diff --git a/packages/angular/src/generators/application/lib/normalize-options.ts b/packages/angular/src/generators/application/lib/normalize-options.ts
index 48726a12e3..3665412c51 100644
--- a/packages/angular/src/generators/application/lib/normalize-options.ts
+++ b/packages/angular/src/generators/application/lib/normalize-options.ts
@@ -11,7 +11,7 @@ import { E2eTestRunner, UnitTestRunner } from '../../../utils/test-runners';
 import { Linter } from '@nx/linter';
 import {
   normalizeDirectory,
-  normalizePrefix,
+  normalizeNewProjectPrefix,
   normalizeProjectName,
 } from '../../utils/project';
 
@@ -45,7 +45,7 @@ export function normalizeOptions(
     ? options.tags.split(',').map((s) => s.trim())
     : [];
 
-  const prefix = normalizePrefix(options.prefix, npmScope);
+  const prefix = normalizeNewProjectPrefix(options.prefix, npmScope, 'app');
 
   options.standaloneConfig = options.standaloneConfig ?? standaloneAsDefault;
 
diff --git a/packages/angular/src/generators/host/host.ts b/packages/angular/src/generators/host/host.ts
index b6315aa63e..4691476791 100644
--- a/packages/angular/src/generators/host/host.ts
+++ b/packages/angular/src/generators/host/host.ts
@@ -64,6 +64,7 @@ export async function host(tree: Tree, options: Schema) {
     skipFormat: true,
     skipE2E,
     e2eProjectName: skipE2E ? undefined : `${appName}-e2e`,
+    prefix: options.prefix,
   });
 
   let installTasks = [appInstallTask];
diff --git a/packages/angular/src/generators/library/lib/normalize-options.ts b/packages/angular/src/generators/library/lib/normalize-options.ts
index 4b59d1e8d9..40b1d023f8 100644
--- a/packages/angular/src/generators/library/lib/normalize-options.ts
+++ b/packages/angular/src/generators/library/lib/normalize-options.ts
@@ -10,7 +10,7 @@ import { Schema } from '../schema';
 import { NormalizedSchema } from './normalized-schema';
 import { Linter } from '@nx/linter';
 import { UnitTestRunner } from '../../../utils/test-runners';
-import { normalizePrefix } from '../../utils/project';
+import { normalizeNewProjectPrefix } from '../../utils/project';
 
 export function normalizeOptions(host: Tree, schema: Schema): NormalizedSchema {
   // Create a schema with populated default values
@@ -55,7 +55,7 @@ export function normalizeOptions(host: Tree, schema: Schema): NormalizedSchema {
     ? options.tags.split(',').map((s) => s.trim())
     : [];
   const modulePath = `${projectRoot}/src/lib/${fileName}.module.ts`;
-  const prefix = normalizePrefix(options.prefix, npmScope);
+  const prefix = normalizeNewProjectPrefix(options.prefix, npmScope, 'lib');
 
   options.standaloneConfig = options.standaloneConfig ?? standaloneAsDefault;
 
diff --git a/packages/angular/src/generators/remote/remote.ts b/packages/angular/src/generators/remote/remote.ts
index fa8dce2d04..8754fb98f3 100644
--- a/packages/angular/src/generators/remote/remote.ts
+++ b/packages/angular/src/generators/remote/remote.ts
@@ -57,6 +57,7 @@ export async function remote(tree: Tree, options: Schema) {
     skipE2E,
     e2eProjectName: skipE2E ? undefined : `${appName}-e2e`,
     standalone: options.standalone,
+    prefix: options.prefix,
   });
 
   let installTasks = [appInstallTask];
diff --git a/packages/angular/src/generators/setup-mf/lib/add-remote-entry.ts b/packages/angular/src/generators/setup-mf/lib/add-remote-entry.ts
index ada4b6b8ea..727e73b54d 100644
--- a/packages/angular/src/generators/setup-mf/lib/add-remote-entry.ts
+++ b/packages/angular/src/generators/setup-mf/lib/add-remote-entry.ts
@@ -1,12 +1,6 @@
 import type { Tree } from '@nx/devkit';
-import {
-  generateFiles,
-  joinPathFragments,
-  readNxJson,
-  readProjectConfiguration,
-} from '@nx/devkit';
+import { generateFiles, joinPathFragments } from '@nx/devkit';
 import { addRoute } from '../../../utils/nx-devkit/route-utils';
-import type { AngularProjectConfiguration } from '../../../utils/types';
 import type { Schema } from '../schema';
 
 export function addRemoteEntry(
@@ -14,11 +8,6 @@ export function addRemoteEntry(
   { appName, routing, prefix, standalone }: Schema,
   appRoot: string
 ) {
-  prefix =
-    prefix ??
-    (readProjectConfiguration(tree, appName) as AngularProjectConfiguration)
-      ?.prefix ??
-    readNxJson(tree).npmScope;
   generateFiles(
     tree,
     standalone
diff --git a/packages/angular/src/generators/setup-mf/lib/index.ts b/packages/angular/src/generators/setup-mf/lib/index.ts
index efcb4b37a3..e9e3af1955 100644
--- a/packages/angular/src/generators/setup-mf/lib/index.ts
+++ b/packages/angular/src/generators/setup-mf/lib/index.ts
@@ -5,6 +5,7 @@ export * from './change-build-target';
 export * from './fix-bootstrap';
 export * from './generate-config';
 export * from './get-remotes-with-ports';
+export * from './normalize-options';
 export * from './set-tsconfig-target';
 export * from './setup-host-if-dynamic';
 export * from './setup-serve-target';
diff --git a/packages/angular/src/generators/setup-mf/lib/normalize-options.ts b/packages/angular/src/generators/setup-mf/lib/normalize-options.ts
new file mode 100644
index 0000000000..cafa8510d1
--- /dev/null
+++ b/packages/angular/src/generators/setup-mf/lib/normalize-options.ts
@@ -0,0 +1,14 @@
+import type { Tree } from '@nx/devkit';
+import { getProjectPrefix } from '../../utils/project';
+import type { NormalizedOptions, Schema } from '../schema';
+
+export function normalizeOptions(
+  tree: Tree,
+  options: Schema
+): NormalizedOptions {
+  return {
+    ...options,
+    federationType: options.federationType ?? 'static',
+    prefix: options.prefix ?? getProjectPrefix(tree, options.appName),
+  };
+}
diff --git a/packages/angular/src/generators/setup-mf/lib/remove-dead-code-from-remote.ts b/packages/angular/src/generators/setup-mf/lib/remove-dead-code-from-remote.ts
index d505a03d2c..a4aa35e315 100644
--- a/packages/angular/src/generators/setup-mf/lib/remove-dead-code-from-remote.ts
+++ b/packages/angular/src/generators/setup-mf/lib/remove-dead-code-from-remote.ts
@@ -1,8 +1,6 @@
-import { Tree } from 'nx/src/generators/tree';
+import type { Tree } from '@nx/devkit';
+import { joinPathFragments, readProjectConfiguration } from '@nx/devkit';
 import { Schema } from '../schema';
-import { readProjectConfiguration } from 'nx/src/generators/utils/project-configuration';
-import { joinPathFragments } from 'nx/src/utils/path';
-import { readNxJson } from '@nx/devkit';
 
 export function removeDeadCodeFromRemote(tree: Tree, options: Schema) {
   const projectName = options.appName;
@@ -73,13 +71,15 @@ export class AppModule {}`
   } else {
     tree.delete(pathToAppComponent);
 
-    const prefix = options.prefix ?? readNxJson(tree).npmScope;
-    const remoteEntrySelector = `${prefix}-${projectName}-entry`;
-
     const pathToIndexHtml = project.targets.build.options.index;
     const indexContents = tree.read(pathToIndexHtml, 'utf-8');
-
-    const rootSelectorRegex = new RegExp(`${prefix}-root`, 'ig');
+    const rootSelectorRegex = new RegExp(
+      `${options.prefix || 'app'}-root`,
+      'ig'
+    );
+    const remoteEntrySelector = `${
+      options.prefix || 'app'
+    }-${projectName}-entry`;
     const newIndexContents = indexContents.replace(
       rootSelectorRegex,
       remoteEntrySelector
diff --git a/packages/angular/src/generators/setup-mf/schema.d.ts b/packages/angular/src/generators/setup-mf/schema.d.ts
index d4c14728e6..aed4d97280 100644
--- a/packages/angular/src/generators/setup-mf/schema.d.ts
+++ b/packages/angular/src/generators/setup-mf/schema.d.ts
@@ -1,10 +1,12 @@
+type FederationType = 'static' | 'dynamic';
+
 export interface Schema {
   appName: string;
   mfType: 'host' | 'remote';
   port?: number;
   remotes?: string[];
   host?: string;
-  federationType?: 'static' | 'dynamic';
+  federationType?: FederationType;
   routing?: boolean;
   skipFormat?: boolean;
   skipPackageJson?: boolean;
@@ -13,3 +15,8 @@ export interface Schema {
   standalone?: boolean;
   skipE2E?: boolean;
 }
+
+export interface NormalizedOptions extends Schema {
+  federationType: FederationType;
+  prefix: string | undefined;
+}
diff --git a/packages/angular/src/generators/setup-mf/setup-mf.ts b/packages/angular/src/generators/setup-mf/setup-mf.ts
index ef5cdfe8cb..d0ad635f12 100644
--- a/packages/angular/src/generators/setup-mf/setup-mf.ts
+++ b/packages/angular/src/generators/setup-mf/setup-mf.ts
@@ -14,6 +14,7 @@ import {
   fixBootstrap,
   generateWebpackConfig,
   getRemotesWithPorts,
+  normalizeOptions,
   removeDeadCodeFromRemote,
   setupHostIfDynamic,
   setupServeTarget,
@@ -24,17 +25,16 @@ import { getInstalledAngularVersionInfo } from '../utils/version-utils';
 import { nxVersion } from '../../utils/versions';
 import { lt } from 'semver';
 
-export async function setupMf(tree: Tree, options: Schema) {
+export async function setupMf(tree: Tree, rawOptions: Schema) {
   const installedAngularInfo = getInstalledAngularVersionInfo(tree);
-
-  if (lt(installedAngularInfo.version, '14.1.0') && options.standalone) {
+  if (lt(installedAngularInfo.version, '14.1.0') && rawOptions.standalone) {
     throw new Error(
       `The --standalone flag is not supported in your current version of Angular (${installedAngularInfo.version}). Please update to a version of Angular that supports Standalone Components (>= 14.1.0).`
     );
   }
-  const projectConfig = readProjectConfiguration(tree, options.appName);
 
-  options.federationType = options.federationType ?? 'static';
+  const options = normalizeOptions(tree, rawOptions);
+  const projectConfig = readProjectConfiguration(tree, options.appName);
 
   if (options.mfType === 'host') {
     setupHostIfDynamic(tree, options);
diff --git a/packages/angular/src/generators/utils/project.ts b/packages/angular/src/generators/utils/project.ts
index ae3c51401e..6ea32aa764 100644
--- a/packages/angular/src/generators/utils/project.ts
+++ b/packages/angular/src/generators/utils/project.ts
@@ -1,4 +1,6 @@
-import { names } from '@nx/devkit';
+import type { Tree } from '@nx/devkit';
+import { names, readNxJson, readProjectConfiguration } from '@nx/devkit';
+import type { AngularProjectConfiguration } from '../../utils/types';
 
 export function normalizeDirectory(
   appName: string,
@@ -16,19 +18,27 @@ export function normalizeProjectName(
   return normalizeDirectory(appName, directoryName).replace(/\//g, '-');
 }
 
-export function normalizePrefix(
+export function normalizeNewProjectPrefix(
   prefix: string | undefined,
-  npmScope: string | undefined
+  npmScope: string | undefined,
+  fallbackPrefix: string
 ): string {
-  if (prefix) {
-    return prefix;
-  }
-
   // Prefix needs to be a valid html selector, if npmScope it's not valid, we don't default
   // to it and let it fall through to the Angular schematic to handle it
   // https://github.com/angular/angular-cli/blob/1c634cd327e5a850553b258aa2d5e6a6b2c75c65/packages/schematics/angular/component/index.ts#L130
   const htmlSelectorRegex =
     /^[a-zA-Z][.0-9a-zA-Z]*(:?-[a-zA-Z][.0-9a-zA-Z]*)*$/;
+
+  if (prefix) {
+    if (!htmlSelectorRegex.test(prefix)) {
+      throw new Error(
+        'The provided "prefix" is invalid. The prefix must start with a letter, and must contain only alphanumeric characters or dashes. When adding a dash the segment after the dash must also start with a letter.'
+      );
+    }
+
+    return prefix;
+  }
+
   if (npmScope && !htmlSelectorRegex.test(npmScope)) {
     throw new Error(`The "--prefix" option was not provided, therefore attempted to use the "npmScope" defined in "nx.json" to set the application's selector prefix, but it is invalid.
 
@@ -41,5 +51,15 @@ If you encountered this error when creating a new Nx Workspace, the workspace na
 Valid selector prefixes must start with a letter, and must contain only alphanumeric characters or dashes. When adding a dash the segment after the dash must also start with a letter.`);
   }
 
-  return npmScope || 'app';
+  return npmScope || fallbackPrefix;
+}
+
+export function getProjectPrefix(
+  tree: Tree,
+  project: string
+): string | undefined {
+  return (
+    (readProjectConfiguration(tree, project) as AngularProjectConfiguration)
+      .prefix ?? readNxJson(tree).npmScope
+  );
 }