diff --git a/packages/compat/package.json b/packages/compat/package.json
index 971ea0da8..33e141aa7 100644
--- a/packages/compat/package.json
+++ b/packages/compat/package.json
@@ -57,6 +57,7 @@
     "lodash": "^4.17.21",
     "pkg-up": "^3.1.0",
     "resolve": "^1.20.0",
+    "resolve.exports": "^2.0.2",
     "resolve-package-path": "^4.0.1",
     "semver": "^7.3.5",
     "symlink-or-copy": "^1.3.1",
diff --git a/packages/compat/src/compat-app-builder.ts b/packages/compat/src/compat-app-builder.ts
index 97b2fc975..a6f50740c 100644
--- a/packages/compat/src/compat-app-builder.ts
+++ b/packages/compat/src/compat-app-builder.ts
@@ -509,6 +509,13 @@ export class CompatAppBuilder {
 
     if ((this.origAppPackage.packageJSON['ember-addon']?.version ?? 0) < 2) {
       meta['auto-upgraded'] = true;
+      // our rewriting keeps app in app directory, etc.
+      pkgLayers.push({
+        exports: {
+          './*': './app/*',
+          './tests/*': './tests/*',
+        },
+      });
     }
 
     pkgLayers.push({ 'ember-addon': meta });
diff --git a/packages/compat/src/compat-app.ts b/packages/compat/src/compat-app.ts
index 963df0d97..d231ceae5 100644
--- a/packages/compat/src/compat-app.ts
+++ b/packages/compat/src/compat-app.ts
@@ -618,6 +618,7 @@ export default class CompatApp {
     return this.preprocessJS(
       buildFunnel(this.legacyEmberAppInstance.trees.app, {
         exclude: ['styles/**', '*.html'],
+        destDir: 'app',
       })
     );
   }
diff --git a/packages/compat/src/dependency-rules.ts b/packages/compat/src/dependency-rules.ts
index 502a76d58..15f8d326a 100644
--- a/packages/compat/src/dependency-rules.ts
+++ b/packages/compat/src/dependency-rules.ts
@@ -1,7 +1,8 @@
 import type { Resolver } from '@embroider/core';
 import { getOrCreate } from '@embroider/core';
-import { resolve } from 'path';
+import { resolve as pathResolve, dirname } from 'path';
 import { satisfies } from 'semver';
+import { resolve as resolveExports } from 'resolve.exports';
 
 export interface PackageRules {
   // This whole set of rules will only apply when the given addon package
@@ -232,14 +233,20 @@ export function activePackageRules(
 
 export function appTreeRulesDir(root: string, resolver: Resolver) {
   let pkg = resolver.packageCache.ownerOfFile(root);
-  if (pkg?.isV2Addon()) {
-    // in general v2 addons can keep their app tree stuff in other places than
-    // "_app_" and we would need to check their package.json to see. But this code
-    // is only for applying packageRules to auto-upgraded v1 addons and apps, and
-    // those we always organize predictably.
-    return resolve(root, '_app_');
-  } else {
-    // auto-upgraded apps don't get an exist _app_ dir.
-    return root;
+  if (pkg) {
+    if (pkg.isV2Addon()) {
+      // in general v2 addons can keep their app tree stuff in other places than
+      // "_app_" and we would need to check their package.json to see. But this code
+      // is only for applying packageRules to auto-upgraded v1 addons and apps, and
+      // those we always organize predictably.
+      return pathResolve(root, '_app_');
+    } else {
+      // this is an app
+      let matched = resolveExports(pkg.packageJSON, './index.js');
+      if (matched) {
+        return dirname(pathResolve(root, matched[0]));
+      }
+    }
   }
+  return root;
 }
diff --git a/packages/compat/src/resolver-transform.ts b/packages/compat/src/resolver-transform.ts
index 395c804a3..967f5bcaa 100644
--- a/packages/compat/src/resolver-transform.ts
+++ b/packages/compat/src/resolver-transform.ts
@@ -547,17 +547,17 @@ class TemplateResolver implements ASTPlugin {
 
       2. Have a mustache statement like: `{{something}}`, where `something` is:
 
-        a. Not a variable in scope (for example, there's no preceeding line 
+        a. Not a variable in scope (for example, there's no preceeding line
            like `<Parent as |something|>`)
         b. Does not start with `@` because that must be an argument from outside this template.
-        c. Does not contain a dot, like `some.thing` (because that case is classically 
+        c. Does not contain a dot, like `some.thing` (because that case is classically
            never a global component resolution that we would need to handle)
-        d. Does not start with `this` (this rule is mostly redundant with the previous rule, 
+        d. Does not start with `this` (this rule is mostly redundant with the previous rule,
            but even a standalone `this` is never a component invocation).
-        e. Does not have any arguments. If there are argument like `{{something a=b}}`, 
-           there is still ambiguity between helper vs component, but there is no longer 
+        e. Does not have any arguments. If there are argument like `{{something a=b}}`,
+           there is still ambiguity between helper vs component, but there is no longer
            the possibility that this was just rendering some data.
-        f. Does not take a block, like `{{#something}}{{/something}}` (because that is 
+        f. Does not take a block, like `{{#something}}{{/something}}` (because that is
            always a component, no ambiguity.)
 
     We can't tell if this problematic case is really:
@@ -571,7 +571,7 @@ class TemplateResolver implements ASTPlugin {
 
       2. A component invocation, which you could have written `<Something />`
          instead. Angle-bracket invocation has been available and easy-to-adopt
-         for a very long time. 
+         for a very long time.
 
       3. Property-this-fallback for `{{this.something}}`. Property-this-fallback
          is eliminated at Ember 4.0, so people have been heavily pushed to get
diff --git a/packages/compat/tests/audit.test.ts b/packages/compat/tests/audit.test.ts
index d6b40712e..4634d5cad 100644
--- a/packages/compat/tests/audit.test.ts
+++ b/packages/compat/tests/audit.test.ts
@@ -104,6 +104,10 @@ describe('audit', function () {
     merge(app.pkg, {
       'ember-addon': appMeta,
       keywords: ['ember-addon'],
+      exports: {
+        './*': './*',
+        './tests/*': './tests/*',
+      },
     });
   });
 
diff --git a/packages/core/src/module-resolver.ts b/packages/core/src/module-resolver.ts
index 150f0368f..bad3a9994 100644
--- a/packages/core/src/module-resolver.ts
+++ b/packages/core/src/module-resolver.ts
@@ -465,8 +465,15 @@ export class Resolver {
     } else {
       pkg = requestingPkg;
     }
-
-    return logTransition('entrypoint', request, request.virtualize(resolve(pkg.root, '-embroider-entrypoint.js')));
+    let matched = resolveExports(pkg.packageJSON, '-embroider-entrypoint.js', {
+      browser: true,
+      conditions: ['default', 'imports'],
+    });
+    return logTransition(
+      'entrypoint',
+      request,
+      request.virtualize(resolve(pkg.root, matched?.[0] ?? '-embroider-entrypoint.js'))
+    );
   }
 
   private handleRouteEntrypoint<R extends ModuleRequest>(request: R): R {
@@ -486,7 +493,16 @@ export class Resolver {
       throw new Error(`bug: found entrypoint import in non-ember package at ${request.fromFile}`);
     }
 
-    return logTransition('route entrypoint', request, request.virtualize(encodeRouteEntrypoint(pkg.root, routeName)));
+    let matched = resolveExports(pkg.packageJSON, '-embroider-route-entrypoint.js', {
+      browser: true,
+      conditions: ['default', 'imports'],
+    });
+
+    return logTransition(
+      'route entrypoint',
+      request,
+      request.virtualize(encodeRouteEntrypoint(pkg.root, matched?.[0], routeName))
+    );
   }
 
   private handleImplicitTestScripts<R extends ModuleRequest>(request: R): R {
@@ -963,6 +979,11 @@ export class Resolver {
     // ember-source might provide backburner via module renaming, but if you
     // have an explicit dependency on backburner you should still get that real
     // copy.
+
+    // if (pkg.root === this.options.engines[0].root && request.specifier === `${pkg.name}/environment/config`) {
+    //   return logTransition('legacy config location', request, request.alias(`${pkg.name}/app/environment/config`));
+    // }
+
     if (!pkg.hasDependency(packageName)) {
       for (let [candidate, replacement] of Object.entries(this.options.renameModules)) {
         if (candidate === request.specifier) {
@@ -1000,35 +1021,33 @@ export class Resolver {
         let owningEngine = this.owningEngine(pkg);
         let addonConfig = owningEngine.activeAddons.find(a => a.root === pkg.root);
         if (addonConfig) {
+          // auto-upgraded addons get special support for self-resolving here.
           return logTransition(`v1 addon self-import`, request, request.rehome(addonConfig.canResolveFromFile));
         } else {
-          let selfImportPath = request.specifier === pkg.name ? './' : request.specifier.replace(pkg.name, '.');
+          // auto-upgraded apps will necessarily have packageJSON.exports
+          // because we insert them, so for that support we can fall through to
+          // that support below.
+        }
+      }
+
+      // v2 packages are supposed to use package.json `exports` to enable
+      // self-imports, but not all build tools actually follow the spec. This
+      // is a workaround for badly behaved packagers.
+      //
+      // Known upstream bugs this works around:
+      // - https://github.com/vitejs/vite/issues/9731
+      if (pkg.packageJSON.exports) {
+        let found = resolveExports(pkg.packageJSON, request.specifier, {
+          browser: true,
+          conditions: ['default', 'imports'],
+        });
+        if (found?.[0]) {
           return logTransition(
-            `v1 app self-import`,
+            `v2 self-import with package.json exports`,
             request,
-            request.alias(selfImportPath).rehome(resolve(pkg.root, 'package.json'))
+            request.alias(found?.[0]).rehome(resolve(pkg.root, 'package.json'))
           );
         }
-      } else {
-        // v2 packages are supposed to use package.json `exports` to enable
-        // self-imports, but not all build tools actually follow the spec. This
-        // is a workaround for badly behaved packagers.
-        //
-        // Known upstream bugs this works around:
-        // - https://github.com/vitejs/vite/issues/9731
-        if (pkg.packageJSON.exports) {
-          let found = resolveExports(pkg.packageJSON, request.specifier, {
-            browser: true,
-            conditions: ['default', 'imports'],
-          });
-          if (found?.[0]) {
-            return logTransition(
-              `v2 self-import with package.json exports`,
-              request,
-              request.alias(found?.[0]).rehome(resolve(pkg.root, 'package.json'))
-            );
-          }
-        }
       }
     }
 
@@ -1105,21 +1124,15 @@ export class Resolver {
 
       // if the requesting file is in an addon's app-js, the relative request
       // should really be understood as a request for a module in the containing
-      // engine
+      // engine.
       let logicalLocation = this.reverseSearchAppTree(pkg, request.fromFile);
       if (logicalLocation) {
         return logTransition(
           'beforeResolve: relative import in app-js',
           request,
-          request
-            .alias('./' + posix.join(dirname(logicalLocation.inAppName), request.specifier))
-            // it's important that we're rehoming this to the root of the engine
-            // (which we know really exists), and not to a subdir like
-            // logicalLocation.inAppName (which might not physically exist),
-            // because some environments (including node's require.resolve) will
-            // refuse to do resolution from a notional path that doesn't
-            // physically exist.
-            .rehome(resolve(logicalLocation.owningEngine.root, 'package.json'))
+          request.alias(
+            posix.join(logicalLocation.owningEngine.packageName, dirname(logicalLocation.inAppName), request.specifier)
+          )
         );
       }
 
@@ -1301,11 +1314,15 @@ export class Resolver {
       if (withinEngine) {
         // it's a relative import inside an engine (which also means app), which
         // means we may need to satisfy the request via app tree merging.
-        let appJSMatch = await this.searchAppTree(
-          request,
-          withinEngine,
-          explicitRelative(pkg.root, resolve(dirname(request.fromFile), request.specifier))
-        );
+
+        let logicalName = engineRelativeName(pkg, resolve(dirname(request.fromFile), request.specifier));
+        if (!logicalName) {
+          return logTransition(
+            'fallbackResolve: relative failure because this file is not externally accessible',
+            request
+          );
+        }
+        let appJSMatch = await this.searchAppTree(request, withinEngine, logicalName);
         if (appJSMatch) {
           return logTransition('fallbackResolve: relative appJsMatch', request, appJSMatch);
         } else {
@@ -1462,16 +1479,10 @@ export class Resolver {
     if (engineConfig) {
       // we're directly inside an engine, so we're potentially resolvable as a
       // global component
-
-      // this kind of mapping is not true in general for all packages, but it
-      // *is* true for all classical engines (which includes apps) since they
-      // don't support package.json `exports`. As for a future v2 engine or app:
-      // this whole method is only relevant for implementing packageRules, which
-      // should only be for classic stuff. v2 packages should do the right
-      // things from the beginning and not need packageRules about themselves.
-      let inAppName = explicitRelative(engineConfig.root, filename);
-
-      return this.tryReverseComponent(engineConfig.packageName, inAppName);
+      let inAppName = engineRelativeName(owningPackage, filename);
+      if (inAppName) {
+        return this.tryReverseComponent(engineConfig.packageName, inAppName);
+      }
     }
 
     let engineInfo = this.reverseSearchAppTree(owningPackage, filename);
@@ -1523,3 +1534,10 @@ function reliablyResolvable(pkg: V2Package, packageName: string) {
 function appImportInAppTree(inPackage: Package, inLogicalPackage: Package, importedPackageName: string): boolean {
   return inPackage !== inLogicalPackage && importedPackageName === inLogicalPackage.name;
 }
+
+function engineRelativeName(pkg: Package, filename: string): string | undefined {
+  let outsideName = externalName(pkg.packageJSON, explicitRelative(pkg.root, filename));
+  if (outsideName) {
+    return '.' + outsideName.slice(pkg.name.length);
+  }
+}
diff --git a/packages/core/src/virtual-entrypoint.ts b/packages/core/src/virtual-entrypoint.ts
index 257e6b7a1..a74c5648a 100644
--- a/packages/core/src/virtual-entrypoint.ts
+++ b/packages/core/src/virtual-entrypoint.ts
@@ -12,7 +12,7 @@ import escapeRegExp from 'escape-string-regexp';
 
 const entrypointPattern = /(?<filename>.*)[\\/]-embroider-entrypoint.js/;
 
-export function decodeEntrypoint(filename: string): { fromFile: string } | undefined {
+export function decodeEntrypoint(filename: string): { fromDir: string } | undefined {
   // Performance: avoid paying regex exec cost unless needed
   if (!filename.includes('-embroider-entrypoint')) {
     return;
@@ -20,7 +20,7 @@ export function decodeEntrypoint(filename: string): { fromFile: string } | undef
   let m = entrypointPattern.exec(filename);
   if (m) {
     return {
-      fromFile: m.groups!.filename,
+      fromDir: m.groups!.filename,
     };
   }
 }
@@ -33,10 +33,10 @@ export function staticAppPathsPattern(staticAppPaths: string[] | undefined): Reg
 
 export function renderEntrypoint(
   resolver: Resolver,
-  { fromFile }: { fromFile: string }
+  { fromDir }: { fromDir: string }
 ): { src: string; watches: string[] } {
   // this is new
-  const owner = resolver.packageCache.ownerOfFile(fromFile);
+  const owner = resolver.packageCache.ownerOfFile(fromDir);
 
   let eagerModules: string[] = [];
 
@@ -61,7 +61,7 @@ export function renderEntrypoint(
       modulePrefix: isApp ? resolver.options.modulePrefix : engine.packageName,
       appRelativePath: 'NOT_USED_DELETE_ME',
     },
-    getAppFiles(owner.root),
+    getAppFiles(fromDir),
     hasFastboot ? getFastbootFiles(owner.root) : new Set(),
     extensionsPattern(resolver.options.resolvableExtensions),
     staticAppPathsPattern(resolver.options.staticAppPaths),
@@ -154,8 +154,6 @@ export function renderEntrypoint(
 const entryTemplate = compile(`
 import { macroCondition, getGlobalConfig } from '@embroider/macros';
 
-import environment from './config/environment';
-
 {{#if styles}}
   if (macroCondition(!getGlobalConfig().fastboot?.isRunning)) {
     {{#each styles as |stylePath| ~}}
diff --git a/packages/core/src/virtual-route-entrypoint.ts b/packages/core/src/virtual-route-entrypoint.ts
index 82f589fe6..32a7af5a6 100644
--- a/packages/core/src/virtual-route-entrypoint.ts
+++ b/packages/core/src/virtual-route-entrypoint.ts
@@ -9,11 +9,11 @@ import { getAppFiles, getFastbootFiles, importPaths, splitRoute, staticAppPathsP
 
 const entrypointPattern = /(?<filename>.*)[\\/]-embroider-route-entrypoint.js:route=(?<route>.*)/;
 
-export function encodeRouteEntrypoint(packagePath: string, routeName: string): string {
-  return resolve(packagePath, `-embroider-route-entrypoint.js:route=${routeName}`);
+export function encodeRouteEntrypoint(packagePath: string, matched: string | undefined, routeName: string): string {
+  return resolve(packagePath, `${matched}:route=${routeName}` ?? `-embroider-route-entrypoint.js:route=${routeName}`);
 }
 
-export function decodeRouteEntrypoint(filename: string): { fromFile: string; route: string } | undefined {
+export function decodeRouteEntrypoint(filename: string): { fromDir: string; route: string } | undefined {
   // Performance: avoid paying regex exec cost unless needed
   if (!filename.includes('-embroider-route-entrypoint')) {
     return;
@@ -21,7 +21,7 @@ export function decodeRouteEntrypoint(filename: string): { fromFile: string; rou
   let m = entrypointPattern.exec(filename);
   if (m) {
     return {
-      fromFile: m.groups!.filename,
+      fromDir: m.groups!.filename,
       route: m.groups!.route,
     };
   }
@@ -42,9 +42,9 @@ export function decodePublicRouteEntrypoint(specifier: string): string | null {
 
 export function renderRouteEntrypoint(
   resolver: Resolver,
-  { fromFile, route }: { fromFile: string; route: string }
+  { fromDir, route }: { fromDir: string; route: string }
 ): { src: string; watches: string[] } {
-  const owner = resolver.packageCache.ownerOfFile(fromFile);
+  const owner = resolver.packageCache.ownerOfFile(fromDir);
 
   if (!owner) {
     throw new Error('Owner expected'); // ToDo: Really bad error, update message
@@ -67,7 +67,7 @@ export function renderRouteEntrypoint(
       modulePrefix: isApp ? resolver.options.modulePrefix : engine.packageName,
       appRelativePath: 'NOT_USED_DELETE_ME',
     },
-    getAppFiles(owner.root),
+    getAppFiles(fromDir),
     hasFastboot ? getFastbootFiles(owner.root) : new Set(),
     extensionsPattern(resolver.options.resolvableExtensions),
     staticAppPathsPattern(resolver.options.staticAppPaths),
diff --git a/packages/shared-internals/package.json b/packages/shared-internals/package.json
index c6aa44a28..4da247271 100644
--- a/packages/shared-internals/package.json
+++ b/packages/shared-internals/package.json
@@ -37,6 +37,7 @@
     "fs-extra": "^9.1.0",
     "lodash": "^4.17.21",
     "minimatch": "^3.0.4",
+    "resolve.exports": "^2.0.2",
     "semver": "^7.3.5"
   },
   "devDependencies": {
diff --git a/packages/shared-internals/src/colocation.ts b/packages/shared-internals/src/colocation.ts
index e22101555..8a732ad91 100644
--- a/packages/shared-internals/src/colocation.ts
+++ b/packages/shared-internals/src/colocation.ts
@@ -2,6 +2,7 @@ import { existsSync } from 'fs-extra';
 import { cleanUrl } from './paths';
 import type PackageCache from './package-cache';
 import { sep } from 'path';
+import { resolve as resolveExports } from 'resolve.exports';
 
 export function syntheticJStoHBS(source: string): string | null {
   // explicit js is the only case we care about here. Synthetic template JS is
@@ -40,9 +41,18 @@ function correspondingJSExists(id: string): boolean {
   return ['js', 'ts'].some(ext => existsSync(id.slice(0, -3) + ext));
 }
 
-function isInComponents(id: string, packageCache: Pick<PackageCache, 'ownerOfFile'>) {
+export function isInComponents(id: string, packageCache: Pick<PackageCache, 'ownerOfFile'>) {
   const pkg = packageCache.ownerOfFile(id);
-  return pkg?.isV2App() && id.slice(pkg?.root.length).split(sep).join('/').startsWith('/components');
+  if (!pkg?.isV2App()) {
+    return false;
+  }
+
+  let tryResolve = resolveExports(pkg.packageJSON, './components', {
+    browser: true,
+    conditions: ['default', 'imports'],
+  });
+  let componentsDir = tryResolve?.[0] ?? './components';
+  return ('.' + id.slice(pkg?.root.length).split(sep).join('/')).startsWith(componentsDir);
 }
 
 export function templateOnlyComponentSource() {
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 14e9e146d..306a6e478 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -277,6 +277,9 @@ importers:
       resolve-package-path:
         specifier: ^4.0.1
         version: 4.0.3
+      resolve.exports:
+        specifier: ^2.0.2
+        version: 2.0.2
       semver:
         specifier: ^7.3.5
         version: 7.6.3
@@ -710,6 +713,9 @@ importers:
       resolve-package-path:
         specifier: ^4.0.1
         version: 4.0.3
+      resolve.exports:
+        specifier: ^2.0.2
+        version: 2.0.2
       semver:
         specifier: ^7.3.5
         version: 7.6.3
diff --git a/tests/addon-template/tests/dummy/app/index.html b/tests/addon-template/tests/dummy/app/index.html
index c55e417ab..44af3dc9b 100644
--- a/tests/addon-template/tests/dummy/app/index.html
+++ b/tests/addon-template/tests/dummy/app/index.html
@@ -18,8 +18,8 @@
 
     <script src="/@embroider/core/vendor.js"></script>
     <script type="module">
-      import Application from './app';
-      import environment from './config/environment';
+      import Application from './app/app.js';
+      import environment from './app/config/environment';
 
       Application.create(environment.APP);
     </script>
diff --git a/tests/app-template/app/index.html b/tests/app-template/app/index.html
index c53dfc7da..60a4b93e5 100644
--- a/tests/app-template/app/index.html
+++ b/tests/app-template/app/index.html
@@ -18,8 +18,8 @@
 
     <script src="/@embroider/core/vendor.js"></script>
     <script type="module">
-      import Application from './app';
-      import environment from './config/environment';
+      import Application from './app/app';
+      import environment from './app/config/environment';
 
       Application.create(environment.APP);
     </script>
diff --git a/tests/app-template/package.json b/tests/app-template/package.json
index 978fc99dc..0d674cf66 100644
--- a/tests/app-template/package.json
+++ b/tests/app-template/package.json
@@ -11,7 +11,8 @@
     "test": "tests"
   },
   "exports": {
-    "./*": "./*"
+    "./tests/*": "./tests/*",
+    "./*": "./app/*"
   },
   "scripts": {
     "build": "vite build",
diff --git a/tests/fixtures/macro-sample-addon/tests/dummy/app/index.html b/tests/fixtures/macro-sample-addon/tests/dummy/app/index.html
index 24d04a975..8dfc7c9bd 100644
--- a/tests/fixtures/macro-sample-addon/tests/dummy/app/index.html
+++ b/tests/fixtures/macro-sample-addon/tests/dummy/app/index.html
@@ -18,8 +18,8 @@
 
     <script src="/@embroider/core/vendor.js"></script>
     <script type="module">
-      import Application from './app';
-      import environment from './config/environment';
+      import Application from './app/app.js';
+      import environment from './app/config/environment';
 
       window.LoadedFromCustomAppBoot = true;
       Application.create(environment.APP);
diff --git a/tests/scenarios/compat-addon-classic-features-test.ts b/tests/scenarios/compat-addon-classic-features-test.ts
index 3f5ebbd58..2700b77d1 100644
--- a/tests/scenarios/compat-addon-classic-features-test.ts
+++ b/tests/scenarios/compat-addon-classic-features-test.ts
@@ -42,14 +42,14 @@ appScenarios
 
         const EmberApp = require('ember-cli/lib/broccoli/ember-app');
         const { maybeEmbroider } = require('@embroider/test-setup');
-        
+
         module.exports = function (defaults) {
           let app = new EmberApp(defaults, {
             ...(process.env.FORCE_BUILD_TESTS ? {
               tests: true,
             } : undefined),
           });
-        
+
           return maybeEmbroider(app, {
             availableContentForTypes: ['custom'],
             skipBabel: [
@@ -69,26 +69,26 @@ appScenarios
               <title>AppTemplate</title>
               <meta name="description" content="">
               <meta name="viewport" content="width=device-width, initial-scale=1">
-          
+
               {{content-for "head"}}
-          
+
               <link integrity="" rel="stylesheet" href="/@embroider/core/vendor.css">
               <link integrity="" rel="stylesheet" href="/assets/app-template.css">
-          
+
               {{content-for "head-footer"}}
             </head>
             <body>
               {{content-for "body"}}
               {{content-for "custom"}}
-          
+
               <script src="/@embroider/core/vendor.js"></script>
               <script type="module">
-                import Application from './app';
-                import environment from './config/environment';
+                import Application from './app/app.js';
+                import environment from './app/config/environment';
 
                 Application.create(environment.APP);
               </script>
-          
+
               {{content-for "body-footer"}}
             </body>
           </html>
diff --git a/tests/scenarios/compat-dummy-app-test.ts b/tests/scenarios/compat-dummy-app-test.ts
index 1ffd69f6e..29c798a5a 100644
--- a/tests/scenarios/compat-dummy-app-test.ts
+++ b/tests/scenarios/compat-dummy-app-test.ts
@@ -76,7 +76,8 @@ dummyAppScenarios
       });
 
       test('production build contains public assets from both addon and dummy app after a build', async function (assert) {
-        await app.execute(`pnpm vite build`);
+        let result = await app.execute(`pnpm vite build`);
+        assert.equal(result.exitCode, 0, result.output);
         let content = readFileSync(`${app.dir}/dist/robots.txt`).toString();
         assert.strictEqual(content, 'go away bots');
         content = readFileSync(`${app.dir}/dist/addon-template/from-addon.txt`).toString();
diff --git a/tests/scenarios/compat-exclude-dot-files-test.ts b/tests/scenarios/compat-exclude-dot-files-test.ts
index 0e6756640..270e4c508 100644
--- a/tests/scenarios/compat-exclude-dot-files-test.ts
+++ b/tests/scenarios/compat-exclude-dot-files-test.ts
@@ -79,9 +79,9 @@ appScenarios
 
       test('dot files are not included as app modules', function (assert) {
         // dot files should exist on disk
-        expectFile('./.foobar.js').exists();
-        expectFile('./.barbaz.js').exists();
-        expectFile('./bizbiz.js').exists();
+        expectFile('./app/.foobar.js').exists();
+        expectFile('./app/.barbaz.js').exists();
+        expectFile('./app/bizbiz.js').exists();
 
         // but not be picked up in the entrypoint
         expectAudit
diff --git a/tests/scenarios/compat-preprocessors-test.ts b/tests/scenarios/compat-preprocessors-test.ts
index f8bd78979..0a607db83 100644
--- a/tests/scenarios/compat-preprocessors-test.ts
+++ b/tests/scenarios/compat-preprocessors-test.ts
@@ -114,10 +114,13 @@ appScenarios
       });
 
       test('app has correct path embedded in comment', () => {
-        const assertFile = expectFile('./components/from-the-app.js');
+        const assertFile = expectFile('./app/components/from-the-app.js');
         assertFile.exists();
         // This is the expected output during an classic build.
-        assertFile.matches(/path@app-template\/components\/from-the-app\.js/, 'has a path comment in app components');
+        assertFile.matches(
+          /path@app-template\/app\/components\/from-the-app\.js/,
+          'has a path comment in app components'
+        );
       });
 
       test('addon has correct path embedded in comment', () => {
diff --git a/tests/scenarios/compat-route-split-test.ts b/tests/scenarios/compat-route-split-test.ts
index 116b1f2b5..4b05ebccb 100644
--- a/tests/scenarios/compat-route-split-test.ts
+++ b/tests/scenarios/compat-route-split-test.ts
@@ -68,7 +68,7 @@ function checkContents(
     .module('./index.html')
     .resolves(/\/index.html.*/) // in-html app-boot script
     .toModule()
-    .resolves(/\/app\.js.*/)
+    .resolves(/\/app\/app\.js.*/)
     .toModule()
     .resolves(/.*\/-embroider-entrypoint.js/);
 
@@ -112,7 +112,9 @@ function inEntrypointFunction(expectAudit: ReturnType<typeof setupAuditTest>) {
         if (Array.isArray(text)) {
           text.forEach(t => {
             if (!contents.includes(t)) {
-              throw new Error(`${t} should be found in entrypoint`);
+              throw new Error(`${t} should be found in entrypoint:
+---
+${contents}`);
             }
           });
         } else if (text instanceof RegExp) {
@@ -229,21 +231,21 @@ splitScenarios
 
       test('has split controllers in route entrypoint', function () {
         inEntrypoint(
-          ['controllers/people', 'controllers/people/show'],
+          ['app/controllers/people', 'app/controllers/people/show'],
           /@id\/embroider_virtual:.*-embroider-route-entrypoint.js:route=people/
         );
       });
 
       test('has split route templates in route entrypoint', function () {
         inEntrypoint(
-          ['templates/people', 'templates/people/index', 'templates/people/show'],
+          ['app/templates/people', 'app/templates/people/index', 'app/templates/people/show'],
           /@id\/embroider_virtual:.*-embroider-route-entrypoint.js:route=people/
         );
       });
 
       test('has split routes in route entrypoint', function () {
         inEntrypoint(
-          ['routes/people', 'routes/people/show'],
+          ['app/routes/people', 'app/routes/people/show'],
           /@id\/embroider_virtual:.*-embroider-route-entrypoint.js:route=people/
         );
       });
@@ -268,19 +270,19 @@ splitScenarios
       });
 
       test('helper is consumed only from the template that uses it', function () {
-        expectAudit.module('./helpers/capitalize.js').hasConsumers(['./components/one-person.hbs']);
+        expectAudit.module('./app/helpers/capitalize.js').hasConsumers(['./app/components/one-person.hbs']);
       });
 
       test('component is consumed only from the template that uses it', function () {
-        expectAudit.module('./components/one-person.js').hasConsumers(['./templates/people/show.hbs']);
+        expectAudit.module('./app/components/one-person.js').hasConsumers(['./app/templates/people/show.hbs']);
       });
 
       test('modifier is consumed only from the template that uses it', function () {
-        expectAudit.module('./modifiers/auto-focus.js').hasConsumers(['./templates/people/edit.hbs']);
+        expectAudit.module('./app/modifiers/auto-focus.js').hasConsumers(['./app/templates/people/edit.hbs']);
       });
 
       test('does not include unused component', function () {
-        expectAudit.module('./components/unused.hbs').doesNotExist();
+        expectAudit.module('./app/components/unused.hbs').doesNotExist();
       });
     });
   });
@@ -444,19 +446,19 @@ splitScenarios
       });
 
       test('helper is consumed only from the template that uses it', function () {
-        expectAudit.module('./helpers/capitalize.js').hasConsumers(['./components/one-person.hbs']);
+        expectAudit.module('./app/helpers/capitalize.js').hasConsumers(['./app/components/one-person.hbs']);
       });
 
       test('component is consumed only from the template that uses it', function () {
-        expectAudit.module('./components/one-person.js').hasConsumers(['./pods/people/show/template.hbs']);
+        expectAudit.module('./app/components/one-person.js').hasConsumers(['./app/pods/people/show/template.hbs']);
       });
 
       test('modifier is consumed only from the template that uses it', function () {
-        expectAudit.module('./modifiers/auto-focus.js').hasConsumers(['./pods/people/edit/template.hbs']);
+        expectAudit.module('./app/modifiers/auto-focus.js').hasConsumers(['./app/pods/people/edit/template.hbs']);
       });
 
       test('does not include unused component', function () {
-        expectAudit.module('./components/unused.hbs').doesNotExist();
+        expectAudit.module('./app/components/unused.hbs').doesNotExist();
       });
     });
   });
@@ -620,19 +622,19 @@ splitScenarios
       });
 
       test('helper is consumed only from the template that uses it', function () {
-        expectAudit.module('./helpers/capitalize.js').hasConsumers(['./components/one-person.hbs']);
+        expectAudit.module('./app/helpers/capitalize.js').hasConsumers(['./app/components/one-person.hbs']);
       });
 
       test('component is consumed only from the template that uses it', function () {
-        expectAudit.module('./components/one-person.js').hasConsumers(['./routes/people/show/template.hbs']);
+        expectAudit.module('./app/components/one-person.js').hasConsumers(['./app/routes/people/show/template.hbs']);
       });
 
       test('modifier is consumed only from the template that uses it', function () {
-        expectAudit.module('./modifiers/auto-focus.js').hasConsumers(['./routes/people/edit/template.hbs']);
+        expectAudit.module('./app/modifiers/auto-focus.js').hasConsumers(['./app/routes/people/edit/template.hbs']);
       });
 
       test('does not include unused component', function () {
-        expectAudit.module('./components/unused.hbs').doesNotExist();
+        expectAudit.module('./app/components/unused.hbs').doesNotExist();
       });
     });
   });
diff --git a/tests/scenarios/compat-stage2-test.ts b/tests/scenarios/compat-stage2-test.ts
index 53b6ceb0a..8663049b3 100644
--- a/tests/scenarios/compat-stage2-test.ts
+++ b/tests/scenarios/compat-stage2-test.ts
@@ -24,7 +24,7 @@ function resolveEntryPoint(expectAudit: ReturnType<typeof setupAuditTest>) {
     .module('./index.html')
     .resolves(/\/index.html.*/) // in-html app-boot script
     .toModule()
-    .resolves(/\/app\.js.*/)
+    .resolves(/\/app\/app\.js.*/)
     .toModule()
     .resolves(/.*\/-embroider-entrypoint.js/)
     .toModule();
@@ -563,7 +563,7 @@ stage2Scenarios
       });
 
       test('index.hbs', function (assert) {
-        let expectModule = expectAudit.module('./templates/index.hbs');
+        let expectModule = expectAudit.module('./app/templates/index.hbs');
 
         // explicit dependency
         expectModule
@@ -606,7 +606,7 @@ stage2Scenarios
       });
 
       test('curly.hbs', function (assert) {
-        let expectModule = expectAudit.module('./templates/curly.hbs');
+        let expectModule = expectAudit.module('./app/templates/curly.hbs');
         expectModule
           .resolves(/my-addon\/_app_\/components\/hello-world/)
           .toModule()
@@ -635,7 +635,7 @@ stage2Scenarios
 
       test('app/hello-world.js', function (assert) {
         expectAudit
-          .module('./templates/index.hbs')
+          .module('./app/templates/index.hbs')
           .resolves(/my-addon\/_app_\/components\/hello-world/)
           .toModule()
           .withContents(contents => {
@@ -655,7 +655,7 @@ stage2Scenarios
 
       test('addon/hello-world.js', function (assert) {
         const expectModule = expectAudit
-          .module('./templates/index.hbs')
+          .module('./app/templates/index.hbs')
           .resolves(/my-addon\/_app_\/components\/hello-world/)
           .toModule()
           .resolves(/my-addon\/components\/hello-world\.js/) // remapped to precise copy of my-addon
@@ -692,7 +692,7 @@ stage2Scenarios
 
       test('app/templates/components/direct-template-reexport.js', function (assert) {
         expectAudit
-          .module('./templates/index.hbs')
+          .module('./app/templates/index.hbs')
           .resolves(/my-addon\/_app_\/templates\/components\/direct-template-reexport\.js\/-embroider-pair-component/)
           .toModule()
           .resolves(/my-addon\/_app_\/templates\/components\/direct-template-reexport\.js/)
@@ -707,7 +707,7 @@ stage2Scenarios
 
       test('uses-inline-template.js', function (assert) {
         expectAudit
-          .module('./components/uses-inline-template.js')
+          .module('./app/components/uses-inline-template.js')
           .resolves(/\/components\/first-choice.hbs\/-embroider-pair-component/)
           .toModule()
           .withContents(contents => {
@@ -720,7 +720,7 @@ stage2Scenarios
 
       test('component with relative import of arbitrarily placed template', function () {
         expectAudit
-          .module(/\/app\.js.*/)
+          .module(/\/app\/app\.js.*/)
           .resolves(/.*\/-embroider-entrypoint\.js/)
           .toModule()
           .resolves(/.*\/-embroider-implicit-modules\.js/)
@@ -734,7 +734,7 @@ stage2Scenarios
 
       test('app can import a deep addon', function () {
         expectAudit
-          .module('./use-deep-addon.js')
+          .module('./app/use-deep-addon.js')
           .resolves(/deep-addon\/index.js/)
           .toModule()
           .codeContains('export default function () {}');
@@ -771,27 +771,27 @@ stage2Scenarios
       });
 
       test(`app's babel plugins ran`, async function () {
-        let assertFile = expectFile('custom-babel-needed.js').transform(build.transpile);
+        let assertFile = expectFile('app/custom-babel-needed.js').transform(build.transpile);
         assertFile.matches(/console\.log\(['"]embroider-sample-transforms-result['"]\)/);
       });
 
       test('dynamic import is preserved', function () {
-        expectFile('./does-dynamic-import.js')
+        expectFile('./app/does-dynamic-import.js')
           .transform(build.transpile)
           .matches(/return import\(['"]some-library['"]\)/);
       });
 
       test('hbs transform sees expected module name', function () {
-        let assertFile = expectFile('templates/components/module-name-check/index.hbs').transform(build.transpile);
+        let assertFile = expectFile('app/templates/components/module-name-check/index.hbs').transform(build.transpile);
         assertFile.matches(
-          '"my-app/templates/components/module-name-check/index.hbs"',
+          '"my-app/app/templates/components/module-name-check/index.hbs"',
           'our sample transform injected the expected moduleName into the compiled template'
         );
       });
 
       test('non-static other paths are included in the entrypoint', function (assert) {
         resolveEntryPoint(expectAudit).withContents(contents => {
-          const result = /import \* as (\w+) from "\/non-static-dir\/another-library.js";/.exec(contents);
+          const result = /import \* as (\w+) from "\/app\/non-static-dir\/another-library.js";/.exec(contents);
 
           if (!result) {
             throw new Error('Could not find import for non-static-dir/another-library');
@@ -900,7 +900,7 @@ dummyAppScenarios
       });
 
       test('dummy app sees that its being developed', function () {
-        let assertFile = expectFile('../../tmp/rewritten-app/components/inside-dummy-app.js').transform(
+        let assertFile = expectFile('../../tmp/rewritten-app/app/components/inside-dummy-app.js').transform(
           build.transpile
         );
         assertFile.matches(/console\.log\(true\)/);
diff --git a/tests/scenarios/compat-template-colocation-test.ts b/tests/scenarios/compat-template-colocation-test.ts
index 02e4a0c39..b1862cfcc 100644
--- a/tests/scenarios/compat-template-colocation-test.ts
+++ b/tests/scenarios/compat-template-colocation-test.ts
@@ -158,7 +158,7 @@ module('Integration | Component | addon-component-one', function (hooks) {
           expectAudit,
           contents => {
             assert.ok(
-              /import TEMPLATE from ['"]\/components\/has-colocated-template.hbs.*['"];/.test(contents),
+              /import TEMPLATE from ['"]\/app\/components\/has-colocated-template.hbs.*['"];/.test(contents),
               'imported template'
             );
             assert.ok(/import \{ setComponentTemplate \}/.test(contents), 'found setComponentTemplate');
@@ -176,7 +176,7 @@ module('Integration | Component | addon-component-one', function (hooks) {
           expectAudit,
           contents => {
             assert.ok(
-              /import TEMPLATE from ['"]\/components\/template-only-component.hbs.*['"];/.test(contents),
+              /import TEMPLATE from ['"]\/app\/components\/template-only-component.hbs.*['"];/.test(contents),
               'imported template'
             );
             assert.ok(/import \{ setComponentTemplate \}/.test(contents), 'found setComponentTemplate');
@@ -193,7 +193,7 @@ module('Integration | Component | addon-component-one', function (hooks) {
 
       test(`app's colocated components are implicitly included correctly`, function (assert) {
         checkContents(expectAudit, contents => {
-          const result = /import \* as (\w+) from "\/components\/has-colocated-template.js.*";/.exec(contents);
+          const result = /import \* as (\w+) from "\/app\/components\/has-colocated-template.js.*";/.exec(contents);
 
           if (!result) {
             console.log(contents);
@@ -392,12 +392,12 @@ appScenarios
           .module('./index.html')
           .resolves(/\/index.html.*/) // in-html app-boot script
           .toModule()
-          .resolves(/\/app\.js.*/)
+          .resolves(/\/app\/app\.js.*/)
           .toModule()
           .resolves(/.*\/-embroider-entrypoint.js/)
           .toModule()
           .withContents(content => {
-            let result = /import \* as (\w+) from "\/components\/pod-component\/component\.js"/.exec(content);
+            let result = /import \* as (\w+) from "\/app\/components\/pod-component\/component\.js"/.exec(content);
 
             if (!result) {
               throw new Error('Could not find pod component');
@@ -409,7 +409,7 @@ appScenarios
               'expected module is in the export list'
             );
 
-            result = /import \* as (\w+) from "\/components\/pod-component\/template\.hbs.*"/.exec(content);
+            result = /import \* as (\w+) from "\/app\/components\/pod-component\/template\.hbs.*"/.exec(content);
 
             if (!result) {
               throw new Error('Could not find pod component template');
@@ -421,7 +421,7 @@ appScenarios
               'expected module is in the export list'
             );
 
-            result = /import \* as (\w+) from "\/components\/template-only\/template\.hbs.*"/.exec(content);
+            result = /import \* as (\w+) from "\/app\/components\/template-only\/template\.hbs.*"/.exec(content);
 
             if (!result) {
               throw new Error('Could not find template only component');
diff --git a/tests/scenarios/core-resolver-test.ts b/tests/scenarios/core-resolver-test.ts
index 764cc19b3..583dbd575 100644
--- a/tests/scenarios/core-resolver-test.ts
+++ b/tests/scenarios/core-resolver-test.ts
@@ -30,6 +30,10 @@ Scenarios.fromProject(() => new Project())
       name: 'my-app',
       keywords: ['ember-addon'],
       'ember-addon': appMeta as any,
+      exports: {
+        './*': './*',
+        './tests/*': './tests/*',
+      },
     };
     app.mergeFiles({
       'index.html': '<script src="./app.js" type="module"></script>',
diff --git a/tests/ts-app-template/app/index.html b/tests/ts-app-template/app/index.html
index 8fcb46225..3c632d832 100644
--- a/tests/ts-app-template/app/index.html
+++ b/tests/ts-app-template/app/index.html
@@ -18,8 +18,8 @@
 
     <script src="/@embroider/core/vendor.js"></script>
     <script type="module">
-      import Application from './app';
-      import environment from './config/environment';
+      import Application from './app/app.ts';
+      import environment from './app/config/environment';
 
       Application.create(environment.APP);
     </script>
diff --git a/tests/ts-app-template/package.json b/tests/ts-app-template/package.json
index 090209d6c..2b35c5725 100644
--- a/tests/ts-app-template/package.json
+++ b/tests/ts-app-template/package.json
@@ -11,7 +11,8 @@
     "test": "tests"
   },
   "exports": {
-    "./*": "./*"
+    "./tests/*": "./tests/*",
+    "./*": "./app/*"
   },
   "scripts": {
     "build": "ember build --environment=production",