diff --git a/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap b/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
index 3b153662c..d6d658648 100644
--- a/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
+++ b/packages/webpack5/__tests__/configuration/__snapshots__/angular.spec.ts.snap
@@ -206,7 +206,7 @@ exports[`angular configuration for android 1`] = `
         use: [
           /* config.module.rule('angular-webpack-loader').use('webpack-loader') */
           {
-            loader: '@angular-devkit/build-angular/src/babel/webpack-loader',
+            loader: '<rootDir>/node_modules/@angular-devkit/build-angular/src/tools/babel/webpack-loader.js',
             options: {
               aot: true
             }
@@ -632,7 +632,7 @@ exports[`angular configuration for ios 1`] = `
         use: [
           /* config.module.rule('angular-webpack-loader').use('webpack-loader') */
           {
-            loader: '@angular-devkit/build-angular/src/babel/webpack-loader',
+            loader: '<rootDir>/node_modules/@angular-devkit/build-angular/src/tools/babel/webpack-loader.js',
             options: {
               aot: true
             }
diff --git a/packages/webpack5/jest.config.js b/packages/webpack5/jest.config.js
index ace328d00..5da7aa353 100644
--- a/packages/webpack5/jest.config.js
+++ b/packages/webpack5/jest.config.js
@@ -13,5 +13,6 @@ module.exports = {
 	],
 	globals: {
 		__TEST__: true,
-	}
+	},
+	resolver: '<rootDir>/scripts/resolver.js',
 };
diff --git a/packages/webpack5/package.json b/packages/webpack5/package.json
index 946fc6ff3..c55860225 100644
--- a/packages/webpack5/package.json
+++ b/packages/webpack5/package.json
@@ -54,19 +54,19 @@
 		"webpack-virtual-modules": "^0.4.0"
 	},
 	"devDependencies": {
-		"@angular-devkit/build-angular": "^15.0.1",
+		"@angular-devkit/build-angular": "^16.1.0",
 		"@types/css": "0.0.33",
-		"@types/jest": "29.4.0",
+		"@types/jest": "29.5.2",
 		"@types/loader-utils": "2.0.3",
 		"@types/lodash.get": "4.4.7",
 		"@types/micromatch": "4.0.2",
 		"@types/sax": "1.2.4",
 		"@types/terser-webpack-plugin": "5.2.0",
 		"@types/webpack-virtual-modules": "0.1.1",
-		"jest": "29.4.1",
+		"jest": "29.5.0",
 		"jest-matcher-utils": "29.4.1",
 		"nativescript-vue-template-compiler": "2.9.3",
-		"ts-jest": "29.0.5",
+		"ts-jest": "29.1.0",
 		"typescript": "~4.9.5"
 	},
 	"peerDependencies": {
diff --git a/packages/webpack5/scripts/resolver.js b/packages/webpack5/scripts/resolver.js
new file mode 100644
index 000000000..d5b045431
--- /dev/null
+++ b/packages/webpack5/scripts/resolver.js
@@ -0,0 +1,16 @@
+const { relative, join } = require('path');
+
+const packagesToMakeRelative = new Set([
+	'@angular-devkit/build-angular/src/tools/babel/webpack-loader',
+	'@angular-devkit/build-angular/src/babel/webpack-loader',
+]);
+
+function resolver(path, options) {
+	const defaultResolver = options.defaultResolver(path, options);
+	if (typeof defaultResolver === 'string' && packagesToMakeRelative.has(path)) {
+		return join('<rootDir>', relative(join(__dirname, '..'), defaultResolver));
+	}
+	return defaultResolver;
+}
+
+module.exports = resolver;
diff --git a/packages/webpack5/src/configuration/angular.ts b/packages/webpack5/src/configuration/angular.ts
index c925f5e3a..a106a114d 100644
--- a/packages/webpack5/src/configuration/angular.ts
+++ b/packages/webpack5/src/configuration/angular.ts
@@ -214,7 +214,7 @@ export default function (config: Config, env: IWebpackEnv = _env): Config {
 				.end()
 				.before('angular')
 				.use('webpack-loader')
-				.loader('@angular-devkit/build-angular/src/babel/webpack-loader')
+				.loader(getWebpackLoaderPath())
 				.options(buildAngularOptions);
 		} else {
 			warnOnce(
@@ -334,3 +334,24 @@ function getBuildAngularMajorVersion() {
 
 	return null;
 }
+
+function tryRequireResolve(path: string) {
+	try {
+		return require.resolve(path);
+	} catch (err) {
+		return null;
+	}
+}
+
+function getWebpackLoaderPath() {
+	return (
+		tryRequireResolve(
+			'@angular-devkit/build-angular/src/babel/webpack-loader'
+		) ||
+		tryRequireResolve(
+			'@angular-devkit/build-angular/src/tools/babel/webpack-loader'
+		) ||
+		// fallback to angular 16.1+
+		'@angular-devkit/build-angular/src/tools/babel/webpack-loader'
+	);
+}