diff --git a/packages/jest/src/plugins/plugin.spec.ts b/packages/jest/src/plugins/plugin.spec.ts
index 3cf4ae505883f..0bc64d1e99c79 100644
--- a/packages/jest/src/plugins/plugin.spec.ts
+++ b/packages/jest/src/plugins/plugin.spec.ts
@@ -246,6 +246,9 @@ describe('@nx/jest/plugin', () => {
                     },
                     "options": {
                       "cwd": "proj",
+                      "env": {
+                        "TS_NODE_COMPILER_OPTIONS": "{"moduleResolution":"node10"}",
+                      },
                     },
                     "outputs": [
                       "{workspaceRoot}/coverage",
diff --git a/packages/jest/src/plugins/plugin.ts b/packages/jest/src/plugins/plugin.ts
index b761c25233203..f624760f27358 100644
--- a/packages/jest/src/plugins/plugin.ts
+++ b/packages/jest/src/plugins/plugin.ts
@@ -407,6 +407,9 @@ async function buildJestTargets(
             outputs,
             options: {
               cwd: projectRoot,
+              env: {
+                TS_NODE_COMPILER_OPTIONS: '{"moduleResolution":"node10"}',
+              },
             },
             metadata: {
               technologies: ['jest'],