diff --git a/e2e/next/src/next.test.ts b/e2e/next/src/next.test.ts
index 986a6888c57fb..d5c3ef3c31004 100644
--- a/e2e/next/src/next.test.ts
+++ b/e2e/next/src/next.test.ts
@@ -168,21 +168,36 @@ describe('Next.js Applications', () => {
       `dist/apps/${appName}/public/shared/ui/hello.txt`
     );
 
+    // Check that `nx serve <app> --prod` works with previous production build (e.g. `nx build <app>`).
+    const prodServePort = 4000;
+    const prodServeProcess = await runCommandUntil(
+      `run ${appName}:serve --prod --port=${prodServePort}`,
+      (output) => {
+        return output.includes(`localhost:${prodServePort}`);
+      }
+    );
+
     // Check that the output is self-contained (i.e. can run with its own package.json + node_modules)
     const distPath = joinPathFragments(tmpProjPath(), 'dist/apps', appName);
-    const port = 3000;
+    const selfContainedPort = 3000;
     const pmc = getPackageManagerCommand();
     runCommand(`${pmc.install}`, {
       cwd: distPath,
     });
     runCLI(
-      `generate @nrwl/workspace:run-commands serve-prod --project ${appName} --cwd=dist/apps/${appName} --command="npx next start --port=${port}"`
+      `generate @nrwl/workspace:run-commands serve-prod --project ${appName} --cwd=dist/apps/${appName} --command="npx next start --port=${selfContainedPort}"`
+    );
+    const selfContainedProcess = await runCommandUntil(
+      `run ${appName}:serve-prod`,
+      (output) => {
+        return output.includes(`localhost:${selfContainedPort}`);
+      }
     );
-    await runCommandUntil(`run ${appName}:serve-prod`, (output) => {
-      return output.includes(`localhost:${port}`);
-    });
 
-    await killPort(port);
+    prodServeProcess.kill();
+    selfContainedProcess.kill();
+    await killPort(prodServePort);
+    await killPort(selfContainedPort);
   }, 300_000);
 
   it('should build and install pruned lock file', () => {
diff --git a/packages/next/plugins/with-nx.ts b/packages/next/plugins/with-nx.ts
index f899ac8d1c1b4..8d153357a8c88 100644
--- a/packages/next/plugins/with-nx.ts
+++ b/packages/next/plugins/with-nx.ts
@@ -18,6 +18,7 @@ import { PHASE_PRODUCTION_SERVER } from 'next/constants';
 import * as path from 'path';
 import { createWebpackConfig } from '../src/utils/config';
 import { NextBuildBuilderOptions } from '../src/utils/types';
+
 export interface WithNxOptions extends NextConfig {
   nx?: {
     svgr?: boolean;
@@ -115,6 +116,31 @@ function getNxContext(
   }
 }
 
+/**
+ * Try to read output dir from project, and default to '.next' if executing outside of Nx (e.g. dist is added to a docker image).
+ */
+async function determineDistDirForProdServer(
+  nextConfig: NextConfig
+): Promise<string> {
+  const project = process.env.NX_TASK_TARGET_PROJECT;
+  const target = process.env.NX_TASK_TARGET_TARGET;
+  const configuration = process.env.NX_TASK_TARGET_CONFIGURATION;
+
+  if (project && target) {
+    const originalTarget = { project, target, configuration };
+    const graph = await createProjectGraphAsync();
+
+    const { options, node: projectNode } = getNxContext(graph, originalTarget);
+    const outputDir = `${offsetFromRoot(projectNode.data.root)}${
+      options.outputPath
+    }`;
+    return nextConfig.distDir && nextConfig.distDir !== '.next'
+      ? joinPathFragments(outputDir, nextConfig.distDir)
+      : joinPathFragments(outputDir, '.next');
+  } else {
+    return '.next';
+  }
+}
 export function withNx(
   _nextConfig = {} as WithNxOptions,
   context: WithNxContext = getWithNxContext()
@@ -123,7 +149,10 @@ export function withNx(
     if (phase === PHASE_PRODUCTION_SERVER) {
       // If we are running an already built production server, just return the configuration.
       const { nx, ...validNextConfig } = _nextConfig;
-      return { distDir: '.next', ...validNextConfig };
+      return {
+        ...validNextConfig,
+        distDir: await determineDistDirForProdServer(validNextConfig),
+      };
     } else {
       // Otherwise, add in webpack and eslint configuration for build or test.
       let dependencies: DependentBuildableProjectNode[] = [];