diff --git a/e2e/utils/index.ts b/e2e/utils/index.ts
index c235047f202e0..8e193143b31a2 100644
--- a/e2e/utils/index.ts
+++ b/e2e/utils/index.ts
@@ -84,11 +84,13 @@ export function runCreateWorkspace(
     appName,
     style,
     base,
+    packageManager,
   }: {
     preset: string;
     appName?: string;
     style?: string;
     base?: string;
+    packageManager?: string;
   }
 ) {
   const linterArg =
@@ -105,6 +107,10 @@ export function runCreateWorkspace(
     command += ` --defaultBase="${base}"`;
   }
 
+  if (packageManager) {
+    command += ` --package-manager=${packageManager}`;
+  }
+
   const create = execSync(command, {
     cwd: `./tmp/${cli}`,
     stdio: [0, 1, 2],
diff --git a/e2e/workspace/src/create-nx-workspace.test.ts b/e2e/workspace/src/create-nx-workspace.test.ts
index 59ac44fd7078f..11d04d33889e2 100644
--- a/e2e/workspace/src/create-nx-workspace.test.ts
+++ b/e2e/workspace/src/create-nx-workspace.test.ts
@@ -1,4 +1,12 @@
-import { cli, forEachCli, runCreateWorkspace, uniq } from '@nrwl/e2e/utils';
+import {
+  cli,
+  forEachCli,
+  readJson,
+  runCreateWorkspace,
+  setCurrentProjName,
+  uniq,
+  workspaceConfigName,
+} from '@nrwl/e2e/utils';
 import { existsSync, mkdirSync } from 'fs-extra';
 import { execSync } from 'child_process';
 
@@ -111,5 +119,18 @@ forEachCli(() => {
 
       expect(existsSync(`${tmpDir}/${wsName}/package.json`)).toBeTruthy();
     });
+
+    it('should store `packageManager` preference', () => {
+      const wsName = uniq('empty');
+      setCurrentProjName(wsName);
+
+      runCreateWorkspace(wsName, {
+        preset: 'empty',
+        packageManager: 'yarn',
+      });
+
+      const workspaceJson = readJson(`${workspaceConfigName()}`);
+      expect(workspaceJson.cli.packageManager).toEqual('yarn');
+    });
   });
 });
diff --git a/packages/create-nx-workspace/bin/create-nx-workspace.ts b/packages/create-nx-workspace/bin/create-nx-workspace.ts
index f3b27abbdb75c..c0a9ea35082f4 100644
--- a/packages/create-nx-workspace/bin/create-nx-workspace.ts
+++ b/packages/create-nx-workspace/bin/create-nx-workspace.ts
@@ -74,7 +74,15 @@ const angularCliVersion = 'ANGULAR_CLI_VERSION';
 const prettierVersion = 'PRETTIER_VERSION';
 
 const parsedArgs = yargsParser(process.argv, {
-  string: ['cli', 'preset', 'appName', 'style', 'linter', 'defaultBase'],
+  string: [
+    'cli',
+    'preset',
+    'appName',
+    'style',
+    'linter',
+    'defaultBase',
+    'packageManager',
+  ],
   alias: {
     appName: 'app-name',
     nxCloud: 'nx-cloud',
@@ -87,7 +95,7 @@ if (parsedArgs.help) {
   showHelp();
   process.exit(0);
 }
-const packageManager = determinePackageManager();
+const packageManager = determinePackageManager(parsedArgs.packageManager);
 determineWorkspaceName(parsedArgs).then((name) => {
   determinePreset(parsedArgs).then((preset) => {
     return determineAppName(preset, parsedArgs).then((appName) => {
diff --git a/packages/create-nx-workspace/bin/shared.spec.ts b/packages/create-nx-workspace/bin/shared.spec.ts
new file mode 100644
index 0000000000000..dd19e736afc74
--- /dev/null
+++ b/packages/create-nx-workspace/bin/shared.spec.ts
@@ -0,0 +1,42 @@
+import { determinePackageManager } from './shared';
+
+let INSTALLED_PACKAGE_MANAGERS = ['npm', 'yarn', 'pnpm'];
+
+jest.mock('child_process', () => {
+  return {
+    execSync: (command) => {
+      if (command.endsWith(`--version`)) {
+        const pm = command.split(' ')[0];
+        if (INSTALLED_PACKAGE_MANAGERS.includes(pm)) {
+          return;
+        }
+        throw Error();
+      }
+    },
+  };
+});
+
+describe('determinePackageManager', () => {
+  it('will prefer Yarn if installed and there is no preference', () => {
+    const pm = determinePackageManager();
+    expect(pm).toEqual('yarn');
+  });
+
+  it('will use preferred one if installed', () => {
+    expect(determinePackageManager('pnpm')).toEqual('pnpm');
+    expect(determinePackageManager('yarn')).toEqual('yarn');
+    expect(determinePackageManager('npm')).toEqual('npm');
+  });
+
+  it('will not use preferred one if not installed', () => {
+    INSTALLED_PACKAGE_MANAGERS = ['npm', 'pnpm'];
+    const pm = determinePackageManager('yarn');
+    expect(pm).toEqual('pnpm');
+  });
+
+  it('will fallback to NPM', () => {
+    INSTALLED_PACKAGE_MANAGERS = [];
+    const pm = determinePackageManager();
+    expect(pm).toEqual('npm');
+  });
+});
diff --git a/packages/create-nx-workspace/bin/shared.ts b/packages/create-nx-workspace/bin/shared.ts
index 5641d327a49e2..a63b68e41be8a 100644
--- a/packages/create-nx-workspace/bin/shared.ts
+++ b/packages/create-nx-workspace/bin/shared.ts
@@ -22,26 +22,19 @@ export function showNxWarning(workspaceName: string) {
   }
 }
 
-export function determinePackageManager() {
-  let packageManager = getPackageManagerFromAngularCLI();
-  if (packageManager === 'npm' || isPackageManagerInstalled(packageManager)) {
-    return packageManager;
-  }
-
-  if (isPackageManagerInstalled('yarn')) {
-    return 'yarn';
-  }
-
-  if (isPackageManagerInstalled('pnpm')) {
-    return 'pnpm';
-  }
-
-  return 'npm';
+export function determinePackageManager(preferredPackageManager?: string) {
+  return (
+    [
+      preferredPackageManager,
+      getPackageManagerFromAngularCLI(),
+      'yarn',
+      'pnpm',
+    ].find((pm) => pm && isPackageManagerInstalled(pm)) || 'npm'
+  );
 }
 
 function getPackageManagerFromAngularCLI(): string {
   // If you have Angular CLI installed, read Angular CLI config.
-  // If it isn't installed, default to 'yarn'.
   try {
     return execSync('ng config -g cli.packageManager', {
       stdio: ['ignore', 'pipe', 'ignore'],
@@ -50,7 +43,7 @@ function getPackageManagerFromAngularCLI(): string {
       .toString()
       .trim();
   } catch (e) {
-    return 'yarn';
+    return;
   }
 }
 
diff --git a/packages/workspace/src/schematics/ng-new/schema.json b/packages/workspace/src/schematics/ng-new/schema.json
index 739db563d4731..56ba55e17c543 100644
--- a/packages/workspace/src/schematics/ng-new/schema.json
+++ b/packages/workspace/src/schematics/ng-new/schema.json
@@ -92,6 +92,11 @@
       "type": "string",
       "enum": ["tslint", "eslint"],
       "default": "eslint"
+    },
+    "packageManager": {
+      "description": "The package manager used to install dependencies.",
+      "type": "string",
+      "enum": ["npm", "yarn", "pnpm"]
     }
   }
 }
diff --git a/packages/workspace/src/schematics/shared-new/shared-new.ts b/packages/workspace/src/schematics/shared-new/shared-new.ts
index 452eb6efb25e0..1be23489b6d29 100644
--- a/packages/workspace/src/schematics/shared-new/shared-new.ts
+++ b/packages/workspace/src/schematics/shared-new/shared-new.ts
@@ -52,6 +52,7 @@ export interface Schema {
   defaultBase?: string;
   nxWorkspaceRoot?: string;
   linter: 'tslint' | 'eslint';
+  packageManager?: string;
 }
 
 class RunPresetTask {
@@ -133,6 +134,7 @@ export function sharedNew(cli: string, options: Schema): Rule {
 
     return chain([
       schematic('workspace', { ...workspaceOpts, cli }),
+      setDefaultPackageManager(options),
       setDefaultLinter(options),
       addPresetDependencies(options),
       addCloudDependencies(options),
@@ -326,3 +328,17 @@ function setTSLintDefault() {
     return json;
   });
 }
+
+function setDefaultPackageManager({ packageManager }: Schema) {
+  if (!packageManager) {
+    return noop();
+  }
+
+  return updateWorkspaceInTree((json) => {
+    if (!json.cli) {
+      json.cli = {};
+    }
+    json.cli['packageManager'] = packageManager;
+    return json;
+  });
+}
diff --git a/packages/workspace/src/schematics/tao-new/schema.json b/packages/workspace/src/schematics/tao-new/schema.json
index 5f3b8e188f7b2..e34f371b99032 100644
--- a/packages/workspace/src/schematics/tao-new/schema.json
+++ b/packages/workspace/src/schematics/tao-new/schema.json
@@ -87,6 +87,11 @@
       "type": "string",
       "enum": ["tslint", "eslint"],
       "default": "eslint"
+    },
+    "packageManager": {
+      "description": "The package manager used to install dependencies.",
+      "type": "string",
+      "enum": ["npm", "yarn", "pnpm"]
     }
   }
 }