diff --git a/src/compiler/types/tests/validate-package-json.spec.ts b/src/compiler/types/tests/validate-package-json.spec.ts
index dd3e0ae4d38..2ab26c50b1a 100644
--- a/src/compiler/types/tests/validate-package-json.spec.ts
+++ b/src/compiler/types/tests/validate-package-json.spec.ts
@@ -79,14 +79,36 @@ describe('validate-package-json', () => {
   });
 
   describe('module', () => {
-    it('validate module', async () => {
+    it('validate dist module', async () => {
+      config.outputTargets = [];
       compilerCtx.fs.writeFile(path.join(root, 'dist', 'index.js'), '');
       buildCtx.packageJson.module = 'dist/index.js';
       v.validateModule(config, compilerCtx, buildCtx, collectionOutputTarget);
       expect(buildCtx.diagnostics).toHaveLength(0);
     });
 
-    it('missing module', async () => {
+    it('validate custom elements module', async () => {
+      config.outputTargets = [{
+        type: 'dist-custom-elements-bundle',
+        dir: path.join(root, 'custom-elements')
+      }];
+      compilerCtx.fs.writeFile(path.join(root, 'dist', 'index.js'), '');
+      buildCtx.packageJson.module = 'custom-elements/index.js';
+      v.validateModule(config, compilerCtx, buildCtx, collectionOutputTarget);
+      expect(buildCtx.diagnostics).toHaveLength(0);
+    });
+
+    it('missing dist module', async () => {
+      config.outputTargets = [];
+      v.validateModule(config, compilerCtx, buildCtx, collectionOutputTarget);
+      expect(buildCtx.diagnostics).toHaveLength(1);
+    });
+
+    it('missing dist module, but has custom elements output', async () => {
+      config.outputTargets = [{
+        type: 'dist-custom-elements-bundle',
+        dir: path.join(root, 'custom-elements')
+      }];
       v.validateModule(config, compilerCtx, buildCtx, collectionOutputTarget);
       expect(buildCtx.diagnostics).toHaveLength(1);
     });
diff --git a/src/compiler/types/validate-build-package-json.ts b/src/compiler/types/validate-build-package-json.ts
index d9ba2878b23..597cf27da27 100644
--- a/src/compiler/types/validate-build-package-json.ts
+++ b/src/compiler/types/validate-build-package-json.ts
@@ -1,7 +1,7 @@
 import type * as d from '../../declarations';
 import { COLLECTION_MANIFEST_FILE_NAME, buildJsonFileError, isGlob, normalizePath, isString } from '@utils';
 import { dirname, join, relative } from 'path';
-import { getComponentsDtsTypesFilePath, isOutputTargetDistCollection, isOutputTargetDistTypes } from '../output-targets/output-utils';
+import { getComponentsDtsTypesFilePath, isOutputTargetDistCollection, isOutputTargetDistCustomElementsBundle, isOutputTargetDistTypes } from '../output-targets/output-utils';
 
 export const validateBuildPackageJson = async (config: d.Config, compilerCtx: d.CompilerCtx, buildCtx: d.BuildCtx) => {
   if (config.watch) {
@@ -78,14 +78,22 @@ export const validateMain = (config: d.Config, compilerCtx: d.CompilerCtx, build
 };
 
 export const validateModule = (config: d.Config, compilerCtx: d.CompilerCtx, buildCtx: d.BuildCtx, outputTarget: d.OutputTargetDistCollection) => {
-  const moduleAbs = join(outputTarget.dir, 'index.js');
-  const moduleRel = relative(config.rootDir, moduleAbs);
+  const customElementsOutput = config.outputTargets.find(isOutputTargetDistCustomElementsBundle);
+  const currentModule = buildCtx.packageJson.module;
+  const distAbs = join(outputTarget.dir, 'index.js');
+  const distRel = relative(config.rootDir, distAbs);
+
+  let recommendedRelPath = distRel;
+  if (customElementsOutput) {
+    const customElementsAbs = join(customElementsOutput.dir, 'index.js');
+    recommendedRelPath = relative(config.rootDir, customElementsAbs);
+  }
 
-  if (!isString(buildCtx.packageJson.module)) {
-    const msg = `package.json "module" property is required when generating a distribution. It's recommended to set the "module" property to: ${moduleRel}`;
+  if (!isString(currentModule)) {
+    const msg = `package.json "module" property is required when generating a distribution. It's recommended to set the "module" property to: ${recommendedRelPath}`;
     packageJsonWarn(config, compilerCtx, buildCtx, msg, `"module"`);
-  } else if (normalizePath(buildCtx.packageJson.module) !== normalizePath(moduleRel)) {
-    const msg = `package.json "module" property is set to "${buildCtx.packageJson.module}". It's recommended to set the "module" property to: ${moduleRel}`;
+  } else if (normalizePath(currentModule) !== normalizePath(recommendedRelPath) && normalizePath(currentModule) !== normalizePath(distRel)) {
+    const msg = `package.json "module" property is set to "${currentModule}". It's recommended to set the "module" property to: ${recommendedRelPath}`;
     packageJsonWarn(config, compilerCtx, buildCtx, msg, `"module"`);
   }
 };