diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index f34524051f..82ded98ce0 100644
--- a/packages/react/src/generators/application/application.spec.ts
+++ b/packages/react/src/generators/application/application.spec.ts
@@ -1002,5 +1002,23 @@ describe('app', () => {
       expect(viteAppTree.exists('/apps/my-app/index.html')).toBe(true);
       expect(viteAppTree.exists('/apps/my-app/vite.config.ts')).toBe(true);
     });
+
+    it('should not include a spec file when the bundler or unitTestRunner is vite and insourceTests is false', async () => {
+      // check to make sure that the other spec file exists
+      expect(viteAppTree.exists('/apps/my-app/src/app/app.spec.tsx')).toBe(
+        true
+      );
+
+      await applicationGenerator(viteAppTree, {
+        ...schema,
+        name: 'insourceTests',
+        bundler: 'vite',
+        inSourceTests: true,
+      });
+
+      expect(
+        viteAppTree.exists('/apps/insourceTests/src/app/app.spec.tsx')
+      ).toBe(false);
+    });
   });
 });
diff --git a/packages/react/src/generators/application/application.ts b/packages/react/src/generators/application/application.ts
index e1cb436db2..7898d5bf9b 100644
--- a/packages/react/src/generators/application/application.ts
+++ b/packages/react/src/generators/application/application.ts
@@ -111,6 +111,18 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
     tasks.push(vitestTask);
   }
 
+  if (
+    (options.bundler === 'vite' || options.unitTestRunner === 'vitest') &&
+    options.inSourceTests
+  ) {
+    host.delete(
+      joinPathFragments(
+        options.appProjectRoot,
+        `src/app/${options.fileName}.spec.tsx`
+      )
+    );
+  }
+
   const lintTask = await addLinting(host, options);
   tasks.push(lintTask);
 
@@ -120,8 +132,10 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
   if (options.unitTestRunner === 'jest') {
     const jestTask = await addJest(host, options);
     tasks.push(jestTask);
-    updateSpecConfig(host, options);
   }
+
+  // Handle tsconfig.spec.json for jest or vitest
+  updateSpecConfig(host, options);
   const styledTask = addStyledModuleDependencies(host, options.styledModule);
   tasks.push(styledTask);
   const routingTask = addRouting(host, options);
diff --git a/packages/web/src/generators/application/application.spec.ts b/packages/web/src/generators/application/application.spec.ts
index 9a6c258f1f..af91516866 100644
--- a/packages/web/src/generators/application/application.spec.ts
+++ b/packages/web/src/generators/application/application.spec.ts
@@ -573,5 +573,21 @@ describe('app', () => {
       expect(viteAppTree.exists('/apps/my-app/index.html')).toBe(true);
       expect(viteAppTree.exists('/apps/my-app/vite.config.ts')).toBe(true);
     });
+
+    it('should not include a spec file when the bundler or unitTestRunner is vite and insourceTests is false', async () => {
+      expect(
+        viteAppTree.exists('/apps/my-app/src/app/app.element.spec.ts')
+      ).toBe(true);
+
+      await applicationGenerator(viteAppTree, {
+        name: 'insourceTests',
+        bundler: 'vite',
+        inSourceTests: true,
+      });
+
+      expect(
+        viteAppTree.exists('/apps/insource-tests/src/app/app.element.spec.ts')
+      ).toBe(false);
+    });
   });
 });
diff --git a/packages/web/src/generators/application/application.ts b/packages/web/src/generators/application/application.ts
index bd7cced40f..c141b94abc 100644
--- a/packages/web/src/generators/application/application.ts
+++ b/packages/web/src/generators/application/application.ts
@@ -206,10 +206,11 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
     host.delete(joinPathFragments(options.appProjectRoot, 'src/environments'));
 
     const viteTask = await viteConfigurationGenerator(host, {
-      uiFramework: 'react',
+      uiFramework: 'none',
       project: options.projectName,
       newProject: true,
       includeVitest: true,
+      inSourceTests: options.inSourceTests,
     });
     tasks.push(viteTask);
   }
@@ -223,6 +224,15 @@ export async function applicationGenerator(host: Tree, schema: Schema) {
     tasks.push(vitestTask);
   }
 
+  if (
+    (options.bundler === 'vite' || options.unitTestRunner === 'vitest') &&
+    options.inSourceTests
+  ) {
+    host.delete(
+      joinPathFragments(options.appProjectRoot, `src/app/app.element.spec.ts`)
+    );
+  }
+
   const lintTask = await lintProjectGenerator(host, {
     linter: options.linter,
     project: options.projectName,