diff --git a/packages/storybook/plugin.ts b/packages/storybook/plugin.ts
index 8b8dbdde8ffcd..920c592a84acd 100644
--- a/packages/storybook/plugin.ts
+++ b/packages/storybook/plugin.ts
@@ -1,5 +1,6 @@
 export {
   createNodes,
+  createNodesV2,
   StorybookPluginOptions,
   createDependencies,
 } from './src/plugins/plugin';
diff --git a/packages/storybook/src/generators/convert-to-inferred/convert-to-inferred.ts b/packages/storybook/src/generators/convert-to-inferred/convert-to-inferred.ts
index 161b579cb245f..e0dda2a19e6f4 100644
--- a/packages/storybook/src/generators/convert-to-inferred/convert-to-inferred.ts
+++ b/packages/storybook/src/generators/convert-to-inferred/convert-to-inferred.ts
@@ -7,12 +7,12 @@ import {
 } from '@nx/devkit';
 import { AggregatedLog } from '@nx/devkit/src/generators/plugin-migrations/aggregate-log-util';
 import {
-  migrateProjectExecutorsToPluginV1,
+  migrateProjectExecutorsToPlugin,
   NoTargetsToMigrateError,
 } from '@nx/devkit/src/generators/plugin-migrations/executor-to-plugin-migrator';
 import { buildPostTargetTransformer } from './lib/build-post-target-transformer';
 import { servePostTargetTransformer } from './lib/serve-post-target-transformer';
-import { createNodes } from '../../plugins/plugin';
+import { createNodesV2 } from '../../plugins/plugin';
 import { storybookVersion } from '../../utils/versions';
 
 interface Schema {
@@ -23,11 +23,11 @@ interface Schema {
 export async function convertToInferred(tree: Tree, options: Schema) {
   const projectGraph = await createProjectGraphAsync();
   const migrationLogs = new AggregatedLog();
-  const migratedProjects = await migrateProjectExecutorsToPluginV1(
+  const migratedProjects = await migrateProjectExecutorsToPlugin(
     tree,
     projectGraph,
     '@nx/storybook/plugin',
-    createNodes,
+    createNodesV2,
     {
       buildStorybookTargetName: 'build-storybook',
       serveStorybookTargetName: 'storybook',
diff --git a/packages/storybook/src/generators/init/init.ts b/packages/storybook/src/generators/init/init.ts
index c5ed52fef7eab..88cbff0875a36 100644
--- a/packages/storybook/src/generators/init/init.ts
+++ b/packages/storybook/src/generators/init/init.ts
@@ -10,9 +10,9 @@ import {
   updateJson,
   updateNxJson,
 } from '@nx/devkit';
-import { addPluginV1 } from '@nx/devkit/src/utils/add-plugin';
+import { addPlugin } from '@nx/devkit/src/utils/add-plugin';
 import { gte } from 'semver';
-import { createNodes } from '../../plugins/plugin';
+import { createNodesV2 } from '../../plugins/plugin';
 import {
   getInstalledStorybookVersion,
   storybookMajorVersion,
@@ -99,11 +99,11 @@ export async function initGeneratorInternal(tree: Tree, schema: Schema) {
   schema.addPlugin ??= addPluginDefault;
 
   if (schema.addPlugin) {
-    await addPluginV1(
+    await addPlugin(
       tree,
       await createProjectGraphAsync(),
       '@nx/storybook/plugin',
-      createNodes,
+      createNodesV2,
       {
         serveStorybookTargetName: [
           'storybook',
diff --git a/packages/storybook/src/plugins/plugin.spec.ts b/packages/storybook/src/plugins/plugin.spec.ts
index a4cce98fe25ec..9729aaa75a7ac 100644
--- a/packages/storybook/src/plugins/plugin.spec.ts
+++ b/packages/storybook/src/plugins/plugin.spec.ts
@@ -2,10 +2,10 @@ import { CreateNodesContext } from '@nx/devkit';
 import { TempFs } from '@nx/devkit/internal-testing-utils';
 import type { StorybookConfig } from '@storybook/types';
 import { join } from 'node:path';
-import { createNodes } from './plugin';
+import { createNodesV2 } from './plugin';
 
 describe('@nx/storybook/plugin', () => {
-  let createNodesFunction = createNodes[1];
+  let createNodesFunction = createNodesV2[1];
   let context: CreateNodesContext;
   let tempFs: TempFs;
 
@@ -54,7 +54,7 @@ describe('@nx/storybook/plugin', () => {
     });
 
     const nodes = await createNodesFunction(
-      'my-app/.storybook/main.ts',
+      ['my-app/.storybook/main.ts'],
       {
         buildStorybookTargetName: 'build-storybook',
         staticStorybookTargetName: 'static-storybook',
@@ -64,32 +64,57 @@ describe('@nx/storybook/plugin', () => {
       context
     );
 
-    expect(nodes?.['projects']?.['my-app']?.targets).toBeDefined();
-    expect(
-      nodes?.['projects']?.['my-app']?.targets?.['build-storybook']
-    ).toMatchObject({
-      command: 'storybook build',
-      options: {
-        cwd: 'my-app',
-      },
-      cache: true,
-      outputs: [
-        '{projectRoot}/storybook-static',
-        '{options.output-dir}',
-        '{options.outputDir}',
-        '{options.o}',
-      ],
-      inputs: [
-        'production',
-        '^production',
-        { externalDependencies: ['storybook'] },
-      ],
-    });
-    expect(
-      nodes?.['projects']?.['my-app']?.targets?.['serve-storybook']
-    ).toMatchObject({
-      command: 'storybook dev',
-    });
+    expect(nodes).toMatchInlineSnapshot(`
+      [
+        [
+          "my-app/.storybook/main.ts",
+          {
+            "projects": {
+              "my-app": {
+                "root": "my-app",
+                "targets": {
+                  "build-storybook": {
+                    "cache": true,
+                    "command": "storybook build",
+                    "inputs": [
+                      "production",
+                      "^production",
+                      {
+                        "externalDependencies": [
+                          "storybook",
+                        ],
+                      },
+                    ],
+                    "options": {
+                      "cwd": "my-app",
+                    },
+                    "outputs": [
+                      "{projectRoot}/storybook-static",
+                      "{options.output-dir}",
+                      "{options.outputDir}",
+                      "{options.o}",
+                    ],
+                  },
+                  "serve-storybook": {
+                    "command": "storybook dev",
+                    "options": {
+                      "cwd": "my-app",
+                    },
+                  },
+                  "static-storybook": {
+                    "executor": "@nx/web:file-server",
+                    "options": {
+                      "buildTarget": "build-storybook",
+                      "staticFilePath": "my-app/storybook-static",
+                    },
+                  },
+                },
+              },
+            },
+          },
+        ],
+      ]
+    `);
   });
 
   it('should create angular nodes', async () => {
@@ -104,7 +129,7 @@ describe('@nx/storybook/plugin', () => {
     });
 
     const nodes = await createNodesFunction(
-      'my-ng-app/.storybook/main.ts',
+      ['my-ng-app/.storybook/main.ts'],
       {
         buildStorybookTargetName: 'build-storybook',
         staticStorybookTargetName: 'static-storybook',
@@ -114,42 +139,63 @@ describe('@nx/storybook/plugin', () => {
       context
     );
 
-    expect(nodes?.['projects']?.['my-ng-app']?.targets).toBeDefined();
-    expect(
-      nodes?.['projects']?.['my-ng-app']?.targets?.['build-storybook']
-    ).toMatchObject({
-      executor: '@storybook/angular:build-storybook',
-      options: {
-        outputDir: 'my-ng-app/storybook-static',
-        configDir: 'my-ng-app/.storybook',
-        browserTarget: 'my-ng-app:build-storybook',
-        compodoc: false,
-      },
-      cache: true,
-      outputs: [
-        '{projectRoot}/storybook-static',
-        '{options.output-dir}',
-        '{options.outputDir}',
-        '{options.o}',
-      ],
-      inputs: [
-        'production',
-        '^production',
-        {
-          externalDependencies: ['storybook', '@storybook/angular'],
-        },
-      ],
-    });
-    expect(
-      nodes?.['projects']?.['my-ng-app']?.targets?.['serve-storybook']
-    ).toMatchObject({
-      executor: '@storybook/angular:start-storybook',
-      options: {
-        browserTarget: 'my-ng-app:build-storybook',
-        configDir: 'my-ng-app/.storybook',
-        compodoc: false,
-      },
-    });
+    expect(nodes).toMatchInlineSnapshot(`
+      [
+        [
+          "my-ng-app/.storybook/main.ts",
+          {
+            "projects": {
+              "my-ng-app": {
+                "root": "my-ng-app",
+                "targets": {
+                  "build-storybook": {
+                    "cache": true,
+                    "executor": "@storybook/angular:build-storybook",
+                    "inputs": [
+                      "production",
+                      "^production",
+                      {
+                        "externalDependencies": [
+                          "storybook",
+                          "@storybook/angular",
+                        ],
+                      },
+                    ],
+                    "options": {
+                      "browserTarget": "my-ng-app:build-storybook",
+                      "compodoc": false,
+                      "configDir": "my-ng-app/.storybook",
+                      "outputDir": "my-ng-app/storybook-static",
+                    },
+                    "outputs": [
+                      "{projectRoot}/storybook-static",
+                      "{options.output-dir}",
+                      "{options.outputDir}",
+                      "{options.o}",
+                    ],
+                  },
+                  "serve-storybook": {
+                    "executor": "@storybook/angular:start-storybook",
+                    "options": {
+                      "browserTarget": "my-ng-app:build-storybook",
+                      "compodoc": false,
+                      "configDir": "my-ng-app/.storybook",
+                    },
+                  },
+                  "static-storybook": {
+                    "executor": "@nx/web:file-server",
+                    "options": {
+                      "buildTarget": "build-storybook",
+                      "staticFilePath": "my-ng-app/storybook-static",
+                    },
+                  },
+                },
+              },
+            },
+          },
+        ],
+      ]
+    `);
   });
 
   it('should support main.js', async () => {
@@ -168,7 +214,7 @@ describe('@nx/storybook/plugin', () => {
     });
 
     const nodes = await createNodesFunction(
-      'my-react-lib/.storybook/main.js',
+      ['my-react-lib/.storybook/main.js'],
       {
         buildStorybookTargetName: 'build-storybook',
         staticStorybookTargetName: 'static-storybook',
@@ -178,32 +224,57 @@ describe('@nx/storybook/plugin', () => {
       context
     );
 
-    expect(nodes?.['projects']?.['my-react-lib']?.targets).toBeDefined();
-    expect(
-      nodes?.['projects']?.['my-react-lib']?.targets?.['build-storybook']
-    ).toMatchObject({
-      command: 'storybook build',
-      options: {
-        cwd: 'my-react-lib',
-      },
-      cache: true,
-      outputs: [
-        '{projectRoot}/storybook-static',
-        '{options.output-dir}',
-        '{options.outputDir}',
-        '{options.o}',
-      ],
-      inputs: [
-        'production',
-        '^production',
-        { externalDependencies: ['storybook'] },
-      ],
-    });
-    expect(
-      nodes?.['projects']?.['my-react-lib']?.targets?.['serve-storybook']
-    ).toMatchObject({
-      command: 'storybook dev',
-    });
+    expect(nodes).toMatchInlineSnapshot(`
+      [
+        [
+          "my-react-lib/.storybook/main.js",
+          {
+            "projects": {
+              "my-react-lib": {
+                "root": "my-react-lib",
+                "targets": {
+                  "build-storybook": {
+                    "cache": true,
+                    "command": "storybook build",
+                    "inputs": [
+                      "production",
+                      "^production",
+                      {
+                        "externalDependencies": [
+                          "storybook",
+                        ],
+                      },
+                    ],
+                    "options": {
+                      "cwd": "my-react-lib",
+                    },
+                    "outputs": [
+                      "{projectRoot}/storybook-static",
+                      "{options.output-dir}",
+                      "{options.outputDir}",
+                      "{options.o}",
+                    ],
+                  },
+                  "serve-storybook": {
+                    "command": "storybook dev",
+                    "options": {
+                      "cwd": "my-react-lib",
+                    },
+                  },
+                  "static-storybook": {
+                    "executor": "@nx/web:file-server",
+                    "options": {
+                      "buildTarget": "build-storybook",
+                      "staticFilePath": "my-react-lib/storybook-static",
+                    },
+                  },
+                },
+              },
+            },
+          },
+        ],
+      ]
+    `);
   });
 
   function mockStorybookMainConfig(
diff --git a/packages/storybook/src/plugins/plugin.ts b/packages/storybook/src/plugins/plugin.ts
index 23cca1a5641d1..e4a03023de9d5 100644
--- a/packages/storybook/src/plugins/plugin.ts
+++ b/packages/storybook/src/plugins/plugin.ts
@@ -2,8 +2,12 @@ import {
   CreateDependencies,
   CreateNodes,
   CreateNodesContext,
+  createNodesFromFiles,
+  CreateNodesV2,
   detectPackageManager,
+  getPackageManagerCommand,
   joinPathFragments,
+  logger,
   parseJson,
   readJsonFile,
   TargetConfiguration,
@@ -17,6 +21,7 @@ import { workspaceDataDirectory } from 'nx/src/utils/cache-directory';
 import { getLockFileName } from '@nx/js';
 import { loadConfigFile } from '@nx/devkit/src/utils/config-utils';
 import type { StorybookConfig } from '@storybook/types';
+import { hashObject } from 'nx/src/hasher/file-hasher';
 
 export interface StorybookPluginOptions {
   buildStorybookTargetName?: string;
@@ -25,82 +30,127 @@ export interface StorybookPluginOptions {
   testStorybookTargetName?: string;
 }
 
-const cachePath = join(workspaceDataDirectory, 'storybook.hash');
-const targetsCache = readTargetsCache();
-
-function readTargetsCache(): Record<
-  string,
-  Record<string, TargetConfiguration>
-> {
+function readTargetsCache(
+  cachePath: string
+): Record<string, Record<string, TargetConfiguration>> {
   return existsSync(cachePath) ? readJsonFile(cachePath) : {};
 }
 
-function writeTargetsToCache() {
-  const oldCache = readTargetsCache();
-  writeJsonFile(cachePath, {
-    ...oldCache,
-    ...targetsCache,
-  });
+function writeTargetsToCache(
+  cachePath: string,
+  results: Record<string, Record<string, TargetConfiguration>>
+) {
+  writeJsonFile(cachePath, results);
 }
 
+/**
+ * @deprecated The 'createDependencies' function is now a no-op. This functionality is included in 'createNodesV2'.
+ */
 export const createDependencies: CreateDependencies = () => {
-  writeTargetsToCache();
   return [];
 };
 
-export const createNodes: CreateNodes<StorybookPluginOptions> = [
-  '**/.storybook/main.{js,ts,mjs,mts,cjs,cts}',
-  async (configFilePath, options, context) => {
-    let projectRoot = '';
-    if (configFilePath.includes('/.storybook')) {
-      projectRoot = dirname(configFilePath).replace('/.storybook', '');
-    } else {
-      projectRoot = dirname(configFilePath).replace('.storybook', '');
-    }
-
-    if (projectRoot === '') {
-      projectRoot = '.';
-    }
+const storybookConfigGlob = '**/.storybook/main.{js,ts,mjs,mts,cjs,cts}';
 
-    // Do not create a project if package.json and project.json isn't there.
-    const siblingFiles = readdirSync(join(context.workspaceRoot, projectRoot));
-    if (
-      !siblingFiles.includes('package.json') &&
-      !siblingFiles.includes('project.json')
-    ) {
-      return {};
+export const createNodesV2: CreateNodesV2<StorybookPluginOptions> = [
+  storybookConfigGlob,
+  async (configFilePaths, options, context) => {
+    const normalizedOptions = normalizeOptions(options);
+    const optionsHash = hashObject(normalizedOptions);
+    const cachePath = join(
+      workspaceDataDirectory,
+      `storybook-${optionsHash}.hash`
+    );
+    const targetsCache = readTargetsCache(cachePath);
+
+    try {
+      return await createNodesFromFiles(
+        (configFile, _, context) =>
+          createNodesInternal(
+            configFile,
+            normalizedOptions,
+            context,
+            targetsCache
+          ),
+        configFilePaths,
+        normalizedOptions,
+        context
+      );
+    } finally {
+      writeTargetsToCache(cachePath, targetsCache);
     }
+  },
+];
 
-    options = normalizeOptions(options);
-    const hash = await calculateHashForCreateNodes(
-      projectRoot,
-      options,
-      context,
-      [getLockFileName(detectPackageManager(context.workspaceRoot))]
+export const createNodes: CreateNodes<StorybookPluginOptions> = [
+  storybookConfigGlob,
+  (configFilePath, options, context) => {
+    logger.warn(
+      '`createNodes` is deprecated. Update your plugin to utilize createNodesV2 instead. In Nx 20, this will change to the createNodesV2 API.'
     );
-
-    const projectName = buildProjectName(projectRoot, context.workspaceRoot);
-
-    targetsCache[hash] ??= await buildStorybookTargets(
+    return createNodesInternal(
       configFilePath,
-      projectRoot,
-      options,
+      normalizeOptions(options),
       context,
-      projectName
+      {}
     );
+  },
+];
 
-    const result = {
-      projects: {
-        [projectRoot]: {
-          root: projectRoot,
-          targets: targetsCache[hash],
-        },
+async function createNodesInternal(
+  configFilePath: string,
+  options: Required<StorybookPluginOptions>,
+  context: CreateNodesContext,
+  targetsCache: Record<string, Record<string, TargetConfiguration>>
+) {
+  let projectRoot = '';
+  if (configFilePath.includes('/.storybook')) {
+    projectRoot = dirname(configFilePath).replace('/.storybook', '');
+  } else {
+    projectRoot = dirname(configFilePath).replace('.storybook', '');
+  }
+
+  if (projectRoot === '') {
+    projectRoot = '.';
+  }
+
+  // Do not create a project if package.json and project.json isn't there.
+  const siblingFiles = readdirSync(join(context.workspaceRoot, projectRoot));
+  if (
+    !siblingFiles.includes('package.json') &&
+    !siblingFiles.includes('project.json')
+  ) {
+    return {};
+  }
+
+  const hash = await calculateHashForCreateNodes(
+    projectRoot,
+    options,
+    context,
+    [getLockFileName(detectPackageManager(context.workspaceRoot))]
+  );
+
+  const projectName = buildProjectName(projectRoot, context.workspaceRoot);
+
+  targetsCache[hash] ??= await buildStorybookTargets(
+    configFilePath,
+    projectRoot,
+    options,
+    context,
+    projectName
+  );
+
+  const result = {
+    projects: {
+      [projectRoot]: {
+        root: projectRoot,
+        targets: targetsCache[hash],
       },
-    };
+    },
+  };
 
-    return result;
-  },
-];
+  return result;
+}
 
 async function buildStorybookTargets(
   configFilePath: string,
@@ -294,13 +344,16 @@ function getOutputs(): string[] {
 
 function normalizeOptions(
   options: StorybookPluginOptions
-): StorybookPluginOptions {
-  options ??= {};
-  options.buildStorybookTargetName ??= 'build-storybook';
-  options.serveStorybookTargetName ??= 'storybook';
-  options.testStorybookTargetName ??= 'test-storybook';
-  options.staticStorybookTargetName ??= 'static-storybook';
-  return options;
+): Required<StorybookPluginOptions> {
+  return {
+    buildStorybookTargetName:
+      options.buildStorybookTargetName ?? 'build-storybook',
+    serveStorybookTargetName: options.serveStorybookTargetName ?? 'storybook',
+    testStorybookTargetName:
+      options.testStorybookTargetName ?? 'test-storybook',
+    staticStorybookTargetName:
+      options.staticStorybookTargetName ?? 'static-storybook',
+  };
 }
 
 function buildProjectName(