diff --git a/build/pack-scripts/pack-compat.ts b/build/pack-scripts/pack-compat.ts
index d332e8770..61cde5c88 100644
--- a/build/pack-scripts/pack-compat.ts
+++ b/build/pack-scripts/pack-compat.ts
@@ -2,35 +2,54 @@ import * as path from "path";
 import * as fs from "fs-extra";
 import { execSync } from "child_process";
 
-// var myArgs = process.argv.slice(2);
+/**
+ * Use this script to pack .tgz for nativescript-angular package. The first passed param can be:
+ * 1. Path to .tgz file - in this case the script replaces the scoped dependency (@nativescript/angular) with it in the package.json file. Then packs.
+ * 2. Tag or exact version - in this case the script does `npm install --save-exact` to save the exact version (in case if tag). Then packs.
+ * 3. `auto-version` - this is interpreted by getting version from the scoped package.json file (nativescript-angular folder).
+ */
+
 var scopedVersion = process.argv[2];
-var skipInstall = process.argv[3];
+
 console.log(`Packing nativescript-angular package with @nativescript/angular: ${scopedVersion}`);
 
 const distFolderPath = path.resolve("../../dist");
 const tempFolderPath = path.resolve("./temp-compat");
 const outFileName = "nativescript-angular-compat.tgz";
 
+const nsAngularScopedPackageJSONPath = path.resolve("../../nativescript-angular/package.json");
 const nsAngularPackagePath = path.resolve("../../nativescript-angular-package");
 const packageJsonPath = path.resolve(`${nsAngularPackagePath}/package.json`);
 console.log("Getting package.json from", packageJsonPath);
 
-let npmInstallParams = "";
 
-if (scopedVersion.indexOf(".tgz") > 0 || skipInstall === "no-save-exact") {
-    // rewrite dependency in package.json
+function prepareCompatPackageJSON(scopedVersion: string) {
     const packageJsonObject = JSON.parse(fs.readFileSync(packageJsonPath, { encoding: "utf8" }));
     packageJsonObject.dependencies["@nativescript/angular"] = scopedVersion;
     fs.writeFileSync(packageJsonPath, JSON.stringify(packageJsonObject, null, 4));
-} else {
-    npmInstallParams = `@nativescript/angular@${scopedVersion}`;
 }
 
-if (skipInstall !== "no-save-exact") {
+if (scopedVersion === "auto-version") {
+    // We use this when build for release. In this case we need to get version from scoped package (nativescript-angular) 
+    // and use it in the compat package.
+
+    scopedVersion = JSON.parse(fs.readFileSync(nsAngularScopedPackageJSONPath, { encoding: "utf8" })).version;
+    prepareCompatPackageJSON(scopedVersion)
+} else {
+    let npmInstallParams = "";
+
+    if (scopedVersion.indexOf(".tgz") > 0) {
+        // If building with .tgz, we need to update the package.json of the compat package 
+        prepareCompatPackageJSON(scopedVersion)
+    } else {
+        // If building with tag or exact version, just install it with --save-exact
+        npmInstallParams = `@nativescript/angular@${scopedVersion}`;
+    }  
+
     execSync(`npm install --save-exact ${npmInstallParams}`, {
         cwd: nsAngularPackagePath
     });
-}
+} 
 
 // ensure empty temp and existing dist folders
 fs.emptyDirSync(tempFolderPath);