diff --git a/scopes/generator/generator/exceptions/workspace-path-exists.ts b/scopes/generator/generator/exceptions/workspace-path-exists.ts
new file mode 100644
index 000000000000..77ad35b3674e
--- /dev/null
+++ b/scopes/generator/generator/exceptions/workspace-path-exists.ts
@@ -0,0 +1,7 @@
+import { BitError } from '@teambit/bit-error';
+
+export class WorkspacePathExists extends BitError {
+  constructor(readonly path: string) {
+    super(`unable to create a workspace at "${path}", this path already exists`);
+  }
+}
diff --git a/scopes/generator/generator/generator.main.runtime.ts b/scopes/generator/generator/generator.main.runtime.ts
index 124da4ee7189..a5a9f63e3b79 100644
--- a/scopes/generator/generator/generator.main.runtime.ts
+++ b/scopes/generator/generator/generator.main.runtime.ts
@@ -1,13 +1,13 @@
+import fs from 'fs-extra';
+import { resolve } from 'path';
 import { GraphqlAspect, GraphqlMain } from '@teambit/graphql';
 import { CLIAspect, CLIMain, MainRuntime } from '@teambit/cli';
 import { WorkspaceAspect, OutsideWorkspaceError, Workspace } from '@teambit/workspace';
 import { EnvDefinition, EnvsAspect, EnvsMain } from '@teambit/envs';
 import ComponentConfig from '@teambit/legacy/dist/consumer/config';
 import { WorkspaceConfigFilesAspect, WorkspaceConfigFilesMain } from '@teambit/workspace-config-files';
-
 import { ComponentAspect, ComponentID } from '@teambit/component';
 import type { ComponentMain, Component } from '@teambit/component';
-
 import { isCoreAspect, loadBit, restoreGlobals } from '@teambit/bit';
 import { Slot, SlotRegistry } from '@teambit/harmony';
 import { GitAspect, GitMain } from '@teambit/git';
@@ -35,6 +35,7 @@ import {
 import { BasicWorkspaceStarter } from './templates/basic';
 import { StarterPlugin } from './starter.plugin';
 import { GeneratorService } from './generator.service';
+import { WorkspacePathExists } from './exceptions/workspace-path-exists';
 
 export type ComponentTemplateSlot = SlotRegistry<ComponentTemplate[]>;
 export type WorkspaceTemplateSlot = SlotRegistry<WorkspaceTemplate[]>;
@@ -357,14 +358,18 @@ export class GeneratorMain {
     if (this.workspace) {
       throw new BitError('Error: unable to generate a new workspace inside of an existing workspace');
     }
+    const workspacePath = options.currentDir ? process.cwd() : resolve(workspaceName);
+    if (!options.currentDir && fs.existsSync(workspacePath)) {
+      throw new WorkspacePathExists(workspacePath);
+    }
     const { aspect: aspectId, loadFrom } = options;
     const { workspaceTemplate, aspect } = loadFrom
       ? await this.findTemplateInOtherWorkspace(loadFrom, templateName, aspectId)
       : await this.getWorkspaceTemplate(templateName, aspectId);
 
     if (!workspaceTemplate) throw new BitError(`template "${templateName}" was not found`);
-    const workspaceGenerator = new WorkspaceGenerator(workspaceName, options, workspaceTemplate, aspect);
-    const workspacePath = await workspaceGenerator.generate();
+    const workspaceGenerator = new WorkspaceGenerator(workspaceName, workspacePath, options, workspaceTemplate, aspect);
+    await workspaceGenerator.generate();
     return { workspacePath, appName: workspaceTemplate.appName };
   }
 
diff --git a/scopes/generator/generator/workspace-generator.ts b/scopes/generator/generator/workspace-generator.ts
index 141fb4e3d13f..8c9f1c5ebf95 100644
--- a/scopes/generator/generator/workspace-generator.ts
+++ b/scopes/generator/generator/workspace-generator.ts
@@ -13,7 +13,7 @@ import { ImporterAspect, ImporterMain } from '@teambit/importer';
 import { CompilerAspect, CompilerMain } from '@teambit/compiler';
 import getGitExecutablePath from '@teambit/legacy/dist/utils/git/git-executable';
 import GitNotFound from '@teambit/legacy/dist/utils/git/exceptions/git-not-found';
-import { resolve, join } from 'path';
+import { join } from 'path';
 import { ComponentID } from '@teambit/component-id';
 import { GitAspect, GitMain } from '@teambit/git';
 import { InstallAspect, InstallMain } from '@teambit/install';
@@ -27,7 +27,6 @@ import { GeneratorMain } from './generator.main.runtime';
 export type GenerateResult = { id: ComponentID; dir: string; files: string[]; envId: string };
 
 export class WorkspaceGenerator {
-  private workspacePath: string;
   private harmony: Harmony;
   private workspace: Workspace;
   private install: InstallMain;
@@ -38,21 +37,15 @@ export class WorkspaceGenerator {
   private wsConfigFiles: WorkspaceConfigFilesMain;
   private generator: GeneratorMain;
 
-  // private componentGenerator?: ComponentGenerator;
-
   constructor(
     private workspaceName: string,
+    private workspacePath: string,
     private options: NewOptions & { currentDir?: boolean },
     private template: WorkspaceTemplate,
     private aspectComponent?: Component
-  ) {
-    this.workspacePath = options.currentDir ? process.cwd() : resolve(this.workspaceName);
-  }
+  ) {}
 
   async generate(): Promise<string> {
-    if (!this.options.currentDir && fs.existsSync(this.workspacePath)) {
-      throw new Error(`unable to create a workspace at "${this.workspaceName}", this path already exists`);
-    }
     await fs.ensureDir(this.workspacePath);
     try {
       process.chdir(this.workspacePath);