diff --git a/packages/angular/src/generators/host/host.ts b/packages/angular/src/generators/host/host.ts
index 7b9af7b747786..56eed89b0e7f7 100644
--- a/packages/angular/src/generators/host/host.ts
+++ b/packages/angular/src/generators/host/host.ts
@@ -1,4 +1,5 @@
 import {
+  extractLayoutDirectory,
   formatFiles,
   getProjects,
   runTasksInSerial,
@@ -39,7 +40,8 @@ export async function host(tree: Tree, options: Schema) {
     });
   }
 
-  const appName = normalizeProjectName(options.name, options.directory);
+  const { projectDirectory } = extractLayoutDirectory(options.directory);
+  const appName = normalizeProjectName(options.name, projectDirectory);
 
   const appInstallTask = await applicationGenerator(tree, {
     ...options,
diff --git a/packages/angular/src/generators/remote/remote.ts b/packages/angular/src/generators/remote/remote.ts
index 0cccfc7caba55..ef7da862a0091 100644
--- a/packages/angular/src/generators/remote/remote.ts
+++ b/packages/angular/src/generators/remote/remote.ts
@@ -1,4 +1,5 @@
 import {
+  extractLayoutDirectory,
   formatFiles,
   getProjects,
   runTasksInSerial,
@@ -30,7 +31,8 @@ export async function remote(tree: Tree, options: Schema) {
     );
   }
 
-  const appName = normalizeProjectName(options.name, options.directory);
+  const { projectDirectory } = extractLayoutDirectory(options.directory);
+  const appName = normalizeProjectName(options.name, projectDirectory);
   const port = options.port ?? findNextAvailablePort(tree);
 
   const appInstallTask = await applicationGenerator(tree, {