diff --git a/e2e/node/src/node.test.ts b/e2e/node/src/node.test.ts
index f776ac8e01cacd..095c83c9ea6d26 100644
--- a/e2e/node/src/node.test.ts
+++ b/e2e/node/src/node.test.ts
@@ -428,6 +428,52 @@ ${jslib}();
     checkFilesExist(`dist/apps/_should_keep.txt`);
   }, 120000);
 
+  it('should support generating projects with the new name and root format', () => {
+    const appName = uniq('app1');
+    const libName = uniq('@my-org/lib1');
+
+    runCLI(
+      `generate @nx/node:app ${appName} --project-name-and-root-format=as-provided --no-interactive`
+    );
+
+    // check files are generated without the layout directory ("apps/") and
+    // using the project name as the directory when no directory is provided
+    checkFilesExist(`${appName}/src/main.ts`);
+    // check build works
+    expect(runCLI(`build ${appName}`)).toContain(
+      `Successfully ran target build for project ${appName}`
+    );
+    // check tests pass
+    const appTestResult = runCLI(`test ${appName}`);
+    expect(appTestResult).toContain(
+      `Successfully ran target test for project ${appName}`
+    );
+
+    // assert scoped project names are not supported when --project-name-and-root-format=derived
+    expect(() =>
+      runCLI(
+        `generate @nx/node:lib ${libName} --buildable --project-name-and-root-format=derived --no-interactive`
+      )
+    ).toThrow();
+
+    runCLI(
+      `generate @nx/node:lib ${libName} --buildable --project-name-and-root-format=as-provided --no-interactive`
+    );
+
+    // check files are generated without the layout directory ("libs/") and
+    // using the project name as the directory when no directory is provided
+    checkFilesExist(`${libName}/src/index.ts`);
+    // check build works
+    expect(runCLI(`build ${libName}`)).toContain(
+      `Successfully ran target build for project ${libName}`
+    );
+    // check tests pass
+    const libTestResult = runCLI(`test ${libName}`);
+    expect(libTestResult).toContain(
+      `Successfully ran target test for project ${libName}`
+    );
+  }, 500_000);
+
   describe('NestJS', () => {
     it('should have plugin output if specified in `tsPlugins`', async () => {
       newProject();