diff --git a/packages/js/src/generators/library/library.spec.ts b/packages/js/src/generators/library/library.spec.ts
index 798521edbb37f..e18ca315a1de8 100644
--- a/packages/js/src/generators/library/library.spec.ts
+++ b/packages/js/src/generators/library/library.spec.ts
@@ -810,6 +810,35 @@ describe('lib', () => {
       });
     });
 
+    describe('bundler=rollup', () => {
+      it('should generate correct options for build', async () => {
+        await libraryGenerator(tree, {
+          ...defaultOptions,
+          name: 'myLib',
+          buildable: true,
+          bundler: 'rollup',
+        });
+
+        const config = readProjectConfiguration(tree, 'my-lib');
+        expect(config.targets.build.options.project).toEqual(
+          `libs/my-lib/package.json`
+        );
+      });
+
+      it('should set compiler to swc', async () => {
+        await libraryGenerator(tree, {
+          ...defaultOptions,
+          name: 'myLib',
+          buildable: true,
+          bundler: 'rollup',
+          compiler: 'swc',
+        });
+
+        const config = readProjectConfiguration(tree, 'my-lib');
+        expect(config.targets.build.options.compiler).toEqual('swc');
+      });
+    });
+
     describe('--publishable', () => {
       it('should generate the build target', async () => {
         await libraryGenerator(tree, {
diff --git a/packages/js/src/generators/library/library.ts b/packages/js/src/generators/library/library.ts
index 0b0ef4dd785df..62ec892c9f7db 100644
--- a/packages/js/src/generators/library/library.ts
+++ b/packages/js/src/generators/library/library.ts
@@ -83,7 +83,7 @@ export async function projectGenerator(
     });
     tasks.push(viteTask);
   }
-  if (schema.bundler === 'rollup') {
+  if (options.bundler === 'rollup') {
     ensureBabelRootConfigExists(tree);
   }
 
@@ -160,6 +160,13 @@ function addProject(
       },
     };
 
+    if (options.bundler === 'rollup') {
+      projectConfiguration.targets.build.options.project = `${options.projectRoot}/package.json`;
+      if (options.compiler === 'swc') {
+        projectConfiguration.targets.build.options.compiler = 'swc';
+      }
+    }
+
     if (options.compiler === 'swc' && options.skipTypeCheck) {
       projectConfiguration.targets.build.options.skipTypeCheck = true;
     }