diff --git a/.changeset/chilled-colts-heal.md b/.changeset/chilled-colts-heal.md
new file mode 100644
index 0000000000..2e7af62912
--- /dev/null
+++ b/.changeset/chilled-colts-heal.md
@@ -0,0 +1,5 @@
+---
+'@sap-cloud-sdk/generator-common': minor
+---
+
+[Fixed Issue] Fix ESM client code compilation by allowing the `module` option to be set to `nodenext` in a custom `tsconfig.json` file.
diff --git a/packages/generator-common/src/compiler.ts b/packages/generator-common/src/compiler.ts
index 6f5ec6130b..b807258699 100644
--- a/packages/generator-common/src/compiler.ts
+++ b/packages/generator-common/src/compiler.ts
@@ -255,7 +255,8 @@ function parseModuleKind(input: string): ModuleKind {
     amd: ModuleKind.AMD,
     es2015: ModuleKind.ES2015,
     es2020: ModuleKind.ES2020,
-    esnext: ModuleKind.ESNext
+    esnext: ModuleKind.ESNext,
+    nodenext: ModuleKind.NodeNext
   };
 
   if (mapping[input.toLowerCase()]) {