diff --git a/code/lib/cli/src/detect.test.ts b/code/lib/cli/src/detect.test.ts
index 85f29d884d41..7a78fa8fa536 100644
--- a/code/lib/cli/src/detect.test.ts
+++ b/code/lib/cli/src/detect.test.ts
@@ -236,17 +236,28 @@ describe('Detect', () => {
   it(`should return type HTML if html option is passed`, async () => {
     const packageManager = {
       retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+      getAllDependencies: () => Promise.resolve({}),
       getPackageVersion: () => Promise.resolve(null),
-    } as any as JsPackageManager;
+    } as Partial<JsPackageManager>;
 
-    await expect(detect(packageManager, { html: true })).resolves.toBe(ProjectType.HTML);
+    await expect(detect(packageManager as any, { html: true })).resolves.toBe(ProjectType.HTML);
   });
 
   it(`should return language javascript if the TS dependency is present but less than minimum supported`, async () => {
     (logger.warn as jest.MockedFunction<typeof logger.warn>).mockClear();
 
     const packageManager = {
-      retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+      retrievePackageJson: () =>
+        Promise.resolve({
+          dependencies: {},
+          devDependencies: {
+            typescript: '1.0.0',
+          },
+        }),
+      getAllDependencies: () =>
+        Promise.resolve({
+          typescript: '1.0.0',
+        }),
       getPackageVersion: (packageName) => {
         switch (packageName) {
           case 'typescript':
@@ -266,7 +277,17 @@ describe('Detect', () => {
   it(`should return language typescript-3-8 if the TS dependency is >=3.8 and <4.9`, async () => {
     await expect(
       detectLanguage({
-        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        retrievePackageJson: () =>
+          Promise.resolve({
+            dependencies: {},
+            devDependencies: {
+              typescript: '3.8.0',
+            },
+          }),
+        getAllDependencies: () =>
+          Promise.resolve({
+            typescript: '3.8.0',
+          }),
         getPackageVersion: (packageName: string) => {
           switch (packageName) {
             case 'typescript':
@@ -280,7 +301,17 @@ describe('Detect', () => {
 
     await expect(
       detectLanguage({
-        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        retrievePackageJson: () =>
+          Promise.resolve({
+            dependencies: {},
+            devDependencies: {
+              typescript: '4.8.0',
+            },
+          }),
+        getAllDependencies: () =>
+          Promise.resolve({
+            typescript: '4.8.0',
+          }),
         getPackageVersion: (packageName: string) => {
           switch (packageName) {
             case 'typescript':
@@ -296,7 +327,17 @@ describe('Detect', () => {
   it(`should return language typescript-4-9 if the dependency is >TS4.9`, async () => {
     await expect(
       detectLanguage({
-        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        retrievePackageJson: () =>
+          Promise.resolve({
+            dependencies: {},
+            devDependencies: {
+              typescript: '4.9.1',
+            },
+          }),
+        getAllDependencies: () =>
+          Promise.resolve({
+            typescript: '4.9.1',
+          }),
         getPackageVersion: (packageName: string) => {
           switch (packageName) {
             case 'typescript':
@@ -312,7 +353,17 @@ describe('Detect', () => {
   it(`should return language typescript if the dependency is =TS4.9`, async () => {
     await expect(
       detectLanguage({
-        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        retrievePackageJson: () =>
+          Promise.resolve({
+            dependencies: {},
+            devDependencies: {
+              typescript: '4.9.0',
+            },
+          }),
+        getAllDependencies: () =>
+          Promise.resolve({
+            typescript: '4.9.0',
+          }),
         getPackageVersion: (packageName: string) => {
           switch (packageName) {
             case 'typescript':
@@ -328,7 +379,17 @@ describe('Detect', () => {
   it(`should return language typescript if the dependency is =TS4.9beta`, async () => {
     await expect(
       detectLanguage({
-        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        retrievePackageJson: () =>
+          Promise.resolve({
+            dependencies: {},
+            devDependencies: {
+              typescript: '4.9.0-beta',
+            },
+          }),
+        getAllDependencies: () =>
+          Promise.resolve({
+            typescript: '4.9.0-beta',
+          }),
         getPackageVersion: (packageName: string) => {
           switch (packageName) {
             case 'typescript':
@@ -345,6 +406,7 @@ describe('Detect', () => {
     await expect(
       detectLanguage({
         retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        getAllDependencies: () => Promise.resolve({}),
         getPackageVersion: () => {
           return Promise.resolve(null);
         },
@@ -352,6 +414,23 @@ describe('Detect', () => {
     ).resolves.toBe(SupportedLanguage.JAVASCRIPT);
   });
 
+  it(`should return language Javascript even when Typescript is detected in the node_modules but not listed as a direct dependency`, async () => {
+    await expect(
+      detectLanguage({
+        retrievePackageJson: () => Promise.resolve({ dependencies: {}, devDependencies: {} }),
+        getAllDependencies: () => Promise.resolve({}),
+        getPackageVersion: (packageName) => {
+          switch (packageName) {
+            case 'typescript':
+              return Promise.resolve('4.9.0');
+            default:
+              return Promise.resolve(null);
+          }
+        },
+      } as Partial<JsPackageManager> as JsPackageManager)
+    ).resolves.toBe(SupportedLanguage.JAVASCRIPT);
+  });
+
   describe('detectFrameworkPreset should return', () => {
     afterEach(() => {
       jest.clearAllMocks();
diff --git a/code/lib/cli/src/detect.ts b/code/lib/cli/src/detect.ts
index fa3cda1135f5..4fa86cdc280d 100644
--- a/code/lib/cli/src/detect.ts
+++ b/code/lib/cli/src/detect.ts
@@ -165,6 +165,10 @@ export async function detectLanguage(packageManager: JsPackageManager) {
     return language;
   }
 
+  const isTypescriptDirectDependency = await packageManager
+    .getAllDependencies()
+    .then((deps) => Boolean(deps['typescript']));
+
   const typescriptVersion = await packageManager.getPackageVersion('typescript');
   const prettierVersion = await packageManager.getPackageVersion('prettier');
   const babelPluginTransformTypescriptVersion = await packageManager.getPackageVersion(
@@ -178,20 +182,21 @@ export async function detectLanguage(packageManager: JsPackageManager) {
     'eslint-plugin-storybook'
   );
 
-  if (
-    typescriptVersion &&
-    semver.gte(typescriptVersion, '4.9.0') &&
-    (!prettierVersion || semver.gte(prettierVersion, '2.8.0')) &&
-    (!babelPluginTransformTypescriptVersion ||
-      semver.gte(babelPluginTransformTypescriptVersion, '7.20.0')) &&
-    (!typescriptEslintParserVersion || semver.gte(typescriptEslintParserVersion, '5.44.0')) &&
-    (!eslintPluginStorybookVersion || semver.gte(eslintPluginStorybookVersion, '0.6.8'))
-  ) {
-    language = SupportedLanguage.TYPESCRIPT_4_9;
-  } else if (typescriptVersion && semver.gte(typescriptVersion, '3.8.0')) {
-    language = SupportedLanguage.TYPESCRIPT_3_8;
-  } else if (typescriptVersion && semver.lt(typescriptVersion, '3.8.0')) {
-    logger.warn('Detected TypeScript < 3.8, populating with JavaScript examples');
+  if (isTypescriptDirectDependency && typescriptVersion) {
+    if (
+      semver.gte(typescriptVersion, '4.9.0') &&
+      (!prettierVersion || semver.gte(prettierVersion, '2.8.0')) &&
+      (!babelPluginTransformTypescriptVersion ||
+        semver.gte(babelPluginTransformTypescriptVersion, '7.20.0')) &&
+      (!typescriptEslintParserVersion || semver.gte(typescriptEslintParserVersion, '5.44.0')) &&
+      (!eslintPluginStorybookVersion || semver.gte(eslintPluginStorybookVersion, '0.6.8'))
+    ) {
+      language = SupportedLanguage.TYPESCRIPT_4_9;
+    } else if (semver.gte(typescriptVersion, '3.8.0')) {
+      language = SupportedLanguage.TYPESCRIPT_3_8;
+    } else if (semver.lt(typescriptVersion, '3.8.0')) {
+      logger.warn('Detected TypeScript < 3.8, populating with JavaScript examples');
+    }
   }
 
   return language;