diff --git a/docs/generated/packages/react-native/generators/component.json b/docs/generated/packages/react-native/generators/component.json
index 258b8d7ae3f704..22e4f0bbdd068a 100644
--- a/docs/generated/packages/react-native/generators/component.json
+++ b/docs/generated/packages/react-native/generators/component.json
@@ -10,19 +10,24 @@
     "type": "object",
     "examples": [
       {
-        "command": "nx g @nx/react-native:component my-component --directory=mylib/src/lib/my-component",
+        "command": "nx g @nx/react-native:component mylib/src/lib/my-component/my-component ",
         "description": "Generate a component in the `mylib` library"
       },
       {
-        "command": "nx g @nx/react-native:component my-component --directory=mylib/src/lib/my-component --classComponent",
+        "command": "nx g @nx/react-native:component mylib/src/lib/my-component/my-component --classComponent",
         "description": "Generate a class component in the `mylib` library"
       }
     ],
     "properties": {
+      "path": {
+        "type": "string",
+        "description": "The path at which to create the component file.",
+        "$default": { "$source": "argv", "index": 0 },
+        "x-prompt": "What path would you like to use for the component?"
+      },
       "name": {
         "type": "string",
         "description": "The name of the component.",
-        "$default": { "$source": "argv", "index": 0 },
         "x-prompt": "What name would you like to use for the component?"
       },
       "js": {
@@ -35,16 +40,6 @@
         "description": "When true, does not create `spec.ts` test files for the new component.",
         "default": false
       },
-      "directory": {
-        "type": "string",
-        "description": "The directory at which to create the component file. When `--nameAndDirectoryFormat=as-provided`, it will be relative to the current working directory. Otherwise, it will be relative to the project root.",
-        "x-priority": "important"
-      },
-      "nameAndDirectoryFormat": {
-        "description": "Whether to generate the component in the directory as provided, relative to the current working directory and ignoring the project (`as-provided`) or generate it using the project and directory relative to the workspace root (`derived`).",
-        "type": "string",
-        "enum": ["as-provided", "derived"]
-      },
       "export": {
         "type": "boolean",
         "description": "When true, the component is exported from the project `index.ts` (if it exists).",
@@ -59,7 +54,7 @@
         "default": false
       }
     },
-    "required": ["name"],
+    "required": ["path"],
     "presets": []
   },
   "description": "Create a React Native component.",
diff --git a/e2e/next/src/next-storybook.test.ts b/e2e/next/src/next-storybook.test.ts
index 5eef599acfc17c..15ab50ad171483 100644
--- a/e2e/next/src/next-storybook.test.ts
+++ b/e2e/next/src/next-storybook.test.ts
@@ -18,7 +18,7 @@ describe('Next.js Storybook', () => {
       `generate @nx/next:app ${appName} --e2eTestRunner=none --project-name-and-root-format=as-provided --no-interactive`
     );
     runCLI(
-      `generate @nx/next:component foo --directory=${appName}/components/foo --nameAndDirectoryFormat=as-provided --no-interactive`
+      `generate @nx/next:component ${appName}/components/foo/foo --no-interactive`
     );
   });
 
diff --git a/e2e/react-native/src/react-native-legacy.test.ts b/e2e/react-native/src/react-native-legacy.test.ts
index 13398ba8f9c323..a063609752d5c0 100644
--- a/e2e/react-native/src/react-native-legacy.test.ts
+++ b/e2e/react-native/src/react-native-legacy.test.ts
@@ -189,7 +189,7 @@ describe('@nx/react-native (legacy)', () => {
     const componentName = uniq('Component');
 
     runCLI(
-      `generate @nx/react-native:component ${componentName} --directory=libs/${libName}/src/lib/${componentName} --export`
+      `generate @nx/react-native:component libs/${libName}/src/lib/${componentName}/${componentName} --export`
     );
     expect(() => {
       runCLI(`build ${libName}`);
diff --git a/e2e/react/src/cypress-component-tests.test.ts b/e2e/react/src/cypress-component-tests.test.ts
index a4f97543352930..22d46e96d7c565 100644
--- a/e2e/react/src/cypress-component-tests.test.ts
+++ b/e2e/react/src/cypress-component-tests.test.ts
@@ -111,7 +111,7 @@ export default App;`
       `generate @nx/react:lib ${buildableLibName} --directory=libs/${buildableLibName} --buildable --no-interactive --unitTestRunner=jest`
     );
     runCLI(
-      `generate @nx/react:component input --directory=libs/${buildableLibName}/src/lib/input --export --no-interactive`
+      `generate @nx/react:component libs/${buildableLibName}/src/lib/input/input --export --no-interactive`
     );
 
     checkFilesExist(`libs/${buildableLibName}/src/lib/input/input.tsx`);
diff --git a/packages/react-native/src/generators/component/lib/normalize-options.ts b/packages/react-native/src/generators/component/lib/normalize-options.ts
index 8f79a97aca16bf..e9426cebb40478 100644
--- a/packages/react-native/src/generators/component/lib/normalize-options.ts
+++ b/packages/react-native/src/generators/component/lib/normalize-options.ts
@@ -3,6 +3,7 @@ import { Schema } from '../schema';
 import { determineArtifactNameAndDirectoryOptions } from '@nx/devkit/src/generators/artifact-name-and-directory-utils';
 
 export interface NormalizedSchema extends Schema {
+  directory: string;
   projectSourceRoot: string;
   fileName: string;
   className: string;
@@ -14,8 +15,6 @@ export async function normalizeOptions(
   host: Tree,
   options: Schema
 ): Promise<NormalizedSchema> {
-  assertValidOptions(options);
-
   const {
     artifactName: name,
     directory,
@@ -28,6 +27,8 @@ export async function normalizeOptions(
     fileExtension: 'tsx',
   });
 
+  assertValidOptions({ name, directory });
+
   const project = getProjects(host).get(projectName);
 
   const { className } = names(name);
@@ -44,6 +45,7 @@ export async function normalizeOptions(
 
   return {
     ...options,
+    name,
     directory,
     className,
     fileName,
@@ -53,7 +55,7 @@ export async function normalizeOptions(
   };
 }
 
-function assertValidOptions(options: Schema) {
+function assertValidOptions(options: { name: string; directory: string }) {
   const slashes = ['/', '\\'];
   slashes.forEach((s) => {
     if (options.name.indexOf(s) !== -1) {
@@ -63,7 +65,7 @@ function assertValidOptions(options: Schema) {
         suggestion = `${options.directory}${s}${suggestion}`;
       }
       throw new Error(
-        `Found "${s}" in the component name. Did you mean to use the --directory option (e.g. \`nx g c ${name} --directory ${suggestion}\`)?`
+        `Found "${s}" in the component name. Did you mean to use the --path option (e.g. \`nx g c ${suggestion}/${name} \`)?`
       );
     }
   });
diff --git a/packages/react-native/src/generators/component/schema.d.ts b/packages/react-native/src/generators/component/schema.d.ts
index d99f98f91555a5..6e6edb5ec33463 100644
--- a/packages/react-native/src/generators/component/schema.d.ts
+++ b/packages/react-native/src/generators/component/schema.d.ts
@@ -5,7 +5,6 @@ export interface Schema {
   path: string;
   name?: string;
   skipTests?: boolean;
-  directory?: string;
   export?: boolean;
   classComponent?: boolean;
   js?: boolean;
diff --git a/packages/react-native/src/generators/component/schema.json b/packages/react-native/src/generators/component/schema.json
index 0730c908eb024b..3b8b3f55d3663c 100644
--- a/packages/react-native/src/generators/component/schema.json
+++ b/packages/react-native/src/generators/component/schema.json
@@ -7,22 +7,27 @@
   "type": "object",
   "examples": [
     {
-      "command": "nx g @nx/react-native:component my-component --directory=mylib/src/lib/my-component",
+      "command": "nx g @nx/react-native:component mylib/src/lib/my-component/my-component ",
       "description": "Generate a component in the `mylib` library"
     },
     {
-      "command": "nx g @nx/react-native:component my-component --directory=mylib/src/lib/my-component --classComponent",
+      "command": "nx g @nx/react-native:component mylib/src/lib/my-component/my-component --classComponent",
       "description": "Generate a class component in the `mylib` library"
     }
   ],
   "properties": {
-    "name": {
+    "path": {
       "type": "string",
-      "description": "The name of the component.",
+      "description": "The path at which to create the component file.",
       "$default": {
         "$source": "argv",
         "index": 0
       },
+      "x-prompt": "What path would you like to use for the component?"
+    },
+    "name": {
+      "type": "string",
+      "description": "The name of the component.",
       "x-prompt": "What name would you like to use for the component?"
     },
     "js": {
@@ -35,16 +40,6 @@
       "description": "When true, does not create `spec.ts` test files for the new component.",
       "default": false
     },
-    "directory": {
-      "type": "string",
-      "description": "The directory at which to create the component file. When `--nameAndDirectoryFormat=as-provided`, it will be relative to the current working directory. Otherwise, it will be relative to the project root.",
-      "x-priority": "important"
-    },
-    "nameAndDirectoryFormat": {
-      "description": "Whether to generate the component in the directory as provided, relative to the current working directory and ignoring the project (`as-provided`) or generate it using the project and directory relative to the workspace root (`derived`).",
-      "type": "string",
-      "enum": ["as-provided", "derived"]
-    },
     "export": {
       "type": "boolean",
       "description": "When true, the component is exported from the project `index.ts` (if it exists).",
@@ -59,5 +54,5 @@
       "default": false
     }
   },
-  "required": ["name"]
+  "required": ["path"]
 }