diff --git a/e2e/js/src/js-swc.test.ts b/e2e/js/src/js-swc.test.ts
index aa3b98f1a64e5c..2e737d63fe991f 100644
--- a/e2e/js/src/js-swc.test.ts
+++ b/e2e/js/src/js-swc.test.ts
@@ -1,3 +1,5 @@
+import { execSync } from 'child_process';
+import { writeFileSync } from 'fs-extra';
 import {
   checkFilesDoNotExist,
   checkFilesExist,
@@ -21,7 +23,9 @@ describe('js e2e', () => {
     scope = newProject();
   });
 
-  afterEach(() => cleanupProject());
+  afterEach(() => {
+    cleanupProject();
+  });
 
   it('should create libs with js executors (--compiler=swc)', async () => {
     const lib = uniq('lib');
@@ -116,4 +120,50 @@ describe('js e2e', () => {
       'peerDependencies.@swc/helpers'
     );
   }, 240_000);
+
+  it.only('should handle swcrc path mappings', async () => {
+    const lib = uniq('lib');
+    runCLI(`generate @nrwl/js:lib ${lib} --compiler=swc --no-interactive`);
+
+    // add a dummy x.ts file for path mappings
+    updateFile(
+      `libs/${lib}/src/x.ts`,
+      `
+export function x() {
+  console.log('x');
+}
+    `
+    );
+
+    // update .swcrc to use path mappings
+    updateJson(`libs/${lib}/.swcrc`, (json) => {
+      json.jsc.paths = {
+        'src/*': ['src/*'],
+      };
+      return json;
+    });
+
+    // update lib.ts to use x
+    updateFile(`libs/${lib}/src/lib/${lib}.ts`, () => {
+      return `
+// @ts-ignore
+import { x } from 'src/x';
+
+export function myLib() {
+  console.log(x());
+}
+
+myLib();
+  `;
+    });
+
+    // now run build
+    runCLI(`build ${lib}`);
+
+    // invoke the lib with node
+    const result = execSync(`node dist/libs/${lib}/src/lib/${lib}.js`, {
+      cwd: tmpProjPath(),
+    }).toString();
+    expect(result).toContain('x');
+  }, 240_000);
 });
diff --git a/packages/js/src/executors/swc/swc.impl.ts b/packages/js/src/executors/swc/swc.impl.ts
index 499623d0a7457f..76a6d65fa4b535 100644
--- a/packages/js/src/executors/swc/swc.impl.ts
+++ b/packages/js/src/executors/swc/swc.impl.ts
@@ -1,4 +1,4 @@
-import { ExecutorContext } from '@nrwl/devkit';
+import { ExecutorContext, readJsonFile, writeJsonFile } from '@nrwl/devkit';
 import {
   assetGlobsToFiles,
   FileInputOutput,
@@ -24,6 +24,7 @@ import {
 import { compileSwc, compileSwcWatch } from '../../utils/swc/compile-swc';
 import { getSwcrcPath } from '../../utils/swc/get-swcrc-path';
 import { generateTmpSwcrc } from '../../utils/swc/inline';
+import type { Options } from '@swc/core';
 
 export function normalizeOptions(
   options: SwcExecutorOptions,
@@ -68,7 +69,21 @@ export function normalizeOptions(
   // default to current directory if projectRootParts is [].
   // Eg: when a project is at the root level, outside of layout dir
   const swcCwd = projectRootParts.join('/') || '.';
-  const swcrcPath = getSwcrcPath(options, contextRoot, projectRoot);
+  let swcrcPath = getSwcrcPath(options, contextRoot, projectRoot);
+
+  try {
+    const swcrcContent = readJsonFile(swcrcPath) as Options;
+    // if we have path mappings setup but baseUrl isn't specified, then we're proceeding with the following logic
+    if (
+      swcrcContent.jsc &&
+      swcrcContent.jsc.paths &&
+      !swcrcContent.jsc.baseUrl
+    ) {
+      swcrcContent.jsc.baseUrl = `./${projectDir}`;
+      swcrcPath = getSwcrcPath(options, contextRoot, projectRoot, true);
+      writeJsonFile(swcrcPath, swcrcContent);
+    }
+  } catch (e) {}
 
   const swcCliOptions = {
     srcPath: projectDir,
@@ -190,7 +205,7 @@ export async function* swcExecutor(
 }
 
 function removeTmpSwcrc(swcrcPath: string) {
-  if (swcrcPath.startsWith('tmp/')) {
+  if (swcrcPath.includes('tmp/') && swcrcPath.includes('.generated.swcrc')) {
     removeSync(dirname(swcrcPath));
   }
 }
diff --git a/packages/js/src/utils/swc/get-swcrc-path.ts b/packages/js/src/utils/swc/get-swcrc-path.ts
index cc4acdbb1b9c45..43cd059d32cde8 100644
--- a/packages/js/src/utils/swc/get-swcrc-path.ts
+++ b/packages/js/src/utils/swc/get-swcrc-path.ts
@@ -4,9 +4,14 @@ import { SwcExecutorOptions } from '../schema';
 export function getSwcrcPath(
   options: SwcExecutorOptions,
   contextRoot: string,
-  projectRoot: string
+  projectRoot: string,
+  temp = false
 ) {
-  return options.swcrc
-    ? join(contextRoot, options.swcrc)
-    : join(contextRoot, projectRoot, '.swcrc');
+  let swcrcPath = options.swcrc ?? join(projectRoot, '.swcrc');
+
+  if (temp) {
+    swcrcPath = join('tmp', swcrcPath.replace('.swcrc', '.generated.swcrc'));
+  }
+
+  return join(contextRoot, swcrcPath);
 }