diff --git a/libs/server/src/lib/utils/utils.ts b/libs/server/src/lib/utils/utils.ts
index 16d57a6cf6..0f5a3a3142 100644
--- a/libs/server/src/lib/utils/utils.ts
+++ b/libs/server/src/lib/utils/utils.ts
@@ -350,6 +350,11 @@ export function toWorkspaceFormat(w: any): WorkspaceJsonConfiguration {
     });
   });
 
+  const sortedProjects = Object.entries(w.projects || {}).sort(
+    (projectA, projectB) => projectA[0].localeCompare(projectB[0])
+  );
+  w.projects = Object.fromEntries(sortedProjects);
+
   if (w.schematics) {
     renameProperty(w, 'schematics', 'generators');
   }
diff --git a/libs/vscode/nx-workspace/__mocks__/@nx-console/server.ts b/libs/vscode/nx-workspace/__mocks__/@nx-console/server.ts
new file mode 100644
index 0000000000..1e24fb9a0c
--- /dev/null
+++ b/libs/vscode/nx-workspace/__mocks__/@nx-console/server.ts
@@ -0,0 +1,22 @@
+const cacheJson = jest.fn();
+
+const fileExistsSync = jest.fn();
+
+const getOutputChannel = jest.fn(() => ({
+  appendLine: jest.fn(),
+  show: jest.fn(),
+}));
+
+const getTelemetry = jest.fn(() => ({
+  exception: jest.fn(),
+}));
+
+const toWorkspaceFormat = jest.fn();
+
+export {
+  cacheJson,
+  fileExistsSync,
+  getOutputChannel,
+  getTelemetry,
+  toWorkspaceFormat,
+};
diff --git a/libs/vscode/nx-workspace/__mocks__/@nx-console/vscode/configuration.ts b/libs/vscode/nx-workspace/__mocks__/@nx-console/vscode/configuration.ts
new file mode 100644
index 0000000000..538b37efb2
--- /dev/null
+++ b/libs/vscode/nx-workspace/__mocks__/@nx-console/vscode/configuration.ts
@@ -0,0 +1,7 @@
+const WorkspaceConfigurationStore = {
+  instance: {
+    get: jest.fn(),
+  },
+};
+
+export { WorkspaceConfigurationStore };
diff --git a/libs/vscode/nx-workspace/__mocks__/vscode.ts b/libs/vscode/nx-workspace/__mocks__/vscode.ts
new file mode 100644
index 0000000000..5a3ef84cd8
--- /dev/null
+++ b/libs/vscode/nx-workspace/__mocks__/vscode.ts
@@ -0,0 +1,9 @@
+/// <reference types="jest" />
+
+const window = {
+  showErrorMessage: jest.fn(),
+};
+
+export = {
+  window,
+};
diff --git a/libs/vscode/nx-workspace/jest.config.js b/libs/vscode/nx-workspace/jest.config.js
index 71049c6a76..3be58c1950 100644
--- a/libs/vscode/nx-workspace/jest.config.js
+++ b/libs/vscode/nx-workspace/jest.config.js
@@ -8,6 +8,9 @@ module.exports = {
     '^.+\\.[tj]sx?$': 'ts-jest',
   },
   moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx'],
+  moduleNameMapper: {
+    '^@nx-console/vscode/(.+)$': '<rootDir>/libs/vscode/$1/src/index.ts',
+  },
   coverageDirectory: '../../../coverage/libs/vscode/nx-workspace',
   testEnvironment: 'node',
 };
diff --git a/libs/vscode/nx-workspace/src/lib/verify-workspace.spec.ts b/libs/vscode/nx-workspace/src/lib/verify-workspace.spec.ts
new file mode 100644
index 0000000000..0680882c97
--- /dev/null
+++ b/libs/vscode/nx-workspace/src/lib/verify-workspace.spec.ts
@@ -0,0 +1,178 @@
+import { verifyWorkspace } from './verify-workspace';
+import { WorkspaceConfigurationStore } from '@nx-console/vscode/configuration';
+import * as server from '@nx-console/server';
+import {
+  cacheJson,
+  fileExistsSync,
+  getOutputChannel,
+  getTelemetry,
+} from '@nx-console/server';
+import type { WorkspaceJsonConfiguration } from '@nrwl/devkit';
+import * as vscode from 'vscode';
+
+const mockCacheJsonFn = cacheJson as jest.MockedFunction<typeof cacheJson>;
+mockCacheJsonFn.mockImplementation((filePath) => ({
+  json: mockWorkspace,
+  path: filePath,
+}));
+
+const mockStoreInstanceGetFn = WorkspaceConfigurationStore.instance
+  .get as jest.MockedFunction<typeof WorkspaceConfigurationStore.instance.get>;
+mockStoreInstanceGetFn.mockImplementation(() => workspacePath);
+
+const mockFileExistsSyncFn = fileExistsSync as jest.MockedFunction<
+  typeof fileExistsSync
+>;
+
+const originalNxConsoleServerModule = jest.requireActual('@nx-console/server');
+(server.toWorkspaceFormat as unknown) =
+  originalNxConsoleServerModule.toWorkspaceFormat;
+
+const mockWorkspace: WorkspaceJsonConfiguration = {
+  version: 2,
+  projects: {
+    Project3: {
+      root: 'project-three',
+    },
+    Project1: {
+      root: 'project-one',
+    },
+    Project2: {
+      root: 'project-two',
+    },
+  },
+  defaultProject: undefined,
+  generators: undefined,
+  cli: undefined,
+};
+
+const DefaultWorkspaceInformation = {
+  validWorkspaceJson: false,
+  workspaceType: 'nx',
+  json: {
+    projects: {},
+    version: 2,
+  },
+  configurationFilePath: '',
+};
+
+const workspacePath = './test/fixtures/workspace/';
+
+describe(verifyWorkspace.name, () => {
+  afterEach(() => {
+    mockFileExistsSyncFn.mockClear();
+  });
+
+  describe('when Nx workspace exists', () => {
+    it('returns information about Nx workspace', async () => {
+      // arrange
+      mockFileExistsSyncFn.mockImplementation((filePath) =>
+        /workspace.json$/i.test(filePath)
+      );
+
+      // act
+      const { validWorkspaceJson, json, workspaceType, configurationFilePath } =
+        await verifyWorkspace();
+
+      // assert
+      expect(mockFileExistsSyncFn).toHaveBeenCalledTimes(1);
+      expect(mockFileExistsSyncFn).toHaveLastReturnedWith(true);
+      expect(mockStoreInstanceGetFn).toHaveBeenCalledWith(
+        'nxWorkspaceJsonPath',
+        ''
+      );
+      expect(mockCacheJsonFn).toHaveBeenCalled();
+      expect(validWorkspaceJson).toBe(true);
+      expect(json).toBeTruthy();
+      expect(json).toEqual(mockWorkspace);
+      expect(workspaceType).toBe('nx');
+      expect(configurationFilePath).toMatch(/workspace.json$/i);
+    });
+  });
+
+  describe('when Ng workspace exists', () => {
+    it('returns information about Ng workspace', async () => {
+      // arrange
+      mockFileExistsSyncFn.mockImplementation((filePath) =>
+        /angular.json$/i.test(filePath)
+      );
+
+      // act
+      const { validWorkspaceJson, json, workspaceType, configurationFilePath } =
+        await verifyWorkspace();
+
+      // assert
+      expect(mockFileExistsSyncFn).toHaveBeenCalledTimes(2);
+      expect(mockFileExistsSyncFn).toHaveNthReturnedWith(1, false);
+      expect(mockFileExistsSyncFn).toHaveNthReturnedWith(2, true);
+      expect(mockStoreInstanceGetFn).toHaveBeenCalledWith(
+        'nxWorkspaceJsonPath',
+        ''
+      );
+      expect(mockCacheJsonFn).toHaveBeenCalled();
+      expect(validWorkspaceJson).toBe(true);
+      expect(json).toBeTruthy();
+      expect(json).toEqual(mockWorkspace);
+      expect(workspaceType).toBe('ng');
+      expect(configurationFilePath).toMatch(/angular.json$/i);
+    });
+  });
+
+  describe('when workspace json does not exist', () => {
+    it('it shows error dialog and returns default workspace information', async () => {
+      // arrange
+      mockFileExistsSyncFn.mockImplementation(
+        (filePath) => !/(angular|workspace).json$/i.test(filePath)
+      );
+
+      (vscode.window.showErrorMessage as unknown) = jest
+        .fn()
+        .mockResolvedValue('Show Error');
+
+      // act
+      const result = await verifyWorkspace();
+
+      // assert
+      expect(mockFileExistsSyncFn).toHaveBeenCalledTimes(2);
+      expect(mockFileExistsSyncFn).toHaveNthReturnedWith(1, false);
+      expect(mockFileExistsSyncFn).toHaveNthReturnedWith(2, false);
+      expect(vscode.window.showErrorMessage).toHaveBeenCalledWith(
+        expect.any(String),
+        'Show Error'
+      );
+      expect(getOutputChannel).toHaveBeenCalledTimes(3);
+      expect(getTelemetry).toHaveBeenCalledTimes(1);
+      expect(result).toEqual(DefaultWorkspaceInformation);
+    });
+  });
+
+  describe('when workspace information is found', () => {
+    it('projects entries are sorted by entry key', async () => {
+      // arrange
+      mockFileExistsSyncFn.mockImplementationOnce(() => true);
+      const sortedProject = {
+        Project1: {
+          root: 'project-one',
+        },
+        Project2: {
+          root: 'project-two',
+        },
+        Project3: {
+          root: 'project-three',
+        },
+      };
+
+      // act
+      const {
+        json: { projects },
+      } = await verifyWorkspace();
+      const [project1, project2, project3] = Object.keys(projects);
+      const [sorted1, sorted2, sorted3] = Object.keys(sortedProject);
+
+      // assert
+      expect(project1).toBe(sorted1); // should be 'Project1'
+      expect(project2).toBe(sorted2); // should be 'Project2'
+      expect(project3).toBe(sorted3); // should be 'Project3'
+    });
+  });
+});