diff --git a/packages/nx/src/utils/create-package-json.ts b/packages/nx/src/utils/create-package-json.ts
index 28466c31b00ce..be34fc5482256 100644
--- a/packages/nx/src/utils/create-package-json.ts
+++ b/packages/nx/src/utils/create-package-json.ts
@@ -56,28 +56,18 @@ export function createPackageJson(
   });
   Object.entries(npmDeps.peerDependencies).forEach(([packageName, version]) => {
     if (!packageJson.peerDependencies?.[packageName]) {
-      if (rootPackageJson.dependencies?.[packageName]) {
-        packageJson.dependencies ??= {};
-        packageJson.dependencies[packageName] = version;
-        return;
-      }
-
-      const isOptionalPeer =
-        npmDeps.peerDependenciesMeta[packageName]?.optional;
-      if (!isOptionalPeer) {
-        packageJson.peerDependencies ??= {};
-        packageJson.peerDependencies[packageName] = version;
-      } else if (!options.isProduction) {
-        // add peer optional dependencies if not in production
-        packageJson.peerDependencies ??= {};
-        packageJson.peerDependencies[packageName] = version;
-        packageJson.peerDependenciesMeta ??= {};
-        packageJson.peerDependenciesMeta[packageName] = {
-          optional: true,
-        };
-      }
+      packageJson.dependencies ??= {};
+      packageJson.dependencies[packageName] = version;
     }
   });
+  if (options.isProduction && packageJson.peerDependencies) {
+    const mandatoryPeedDeps = filterOptionalPeerDependencies(packageJson);
+    if (mandatoryPeedDeps) {
+      packageJson.peerDependencies = mandatoryPeedDeps;
+    } else {
+      delete packageJson.peerDependencies;
+    }
+  }
 
   packageJson.devDependencies &&= sortObjectByKeys(packageJson.devDependencies);
   packageJson.dependencies &&= sortObjectByKeys(packageJson.dependencies);
@@ -97,8 +87,7 @@ function findAllNpmDeps(
   list: {
     dependencies: Record<string, string>;
     peerDependencies: Record<string, string>;
-    peerDependenciesMeta: Record<string, { optional: boolean }>;
-  } = { dependencies: {}, peerDependencies: {}, peerDependenciesMeta: {} },
+  } = { dependencies: {}, peerDependencies: {} },
   seen = new Set<string>()
 ) {
   const node = graph.externalNodes[projectName];
@@ -136,7 +125,6 @@ function recursivelyCollectPeerDependencies(
   list: {
     dependencies: Record<string, string>;
     peerDependencies: Record<string, string>;
-    peerDependenciesMeta: Record<string, { optional: boolean }>;
   },
   seen = new Set<string>()
 ) {
@@ -157,18 +145,13 @@ function recursivelyCollectPeerDependencies(
       .map((dependency) => graph.externalNodes[dependency])
       .filter(Boolean)
       .forEach((node) => {
-        if (!seen.has(node.name)) {
+        if (
+          !packageJson.peerDependenciesMeta?.[node.data.packageName]
+            ?.optional &&
+          !seen.has(node.name)
+        ) {
           seen.add(node.name);
           list.peerDependencies[node.data.packageName] = node.data.version;
-          if (
-            packageJson.peerDependenciesMeta &&
-            packageJson.peerDependenciesMeta[node.data.packageName] &&
-            packageJson.peerDependenciesMeta[node.data.packageName].optional
-          ) {
-            list.peerDependenciesMeta[node.data.packageName] = {
-              optional: true,
-            };
-          }
           recursivelyCollectPeerDependencies(node.name, graph, list, seen);
         }
       });