diff --git a/packages/angular/build/src/tools/angular/compilation/angular-compilation.ts b/packages/angular/build/src/tools/angular/compilation/angular-compilation.ts
index 6bd836139c5f..d766680d1674 100644
--- a/packages/angular/build/src/tools/angular/compilation/angular-compilation.ts
+++ b/packages/angular/build/src/tools/angular/compilation/angular-compilation.ts
@@ -23,6 +23,7 @@ export interface FileTransformResult {
 
 export interface AngularCompilationOptions {
   allowJs?: boolean;
+  declarationMap?: boolean;
   isolatedModules?: boolean;
   sourceMap?: boolean;
   inlineSourceMap?: boolean;
@@ -52,6 +53,7 @@ export abstract class AngularCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionOverrides?: CompilerOptionOverrides,
+    buildType?: 'application' | 'library',
   ): Promise<AngularCompilationResult>;
 
   emitAffectedFiles(): Iterable<EmitFileResult> | Promise<Iterable<EmitFileResult>> {
diff --git a/packages/angular/build/src/tools/angular/compilation/aot-compilation.ts b/packages/angular/build/src/tools/angular/compilation/aot-compilation.ts
index b42b1273592d..e4047a3e3e1b 100644
--- a/packages/angular/build/src/tools/angular/compilation/aot-compilation.ts
+++ b/packages/angular/build/src/tools/angular/compilation/aot-compilation.ts
@@ -61,10 +61,12 @@ export class AotCompilation extends TypeScriptCompilation {
     super();
   }
 
+  // eslint-disable-next-line max-lines-per-function
   async initialize(
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionOverrides?: CompilerOptionOverrides,
+    buildType: 'application' | 'library' = 'application',
   ): Promise<AngularCompilationResult> {
     // Dynamically load the Angular compiler CLI package
     const { NgtscProgram, OptimizeFor } = await TypeScriptCompilation.loadCompilerCli();
@@ -75,7 +77,7 @@ export class AotCompilation extends TypeScriptCompilation {
       rootNames,
       errors: configurationDiagnostics,
       warnings,
-    } = await this.loadConfiguration(tsconfig, compilerOptionOverrides);
+    } = await this.loadConfiguration(tsconfig, compilerOptionOverrides, buildType);
 
     const useTypeScriptTranspilation =
       (compilerOptions['_useTypeScriptTranspilation'] as boolean | undefined) ??
@@ -332,9 +334,11 @@ export class AotCompilation extends TypeScriptCompilation {
       useTypeScriptTranspilation,
     } = this.#state;
     const compilerOptions = typeScriptProgram.getCompilerOptions();
+    const isLibraryEmit = !!compilerOptions.declaration;
     const buildInfoFilename = compilerOptions.tsBuildInfoFile ?? '.tsbuildinfo';
 
-    const emittedFiles = new Map<ts.SourceFile, EmitFileResult>();
+    const emittedFiles = new Map<string, EmitFileResult>();
+    const emittedSourceFiles = new Set<ts.SourceFile>();
     const writeFileCallback: ts.WriteFileCallback = (filename, contents, _a, _b, sourceFiles) => {
       if (!sourceFiles?.length && filename.endsWith(buildInfoFilename)) {
         // Save builder info contents to specified location
@@ -350,17 +354,21 @@ export class AotCompilation extends TypeScriptCompilation {
       }
 
       angularCompiler.incrementalCompilation.recordSuccessfulEmit(sourceFile);
-      emittedFiles.set(sourceFile, { filename: sourceFile.fileName, contents });
+      emittedSourceFiles.add(sourceFile);
+      const targetFilename = isLibraryEmit ? filename : sourceFile.fileName;
+      emittedFiles.set(targetFilename, { filename: targetFilename, contents });
     };
     const transformers = angularCompiler.prepareEmit().transformers;
-    transformers.before ??= [];
-    transformers.before.push(
-      replaceBootstrap(() => typeScriptProgram.getProgram().getTypeChecker()),
-      webWorkerTransform,
-    );
+    if (!isLibraryEmit) {
+      transformers.before ??= [];
+      transformers.before.push(
+        replaceBootstrap(() => typeScriptProgram.getProgram().getTypeChecker()),
+        webWorkerTransform,
+      );
 
-    if (!this.browserOnlyBuild) {
-      transformers.before.push(lazyRoutesTransformer(compilerOptions, compilerHost));
+      if (!this.browserOnlyBuild) {
+        transformers.before.push(lazyRoutesTransformer(compilerOptions, compilerHost));
+      }
     }
 
     // Emit is handled in write file callback when using TypeScript
@@ -394,7 +402,7 @@ export class AotCompilation extends TypeScriptCompilation {
 
     // Angular may have files that must be emitted but TypeScript does not consider affected
     for (const sourceFile of typeScriptProgram.getSourceFiles()) {
-      if (emittedFiles.has(sourceFile) || angularCompiler.ignoreForEmit.has(sourceFile)) {
+      if (emittedSourceFiles.has(sourceFile) || angularCompiler.ignoreForEmit.has(sourceFile)) {
         continue;
       }
 
@@ -410,7 +418,8 @@ export class AotCompilation extends TypeScriptCompilation {
       }
 
       if (useTypeScriptTranspilation) {
-        typeScriptProgram.emit(sourceFile, writeFileCallback, undefined, undefined, transformers);
+        const emitOnly = affectedFiles.has(sourceFile) ? undefined : false;
+        typeScriptProgram.emit(sourceFile, writeFileCallback, undefined, emitOnly, transformers);
         continue;
       }
 
@@ -451,13 +460,14 @@ export class AotCompilation extends TypeScriptCompilation {
             contents += `\n//# sourceMappingURL=data:application/json;charset=utf-8;base64,${base64Map}`;
           } else if (compilerOptions.sourceMap) {
             const mapFilename = sourceFile.fileName + '.map';
-            emittedFiles.set(sourceFile, { filename: mapFilename, contents: printResult.map });
+            emittedFiles.set(mapFilename, { filename: mapFilename, contents: printResult.map });
           }
         }
       }
 
       angularCompiler.incrementalCompilation.recordSuccessfulEmit(sourceFile);
-      emittedFiles.set(sourceFile, { filename: sourceFile.fileName, contents });
+      emittedSourceFiles.add(sourceFile);
+      emittedFiles.set(sourceFile.fileName, { filename: sourceFile.fileName, contents });
     }
 
     return emittedFiles.values();
diff --git a/packages/angular/build/src/tools/angular/compilation/compiler-options.ts b/packages/angular/build/src/tools/angular/compilation/compiler-options.ts
index 45af80eae6d3..1720a8bb0516 100644
--- a/packages/angular/build/src/tools/angular/compilation/compiler-options.ts
+++ b/packages/angular/build/src/tools/angular/compilation/compiler-options.ts
@@ -21,6 +21,9 @@ export interface CompilerOptionOverrides {
   includeTestMetadata?: boolean;
   customConditions?: string[];
   rootFiles?: string[];
+  declarationMap?: boolean;
+  compilationMode?: 'full' | 'partial';
+  paths?: Record<string, string[]>;
 }
 
 export function transformCompilerOptions(
@@ -28,9 +31,11 @@ export function transformCompilerOptions(
   baseCompilerOptions: ng.CompilerOptions,
   overrides?: CompilerOptionOverrides,
   tsconfig?: string,
+  buildType: 'application' | 'library' = 'application',
 ): { compilerOptions: ng.CompilerOptions; warnings: PartialMessage[] } {
   const compilerOptions = { ...baseCompilerOptions };
   const warnings: PartialMessage[] = [];
+  const isLibrary = buildType === 'library';
 
   if (
     compilerOptions.target === undefined ||
@@ -57,13 +62,15 @@ export function transformCompilerOptions(
     });
   }
 
-  if (compilerOptions.compilationMode === 'partial') {
+  if (!isLibrary && compilerOptions.compilationMode === 'partial') {
     warnings.push({
       text: 'Angular partial compilation mode is not supported when building applications.',
       location: null,
       notes: [{ text: 'Full compilation mode will be used instead.' }],
     });
     compilerOptions.compilationMode = 'full';
+  } else if (overrides?.compilationMode) {
+    compilerOptions.compilationMode = overrides.compilationMode;
   }
 
   // Enable incremental compilation by default if caching is enabled and incremental is not explicitly disabled
@@ -101,6 +108,16 @@ export function transformCompilerOptions(
     });
   }
 
+  if (isLibrary) {
+    compilerOptions.target = typeScript.ScriptTarget.ES2022;
+    compilerOptions.module = typeScript.ModuleKind.ES2022;
+    compilerOptions.moduleResolution = typeScript.ModuleResolutionKind.Bundler;
+    compilerOptions.importHelpers = true;
+    compilerOptions.declaration = true;
+    compilerOptions.declarationMap = overrides?.declarationMap;
+    compilerOptions.declarationDir = undefined;
+  }
+
   // Synchronize custom resolve conditions.
   // Set if using the supported bundler resolution mode (bundler is the default in new projects)
   if (
@@ -116,21 +133,25 @@ export function transformCompilerOptions(
       noEmitOnError: false,
       composite: false,
       inlineSources: !!overrides?.sourcemap,
-      inlineSourceMap: !!overrides?.sourcemap,
-      sourceMap: undefined,
+      inlineSourceMap: !isLibrary && !!overrides?.sourcemap,
+      sourceMap: isLibrary ? !!overrides?.sourcemap : undefined,
       mapRoot: undefined,
       sourceRoot: undefined,
       preserveSymlinks: overrides?.preserveSymlinks,
       externalRuntimeStyles: overrides?.externalRuntimeStyles,
       _enableHmr: !!overrides?.enableHmr,
       // TypeScript transpilation is forced if:
+      // - Building a library (TypeScript emits both .js and .d.ts in a single pass).
       // - isolatedModules is disabled (TS needs full module types to emit JS).
       // - Karma code coverage is active (the coverage instrumentation transformer is Babel-based
       //   and cannot parse raw TypeScript code; Vitest handles coverage instrumentation downstream).
       _useTypeScriptTranspilation:
-        !compilerOptions.isolatedModules || !!overrides?.instrumentForCoverage,
-      supportTestBed: !!overrides?.includeTestMetadata,
-      supportJitMode: !!overrides?.includeTestMetadata,
+        isLibrary || !compilerOptions.isolatedModules || !!overrides?.instrumentForCoverage,
+      supportTestBed: isLibrary ? undefined : !!overrides?.includeTestMetadata,
+      supportJitMode: isLibrary ? undefined : !!overrides?.includeTestMetadata,
+      paths: overrides?.paths
+        ? { ...baseCompilerOptions.paths, ...overrides.paths }
+        : baseCompilerOptions.paths,
     },
     warnings,
   };
diff --git a/packages/angular/build/src/tools/angular/compilation/jit-compilation.ts b/packages/angular/build/src/tools/angular/compilation/jit-compilation.ts
index e89db1e75aa4..773279e236a9 100644
--- a/packages/angular/build/src/tools/angular/compilation/jit-compilation.ts
+++ b/packages/angular/build/src/tools/angular/compilation/jit-compilation.ts
@@ -43,6 +43,7 @@ export class JitCompilation extends TypeScriptCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionOverrides?: CompilerOptionOverrides,
+    buildType: 'application' | 'library' = 'application',
   ): Promise<AngularCompilationResult> {
     // Dynamically load the Angular compiler CLI package
     const { constructorParametersDownlevelTransform } =
@@ -54,7 +55,7 @@ export class JitCompilation extends TypeScriptCompilation {
       rootNames,
       errors: configurationDiagnostics,
       warnings,
-    } = await this.loadConfiguration(tsconfig, compilerOptionOverrides);
+    } = await this.loadConfiguration(tsconfig, compilerOptionOverrides, buildType);
 
     if (hostOptions.modifiedFiles) {
       this.invalidateFiles(hostOptions.modifiedFiles);
diff --git a/packages/angular/build/src/tools/angular/compilation/parallel-compilation.ts b/packages/angular/build/src/tools/angular/compilation/parallel-compilation.ts
index 0b58423a418b..6e4debf62501 100644
--- a/packages/angular/build/src/tools/angular/compilation/parallel-compilation.ts
+++ b/packages/angular/build/src/tools/angular/compilation/parallel-compilation.ts
@@ -52,6 +52,7 @@ export class ParallelCompilation extends AngularCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionOverrides?: CompilerOptionOverrides,
+    buildType: 'application' | 'library' = 'application',
   ): Promise<AngularCompilationResult> {
     const stylesheetChannel = new MessageChannel();
     // The request identifier is required because Angular can issue multiple concurrent requests
@@ -94,6 +95,7 @@ export class ParallelCompilation extends AngularCompilation {
           jit: this.jit,
           browserOnlyBuild: this.browserOnlyBuild,
           compilerOptionOverrides,
+          buildType,
           stylesheetPort: stylesheetChannel.port2,
           webWorkerPort: webWorkerChannel.port2,
           webWorkerSignal,
diff --git a/packages/angular/build/src/tools/angular/compilation/parallel-worker.ts b/packages/angular/build/src/tools/angular/compilation/parallel-worker.ts
index 5bf293da727d..a74c032a1b70 100644
--- a/packages/angular/build/src/tools/angular/compilation/parallel-worker.ts
+++ b/packages/angular/build/src/tools/angular/compilation/parallel-worker.ts
@@ -27,6 +27,7 @@ export interface InitRequest {
   tsconfig: string;
   fileReplacements?: Record<string, string>;
   compilerOptionOverrides?: CompilerOptionOverrides;
+  buildType?: 'application' | 'library';
   stylesheetPort: MessagePort;
   webWorkerPort: MessagePort;
   webWorkerSignal: Int32Array;
@@ -111,6 +112,7 @@ export async function initialize(request: InitRequest): Promise<AngularCompilati
         },
       },
       request.compilerOptionOverrides,
+      request.buildType,
     );
 
     success = true;
@@ -123,6 +125,7 @@ export async function initialize(request: InitRequest): Promise<AngularCompilati
       // TODO: Expand? `allowJs`, `isolatedModules`, `sourceMap`, `inlineSourceMap` are the only fields needed currently.
       compilerOptions: {
         allowJs: compilerOptions.allowJs,
+        declarationMap: compilerOptions.declarationMap,
         isolatedModules: compilerOptions.isolatedModules,
         sourceMap: compilerOptions.sourceMap,
         inlineSourceMap: compilerOptions.inlineSourceMap,
diff --git a/packages/angular/build/src/tools/angular/compilation/typescript-compilation.ts b/packages/angular/build/src/tools/angular/compilation/typescript-compilation.ts
index 48975b672154..2595bc60f55a 100644
--- a/packages/angular/build/src/tools/angular/compilation/typescript-compilation.ts
+++ b/packages/angular/build/src/tools/angular/compilation/typescript-compilation.ts
@@ -34,6 +34,7 @@ export abstract class TypeScriptCompilation extends AngularCompilation {
   protected async loadConfiguration(
     tsconfig: string,
     compilerOptionOverrides?: CompilerOptionOverrides,
+    buildType: 'application' | 'library' = 'application',
   ): Promise<TransformedConfiguration> {
     const { readConfiguration } = await TypeScriptCompilation.loadCompilerCli();
 
@@ -78,6 +79,7 @@ export abstract class TypeScriptCompilation extends AngularCompilation {
       originalCompilerOptions,
       compilerOptionOverrides,
       tsconfig,
+      buildType,
     );
 
     return {