
+  ) {
+    this.cachePath =
+      findCacheDirectory({ name: 'ng-packagr-styles' }) || tmpdir();
+  }
+
+  process(filePath: string) {
+    if (!this.worker) {
+      this.worker = new Worker(
+        join(__dirname, './stylesheet-processor-worker.js')
+      );
+    }
+
+    if (!this.browserslistData) {
+      this.browserslistData = browserslist(undefined, { path: this.basePath });
+    }
+
+    const workerOptions: WorkerOptions = {
+      filePath,
+      basePath: this.basePath,
+      cssUrl: this.cssUrl,
+      styleIncludePaths: this.styleIncludePaths,
+      browserslistData: this.browserslistData,
+      cachePath: this.cachePath,
+      alwaysUseWasm: this.alwaysUseWasm,
+      watch: this.watch,
+    };
+
+    const ioChannel = new MessageChannel();
+
+    try {
+      const signal = new Int32Array(new SharedArrayBuffer(4));
+      this.worker.postMessage(
+        { signal, port: ioChannel.port1, workerOptions },
+        [ioChannel.port1]
+      );
+
+      // Sleep until signal[0] is 0
+      Atomics.wait(signal, 0, 0);
+
+      const { css, warnings, error } = receiveMessageOnPort(
+        ioChannel.port2
+      ).message;
+      if (error) {
+        throw new Error(error);
+      }
+
+      warnings.forEach((msg) => log.warn(msg));
+      return css;
+    } finally {
+      ioChannel.port1.close();
+      ioChannel.port2.close();
+      this.worker.unref();
+    }
+  }
+}
diff --git a/packages/angular/src/executors/package/ng-packagr-adjustments/utilities/tailwindcss.ts b/packages/angular/src/executors/package/ng-packagr-adjustments/utilities/tailwindcss.ts
new file mode 100644
index 0000000000..3108b8ddea
--- /dev/null
+++ b/packages/angular/src/executors/package/ng-packagr-adjustments/utilities/tailwindcss.ts
@@ -0,0 +1,60 @@
+import { logger } from '@nrwl/devkit';
+import { appRootPath } from '@nrwl/tao/src/utils/app-root';
+import { existsSync } from 'fs';
+import { join, relative } from 'path';
+import * as postcssImport from 'postcss-import';
+
+export function getTailwindPostCssPluginsIfPresent(
+  basePath: string,
+  includePaths?: string[],
+  watch?: boolean
+) {
+  // Try to find TailwindCSS configuration file in the project or workspace root.
+  const tailwindConfigFile = 'tailwind.config.js';
+  let tailwindConfigPath: string | undefined;
+  for (const path of [basePath, appRootPath]) {
+    const fullPath = join(path, tailwindConfigFile);
+    if (existsSync(fullPath)) {
+      tailwindConfigPath = fullPath;
+      break;
+    }
+  }
+
+  // Only load Tailwind CSS plugin if configuration file was found.
+  if (!tailwindConfigPath) {
+    return [];
+  }
+
+  let tailwindPackagePath: string | undefined;
+  try {
+    tailwindPackagePath = require.resolve('tailwindcss');
+  } catch {
+    const relativeTailwindConfigPath = relative(
+      appRootPath,
+      tailwindConfigPath
+    );
+    logger.warn(
+      `Tailwind CSS configuration file found (${relativeTailwindConfigPath})` +
+        ` but the 'tailwindcss' package is not installed.` +
+        ` To enable Tailwind CSS, please install the 'tailwindcss' package.`
+    );
+
+    return [];
+  }
+
+  if (!tailwindPackagePath) {
+    return [];
+  }
+
+  if (process.env['TAILWIND_MODE'] === undefined) {
+    process.env['TAILWIND_MODE'] = watch ? 'watch' : 'build';
+  }
+
+  return [
+    postcssImport({
+      addModulesDirectories: includePaths ?? [],
+      resolve: (url: string) => (url.startsWith('~') ? url.substr(1) : url),
+    }),
+    require(tailwindPackagePath)({ config: tailwindConfigPath }),
+  ];
+}
diff --git a/packages/angular/src/executors/package/package.impl.spec.ts b/packages/angular/src/executors/package/package.impl.spec.ts
index 7b1f24c53a..ce962f3be2 100644
--- a/packages/angular/src/executors/package/package.impl.spec.ts
+++ b/packages/angular/src/executors/package/package.impl.spec.ts
@@ -16,6 +16,7 @@ describe('Package executor', () => {
   let ngPackagrBuildMock: jest.Mock;
   let ngPackagerWatchSubject: BehaviorSubject<void>;
   let ngPackagrWatchMock: jest.Mock;
+  let ngPackagrWithBuildTransformMock: jest.Mock;
   let ngPackagrWithTsConfigMock: jest.Mock;
   let options: BuildAngularLibraryExecutorOptions;
   let tsConfig: { options: { paths: { [key: string]: string[] } } };
@@ -36,11 +37,13 @@ describe('Package executor', () => {
     ngPackagrBuildMock = jest.fn(() => Promise.resolve());
     ngPackagerWatchSubject = new BehaviorSubject<void>(undefined);
     ngPackagrWatchMock = jest.fn(() => ngPackagerWatchSubject.asObservable());
+    ngPackagrWithBuildTransformMock = jest.fn();
     ngPackagrWithTsConfigMock = jest.fn();
-    (ngPackagr.ngPackagr as jest.Mock).mockImplementation(() => ({
+    (ngPackagr.NgPackagr as jest.Mock).mockImplementation(() => ({
       build: ngPackagrBuildMock,
       forProject: jest.fn(),
       watch: ngPackagrWatchMock,
+      withBuildTransform: ngPackagrWithBuildTransformMock,
       withTsConfig: ngPackagrWithTsConfigMock,
     }));
 
diff --git a/packages/angular/src/executors/package/package.impl.ts b/packages/angular/src/executors/package/package.impl.ts
index 7584c60dc6..91a5d878c2 100644
--- a/packages/angular/src/executors/package/package.impl.ts
+++ b/packages/angular/src/executors/package/package.impl.ts
@@ -13,6 +13,11 @@ import { resolve } from 'path';
 import { from } from 'rxjs';
 import { eachValueFrom } from 'rxjs-for-await';
 import { mapTo, switchMap, tap } from 'rxjs/operators';
+import { NX_ENTRY_POINT_PROVIDERS } from './ng-packagr-adjustments/ng-package/entry-point/entry-point.di';
+import {
+  NX_PACKAGE_PROVIDERS,
+  NX_PACKAGE_TRANSFORM,
+} from './ng-packagr-adjustments/ng-package/package.di';
 import type { BuildAngularLibraryExecutorOptions } from './schema';
 
 async function initializeNgPackagr(
@@ -20,8 +25,13 @@ async function initializeNgPackagr(
   context: ExecutorContext,
   projectDependencies: DependentBuildableProjectNode[]
 ): Promise<NgPackagr> {
-  const packager = (await import('ng-packagr')).ngPackagr();
+  const packager = new (await import('ng-packagr')).NgPackagr([
+    ...NX_PACKAGE_PROVIDERS,
+    ...NX_ENTRY_POINT_PROVIDERS,
+  ]);
+
   packager.forProject(resolve(context.root, options.project));
+  packager.withBuildTransform(NX_PACKAGE_TRANSFORM.provide);
 
   if (options.tsConfig) {
     // read the tsconfig and modify its path in memory to
diff --git a/packages/angular/src/generators/library/library.spec.ts b/packages/angular/src/generators/library/library.spec.ts
index d71b13a373..c37d2e7522 100644
--- a/packages/angular/src/generators/library/library.spec.ts
+++ b/packages/angular/src/generators/library/library.spec.ts
@@ -69,6 +69,7 @@ describe('lib', () => {
       // ASSERT
       const packageJson = readJson(appTree, '/package.json');
       expect(packageJson.devDependencies['ng-packagr']).toBeUndefined();
+      expect(packageJson.devDependencies['postcss-import']).toBeUndefined();
     });
 
     it('should update package.json when publishable', async () => {
@@ -81,6 +82,7 @@ describe('lib', () => {
       // ASSERT
       const packageJson = readJson(appTree, '/package.json');
       expect(packageJson.devDependencies['ng-packagr']).toBeDefined();
+      expect(packageJson.devDependencies['postcss-import']).toBeDefined();
     });
 
     it('should update tsconfig.lib.prod.json when enableIvy', async () => {
diff --git a/packages/angular/src/generators/library/library.ts b/packages/angular/src/generators/library/library.ts
index e2a0081ff3..a76f1da661 100644
--- a/packages/angular/src/generators/library/library.ts
+++ b/packages/angular/src/generators/library/library.ts
@@ -1,6 +1,6 @@
 import {
+  addDependenciesToPackageJson,
   formatFiles,
-  getWorkspaceLayout,
   installPackagesTask,
   moveFilesToNewDirectory,
   Tree,
@@ -70,6 +70,10 @@ export async function libraryGenerator(host: Tree, schema: Partial<Schema>) {
   setStrictMode(host, options);
   await addLinting(host, options);
 
+  if (options.publishable) {
+    addDependenciesToPackageJson(host, {}, { 'postcss-import': '^14.0.2' });
+  }
+
   if (options.standaloneConfig) {
     await convertToNxProjectGenerator(host, {
       project: options.name,
diff --git a/packages/angular/src/migrations/update-13-0-0/add-postcss-import.spec.ts b/packages/angular/src/migrations/update-13-0-0/add-postcss-import.spec.ts
new file mode 100644
index 0000000000..3b552eeb39
--- /dev/null
+++ b/packages/angular/src/migrations/update-13-0-0/add-postcss-import.spec.ts
@@ -0,0 +1,30 @@
+import { readJson, Tree, updateJson } from '@nrwl/devkit';
+import { createTreeWithEmptyWorkspace } from '@nrwl/devkit/testing';
+import addPostCssImport from './add-postcss-import';
+
+describe('add-postcss-import migration', () => {
+  let tree: Tree;
+
+  beforeEach(() => {
+    tree = createTreeWithEmptyWorkspace(2);
+  });
+
+  it('should not add postcss-import when ng-packagr is not installed', () => {
+    addPostCssImport(tree);
+
+    const packageJson = readJson(tree, 'package.json');
+    expect(packageJson.devDependencies['postcss-import']).toBeUndefined();
+  });
+
+  it('should add postcss-import when ng-packagr is installed', () => {
+    updateJson(tree, 'package.json', (json) => {
+      json.devDependencies['ng-packagr'] = '~12.2.3';
+      return json;
+    });
+
+    addPostCssImport(tree);
+
+    const packageJson = readJson(tree, 'package.json');
+    expect(packageJson.devDependencies['postcss-import']).toBeDefined();
+  });
+});
diff --git a/packages/angular/src/migrations/update-13-0-0/add-postcss-import.ts b/packages/angular/src/migrations/update-13-0-0/add-postcss-import.ts
new file mode 100644
index 0000000000..83d4589e66
--- /dev/null
+++ b/packages/angular/src/migrations/update-13-0-0/add-postcss-import.ts
@@ -0,0 +1,25 @@
+import {
+  addDependenciesToPackageJson,
+  formatFiles,
+  readJson,
+  Tree,
+} from '@nrwl/devkit';
+
+export default async function (tree: Tree) {
+  const { devDependencies } = readJson(tree, 'package.json');
+
+  // Don't add if ng-packagr is not installed
+  if (!devDependencies['ng-packagr']) {
+    return;
+  }
+
+  const task = addDependenciesToPackageJson(
+    tree,
+    {},
+    { 'postcss-import': '^14.0.2' }
+  );
+
+  await formatFiles(tree);
+
+  return task;
+}
diff --git a/scripts/depcheck/missing.ts b/scripts/depcheck/missing.ts
index ad23cf1fea..3d4481a690 100644
--- a/scripts/depcheck/missing.ts
+++ b/scripts/depcheck/missing.ts
@@ -15,10 +15,26 @@ const IGNORE_MATCHES = {
     '@ngrx/router-store',
     '@ngrx/store',
     '@storybook/angular',
-    'injection-js',
-    'ng-packagr',
     'rxjs',
     'semver',
+    // installed dynamically by the library generator
+    'ng-packagr',
+    // ng-packagr deps, some are handled if not installed
+    'injection-js',
+    'browserslist',
+    'cacache',
+    'find-cache-dir',
+    'less',
+    'node-sass',
+    'node-sass-tilde-importer',
+    'ora',
+    'postcss',
+    'postcss-import',
+    'postcss-preset-env',
+    'postcss-url',
+    'sass',
+    'stylus',
+    'tailwindcss',
   ],
   cli: ['@nrwl/cli'],
   cypress: ['cypress', '@angular-devkit/schematics', '@nrwl/cypress'],
diff --git a/yarn.lock b/yarn.lock
index da37894084..38d1760f29 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -11813,6 +11813,11 @@ es6-weak-map@^2.0.3:
     es6-iterator "^2.0.3"
     es6-symbol "^3.1.1"
 
+esbuild-wasm@^0.12.15:
+  version "0.12.29"
+  resolved "https://registry.yarnpkg.com/esbuild-wasm/-/esbuild-wasm-0.12.29.tgz#1d210bb7d463b2ca51c54d69bb4192d9709f6100"
+  integrity sha512-amSuB/qOGnTFYLOxGHDGosQbOKZnrinniPHFf6ZxzeNH7WAjLkjXluKyKAtX2YuhTkUXm9XV9igl13iqYZ44fQ==
+
 esbuild@0.12.17:
   version "0.12.17"
   resolved "https://registry.yarnpkg.com/esbuild/-/esbuild-0.12.17.tgz#5816f905c2905de0ebbc658860df7b5b48afbcd3"
@@ -18358,10 +18363,10 @@ next@^11.1.2:
     "@next/swc-linux-x64-gnu" "11.1.2"
     "@next/swc-win32-x64-msvc" "11.1.2"
 
-ng-packagr@~12.2.0:
-  version "12.2.0"
-  resolved "https://registry.yarnpkg.com/ng-packagr/-/ng-packagr-12.2.0.tgz#53fe47391b5ddaf5f2c24eaecb23d8a10235d887"
-  integrity sha512-M/qq78Gb4q13t6SFX70W2DrPxyooSkLwXzhWozjD8yWGihx4q+54a72ODGx7jIrB4fQgrGDcMUTM7t1zGYir8Q==
+ng-packagr@~12.2.3:
+  version "12.2.3"
+  resolved "https://registry.yarnpkg.com/ng-packagr/-/ng-packagr-12.2.3.tgz#1597f8e70a78ab88bb395675358942bfc14cbc07"
+  integrity sha512-2KHoglc7UgJMnzkytzZ1wU+IEkb6UrxoU4QZxnF5BSFh9vjUra2nCXH+EKkvxD3WTj0ikXmNIMeNWbwoZpGkgA==
   dependencies:
     "@rollup/plugin-commonjs" "^20.0.0"
     "@rollup/plugin-json" "^4.1.0"
@@ -18373,7 +18378,7 @@ ng-packagr@~12.2.0:
     chokidar "^3.5.1"
     commander "^8.0.0"
     dependency-graph "^0.11.0"
-    esbuild "^0.12.15"
+    esbuild-wasm "^0.12.15"
     find-cache-dir "^3.3.1"
     glob "^7.1.6"
     injection-js "^2.4.0"
@@ -18389,6 +18394,8 @@ ng-packagr@~12.2.0:
     rxjs "^6.5.0"
     sass "^1.32.8"
     stylus "^0.54.8"
+  optionalDependencies:
+    esbuild "^0.12.15"
 
 ngrx-store-freeze@0.2.4:
   version "0.2.4"