diff --git a/.cz-config.js b/.cz-config.js
index 29d32a016a..f2a0a0bb3a 100644
--- a/.cz-config.js
+++ b/.cz-config.js
@@ -20,6 +20,7 @@ module.exports = {
     { name: 'core', description: 'anything Nx core specific' },
     { name: 'docs', description: 'anything related to docs infrastructure' },
     { name: 'nextjs', description: 'anything Next specific' },
+    { name: 'nest', description: 'anything Nest specific' },
     { name: 'node', description: 'anything Node specific' },
     { name: 'nx-plugin', description: 'anything Nx Plugin specific' },
     { name: 'react', description: 'anything React specific' },
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 941ed7a06f..b7e29f4e6a 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -181,6 +181,7 @@ The scope must be one of the following:
 - core - anything Nx core specific
 - docs - anything related to docs infrastructure
 - nextjs - anything Next specific
+- nest - anything Nest specific
 - node - anything Node specific
 - linter - anything Linter specific
 - react - anything React specific
diff --git a/docs/angular/api-nest/schematics/library.md b/docs/angular/api-nest/schematics/library.md
new file mode 100644
index 0000000000..362448cc46
--- /dev/null
+++ b/docs/angular/api-nest/schematics/library.md
@@ -0,0 +1,145 @@
+# library
+
+Create a new nest library
+
+## Usage
+
+```bash
+ng generate library ...
+```
+
+```bash
+ng g lib ... # same
+```
+
+By default, Nx will search for `library` in the default collection provisioned in `angular.json`.
+
+You can specify the collection explicitly as follows:
+
+```bash
+ng g @nrwl/nest:library ...
+```
+
+Show what will be generated without writing to disk:
+
+```bash
+ng g library ... --dry-run
+```
+
+### Examples
+
+Generate libs/myapp/mylib:
+
+```bash
+ng g lib mylib --directory=myapp
+```
+
+## Options
+
+### controller
+
+Default: `false`
+
+Type: `boolean`
+
+Include a controller with the library
+
+### directory
+
+Alias(es): d
+
+Type: `string`
+
+A directory where the app is placed
+
+### global
+
+Default: `false`
+
+Type: `boolean`
+
+Add the Global decorator to the generated module.
+
+### linter
+
+Default: `tslint`
+
+Type: `string`
+
+Possible values: `eslint`, `tslint`
+
+The tool to use for running lint checks.
+
+### name
+
+Type: `string`
+
+Library name
+
+### publishable
+
+Type: `boolean`
+
+Create a publishable library. A "build" architect will be added for this project the workspace configuration.
+
+### service
+
+Default: `false`
+
+Type: `boolean`
+
+Include a service with the library.
+
+### skipFormat
+
+Default: `false`
+
+Type: `boolean`
+
+Skip formatting files
+
+### skipTsConfig
+
+Default: `false`
+
+Type: `boolean`
+
+Do not update tsconfig.json for development experience.
+
+### tags
+
+Alias(es): t
+
+Type: `string`
+
+Add tags to the library (used for linting)
+
+### target
+
+Default: `es6`
+
+Type: `string`
+
+Possible values: `es5`, `es6`, `esnext`, `es2015`, `es2016`, `es2017`, `es2018`, `es2019`, `es2020`
+
+The es target, Nest suggest using es6 or higher.
+
+### testEnvironment
+
+Default: `node`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment for jest, for node applications this should stay as node unless doing DOM testing.
+
+### unitTestRunner
+
+Default: `jest`
+
+Type: `string`
+
+Possible values: `jest`, `none`
+
+Test runner to use for unit tests
diff --git a/docs/angular/api-node/schematics/library.md b/docs/angular/api-node/schematics/library.md
index bff4598616..be1ca7b31a 100644
--- a/docs/angular/api-node/schematics/library.md
+++ b/docs/angular/api-node/schematics/library.md
@@ -90,6 +90,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/docs/angular/api-workspace/schematics/library.md b/docs/angular/api-workspace/schematics/library.md
index e24a4e2c17..e5bf9c09fb 100644
--- a/docs/angular/api-workspace/schematics/library.md
+++ b/docs/angular/api-workspace/schematics/library.md
@@ -80,6 +80,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/docs/react/api-nest/schematics/library.md b/docs/react/api-nest/schematics/library.md
new file mode 100644
index 0000000000..f0e73825c6
--- /dev/null
+++ b/docs/react/api-nest/schematics/library.md
@@ -0,0 +1,145 @@
+# library
+
+Create a new nest library
+
+## Usage
+
+```bash
+nx generate library ...
+```
+
+```bash
+nx g lib ... # same
+```
+
+By default, Nx will search for `library` in the default collection provisioned in `workspace.json`.
+
+You can specify the collection explicitly as follows:
+
+```bash
+nx g @nrwl/nest:library ...
+```
+
+Show what will be generated without writing to disk:
+
+```bash
+nx g library ... --dry-run
+```
+
+### Examples
+
+Generate libs/myapp/mylib:
+
+```bash
+nx g lib mylib --directory=myapp
+```
+
+## Options
+
+### controller
+
+Default: `false`
+
+Type: `boolean`
+
+Include a controller with the library
+
+### directory
+
+Alias(es): d
+
+Type: `string`
+
+A directory where the app is placed
+
+### global
+
+Default: `false`
+
+Type: `boolean`
+
+Add the Global decorator to the generated module.
+
+### linter
+
+Default: `tslint`
+
+Type: `string`
+
+Possible values: `eslint`, `tslint`
+
+The tool to use for running lint checks.
+
+### name
+
+Type: `string`
+
+Library name
+
+### publishable
+
+Type: `boolean`
+
+Create a publishable library. A "build" architect will be added for this project the workspace configuration.
+
+### service
+
+Default: `false`
+
+Type: `boolean`
+
+Include a service with the library.
+
+### skipFormat
+
+Default: `false`
+
+Type: `boolean`
+
+Skip formatting files
+
+### skipTsConfig
+
+Default: `false`
+
+Type: `boolean`
+
+Do not update tsconfig.json for development experience.
+
+### tags
+
+Alias(es): t
+
+Type: `string`
+
+Add tags to the library (used for linting)
+
+### target
+
+Default: `es6`
+
+Type: `string`
+
+Possible values: `es5`, `es6`, `esnext`, `es2015`, `es2016`, `es2017`, `es2018`, `es2019`, `es2020`
+
+The es target, Nest suggest using es6 or higher.
+
+### testEnvironment
+
+Default: `node`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment for jest, for node applications this should stay as node unless doing DOM testing.
+
+### unitTestRunner
+
+Default: `jest`
+
+Type: `string`
+
+Possible values: `jest`, `none`
+
+Test runner to use for unit tests
diff --git a/docs/react/api-node/schematics/library.md b/docs/react/api-node/schematics/library.md
index 223cafcfeb..ae8ff74f2e 100644
--- a/docs/react/api-node/schematics/library.md
+++ b/docs/react/api-node/schematics/library.md
@@ -90,6 +90,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/docs/react/api-workspace/schematics/library.md b/docs/react/api-workspace/schematics/library.md
index 19de246912..dba68a2e9c 100644
--- a/docs/react/api-workspace/schematics/library.md
+++ b/docs/react/api-workspace/schematics/library.md
@@ -80,6 +80,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/docs/web/api-nest/schematics/library.md b/docs/web/api-nest/schematics/library.md
new file mode 100644
index 0000000000..f0e73825c6
--- /dev/null
+++ b/docs/web/api-nest/schematics/library.md
@@ -0,0 +1,145 @@
+# library
+
+Create a new nest library
+
+## Usage
+
+```bash
+nx generate library ...
+```
+
+```bash
+nx g lib ... # same
+```
+
+By default, Nx will search for `library` in the default collection provisioned in `workspace.json`.
+
+You can specify the collection explicitly as follows:
+
+```bash
+nx g @nrwl/nest:library ...
+```
+
+Show what will be generated without writing to disk:
+
+```bash
+nx g library ... --dry-run
+```
+
+### Examples
+
+Generate libs/myapp/mylib:
+
+```bash
+nx g lib mylib --directory=myapp
+```
+
+## Options
+
+### controller
+
+Default: `false`
+
+Type: `boolean`
+
+Include a controller with the library
+
+### directory
+
+Alias(es): d
+
+Type: `string`
+
+A directory where the app is placed
+
+### global
+
+Default: `false`
+
+Type: `boolean`
+
+Add the Global decorator to the generated module.
+
+### linter
+
+Default: `tslint`
+
+Type: `string`
+
+Possible values: `eslint`, `tslint`
+
+The tool to use for running lint checks.
+
+### name
+
+Type: `string`
+
+Library name
+
+### publishable
+
+Type: `boolean`
+
+Create a publishable library. A "build" architect will be added for this project the workspace configuration.
+
+### service
+
+Default: `false`
+
+Type: `boolean`
+
+Include a service with the library.
+
+### skipFormat
+
+Default: `false`
+
+Type: `boolean`
+
+Skip formatting files
+
+### skipTsConfig
+
+Default: `false`
+
+Type: `boolean`
+
+Do not update tsconfig.json for development experience.
+
+### tags
+
+Alias(es): t
+
+Type: `string`
+
+Add tags to the library (used for linting)
+
+### target
+
+Default: `es6`
+
+Type: `string`
+
+Possible values: `es5`, `es6`, `esnext`, `es2015`, `es2016`, `es2017`, `es2018`, `es2019`, `es2020`
+
+The es target, Nest suggest using es6 or higher.
+
+### testEnvironment
+
+Default: `node`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment for jest, for node applications this should stay as node unless doing DOM testing.
+
+### unitTestRunner
+
+Default: `jest`
+
+Type: `string`
+
+Possible values: `jest`, `none`
+
+Test runner to use for unit tests
diff --git a/docs/web/api-node/schematics/library.md b/docs/web/api-node/schematics/library.md
index 223cafcfeb..ae8ff74f2e 100644
--- a/docs/web/api-node/schematics/library.md
+++ b/docs/web/api-node/schematics/library.md
@@ -90,6 +90,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/docs/web/api-workspace/schematics/library.md b/docs/web/api-workspace/schematics/library.md
index 19de246912..dba68a2e9c 100644
--- a/docs/web/api-workspace/schematics/library.md
+++ b/docs/web/api-workspace/schematics/library.md
@@ -80,6 +80,16 @@ Type: `string`
 
 Add tags to the library (used for linting)
 
+### testEnvironment
+
+Default: `jsdom`
+
+Type: `string`
+
+Possible values: `jsdom`, `node`
+
+The test environment to use if unitTestRunner is set to jest
+
 ### unitTestRunner
 
 Default: `jest`
diff --git a/e2e/node.test.ts b/e2e/node.test.ts
index bddc5d0222..8265e6c70f 100644
--- a/e2e/node.test.ts
+++ b/e2e/node.test.ts
@@ -21,6 +21,8 @@ import {
   setMaxWorkers,
   newProject
 } from './utils';
+import { stripIndents } from '@angular-devkit/core/src/utils/literals';
+import { readFile } from './utils';
 
 function getData(): Promise<any> {
   return new Promise(resolve => {
@@ -226,6 +228,73 @@ forEachCli(currentCLIName => {
       });
     }, 120000);
 
+    describe('nest libraries', function() {
+      it('should be able to generate a nest library', async () => {
+        ensureProject();
+        const nestlib = uniq('nestlib');
+
+        runCLI(`generate @nrwl/nest:lib ${nestlib}`);
+
+        const jestConfigContent = readFile(`libs/${nestlib}/jest.config.js`);
+
+        expect(stripIndents`${jestConfigContent}`).toEqual(
+          stripIndents`module.exports = {
+                name: '${nestlib}',
+                preset: '../../jest.config.js',
+                testEnvironment: 'node',
+                 transform: {
+                '^.+\\.[tj]sx?$': 'ts-jest'
+                },
+                moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx', 'html'],
+                coverageDirectory: '../../coverage/libs/${nestlib}'
+            };
+            `
+        );
+
+        const lintResults = runCLI(`lint ${nestlib}`);
+        expect(lintResults).toContain('All files pass linting.');
+      }, 60000);
+
+      it('should be able to generate a nest library w/ service', async () => {
+        ensureProject();
+        const nestlib = uniq('nestlib');
+
+        runCLI(`generate @nrwl/nest:lib ${nestlib} --service`);
+
+        const lintResults = runCLI(`lint ${nestlib}`);
+        expect(lintResults).toContain('All files pass linting.');
+
+        const jestResult = await runCLIAsync(`test ${nestlib}`);
+        expect(jestResult.stderr).toContain('Test Suites: 1 passed, 1 total');
+      }, 60000);
+
+      it('should be able to generate a nest library w/ controller', async () => {
+        ensureProject();
+        const nestlib = uniq('nestlib');
+
+        runCLI(`generate @nrwl/nest:lib ${nestlib} --controller`);
+
+        const lintResults = runCLI(`lint ${nestlib}`);
+        expect(lintResults).toContain('All files pass linting.');
+
+        const jestResult = await runCLIAsync(`test ${nestlib}`);
+        expect(jestResult.stderr).toContain('Test Suites: 1 passed, 1 total');
+      }, 60000);
+
+      it('should be able to generate a nest library w/ controller and service', async () => {
+        ensureProject();
+        const nestlib = uniq('nestlib');
+
+        runCLI(`generate @nrwl/nest:lib ${nestlib} --controller --service`);
+
+        const lintResults = runCLI(`lint ${nestlib}`);
+        expect(lintResults).toContain('All files pass linting.');
+
+        const jestResult = await runCLIAsync(`test ${nestlib}`);
+        expect(jestResult.stderr).toContain('Test Suites: 2 passed, 2 total');
+      }, 60000);
+    });
+
     it('should be able to generate an empty application', async () => {
       ensureProject();
       const nodeapp = uniq('nodeapp');
diff --git a/packages/jest/src/schematics/jest-project/files/jest.config.js__tmpl__ b/packages/jest/src/schematics/jest-project/files/jest.config.js__tmpl__
index 20d7cea386..d1a2933a61 100644
--- a/packages/jest/src/schematics/jest-project/files/jest.config.js__tmpl__
+++ b/packages/jest/src/schematics/jest-project/files/jest.config.js__tmpl__
@@ -1,6 +1,7 @@
 module.exports = {
   name: '<%= project %>',
-  preset: '<%= offsetFromRoot %>jest.config.js',<% if (supportTsx) { %>
+  preset: '<%= offsetFromRoot %>jest.config.js',<% if(testEnvironment) { %>
+  testEnvironment: '<%= testEnvironment %>',<% } %><% if (supportTsx) { %>
   transform: {
     '^.+\\.[tj]sx?$': 'ts-jest'
   },
diff --git a/packages/jest/src/schematics/jest-project/jest-project.ts b/packages/jest/src/schematics/jest-project/jest-project.ts
index 818fbc4095..dc3d7ad0ff 100644
--- a/packages/jest/src/schematics/jest-project/jest-project.ts
+++ b/packages/jest/src/schematics/jest-project/jest-project.ts
@@ -1,23 +1,22 @@
 import {
-  Rule,
-  Tree,
-  mergeWith,
-  chain,
-  url,
   apply,
-  SchematicContext,
+  chain,
+  filter,
+  mergeWith,
   move,
-  template,
   noop,
-  filter
+  Rule,
+  SchematicContext,
+  template,
+  Tree,
+  url
 } from '@angular-devkit/schematics';
 import {
-  readJsonInTree,
+  getProjectConfig,
+  offsetFromRoot,
   updateJsonInTree,
   updateWorkspaceInTree
 } from '@nrwl/workspace';
-import { getProjectConfig, addDepsToPackageJson } from '@nrwl/workspace';
-import { offsetFromRoot } from '@nrwl/workspace';
 import { join, normalize } from '@angular-devkit/core';
 import init from '../init/init';
 
@@ -27,6 +26,7 @@ export interface JestProjectSchema {
   skipSetupFile: boolean;
   setupFile: 'angular' | 'web-components' | 'none';
   skipSerializers: boolean;
+  testEnvironment: 'node' | 'jsdom' | '';
 }
 
 function generateFiles(options: JestProjectSchema): Rule {
@@ -114,6 +114,10 @@ function check(options: JestProjectSchema): Rule {
 }
 
 function normalizeOptions(options: JestProjectSchema): JestProjectSchema {
+  if (options.testEnvironment === 'jsdom') {
+    options.testEnvironment = '';
+  }
+
   if (!options.skipSetupFile) {
     return options;
   }
diff --git a/packages/jest/src/schematics/jest-project/schema.json b/packages/jest/src/schematics/jest-project/schema.json
index 0051b6ad6c..96ae1a2865 100644
--- a/packages/jest/src/schematics/jest-project/schema.json
+++ b/packages/jest/src/schematics/jest-project/schema.json
@@ -32,6 +32,12 @@
       "type": "boolean",
       "description": "Setup tsx support",
       "default": false
+    },
+    "testEnvironment": {
+      "type": "string",
+      "enum": ["jsdom", "node"],
+      "description": "The test environment for jest",
+      "default": "jsdom"
     }
   },
   "required": []
diff --git a/packages/nest/collection.json b/packages/nest/collection.json
index 23860383cc..a1d5279238 100644
--- a/packages/nest/collection.json
+++ b/packages/nest/collection.json
@@ -16,6 +16,13 @@
       "schema": "./src/schematics/application/schema.json",
       "aliases": ["app"],
       "description": "Create a nest application"
+    },
+
+    "library": {
+      "factory": "./src/schematics/library/library",
+      "schema": "./src/schematics/library/schema.json",
+      "aliases": ["lib"],
+      "description": "Create a new nest library"
     }
   }
 }
diff --git a/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.spec.ts__tmpl__ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.spec.ts__tmpl__
new file mode 100644
index 0000000000..30c3ea0da6
--- /dev/null
+++ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.spec.ts__tmpl__
@@ -0,0 +1,26 @@
+import { Test } from '@nestjs/testing';
+import { <%= className %>Controller } from './<%= fileName %>.controller';
+<% if(service) { %>import { <%= className %>Service } from './<%= fileName %>.service';<% } %>
+
+describe('<%= className %>Controller', () => {
+
+    let controller: <%= className %>Controller;
+
+    beforeEach(async () => {
+        const module = await Test.createTestingModule({
+            providers: [
+                <% if(service) { %><%= className %>Service<% } %>
+            ],
+            controllers: [
+                <%= className %>Controller
+            ]
+        }).compile();
+
+        controller = module.get(<%= className %>Controller);
+    });
+
+    it('should be defined', () => {
+        expect(controller).toBeTruthy();
+    });
+
+})
diff --git a/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.ts__tmpl__ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.ts__tmpl__
new file mode 100644
index 0000000000..a8ae2f5c4e
--- /dev/null
+++ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.controller.ts__tmpl__
@@ -0,0 +1,7 @@
+import { Controller } from '@nestjs/common';
+<% if(service) { %>import { <%= className %>Service } from './<%= fileName %>.service';<% } %>
+
+@Controller('<%= fileName %>')
+export class <%= className %>Controller {
+    constructor(<% if(service) { %>private <%= propertyName %>Service: <%= className %>Service<% } %>) {}
+}
diff --git a/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.module.ts__tmpl__ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.module.ts__tmpl__
new file mode 100644
index 0000000000..001980c7cd
--- /dev/null
+++ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.module.ts__tmpl__
@@ -0,0 +1,18 @@
+import { Module<% if(global) { %>, Global<% } %> } from '@nestjs/common';
+<% if(service) { %>import { <%= className %>Service } from './<%= fileName %>.service';<% } %>
+<% if(controller) { %>import { <%= className %>Controller } from './<%= fileName %>.controller';<% } %>
+
+<% if(global) { %>@Global()<% } %>
+@Module({
+    controllers: [
+        <% if(controller) { %><%= className %>Controller<% } %>
+    ],
+    providers: [
+        <% if(service) { %><%= className %>Service<% } %>
+    ],
+    exports: [
+        <% if(service) { %><%= className %>Service<% } %>
+    ]
+})
+export class <%= className %>Module {
+}
diff --git a/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.spec.ts__tmpl__ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.spec.ts__tmpl__
new file mode 100644
index 0000000000..79a67fb503
--- /dev/null
+++ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.spec.ts__tmpl__
@@ -0,0 +1,22 @@
+import { Test } from '@nestjs/testing';
+import { <%= className %>Service } from './<%= fileName %>.service';
+
+describe('<%= className %>Service', () => {
+
+    let service: <%= className %>Service;
+
+    beforeEach(async () => {
+        const module = await Test.createTestingModule({
+            providers: [
+                <%= className %>Service
+            ]
+        }).compile();
+
+        service = module.get(<%= className %>Service);
+    });
+
+    it('should be defined', () => {
+        expect(service).toBeTruthy();
+    });
+
+})
diff --git a/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.ts__tmpl__ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.ts__tmpl__
new file mode 100644
index 0000000000..e7ffb40cc4
--- /dev/null
+++ b/packages/nest/src/schematics/library/files/lib/src/lib/__fileName__.service.ts__tmpl__
@@ -0,0 +1,6 @@
+import { Injectable } from '@nestjs/common';
+
+@Injectable()
+export class <%= className %>Service {
+    constructor() {}
+}
diff --git a/packages/nest/src/schematics/library/library.spec.ts b/packages/nest/src/schematics/library/library.spec.ts
new file mode 100644
index 0000000000..ba37d4abde
--- /dev/null
+++ b/packages/nest/src/schematics/library/library.spec.ts
@@ -0,0 +1,409 @@
+import { Tree } from '@angular-devkit/schematics';
+import { NxJson, readJsonInTree } from '@nrwl/workspace';
+import { createEmptyWorkspace, getFileContent } from '@nrwl/workspace/testing';
+import { runSchematic } from '../../utils/testing';
+import { stripIndents } from '@angular-devkit/core/src/utils/literals';
+
+describe('lib', () => {
+  let appTree: Tree;
+
+  beforeEach(() => {
+    appTree = Tree.empty();
+    appTree = createEmptyWorkspace(appTree);
+  });
+
+  describe('not nested', () => {
+    it('should update workspace.json', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      const workspaceJson = readJsonInTree(tree, '/workspace.json');
+      expect(workspaceJson.projects['my-lib'].root).toEqual('libs/my-lib');
+      expect(workspaceJson.projects['my-lib'].architect.build).toBeUndefined();
+      expect(workspaceJson.projects['my-lib'].architect.lint).toEqual({
+        builder: '@angular-devkit/build-angular:tslint',
+        options: {
+          exclude: ['**/node_modules/**', '!libs/my-lib/**'],
+          tsConfig: [
+            'libs/my-lib/tsconfig.lib.json',
+            'libs/my-lib/tsconfig.spec.json'
+          ]
+        }
+      });
+      expect(workspaceJson.projects['my-lib'].architect.test).toEqual({
+        builder: '@nrwl/jest:jest',
+        options: {
+          jestConfig: 'libs/my-lib/jest.config.js',
+          tsConfig: 'libs/my-lib/tsconfig.spec.json',
+          passWithNoTests: true
+        }
+      });
+    });
+
+    it('should include a controller', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', controller: true },
+        appTree
+      );
+      const service = getFileContent(
+        tree,
+        'libs/my-lib/src/lib/my-lib.controller.ts'
+      );
+      expect(service).toBeTruthy();
+    });
+
+    it('should include a service', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', service: true },
+        appTree
+      );
+      const service = getFileContent(
+        tree,
+        'libs/my-lib/src/lib/my-lib.service.ts'
+      );
+      expect(service).toBeTruthy();
+    });
+
+    it('should add the @Global decorator', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', global: true },
+        appTree
+      );
+      const module = getFileContent(
+        tree,
+        'libs/my-lib/src/lib/my-lib.module.ts'
+      );
+      expect(stripIndents`${module}`).toEqual(
+        stripIndents`import { Module, Global } from '@nestjs/common';
+          
+          @Global()
+          @Module({
+          controllers: [],
+          providers: [],
+          exports: []
+          })
+          export class MyLibModule {}`
+      );
+    });
+
+    it('should provide the controller and service', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', service: true, controller: true },
+        appTree
+      );
+      const module = getFileContent(
+        tree,
+        'libs/my-lib/src/lib/my-lib.module.ts'
+      );
+      expect(stripIndents`${module}`).toEqual(
+        stripIndents`import { Module } from '@nestjs/common';
+          import { MyLibService } from './my-lib.service';
+          import { MyLibController } from './my-lib.controller';
+          
+          @Module({
+          controllers: [MyLibController],
+          providers: [MyLibService],
+          exports: [MyLibService]
+          })
+          export class MyLibModule {}`
+      );
+
+      const controller = getFileContent(
+        tree,
+        'libs/my-lib/src/lib/my-lib.controller.ts'
+      );
+      expect(stripIndents`${controller}`).toEqual(
+        stripIndents`import { Controller } from '@nestjs/common';
+          import { MyLibService } from './my-lib.service';
+          
+          @Controller('my-lib')
+          export class MyLibController {
+            constructor(private myLibService: MyLibService) {}
+          }`
+      );
+
+      const barrel = getFileContent(tree, 'libs/my-lib/src/index.ts');
+      expect(stripIndents`${barrel}`).toEqual(
+        stripIndents`export * from './lib/my-lib.module';
+          export * from './lib/my-lib.service';
+          export * from './lib/my-lib.controller';`
+      );
+    });
+
+    it('should update nx.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', tags: 'one,two' },
+        appTree
+      );
+      const nxJson = readJsonInTree<NxJson>(tree, '/nx.json');
+      expect(nxJson).toEqual({
+        npmScope: 'proj',
+        projects: {
+          'my-lib': {
+            tags: ['one', 'two']
+          }
+        }
+      });
+    });
+
+    it('should update root tsconfig.json', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      const tsconfigJson = readJsonInTree(tree, '/tsconfig.json');
+      expect(tsconfigJson.compilerOptions.paths['@proj/my-lib']).toEqual([
+        'libs/my-lib/src/index.ts'
+      ]);
+    });
+
+    it('should create a local tsconfig.json', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      const tsconfigJson = readJsonInTree(tree, 'libs/my-lib/tsconfig.json');
+      expect(tsconfigJson).toEqual({
+        extends: '../../tsconfig.json',
+        compilerOptions: {
+          types: ['node', 'jest'],
+          target: 'es6'
+        },
+        include: ['**/*.ts']
+      });
+    });
+
+    it('should extend the local tsconfig.json with tsconfig.spec.json', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      const tsconfigJson = readJsonInTree(
+        tree,
+        'libs/my-lib/tsconfig.spec.json'
+      );
+      expect(tsconfigJson.extends).toEqual('./tsconfig.json');
+    });
+
+    it('should extend the local tsconfig.json with tsconfig.lib.json', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      const tsconfigJson = readJsonInTree(
+        tree,
+        'libs/my-lib/tsconfig.lib.json'
+      );
+      expect(tsconfigJson.extends).toEqual('./tsconfig.json');
+    });
+
+    it('should generate files', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+      expect(tree.exists(`libs/my-lib/jest.config.js`)).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/index.ts')).toBeTruthy();
+      expect(tree.exists(`libs/my-lib/src/lib/my-lib.spec.ts`)).toBeFalsy();
+    });
+  });
+
+  describe('nested', () => {
+    it('should update nx.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        {
+          name: 'myLib',
+          directory: 'myDir',
+          tags: 'one'
+        },
+        appTree
+      );
+      const nxJson = readJsonInTree<NxJson>(tree, '/nx.json');
+      expect(nxJson).toEqual({
+        npmScope: 'proj',
+        projects: {
+          'my-dir-my-lib': {
+            tags: ['one']
+          }
+        }
+      });
+
+      const tree2 = await runSchematic(
+        'lib',
+        {
+          name: 'myLib2',
+          directory: 'myDir',
+          tags: 'one,two'
+        },
+        tree
+      );
+      const nxJson2 = readJsonInTree<NxJson>(tree2, '/nx.json');
+      expect(nxJson2).toEqual({
+        npmScope: 'proj',
+        projects: {
+          'my-dir-my-lib': {
+            tags: ['one']
+          },
+          'my-dir-my-lib2': {
+            tags: ['one', 'two']
+          }
+        }
+      });
+    });
+
+    it('should generate files', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir' },
+        appTree
+      );
+      expect(tree.exists(`libs/my-dir/my-lib/jest.config.js`)).toBeTruthy();
+      expect(tree.exists('libs/my-dir/my-lib/src/index.ts')).toBeTruthy();
+      expect(
+        tree.exists(`libs/my-dir/my-lib/src/lib/my-lib.spec.ts`)
+      ).toBeFalsy();
+    });
+
+    it('should update workspace.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir' },
+        appTree
+      );
+      const workspaceJson = readJsonInTree(tree, '/workspace.json');
+
+      expect(workspaceJson.projects['my-dir-my-lib'].root).toEqual(
+        'libs/my-dir/my-lib'
+      );
+      expect(workspaceJson.projects['my-dir-my-lib'].architect.lint).toEqual({
+        builder: '@angular-devkit/build-angular:tslint',
+        options: {
+          exclude: ['**/node_modules/**', '!libs/my-dir/my-lib/**'],
+          tsConfig: [
+            'libs/my-dir/my-lib/tsconfig.lib.json',
+            'libs/my-dir/my-lib/tsconfig.spec.json'
+          ]
+        }
+      });
+    });
+
+    it('should update tsconfig.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir' },
+        appTree
+      );
+      const tsconfigJson = readJsonInTree(tree, '/tsconfig.json');
+      expect(tsconfigJson.compilerOptions.paths['@proj/my-dir/my-lib']).toEqual(
+        ['libs/my-dir/my-lib/src/index.ts']
+      );
+      expect(
+        tsconfigJson.compilerOptions.paths['my-dir-my-lib/*']
+      ).toBeUndefined();
+    });
+
+    it('should create a local tsconfig.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir' },
+        appTree
+      );
+
+      const tsconfigJson = readJsonInTree(
+        tree,
+        'libs/my-dir/my-lib/tsconfig.json'
+      );
+      expect(tsconfigJson).toEqual({
+        extends: '../../../tsconfig.json',
+        compilerOptions: {
+          types: ['node', 'jest'],
+          target: 'es6'
+        },
+        include: ['**/*.ts']
+      });
+    });
+  });
+
+  describe('--unit-test-runner none', () => {
+    it('should not generate test configuration', async () => {
+      const resultTree = await runSchematic(
+        'lib',
+        { name: 'myLib', unitTestRunner: 'none' },
+        appTree
+      );
+      expect(resultTree.exists('libs/my-lib/tsconfig.spec.json')).toBeFalsy();
+      expect(resultTree.exists('libs/my-lib/jest.config.js')).toBeFalsy();
+      expect(resultTree.exists('libs/my-lib/lib/my-lib.spec.ts')).toBeFalsy();
+      const workspaceJson = readJsonInTree(resultTree, 'workspace.json');
+      expect(workspaceJson.projects['my-lib'].architect.test).toBeUndefined();
+      const tsconfigJson = readJsonInTree(
+        resultTree,
+        'libs/my-lib/tsconfig.json'
+      );
+      expect(tsconfigJson).toEqual({
+        extends: '../../tsconfig.json',
+        compilerOptions: {
+          types: ['node'],
+          target: 'es6'
+        },
+        include: ['**/*.ts']
+      });
+      expect(
+        workspaceJson.projects['my-lib'].architect.lint.options.tsConfig
+      ).toEqual(['libs/my-lib/tsconfig.lib.json']);
+    });
+  });
+
+  describe('publishable package', () => {
+    it('should update package.json', async () => {
+      const publishableTree = await runSchematic(
+        'lib',
+        { name: 'mylib', publishable: true },
+        appTree
+      );
+
+      let packageJsonContent = readJsonInTree(
+        publishableTree,
+        'libs/mylib/package.json'
+      );
+
+      expect(packageJsonContent.name).toEqual('@proj/mylib');
+    });
+  });
+
+  describe('compiler options target', () => {
+    it('should set target to es6 in tsconfig.json by default', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir' },
+        appTree
+      );
+
+      const tsconfigJson = readJsonInTree(
+        tree,
+        'libs/my-dir/my-lib/tsconfig.json'
+      );
+      expect(tsconfigJson.compilerOptions.target).toEqual('es6');
+    });
+
+    it('should set target to es2020 in tsconfig.json', async () => {
+      const tree = await runSchematic(
+        'lib',
+        { name: 'myLib', directory: 'myDir', target: 'es2020' },
+        appTree
+      );
+
+      const tsconfigJson = readJsonInTree(
+        tree,
+        'libs/my-dir/my-lib/tsconfig.json'
+      );
+      expect(tsconfigJson.compilerOptions.target).toEqual('es2020');
+    });
+
+    it('should set target jest testEnvironment to node', async () => {
+      const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
+
+      const jestConfig = getFileContent(tree, 'libs/my-lib/jest.config.js');
+      expect(stripIndents`${jestConfig}`)
+        .toEqual(stripIndents`module.exports = {
+      name: 'my-lib',
+      preset: '../../jest.config.js',
+      testEnvironment: 'node',
+      transform: {
+        '^.+\\.[tj]sx?$': 'ts-jest'
+      },
+      moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx', 'html'],
+      coverageDirectory: '../../coverage/libs/my-lib'
+      };`);
+    });
+  });
+});
diff --git a/packages/nest/src/schematics/library/library.ts b/packages/nest/src/schematics/library/library.ts
new file mode 100644
index 0000000000..e27df27f4d
--- /dev/null
+++ b/packages/nest/src/schematics/library/library.ts
@@ -0,0 +1,192 @@
+import { normalize, Path } from '@angular-devkit/core';
+import {
+  apply,
+  chain,
+  externalSchematic,
+  filter,
+  MergeStrategy,
+  mergeWith,
+  move,
+  noop,
+  Rule,
+  SchematicContext,
+  template,
+  Tree,
+  url
+} from '@angular-devkit/schematics';
+import {
+  addGlobal,
+  deleteFile,
+  formatFiles,
+  getNpmScope,
+  getProjectConfig,
+  insert,
+  names,
+  offsetFromRoot,
+  toFileName,
+  updateJsonInTree,
+  updateWorkspaceInTree
+} from '@nrwl/workspace';
+import { Schema } from './schema';
+import * as ts from 'typescript';
+import { RemoveChange } from '@nrwl/workspace/src/utils/ast-utils';
+
+export interface NormalizedSchema extends Schema {
+  name: string;
+  prefix: string;
+  fileName: string;
+  projectRoot: Path;
+  projectDirectory: string;
+  parsedTags: string[];
+}
+
+export default function(schema: NormalizedSchema): Rule {
+  return (host: Tree, context: SchematicContext) => {
+    const options = normalizeOptions(host, schema);
+
+    return chain([
+      externalSchematic('@nrwl/node', 'lib', schema),
+      createFiles(options),
+      addExportsToBarrelFile(options),
+      updateTsConfig(options),
+      addProject(options),
+      formatFiles(options),
+      deleteFile(`/${options.projectRoot}/src/lib/${options.fileName}.spec.ts`)
+    ]);
+  };
+}
+
+function normalizeOptions(host: Tree, options: Schema): NormalizedSchema {
+  const defaultPrefix = getNpmScope(host);
+  const name = toFileName(options.name);
+  const projectDirectory = options.directory
+    ? `${toFileName(options.directory)}/${name}`
+    : name;
+
+  const projectName = projectDirectory.replace(new RegExp('/', 'g'), '-');
+  const fileName = projectName;
+  const projectRoot = normalize(`libs/${projectDirectory}`);
+
+  const parsedTags = options.tags
+    ? options.tags.split(',').map(s => s.trim())
+    : [];
+
+  const normalized: NormalizedSchema = {
+    ...options,
+    prefix: defaultPrefix, // we could also allow customizing this
+    fileName,
+    name: projectName,
+    projectRoot,
+    projectDirectory,
+    parsedTags
+  };
+
+  return normalized;
+}
+
+function addExportsToBarrelFile(options: NormalizedSchema): Rule {
+  return (host: Tree) => {
+    const indexFilePath = `${options.projectRoot}/src/index.ts`;
+    const buffer = host.read(indexFilePath);
+    if (!!buffer) {
+      const indexSource = buffer!.toString('utf-8');
+      const indexSourceFile = ts.createSourceFile(
+        indexFilePath,
+        indexSource,
+        ts.ScriptTarget.Latest,
+        true
+      );
+
+      insert(host, indexFilePath, [
+        new RemoveChange(
+          indexFilePath,
+          0,
+          `export * from './lib/${options.fileName}';`
+        ),
+        ...addGlobal(
+          indexSourceFile,
+          indexFilePath,
+          `export * from './lib/${options.fileName}.module';`
+        ),
+        ...(options.service
+          ? addGlobal(
+              indexSourceFile,
+              indexFilePath,
+              `export * from './lib/${options.fileName}.service';`
+            )
+          : []),
+        ...(options.controller
+          ? addGlobal(
+              indexSourceFile,
+              indexFilePath,
+              `export * from './lib/${options.fileName}.controller';`
+            )
+          : [])
+      ]);
+    }
+  };
+}
+
+function createFiles(options: NormalizedSchema): Rule {
+  return mergeWith(
+    apply(url(`./files/lib`), [
+      template({
+        ...options,
+        ...names(options.name),
+        tmpl: '',
+        offsetFromRoot: offsetFromRoot(options.projectRoot)
+      }),
+      move(options.projectRoot),
+      options.unitTestRunner === 'none'
+        ? filter(file => !file.endsWith('spec.ts'))
+        : noop(),
+      options.publishable
+        ? noop()
+        : filter(file => !file.endsWith('package.json')),
+      options.service ? noop() : filter(file => !file.endsWith('.service.ts')),
+      options.controller
+        ? noop()
+        : filter(file => !file.endsWith('.controller.ts')),
+      !options.controller || options.unitTestRunner === 'none'
+        ? filter(file => !file.endsWith('.controller.spec.ts'))
+        : noop(),
+      !options.service || options.unitTestRunner === 'none'
+        ? filter(file => !file.endsWith('.service.spec.ts'))
+        : noop()
+    ]),
+    MergeStrategy.Overwrite
+  );
+}
+
+function updateTsConfig(options: NormalizedSchema): Rule {
+  return (host: Tree, context: SchematicContext) => {
+    const projectConfig = getProjectConfig(host, options.name);
+    return updateJsonInTree(`${projectConfig.root}/tsconfig.json`, json => {
+      json.compilerOptions.target = options.target;
+      return json;
+    });
+  };
+}
+
+function addProject(options: NormalizedSchema): Rule {
+  if (!options.publishable) {
+    return noop();
+  }
+
+  return updateWorkspaceInTree(json => {
+    const architect = json.projects[options.name].architect;
+    if (architect) {
+      architect.build = {
+        builder: '@nrwl/node:package',
+        options: {
+          outputPath: `dist/libs/${options.projectDirectory}`,
+          tsConfig: `${options.projectRoot}/tsconfig.lib.json`,
+          packageJson: `${options.projectRoot}/package.json`,
+          main: `${options.projectRoot}/src/index.ts`,
+          assets: [`${options.projectRoot}/*.md`]
+        }
+      };
+    }
+    return json;
+  });
+}
diff --git a/packages/nest/src/schematics/library/schema.d.ts b/packages/nest/src/schematics/library/schema.d.ts
new file mode 100644
index 0000000000..b3b84628f5
--- /dev/null
+++ b/packages/nest/src/schematics/library/schema.d.ts
@@ -0,0 +1,26 @@
+import { Linter } from '@nrwl/workspace';
+
+export interface Schema {
+  name: string;
+  directory?: string;
+  skipTsConfig: boolean;
+  skipFormat: boolean;
+  tags?: string;
+  unitTestRunner: 'jest' | 'none';
+  linter: Linter;
+  publishable?: boolean;
+  global?: boolean;
+  service?: boolean;
+  controller?: boolean;
+  target?:
+    | 'es5'
+    | 'es6'
+    | 'esnext'
+    | 'es2015'
+    | 'es2016'
+    | 'es2017'
+    | 'es2018'
+    | 'es2019'
+    | 'es2020';
+  testEnvironment: 'jsdom' | 'node';
+}
diff --git a/packages/nest/src/schematics/library/schema.json b/packages/nest/src/schematics/library/schema.json
new file mode 100644
index 0000000000..34afa3a3d8
--- /dev/null
+++ b/packages/nest/src/schematics/library/schema.json
@@ -0,0 +1,97 @@
+{
+  "$schema": "http://json-schema.org/schema",
+  "id": "NxNestLibrary",
+  "title": "Create a Nest Library for Nx",
+  "type": "object",
+  "examples": [
+    {
+      "command": "g lib mylib --directory=myapp",
+      "description": "Generate libs/myapp/mylib"
+    }
+  ],
+  "properties": {
+    "name": {
+      "type": "string",
+      "description": "Library name",
+      "$default": {
+        "$source": "argv",
+        "index": 0
+      },
+      "x-prompt": "What name would you like to use for the library?"
+    },
+    "directory": {
+      "type": "string",
+      "description": "A directory where the app is placed",
+      "alias": "d"
+    },
+    "linter": {
+      "description": "The tool to use for running lint checks.",
+      "type": "string",
+      "enum": ["eslint", "tslint"],
+      "default": "tslint"
+    },
+    "unitTestRunner": {
+      "type": "string",
+      "enum": ["jest", "none"],
+      "description": "Test runner to use for unit tests",
+      "default": "jest"
+    },
+    "tags": {
+      "type": "string",
+      "description": "Add tags to the library (used for linting)",
+      "alias": "t"
+    },
+    "skipFormat": {
+      "description": "Skip formatting files",
+      "type": "boolean",
+      "default": false
+    },
+    "skipTsConfig": {
+      "type": "boolean",
+      "default": false,
+      "description": "Do not update tsconfig.json for development experience."
+    },
+    "publishable": {
+      "type": "boolean",
+      "description": "Create a publishable library. A \"build\" architect will be added for this project the workspace configuration."
+    },
+    "global": {
+      "type": "boolean",
+      "description": "Add the Global decorator to the generated module.",
+      "default": false
+    },
+    "service": {
+      "type": "boolean",
+      "description": "Include a service with the library.",
+      "default": false
+    },
+    "controller": {
+      "type": "boolean",
+      "description": "Include a controller with the library",
+      "default": false
+    },
+    "testEnvironment": {
+      "type": "string",
+      "enum": ["jsdom", "node"],
+      "description": "The test environment for jest, for node applications this should stay as node unless doing DOM testing.",
+      "default": "node"
+    },
+    "target": {
+      "type": "string",
+      "description": "The es target, Nest suggest using es6 or higher.",
+      "default": "es6",
+      "enum": [
+        "es5",
+        "es6",
+        "esnext",
+        "es2015",
+        "es2016",
+        "es2017",
+        "es2018",
+        "es2019",
+        "es2020"
+      ]
+    }
+  },
+  "required": ["name"]
+}
diff --git a/packages/node/src/schematics/library/schema.d.ts b/packages/node/src/schematics/library/schema.d.ts
index d426ea324d..12b6d7761d 100644
--- a/packages/node/src/schematics/library/schema.d.ts
+++ b/packages/node/src/schematics/library/schema.d.ts
@@ -9,4 +9,5 @@ export interface Schema {
   unitTestRunner: 'jest' | 'none';
   linter: Linter;
   publishable?: boolean;
+  testEnvironment: 'jsdom' | 'node';
 }
diff --git a/packages/node/src/schematics/library/schema.json b/packages/node/src/schematics/library/schema.json
index 31c8abd496..820b8c7e50 100644
--- a/packages/node/src/schematics/library/schema.json
+++ b/packages/node/src/schematics/library/schema.json
@@ -54,6 +54,12 @@
     "publishable": {
       "type": "boolean",
       "description": "Create a publishable library. A \"build\" architect will be added for this project the workspace configuration."
+    },
+    "testEnvironment": {
+      "type": "string",
+      "enum": ["jsdom", "node"],
+      "description": "The test environment to use if unitTestRunner is set to jest",
+      "default": "jsdom"
     }
   },
   "required": ["name"]
diff --git a/packages/workspace/src/schematics/library/library.ts b/packages/workspace/src/schematics/library/library.ts
index 174d69fc0b..4e14ecd1ec 100644
--- a/packages/workspace/src/schematics/library/library.ts
+++ b/packages/workspace/src/schematics/library/library.ts
@@ -100,7 +100,8 @@ export default function(schema: Schema): Rule {
             project: options.name,
             setupFile: 'none',
             supportTsx: true,
-            skipSerializers: true
+            skipSerializers: true,
+            testEnvironment: options.testEnvironment
           })
         : noop(),
       formatFiles(options)
diff --git a/packages/workspace/src/schematics/library/schema.d.ts b/packages/workspace/src/schematics/library/schema.d.ts
index b4f1132b02..876f938e7e 100644
--- a/packages/workspace/src/schematics/library/schema.d.ts
+++ b/packages/workspace/src/schematics/library/schema.d.ts
@@ -9,4 +9,5 @@ export interface Schema {
   simpleModuleName: boolean;
   unitTestRunner: 'jest' | 'none';
   linter: Linter;
+  testEnvironment: 'jsdom' | 'node';
 }
diff --git a/packages/workspace/src/schematics/library/schema.json b/packages/workspace/src/schematics/library/schema.json
index f6170d92b0..e46958ef80 100644
--- a/packages/workspace/src/schematics/library/schema.json
+++ b/packages/workspace/src/schematics/library/schema.json
@@ -48,6 +48,12 @@
       "type": "boolean",
       "default": false,
       "description": "Do not update tsconfig.json for development experience."
+    },
+    "testEnvironment": {
+      "type": "string",
+      "enum": ["jsdom", "node"],
+      "description": "The test environment to use if unitTestRunner is set to jest",
+      "default": "jsdom"
     }
   },
   "required": ["name"]
diff --git a/packages/workspace/src/schematics/shared-new/shared-new.ts b/packages/workspace/src/schematics/shared-new/shared-new.ts
index 3cab39c862..a3ff66cc19 100644
--- a/packages/workspace/src/schematics/shared-new/shared-new.ts
+++ b/packages/workspace/src/schematics/shared-new/shared-new.ts
@@ -253,7 +253,10 @@ function setDefaultLinter(linter: string) {
       plugin: { linter }
     };
     json.schematics['@nrwl/nest'] = { application: { linter } };
-    json.schematics['@nrwl/express'] = { application: { linter } };
+    json.schematics['@nrwl/express'] = {
+      application: { linter },
+      library: { linter }
+    };
     return json;
   });
 }
diff --git a/scripts/commit-lint.js b/scripts/commit-lint.js
index 65ee61ca37..d721e6c8c6 100755
--- a/scripts/commit-lint.js
+++ b/scripts/commit-lint.js
@@ -6,7 +6,7 @@ const gitMessage = require('child_process')
   .toString()
   .trim();
 
-const matchCommit = /(chore|feat|fix|cleanup|docs)\((angular|bazel|core|docs|nextjs|linter|node|nx-plugin|react|storybook|testing|repo|misc)\):\s(([a-z0-9:\-\s])+)/g.test(
+const matchCommit = /(chore|feat|fix|cleanup|docs)\((angular|bazel|core|docs|nextjs|nest|linter|node|nx-plugin|react|storybook|testing|repo|misc)\):\s(([a-z0-9:\-\s])+)/g.test(
   gitMessage
 );
 const matchRevert = /Revert/gi.test(gitMessage);
@@ -27,7 +27,7 @@ if (exitCode === 0) {
   console.log('\n');
   console.log('possible types: chore|build|feat|fix|cleanup|docs');
   console.log(
-    'possible scopes: angular|bazel|core|docs|nextjs|linter|node|react|storybook|testing|repo|misc (if unsure use "core")'
+    'possible scopes: angular|bazel|core|docs|nextjs|nest|linter|linter|node|react|storybook|testing|repo|misc (if unsure use "core")'
   );
   console.log(
     '\nEXAMPLE: \n' +