diff --git a/code/lib/cli/src/detect.ts b/code/lib/cli/src/detect.ts
index c1b9317bc55..b62288bc82e 100644
--- a/code/lib/cli/src/detect.ts
+++ b/code/lib/cli/src/detect.ts
@@ -15,6 +15,7 @@ import {
 } from './project_types';
 import { commandLog, isNxProject } from './helpers';
 import type { JsPackageManager, PackageJsonWithMaybeDeps } from './js-package-manager';
+import { HandledError } from './HandledError';
 
 const viteConfigFiles = ['vite.config.ts', 'vite.config.js', 'vite.config.mjs'];
 const webpackConfigFiles = ['webpack.config.js'];
@@ -135,16 +136,23 @@ export async function detectBuilder(packageManager: JsPackageManager, projectTyp
       return CoreBuilder.Webpack5;
     default:
       // eslint-disable-next-line no-case-declarations
-      const { builder } = await prompts({
-        type: 'select',
-        name: 'builder',
-        message:
-          'We were not able to detect the right builder for your project. Please select one:',
-        choices: [
-          { title: 'Vite', value: CoreBuilder.Vite },
-          { title: 'Webpack 5', value: CoreBuilder.Webpack5 },
-        ],
-      });
+      const { builder } = await prompts(
+        {
+          type: 'select',
+          name: 'builder',
+          message:
+            '\nWe were not able to detect the right builder for your project. Please select one:',
+          choices: [
+            { title: 'Vite', value: CoreBuilder.Vite },
+            { title: 'Webpack 5', value: CoreBuilder.Webpack5 },
+          ],
+        },
+        {
+          onCancel: () => {
+            throw new HandledError('Canceled by the user');
+          },
+        }
+      );
 
       return builder;
   }
diff --git a/code/lib/cli/src/generators/EMBER/index.ts b/code/lib/cli/src/generators/EMBER/index.ts
index 255409fd7c4..313dcf8691f 100644
--- a/code/lib/cli/src/generators/EMBER/index.ts
+++ b/code/lib/cli/src/generators/EMBER/index.ts
@@ -1,16 +1,23 @@
+import { CoreBuilder } from '../../project_types';
 import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  await baseGenerator(packageManager, npmOptions, options, 'ember', {
-    extraPackages: [
-      // babel-plugin-ember-modules-api-polyfill is a peerDep of @storybook/ember
-      'babel-plugin-ember-modules-api-polyfill',
-      // babel-plugin-htmlbars-inline-precompile is a peerDep of @storybook/ember
-      'babel-plugin-htmlbars-inline-precompile',
-    ],
-    staticDir: 'dist',
-  });
+  await baseGenerator(
+    packageManager,
+    npmOptions,
+    { ...options, builder: CoreBuilder.Webpack5 },
+    'ember',
+    {
+      extraPackages: [
+        // babel-plugin-ember-modules-api-polyfill is a peerDep of @storybook/ember
+        'babel-plugin-ember-modules-api-polyfill',
+        // babel-plugin-htmlbars-inline-precompile is a peerDep of @storybook/ember
+        'babel-plugin-htmlbars-inline-precompile',
+      ],
+      staticDir: 'dist',
+    }
+  );
 };
 
 export default generator;
diff --git a/code/lib/cli/src/generators/NEXTJS/index.ts b/code/lib/cli/src/generators/NEXTJS/index.ts
index ef3afea02d6..2588b387312 100644
--- a/code/lib/cli/src/generators/NEXTJS/index.ts
+++ b/code/lib/cli/src/generators/NEXTJS/index.ts
@@ -1,3 +1,4 @@
+import { CoreBuilder } from '../../project_types';
 import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
@@ -5,7 +6,7 @@ const generator: Generator = async (packageManager, npmOptions, options) => {
   await baseGenerator(
     packageManager,
     npmOptions,
-    options,
+    { ...options, builder: CoreBuilder.Webpack5 },
     'react',
     {
       extraAddons: ['@storybook/addon-onboarding'],
diff --git a/code/lib/cli/src/generators/REACT_SCRIPTS/index.ts b/code/lib/cli/src/generators/REACT_SCRIPTS/index.ts
index 4059beedec0..5a0300c25b5 100644
--- a/code/lib/cli/src/generators/REACT_SCRIPTS/index.ts
+++ b/code/lib/cli/src/generators/REACT_SCRIPTS/index.ts
@@ -26,25 +26,15 @@ const generator: Generator = async (packageManager, npmOptions, options) => {
     : {};
 
   const craVersion = await packageManager.getPackageVersion('react-scripts');
-  const isCra5OrHigher = craVersion && semver.gte(craVersion, '5.0.0');
-  const updatedOptions = isCra5OrHigher ? { ...options, builder: CoreBuilder.Webpack5 } : options;
 
-  const extraPackages = [];
-  if (isCra5OrHigher) {
-    extraPackages.push('webpack');
-    // Miscellaneous dependency used in `babel-preset-react-app` but not listed as dep there
-    extraPackages.push('babel-plugin-named-exports-order');
-    // Miscellaneous dependency to add to be sure Storybook + CRA is working fine with Yarn PnP mode
-    extraPackages.push('prop-types');
+  if (craVersion === null) {
+    throw new Error(dedent`
+      It looks like you're trying to initialize Storybook in a CRA project that does not have react-scripts installed.
+      Please install it and make sure it's of version 5 or higher, which are the versions supported by Storybook 7.0+.
+    `);
   }
 
-  const version = versions['@storybook/preset-create-react-app'];
-  const extraAddons = [
-    `@storybook/preset-create-react-app@${version}`,
-    '@storybook/addon-onboarding',
-  ];
-
-  if (!isCra5OrHigher) {
+  if (!craVersion && semver.gte(craVersion, '5.0.0')) {
     throw new Error(dedent`
       Storybook 7.0+ doesn't support react-scripts@<5.0.0.
 
@@ -52,13 +42,32 @@ const generator: Generator = async (packageManager, npmOptions, options) => {
     `);
   }
 
-  await baseGenerator(packageManager, npmOptions, updatedOptions, 'react', {
-    extraAddons,
-    extraPackages,
-    staticDir: fs.existsSync(path.resolve('./public')) ? 'public' : undefined,
-    skipBabel: true,
-    extraMain,
-  });
+  const extraPackages = [];
+  extraPackages.push('webpack');
+  // Miscellaneous dependency used in `babel-preset-react-app` but not listed as dep there
+  extraPackages.push('babel-plugin-named-exports-order');
+  // Miscellaneous dependency to add to be sure Storybook + CRA is working fine with Yarn PnP mode
+  extraPackages.push('prop-types');
+
+  const version = versions['@storybook/preset-create-react-app'];
+  const extraAddons = [
+    `@storybook/preset-create-react-app@${version}`,
+    '@storybook/addon-onboarding',
+  ];
+
+  await baseGenerator(
+    packageManager,
+    npmOptions,
+    { ...options, builder: CoreBuilder.Webpack5 },
+    'react',
+    {
+      extraAddons,
+      extraPackages,
+      staticDir: fs.existsSync(path.resolve('./public')) ? 'public' : undefined,
+      skipBabel: true,
+      extraMain,
+    }
+  );
 };
 
 export default generator;
diff --git a/code/lib/cli/src/generators/SERVER/index.ts b/code/lib/cli/src/generators/SERVER/index.ts
index 96032e2c88e..966efee9089 100755
--- a/code/lib/cli/src/generators/SERVER/index.ts
+++ b/code/lib/cli/src/generators/SERVER/index.ts
@@ -1,10 +1,17 @@
+import { CoreBuilder } from '../../project_types';
 import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  await baseGenerator(packageManager, npmOptions, options, 'server', {
-    extensions: ['json', 'yaml', 'yml'],
-  });
+  await baseGenerator(
+    packageManager,
+    npmOptions,
+    { ...options, builder: CoreBuilder.Vite },
+    'server',
+    {
+      extensions: ['json', 'yaml', 'yml'],
+    }
+  );
 };
 
 export default generator;
diff --git a/code/lib/cli/src/generators/SOLID/index.ts b/code/lib/cli/src/generators/SOLID/index.ts
index 7dc517f667b..21347d05768 100644
--- a/code/lib/cli/src/generators/SOLID/index.ts
+++ b/code/lib/cli/src/generators/SOLID/index.ts
@@ -1,8 +1,16 @@
+import { CoreBuilder } from '../../project_types';
 import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  await baseGenerator(packageManager, npmOptions, options, 'solid', {}, 'solid');
+  await baseGenerator(
+    packageManager,
+    npmOptions,
+    { ...options, builder: CoreBuilder.Vite },
+    'solid',
+    {},
+    'solid'
+  );
 };
 
 export default generator;
diff --git a/code/lib/cli/src/generators/SVELTEKIT/index.ts b/code/lib/cli/src/generators/SVELTEKIT/index.ts
index 21565e6a45c..856d1d04c76 100644
--- a/code/lib/cli/src/generators/SVELTEKIT/index.ts
+++ b/code/lib/cli/src/generators/SVELTEKIT/index.ts
@@ -1,8 +1,16 @@
+import { CoreBuilder } from '../../project_types';
 import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  await baseGenerator(packageManager, npmOptions, options, 'svelte', undefined, 'sveltekit');
+  await baseGenerator(
+    packageManager,
+    npmOptions,
+    { ...options, builder: CoreBuilder.Vite },
+    'svelte',
+    undefined,
+    'sveltekit'
+  );
 };
 
 export default generator;
diff --git a/code/lib/cli/src/generators/VUE/index.ts b/code/lib/cli/src/generators/VUE/index.ts
index 02878a42c11..c1869a53969 100644
--- a/code/lib/cli/src/generators/VUE/index.ts
+++ b/code/lib/cli/src/generators/VUE/index.ts
@@ -3,9 +3,10 @@ import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  const extraPackages = options.builder === CoreBuilder.Webpack5 ? ['vue-loader@^15.7.0'] : [];
   await baseGenerator(packageManager, npmOptions, options, 'vue', {
-    extraPackages,
+    extraPackages: async ({ builder }) => {
+      return builder === CoreBuilder.Webpack5 ? ['vue-loader@^15.7.0'] : [];
+    },
   });
 };
 
diff --git a/code/lib/cli/src/generators/VUE3/index.ts b/code/lib/cli/src/generators/VUE3/index.ts
index fa08aa327bd..63dbddede7b 100644
--- a/code/lib/cli/src/generators/VUE3/index.ts
+++ b/code/lib/cli/src/generators/VUE3/index.ts
@@ -3,12 +3,12 @@ import { baseGenerator } from '../baseGenerator';
 import type { Generator } from '../types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  const extraPackages =
-    options.builder === CoreBuilder.Webpack5
-      ? ['vue-loader@^17.0.0', '@vue/compiler-sfc@^3.2.0']
-      : [];
   await baseGenerator(packageManager, npmOptions, options, 'vue3', {
-    extraPackages,
+    extraPackages: async ({ builder }) => {
+      return builder === CoreBuilder.Webpack5
+        ? ['vue-loader@^17.0.0', '@vue/compiler-sfc@^3.2.0']
+        : [];
+    },
   });
 };
 
diff --git a/code/lib/cli/src/generators/baseGenerator.ts b/code/lib/cli/src/generators/baseGenerator.ts
index 4ac1cd2f8f6..48b2f8affd5 100644
--- a/code/lib/cli/src/generators/baseGenerator.ts
+++ b/code/lib/cli/src/generators/baseGenerator.ts
@@ -17,6 +17,7 @@ import {
   extractEslintInfo,
   suggestESLintPlugin,
 } from '../automigrate/helpers/eslintPlugin';
+import { detectBuilder } from '../detect';
 
 const logger = console;
 
@@ -175,10 +176,11 @@ export async function baseGenerator(
   npmOptions: NpmOptions,
   {
     language,
-    builder = CoreBuilder.Webpack5,
+    builder,
     pnp,
     frameworkPreviewParts,
     yes: skipPrompts,
+    projectType,
   }: GeneratorOptions,
   renderer: SupportedRenderers,
   options: FrameworkOptions = defaultOptions,
@@ -187,6 +189,11 @@ export async function baseGenerator(
   const isStorybookInMonorepository = packageManager.isStorybookInMonorepo();
   const shouldApplyRequireWrapperOnPackageNames = isStorybookInMonorepository || pnp;
 
+  if (!builder) {
+    // eslint-disable-next-line no-param-reassign
+    builder = await detectBuilder(packageManager, projectType);
+  }
+
   const {
     extraAddons: extraAddonPackages,
     extraPackages,
@@ -219,19 +226,28 @@ export async function baseGenerator(
     shouldApplyRequireWrapperOnPackageNames
   );
 
+  const extraAddonsToInstall =
+    typeof extraAddonPackages === 'function'
+      ? await extraAddonPackages({
+          builder: builder || builderInclude,
+          framework: framework || frameworkInclude,
+        })
+      : extraAddonPackages;
+
   // added to main.js
   const addons = [
     '@storybook/addon-links',
     '@storybook/addon-essentials',
-    ...stripVersions(extraAddonPackages),
-  ];
+    ...stripVersions(extraAddonsToInstall),
+  ].filter(Boolean);
+
   // added to package.json
   const addonPackages = [
     '@storybook/addon-links',
     '@storybook/addon-essentials',
     '@storybook/blocks',
-    ...extraAddonPackages,
-  ];
+    ...extraAddonsToInstall,
+  ].filter(Boolean);
 
   if (hasInteractiveStories(rendererId)) {
     addons.push('@storybook/addon-interactions');
@@ -265,12 +281,20 @@ export async function baseGenerator(
     );
   }
 
+  const extraPackagesToInstall =
+    typeof extraPackages === 'function'
+      ? await extraPackages({
+          builder: builder || builderInclude,
+          framework: framework || frameworkInclude,
+        })
+      : extraPackages;
+
   const allPackages = [
     'storybook',
     getExternalFramework(rendererId) ? undefined : `@storybook/${rendererId}`,
     ...frameworkPackages,
     ...addonPackages,
-    ...extraPackages,
+    ...extraPackagesToInstall,
   ].filter(Boolean);
 
   const packages = [...new Set(allPackages)].filter(
diff --git a/code/lib/cli/src/generators/types.ts b/code/lib/cli/src/generators/types.ts
index c4298cc8552..1711505e0bd 100644
--- a/code/lib/cli/src/generators/types.ts
+++ b/code/lib/cli/src/generators/types.ts
@@ -8,14 +8,17 @@ export type GeneratorOptions = {
   builder: Builder;
   linkable: boolean;
   pnp: boolean;
+  projectType: ProjectType;
   frameworkPreviewParts?: FrameworkPreviewParts;
   // skip prompting the user
   yes: boolean;
 };
 
 export interface FrameworkOptions {
-  extraPackages?: string[];
-  extraAddons?: string[];
+  extraPackages?:
+    | string[]
+    | ((details: { framework: string; builder: string }) => Promise<string[]>);
+  extraAddons?: string[] | ((details: { framework: string; builder: string }) => Promise<string[]>);
   staticDir?: string;
   addScripts?: boolean;
   addMainFile?: boolean;
diff --git a/code/lib/cli/src/initiate.ts b/code/lib/cli/src/initiate.ts
index 0b2a75a4a48..39e71ef240f 100644
--- a/code/lib/cli/src/initiate.ts
+++ b/code/lib/cli/src/initiate.ts
@@ -1,3 +1,4 @@
+/* eslint-disable no-param-reassign */
 import type { PackageJson } from 'read-pkg-up';
 import chalk from 'chalk';
 import prompts from 'prompts';
@@ -6,14 +7,9 @@ import { withTelemetry } from '@storybook/core-server';
 
 import dedent from 'ts-dedent';
 import boxen from 'boxen';
+import { readdirSync } from 'fs-extra';
 import { installableProjectTypes, ProjectType } from './project_types';
-import {
-  detect,
-  isStorybookInstantiated,
-  detectLanguage,
-  detectBuilder,
-  detectPnp,
-} from './detect';
+import { detect, isStorybookInstantiated, detectLanguage, detectPnp } from './detect';
 import { commandLog, codeLog, paddedLog } from './helpers';
 import angularGenerator from './generators/ANGULAR';
 import emberGenerator from './generators/EMBER';
@@ -33,10 +29,10 @@ import qwikGenerator from './generators/QWIK';
 import svelteKitGenerator from './generators/SVELTEKIT';
 import solidGenerator from './generators/SOLID';
 import serverGenerator from './generators/SERVER';
-import type { JsPackageManager } from './js-package-manager';
+import type { JsPackageManager, PackageManagerName } from './js-package-manager';
 import { JsPackageManagerFactory, useNpmWarning } from './js-package-manager';
 import type { NpmOptions } from './NpmOptions';
-import type { CommandOptions } from './generators/types';
+import type { CommandOptions, GeneratorOptions } from './generators/types';
 import { HandledError } from './HandledError';
 
 const logger = console;
@@ -54,12 +50,13 @@ const installStorybook = async <Project extends ProjectType>(
   const language = await detectLanguage(packageManager);
   const pnp = await detectPnp();
 
-  const generatorOptions = {
+  const generatorOptions: GeneratorOptions = {
     language,
-    builder: options.builder || (await detectBuilder(packageManager, projectType)),
+    builder: options.builder,
     linkable: !!options.linkable,
     pnp: pnp || options.usePnp,
     yes: options.yes,
+    projectType: options.type,
   };
 
   const runGenerator: () => Promise<any> = async () => {
@@ -239,6 +236,45 @@ const projectTypeInquirer = async (
   process.exit(0);
 };
 
+const getEmptyDirMessage = (packageManagerType: PackageManagerName) => {
+  const generatorCommandsMap = {
+    vite: {
+      npm: 'npm create vite@latest',
+      yarn1: 'yarn create vite',
+      yarn2: 'yarn create vite',
+      pnpm: 'pnpm create vite',
+    },
+    angular: {
+      npm: 'npx -p @angular/cli ng new my-project --package-manager=npm',
+      yarn1: 'npx -p @angular/cli ng new my-project --package-manager=yarn',
+      yarn2: 'npx -p @angular/cli ng new my-project --package-manager=yarn',
+      pnpm: 'npx -p @angular/cli ng new my-project --package-manager=pnpm',
+    },
+  };
+
+  return dedent`
+      Storybook cannot be installed into an empty project. We recommend creating a new project with the following:
+
+      📦 Vite CLI for React/Vue/Web Components => ${chalk.green(
+        generatorCommandsMap.vite[packageManagerType]
+      )}
+      See ${chalk.yellowBright('https://vitejs.dev/guide/#scaffolding-your-first-vite-project')}
+
+      📦 Angular CLI => ${chalk.green(generatorCommandsMap.angular[packageManagerType])}
+      See ${chalk.yellowBright('https://angular.io/cli/new')}
+
+      📦 Any other tooling of your choice
+
+      Once you've created a project, please re-run ${chalk.green(
+        'npx storybook@latest init'
+      )} inside the project root. For more information, see ${chalk.yellowBright(
+    'https://storybook.js.org/docs'
+  )}
+
+      Good luck! 🚀
+    `;
+};
+
 async function doInitiate(
   options: CommandOptions,
   pkg: PackageJson
@@ -257,6 +293,11 @@ async function doInitiate(
 
     pkgMgr = 'npm';
   }
+
+  const cwdFolderEntries = readdirSync(process.cwd());
+  const isEmptyDir =
+    cwdFolderEntries.length === 0 || cwdFolderEntries.every((entry) => entry.startsWith('.'));
+
   const packageManager = JsPackageManagerFactory.getPackageManager({ force: pkgMgr });
   const welcomeMessage = 'storybook init - the simplest way to add a Storybook to your project.';
   logger.log(chalk.inverse(`\n ${welcomeMessage} \n`));
@@ -268,6 +309,17 @@ async function doInitiate(
     updateCheckInterval: 1000 * 60 * 60, // every hour (we could increase this later on.)
   });
 
+  if (options.force !== true && isEmptyDir) {
+    logger.log(
+      boxen(getEmptyDirMessage(packageManager.type), {
+        borderStyle: 'round',
+        padding: 1,
+        borderColor: '#F1618C',
+      })
+    );
+    throw new HandledError('Project was initialized in an empty directory.');
+  }
+
   let projectType: ProjectType;
   const projectTypeProvided = options.type;
   const infoText = projectTypeProvided
@@ -310,7 +362,6 @@ async function doInitiate(
     logger.log();
 
     if (force) {
-      // eslint-disable-next-line no-param-reassign
       options.force = true;
     } else {
       process.exit(0);
diff --git a/code/lib/cli/src/project_types.ts b/code/lib/cli/src/project_types.ts
index 17bc9c27a25..25c058dee81 100644
--- a/code/lib/cli/src/project_types.ts
+++ b/code/lib/cli/src/project_types.ts
@@ -275,7 +275,11 @@ export const unsupportedTemplate: TemplateConfiguration = {
   },
 };
 
-const notInstallableProjectTypes: ProjectType[] = [ProjectType.UNDETECTED, ProjectType.UNSUPPORTED];
+const notInstallableProjectTypes: ProjectType[] = [
+  ProjectType.UNDETECTED,
+  ProjectType.UNSUPPORTED,
+  ProjectType.NX,
+];
 
 export const installableProjectTypes = Object.values(ProjectType)
   .filter((type) => !notInstallableProjectTypes.includes(type))