diff --git a/packages/angular_devkit/build_webpack/package.json b/packages/angular_devkit/build_webpack/package.json
index daf2861bd524..0a267221c186 100644
--- a/packages/angular_devkit/build_webpack/package.json
+++ b/packages/angular_devkit/build_webpack/package.json
@@ -17,6 +17,6 @@
   },
   "peerDependencies": {
     "webpack": "^5.30.0",
-    "webpack-dev-server": "^3.1.4"
+    "webpack-dev-server": "^4.0.0"
   }
 }
diff --git a/packages/angular_devkit/build_webpack/src/webpack-dev-server/index.ts b/packages/angular_devkit/build_webpack/src/webpack-dev-server/index.ts
index bea3c99be376..2305481c841a 100644
--- a/packages/angular_devkit/build_webpack/src/webpack-dev-server/index.ts
+++ b/packages/angular_devkit/build_webpack/src/webpack-dev-server/index.ts
@@ -7,7 +7,6 @@
  */
 
 import { BuilderContext, createBuilder } from '@angular-devkit/architect';
-import * as net from 'net';
 import { resolve as pathResolve } from 'path';
 import { Observable, from, isObservable, of } from 'rxjs';
 import { switchMap } from 'rxjs/operators';
@@ -53,38 +52,27 @@ export function runWebpackDevServer(
     config: WebpackDevServer.Configuration,
   ) => {
     if (options.webpackDevServerFactory) {
-      // webpack-dev-server types currently do not support Webpack 5
-      // eslint-disable-next-line @typescript-eslint/no-explicit-any
-      return new options.webpackDevServerFactory(webpack as any, config);
+      return new options.webpackDevServerFactory(config, webpack);
     }
 
-    // webpack-dev-server types currently do not support Webpack 5
-    // eslint-disable-next-line @typescript-eslint/no-explicit-any
-    return new WebpackDevServer(webpack as any, config);
+    return new WebpackDevServer(config, webpack);
   };
 
   const log: WebpackLoggingCallback =
     options.logging || ((stats, config) => context.logger.info(stats.toString(config.stats)));
 
-  // eslint-disable-next-line @typescript-eslint/no-explicit-any
-  const devServerConfig = options.devServerConfig || (config as any).devServer || {};
-  if (devServerConfig.stats) {
-    config.stats = devServerConfig.stats;
-  }
-  // Disable stats reporting by the devserver, we have our own logger.
-  devServerConfig.stats = false;
-
   return createWebpack({ ...config, watch: false }).pipe(
     switchMap(
       (webpackCompiler) =>
         new Observable<DevServerBuildOutput>((obs) => {
-          const server = createWebpackDevServer(webpackCompiler, devServerConfig);
+          const devServerConfig = options.devServerConfig || config.devServer || {};
+          devServerConfig.host ??= 'localhost';
+
           let result: Partial<DevServerBuildOutput>;
 
           webpackCompiler.hooks.done.tap('build-webpack', (stats) => {
             // Log stats.
             log(stats, config);
-
             obs.next({
               ...result,
               emittedFiles: getEmittedFiles(stats.compilation),
@@ -93,34 +81,27 @@ export function runWebpackDevServer(
             } as unknown as DevServerBuildOutput);
           });
 
-          server.listen(
-            devServerConfig.port === undefined ? 8080 : devServerConfig.port,
-            devServerConfig.host === undefined ? 'localhost' : devServerConfig.host,
-            function (this: net.Server, err) {
-              if (err) {
-                obs.error(err);
-              } else {
-                const address = this.address();
-                if (!address) {
-                  obs.error(new Error(`Dev-server address info is not defined.`));
-
-                  return;
-                }
-
-                result = {
-                  success: true,
-                  port: typeof address === 'string' ? 0 : address.port,
-                  family: typeof address === 'string' ? '' : address.family,
-                  address: typeof address === 'string' ? address : address.address,
-                };
-              }
-            },
-          );
+          const devServer = createWebpackDevServer(webpackCompiler, devServerConfig);
+          devServer.startCallback(() => {
+            const address = devServer.server.address();
+            if (!address) {
+              obs.error(new Error(`Dev-server address info is not defined.`));
+
+              return;
+            }
+
+            result = {
+              success: true,
+              port: typeof address === 'string' ? 0 : address.port,
+              family: typeof address === 'string' ? '' : address.family,
+              address: typeof address === 'string' ? address : address.address,
+            };
+          });
 
           // Teardown logic. Close the server when unsubscribed from.
           return () => {
-            server.close();
-            webpackCompiler.close?.(() => {});
+            devServer.stopCallback(() => {});
+            webpackCompiler.close(() => {});
           };
         }),
     ),