diff --git a/e2e/web/src/file-server.test.ts b/e2e/web/src/file-server.test.ts
index 424c50cfbdeee..f706ff7f6f6c8 100644
--- a/e2e/web/src/file-server.test.ts
+++ b/e2e/web/src/file-server.test.ts
@@ -7,6 +7,7 @@ import {
   runCommandUntil,
   setMaxWorkers,
   uniq,
+  updateFile,
   updateJson,
 } from '@nx/e2e/utils';
 import { join } from 'path';
@@ -45,6 +46,55 @@ describe('file-server', () => {
     }
   }, 300_000);
 
+  it('should read from directory from outputs if outputPath is not specified', async () => {
+    const appName = uniq('app');
+    const port = 4301;
+
+    runCLI(`generate @nx/web:app ${appName} --no-interactive`);
+    setMaxWorkers(join('apps', appName, 'project.json'));
+    // Used to copy index.html rather than the normal webpack build.
+    updateFile(
+      `copy-index.js`,
+      `
+      const fs = require('node:fs');
+      const path = require('node:path');
+      fs.mkdirSync(path.join(__dirname, 'dist/foobar'), { recursive: true });
+      fs.copyFileSync(
+        path.join(__dirname, 'apps/${appName}/src/index.html'),
+        path.join(__dirname, 'dist/foobar/index.html')
+      );
+    `
+    );
+    updateJson(join('apps', appName, 'project.json'), (config) => {
+      // Point to same path as output.path in webpack config.
+      config.targets['build'] = {
+        command: `node copy-index.js`,
+        outputs: [`{workspaceRoot}/dist/foobar`],
+      };
+      config.targets['serve'].executor = '@nx/web:file-server';
+      // Check that buildTarget can exclude project name (e.g. build vs proj:build).
+      config.targets['serve'].options.buildTarget = 'build';
+      return config;
+    });
+
+    const p = await runCommandUntil(
+      `serve ${appName} --port=${port}`,
+      (output) => {
+        return (
+          output.indexOf(`localhost:${port}`) > -1 &&
+          output.indexOf(`dist/foobar`) > -1
+        );
+      }
+    );
+
+    try {
+      await promisifiedTreeKill(p.pid, 'SIGKILL');
+      await killPorts(port);
+    } catch {
+      // ignore
+    }
+  }, 300_000);
+
   it('should setup and serve static files from app', async () => {
     const ngAppName = uniq('ng-app');
     const reactAppName = uniq('react-app');
diff --git a/packages/web/src/executors/file-server/file-server.impl.ts b/packages/web/src/executors/file-server/file-server.impl.ts
index a3c3fd8ad3457..12a432338eb44 100644
--- a/packages/web/src/executors/file-server/file-server.impl.ts
+++ b/packages/web/src/executors/file-server/file-server.impl.ts
@@ -12,6 +12,7 @@ import { join, resolve } from 'path';
 import { readModulePackageJson } from 'nx/src/utils/package-json';
 import * as detectPort from 'detect-port';
 import { daemonClient } from 'nx/src/daemon/client/client';
+import { interpolate } from 'nx/src/tasks-runner/utils';
 
 // platform specific command name
 const pmCmd = platform() === 'win32' ? `npx.cmd` : 'npx';
@@ -76,16 +77,26 @@ function getBuildTargetOutputPath(options: Schema, context: ExecutorContext) {
     return options.staticFilePath;
   }
 
-  let buildOptions;
+  let outputPath: string;
   try {
     const target = parseTargetString(options.buildTarget, context);
-    buildOptions = readTargetOptions(target, context);
+    const buildOptions = readTargetOptions(target, context);
+    if (buildOptions?.outputPath) {
+      outputPath = buildOptions.outputPath;
+    } else {
+      const project = context.projectGraph.nodes[context.projectName];
+      const buildTarget = project.data.targets[target.target];
+      outputPath = buildTarget.outputs?.[0];
+      if (outputPath)
+        outputPath = interpolate(outputPath, {
+          projectName: project.data.name,
+          projectRoot: project.data.root,
+        });
+    }
   } catch (e) {
     throw new Error(`Invalid buildTarget: ${options.buildTarget}`);
   }
 
-  // TODO: vsavkin we should also check outputs
-  const outputPath = buildOptions.outputPath;
   if (!outputPath) {
     throw new Error(
       `Unable to get the outputPath from buildTarget ${options.buildTarget}. Make sure ${options.buildTarget} has an outputPath property or manually provide an staticFilePath property`