diff --git a/e2e/commands/init.e2e.1.ts b/e2e/commands/init.e2e.1.ts
index 5b75b1e2c3f0..f22774576ade 100644
--- a/e2e/commands/init.e2e.1.ts
+++ b/e2e/commands/init.e2e.1.ts
@@ -160,7 +160,7 @@ describe('run bit init', function () {
     });
     describe('bit init', () => {
       before(() => {
-        helper.scopeHelper.initWorkspace();
+        helper.scopeHelper.initWorkspace(undefined, { 'no-package-json': true });
       });
       it('should not change BitMap file', () => {
         const currentBitMap = helper.bitMap.read();
@@ -175,7 +175,7 @@ describe('run bit init', function () {
     describe('bit init --reset', () => {
       before(() => {
         helper.scopeHelper.getClonedLocalScope(localScope);
-        helper.command.runCmd('bit init --reset');
+        helper.command.runCmd('bit init --reset --no-package-json');
       });
       it('should not change BitMap file', () => {
         const currentBitMap = helper.bitMap.read();
diff --git a/scopes/generator/generator/workspace-generator.ts b/scopes/generator/generator/workspace-generator.ts
index 8d381c86bd57..b3bca6d431b5 100644
--- a/scopes/generator/generator/workspace-generator.ts
+++ b/scopes/generator/generator/workspace-generator.ts
@@ -57,7 +57,7 @@ export class WorkspaceGenerator {
     try {
       process.chdir(this.workspacePath);
       await this.initGit();
-      await init(this.workspacePath, this.options.skipGit, false, false, false, false, false, false, {});
+      await init(this.workspacePath, this.options.skipGit, false, false, false, false, false, false, false, {});
       await this.writeWorkspaceFiles();
       await this.reloadBitInWorkspaceDir();
       // Setting the workspace to be in install context to prevent errors during the workspace generation
diff --git a/src/api/consumer/lib/init.ts b/src/api/consumer/lib/init.ts
index a2f06afd8be1..0edd1e908e3c 100644
--- a/src/api/consumer/lib/init.ts
+++ b/src/api/consumer/lib/init.ts
@@ -10,6 +10,7 @@ import ObjectsWithoutConsumer from './exceptions/objects-without-consumer';
 export default async function init(
   absPath: string = process.cwd(),
   noGit = false,
+  noPackageJson = false,
   reset = false,
   resetNew = false,
   resetLaneNew = false,
@@ -23,7 +24,7 @@ export default async function init(
   }
   let consumer: Consumer | undefined;
   try {
-    consumer = await Consumer.create(absPath, noGit, workspaceConfigProps);
+    consumer = await Consumer.create(absPath, noGit, noPackageJson, workspaceConfigProps);
   } catch (err) {
     // it's possible that at this stage the consumer fails to load due to scope issues.
     // still we want to load it to include its instance of "scope.json", so then later when "consumer.write()", we
@@ -34,7 +35,7 @@ export default async function init(
     if (!scopePath) throw new Error(`fatal: scope not found in the path: ${process.cwd()}`);
     await Scope.reset(scopePath, true);
   }
-  if (!consumer) consumer = await Consumer.create(absPath, noGit, workspaceConfigProps);
+  if (!consumer) consumer = await Consumer.create(absPath, noGit, noPackageJson, workspaceConfigProps);
   if (!force && !resetScope) {
     await throwForOutOfSyncScope(consumer);
   }
diff --git a/src/cli/commands/public-cmds/init-cmd.ts b/src/cli/commands/public-cmds/init-cmd.ts
index eefb5d163029..f07efc870327 100644
--- a/src/cli/commands/public-cmds/init-cmd.ts
+++ b/src/cli/commands/public-cmds/init-cmd.ts
@@ -34,6 +34,7 @@ export default class Init implements LegacyCommand {
       'standalone',
       'do not nest component store within .git directory and do not write config data inside package.json',
     ],
+    ['', 'no-package-json', 'do not generate package.json'],
     ['r', 'reset', 'write missing or damaged Bit files'],
     ['', 'reset-new', 'reset .bitmap file as if the components were newly added and remove all model data (objects)'],
     [
@@ -59,7 +60,6 @@ export default class Init implements LegacyCommand {
     ['', 'default-scope <default-scope>', 'set the default scope for components in the workspace'],
     ['p', 'package-manager <package-manager>', 'set the package manager (npm or yarn) to be used in the workspace'],
     ['f', 'force', 'force workspace initialization without clearing local objects'],
-    ['', 'harmony', 'DEPRECATED. no need for this flag. Harmony is the default now'],
     ['I', 'interactive', 'EXPERIMENTAL. start an interactive process'],
   ] as CommandOptions;
 
@@ -72,6 +72,7 @@ export default class Init implements LegacyCommand {
       bare,
       shared,
       standalone,
+      noPackageJson,
       reset,
       resetNew,
       resetLaneNew,
@@ -105,6 +106,7 @@ export default class Init implements LegacyCommand {
     return init(
       path,
       standalone,
+      noPackageJson,
       reset,
       resetNew,
       resetLaneNew,
diff --git a/src/consumer/component/package-json-file.ts b/src/consumer/component/package-json-file.ts
index c34665bccb21..831eb146b1dc 100644
--- a/src/consumer/component/package-json-file.ts
+++ b/src/consumer/component/package-json-file.ts
@@ -61,8 +61,7 @@ export default class PackageJsonFile {
    * load from the given dir, if not exist, don't throw an error, just set packageJsonObject as an
    * empty object
    */
-  // @ts-ignore AUTO-ADDED-AFTER-MIGRATION-PLEASE-FIX!
-  static async load(workspaceDir: PathOsBasedAbsolute, componentDir?: PathRelative = '.'): Promise<PackageJsonFile> {
+  static async load(workspaceDir: PathOsBasedAbsolute, componentDir: PathRelative = '.'): Promise<PackageJsonFile> {
     const filePath = composePath(componentDir);
     const filePathAbsolute = path.join(workspaceDir, filePath);
     const packageJsonStr = await PackageJsonFile.getPackageJsonStrIfExist(filePathAbsolute);
@@ -75,6 +74,25 @@ export default class PackageJsonFile {
     return new PackageJsonFile({ filePath, packageJsonObject, fileExist: true, workspaceDir, indent, newline });
   }
 
+  static create(
+    workspaceDir: PathOsBasedAbsolute,
+    componentDir: PathRelative = '.',
+    content: Record<string, any>,
+    indent = '  ',
+    newline = '\n'
+  ): PackageJsonFile {
+    const filePath = composePath(componentDir);
+
+    return new PackageJsonFile({
+      filePath,
+      packageJsonObject: content,
+      fileExist: false,
+      workspaceDir,
+      indent,
+      newline,
+    });
+  }
+
   static async reset(workspaceDir: PathOsBasedAbsolute) {
     const pkgJsonFile = await PackageJsonFile.load(workspaceDir);
     if (pkgJsonFile.fileExist) {
diff --git a/src/consumer/consumer.ts b/src/consumer/consumer.ts
index f0c8ca8ac54f..9046af1a73aa 100644
--- a/src/consumer/consumer.ts
+++ b/src/consumer/consumer.ts
@@ -1,7 +1,7 @@
 import fs from 'fs-extra';
 import * as path from 'path';
 import R from 'ramda';
-import { compact } from 'lodash';
+import { compact, isEmpty } from 'lodash';
 import { ComponentID, ComponentIdList } from '@teambit/component-id';
 import { DEFAULT_LANE, LaneId } from '@teambit/lane-id';
 import { BitIdStr } from '@teambit/legacy-bit-id';
@@ -73,7 +73,7 @@ export default class Consumer {
   _componentsStatusCache: Record<string, any> = {}; // cache loaded components
   packageManagerArgs: string[] = []; // args entered by the user in the command line after '--'
   componentLoader: ComponentLoader;
-  packageJson: any;
+  packageJson: PackageJsonFile;
   public onCacheClear: Array<() => void | Promise<void>> = [];
   constructor({
     projectPath,
@@ -98,6 +98,10 @@ export default class Consumer {
     this.bitMap = await BitMap.load(this);
   }
 
+  setPackageJson(packageJson: PackageJsonFile) {
+    this.packageJson = packageJson;
+  }
+
   // @ts-ignore AUTO-ADDED-AFTER-MIGRATION-PLEASE-FIX!
   get dirStructure(): DirStructure {
     if (!this._dirStructure) {
@@ -183,6 +187,7 @@ export default class Consumer {
     await Promise.all([this.config.write({ workspaceDir: this.projectPath }), this.scope.ensureDir()]);
     this.bitMap.markAsChanged();
     await this.writeBitMap();
+    await this.writePackageJson();
     return this;
   }
 
@@ -424,9 +429,10 @@ export default class Consumer {
   static create(
     projectPath: PathOsBasedAbsolute,
     noGit = false,
+    noPackageJson = false,
     workspaceConfigProps?: WorkspaceConfigProps
   ): Promise<Consumer> {
-    return this.ensure(projectPath, noGit, workspaceConfigProps);
+    return this.ensure(projectPath, noGit, noPackageJson, workspaceConfigProps);
   }
 
   static _getScopePath(projectPath: PathOsBasedAbsolute, noGit: boolean): PathOsBasedAbsolute {
@@ -441,6 +447,7 @@ export default class Consumer {
   static async ensure(
     projectPath: PathOsBasedAbsolute,
     standAlone = false,
+    noPackageJson = false,
     workspaceConfigProps?: WorkspaceConfigProps
   ): Promise<Consumer> {
     const resolvedScopePath = Consumer._getScopePath(projectPath, standAlone);
@@ -458,16 +465,40 @@ export default class Consumer {
       existingGitHooks,
     });
     await consumer.setBitMap();
-    // understands why tests break with gilad and david.
-    // await Consumer.ensurePackageJson(projectPath);
+    if (!noPackageJson) {
+      consumer.setPackageJsonWithTypeModule();
+    }
     return consumer;
   }
 
+  private setPackageJsonWithTypeModule() {
+    const exists = this.packageJson && this.packageJson.fileExist;
+    if (exists) {
+      const content = this.packageJson.packageJsonObject;
+      if (content.type === 'module') return;
+      logger.console(
+        '\nEnable ESM by adding "type":"module" to the package.json file (https://nodejs.org/api/esm.html#enabling). If you are looking to use CJS. Use the Bit CJS environments.'
+      );
+      return;
+    }
+    const jsonContent = { type: 'module' };
+    const packageJson = PackageJsonFile.create(this.projectPath, undefined, jsonContent);
+    this.setPackageJson(packageJson);
+  }
+
   static async ensurePackageJson(projectPath: string) {
     const packageJsonPath = path.join(projectPath, 'package.json');
     const exists = fs.existsSync(packageJsonPath);
-    if (exists) return;
-    fs.writeFileSync(packageJsonPath, `{\n  "type": "module"  \n}`);
+    if (exists) {
+      const content = await fs.readJson(packageJsonPath);
+      if (content.type === 'module') return;
+      logger.console(
+        '\nEnable ESM by adding "type":"module" to the package.json file (https://nodejs.org/api/esm.html#enabling). If you are looking to use CJS. Use the Bit CJS environments.'
+      );
+      return;
+    }
+    const jsonContent = { type: 'module' };
+    fs.writeJSONSync(packageJsonPath, jsonContent, { spaces: 2 });
   }
 
   /**
@@ -605,6 +636,12 @@ export default class Consumer {
     await this.bitMap.write();
   }
 
+  async writePackageJson() {
+    if (!isEmpty(this.packageJson.packageJsonObject)) {
+      await this.packageJson.write();
+    }
+  }
+
   getBitmapHistoryDir(): PathOsBasedAbsolute {
     return path.join(this.scope.path, BITMAP_HISTORY_DIR_NAME);
   }
diff --git a/src/e2e-helper/e2e-scope-helper.ts b/src/e2e-helper/e2e-scope-helper.ts
index 3f58360004b9..2ea06098093f 100644
--- a/src/e2e-helper/e2e-scope-helper.ts
+++ b/src/e2e-helper/e2e-scope-helper.ts
@@ -20,6 +20,7 @@ type SetupWorkspaceOpts = {
   disableMissingManuallyConfiguredPackagesIssue?: boolean; // default to true. otherwise, it'll always show missing babel/jest from react-env
   registry?: string;
   initGit?: boolean;
+  generatePackageJson?: boolean;
   yarnRCConfig?: any;
   npmrcConfig?: any;
 };
@@ -84,7 +85,8 @@ export default class ScopeHelper {
   reInitLocalScope(opts?: SetupWorkspaceOpts) {
     this.cleanLocalScope();
     if (opts?.initGit) this.command.runCmd('git init');
-    this.initWorkspace();
+    const initWsOpts = opts?.generatePackageJson ? undefined : { 'no-package-json': true };
+    this.initWorkspace(undefined, initWsOpts);
 
     if (opts?.addRemoteScopeAsDefaultScope ?? true) this.workspaceJsonc.addDefaultScope();
     if (opts?.disablePreview ?? true) this.workspaceJsonc.disablePreview();
@@ -122,8 +124,9 @@ export default class ScopeHelper {
     this.command.new(templateName, flags, this.scopes.local, this.scopes.e2eDir);
   }
 
-  initWorkspace(workspacePath?: string) {
-    return this.command.runCmd(`bit init`, workspacePath);
+  initWorkspace(workspacePath?: string, options?: Record<string, any>) {
+    const opts = this.command.parseOptions(options);
+    return this.command.runCmd(`bit init ${opts}`, workspacePath);
   }
 
   async initInteractive(inputs: InteractiveInputs) {
@@ -143,13 +146,14 @@ export default class ScopeHelper {
     this.addRemoteScope();
   }
 
-  initNewLocalScope(deleteCurrentScope = true) {
+  initNewLocalScope(deleteCurrentScope = true, generatePackageJson = false) {
     if (deleteCurrentScope) {
       fs.removeSync(this.scopes.localPath);
     }
     this.scopes.setLocalScope();
     fs.ensureDirSync(this.scopes.localPath);
-    return this.initWorkspace();
+    const initWsOpts = generatePackageJson ? undefined : { 'no-package-json': true };
+    return this.initWorkspace(undefined, initWsOpts);
   }
   addRemoteScope(
     remoteScopePath: string = this.scopes.remotePath,
diff --git a/src/interactive/commands/init-interactive.ts b/src/interactive/commands/init-interactive.ts
index 8e4daeb21580..14b59ba6a7d2 100644
--- a/src/interactive/commands/init-interactive.ts
+++ b/src/interactive/commands/init-interactive.ts
@@ -214,7 +214,7 @@ export default (async function initInteractive() {
     actualCompiler = undefined;
   }
   answers.compiler = actualCompiler;
-  return init(undefined, false, false, false, false, false, false, false, answers).then(
+  return init(undefined, false, false, false, false, false, false, false, false, answers).then(
     ({ created, addedGitHooks, existingGitHooks }) => {
       return {
         created,