diff --git a/packages/webpack/src/plugins/nx-webpack-plugin/lib/apply-base-config.ts b/packages/webpack/src/plugins/nx-webpack-plugin/lib/apply-base-config.ts
index 4c49571e3cc80..bb8188bf19030 100644
--- a/packages/webpack/src/plugins/nx-webpack-plugin/lib/apply-base-config.ts
+++ b/packages/webpack/src/plugins/nx-webpack-plugin/lib/apply-base-config.ts
@@ -231,7 +231,9 @@ function applyNxDependentConfig(
     root: options.root,
   };
 
-  plugins.push(new NxTsconfigPathsWebpackPlugin({ ...options, tsConfig }));
+  if (options.useTsconfigPaths) {
+    plugins.push(new NxTsconfigPathsWebpackPlugin({ ...options, tsConfig }));
+  }
 
   // New TS Solution already has a typecheck target
   if (!options?.skipTypeChecking && !isUsingTsSolutionSetup()) {
diff --git a/packages/webpack/src/plugins/nx-webpack-plugin/lib/normalize-options.ts b/packages/webpack/src/plugins/nx-webpack-plugin/lib/normalize-options.ts
index 21c880be1e14b..9e9fdfbab2f88 100644
--- a/packages/webpack/src/plugins/nx-webpack-plugin/lib/normalize-options.ts
+++ b/packages/webpack/src/plugins/nx-webpack-plugin/lib/normalize-options.ts
@@ -12,6 +12,7 @@ import {
   NormalizedNxAppWebpackPluginOptions,
   NxAppWebpackPluginOptions,
 } from '../nx-app-webpack-plugin-options';
+import { isUsingTsSolutionSetup } from '@nx/js/src/utils/typescript/ts-solution-setup';
 
 export function normalizeOptions(
   options: NxAppWebpackPluginOptions
@@ -37,6 +38,8 @@ export function normalizeOptions(
 
   const projectNode = projectGraph.nodes[projectName];
   const targetConfig = projectNode.data.targets[targetName];
+  options.useTsconfigPaths =
+    options.useTsconfigPaths ?? !isUsingTsSolutionSetup();
 
   normalizeRelativePaths(projectNode.data.root, options);
 
diff --git a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
index fac494d3ff5c6..cc6cac16aae06 100644
--- a/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
+++ b/packages/webpack/src/plugins/nx-webpack-plugin/nx-app-webpack-plugin-options.ts
@@ -211,6 +211,10 @@ export interface NxAppWebpackPluginOptions {
    * List of TypeScript Compiler Transformers Plugins.
    */
   transformers?: TransformerEntry[];
+  /**
+   * Use tsconfig-paths-webpack-plugin to resolve modules using paths in the tsconfig file.
+   */
+  useTsconfigPaths?: boolean;
   /**
    * Generate a separate vendor chunk for 3rd party packages.
    */