diff --git a/code/lib/create-storybook/package.json b/code/lib/create-storybook/package.json
index 0af48115489f..762dd2366431 100644
--- a/code/lib/create-storybook/package.json
+++ b/code/lib/create-storybook/package.json
@@ -54,6 +54,7 @@
     "find-up": "^7.0.0",
     "ora": "^5.4.1",
     "picocolors": "^1.1.0",
+    "process-ancestry": "^0.0.2",
     "prompts": "^2.4.0",
     "react": "^18.2.0",
     "tiny-invariant": "^1.3.1",
diff --git a/code/lib/create-storybook/src/initiate.test.ts b/code/lib/create-storybook/src/initiate.test.ts
index a301c13fb064..6a84e7a5f80f 100644
--- a/code/lib/create-storybook/src/initiate.test.ts
+++ b/code/lib/create-storybook/src/initiate.test.ts
@@ -5,7 +5,7 @@ import { telemetry } from 'storybook/internal/telemetry';
 
 import prompts from 'prompts';
 
-import { promptInstallType, promptNewUser } from './initiate';
+import { getStorybookVersionFromAncestry, promptInstallType, promptNewUser } from './initiate';
 
 vi.mock('prompts', { spy: true });
 vi.mock('storybook/internal/telemetry');
@@ -155,3 +155,66 @@ describe('promptInstallType', () => {
     `);
   });
 });
+
+describe('getStorybookVersionFromAncestry', () => {
+  it('possible storybook path', () => {
+    const ancestry = [{ command: 'node' }, { command: 'storybook@7.0.0' }, { command: 'npm' }];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBeUndefined();
+  });
+
+  it('create storybook', () => {
+    const ancestry = [
+      { command: 'node' },
+      { command: 'npm create storybook@7.0.0-alpha.3' },
+      { command: 'npm' },
+    ];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBe('7.0.0-alpha.3');
+  });
+
+  it('storybook init', () => {
+    const ancestry = [
+      { command: 'node' },
+      { command: 'npx storybook@7.0.0 init' },
+      { command: 'npm' },
+    ];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBe('7.0.0');
+  });
+
+  it('storybook init no version', () => {
+    const ancestry = [{ command: 'node' }, { command: 'npx storybook init' }, { command: 'npm' }];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBeUndefined();
+  });
+
+  it('create-storybook with latest', () => {
+    const ancestry = [
+      { command: 'node' },
+      { command: 'npx create-storybook@latest' },
+      { command: 'npm' },
+    ];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBe('latest');
+  });
+
+  it('foo-storybook with latest', () => {
+    const ancestry = [
+      { command: 'node' },
+      { command: 'npx foo-storybook@latest' },
+      { command: 'npm' },
+    ];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBeUndefined();
+  });
+
+  it('multiple matches', () => {
+    const ancestry = [
+      { command: 'node' },
+      { command: 'npx create-storybook@foo' },
+      { command: 'npm' },
+      { command: 'npx create-storybook@bar' },
+    ];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBe('bar');
+  });
+
+  it('returns undefined if no storybook version found', () => {
+    const ancestry = [{ command: 'node' }, { command: 'npm' }];
+    expect(getStorybookVersionFromAncestry(ancestry as any)).toBeUndefined();
+  });
+});
diff --git a/code/lib/create-storybook/src/initiate.ts b/code/lib/create-storybook/src/initiate.ts
index 0e7fb817efcc..2954870a73a8 100644
--- a/code/lib/create-storybook/src/initiate.ts
+++ b/code/lib/create-storybook/src/initiate.ts
@@ -33,6 +33,7 @@ import { telemetry } from 'storybook/internal/telemetry';
 import boxen from 'boxen';
 import { findUp } from 'find-up';
 import picocolors from 'picocolors';
+import { getProcessAncestry } from 'process-ancestry';
 import prompts from 'prompts';
 import { lt, prerelease } from 'semver';
 import { dedent } from 'ts-dedent';
@@ -382,6 +383,18 @@ export const promptInstallType = async ({
   return installType;
 };
 
+export function getStorybookVersionFromAncestry(
+  ancestry: ReturnType<typeof getProcessAncestry>
+): string | undefined {
+  for (const ancestor of ancestry.toReversed()) {
+    const match = ancestor.command?.match(/\s(?:create-storybook|storybook)@([^\s]+)/);
+    if (match) {
+      return match[1];
+    }
+  }
+  return undefined;
+}
+
 export async function doInitiate(options: CommandOptions): Promise<
   | {
       shouldRunDev: true;
@@ -425,6 +438,13 @@ export async function doInitiate(options: CommandOptions): Promise<
   const isPrerelease = prerelease(currentVersion);
   const isOutdated = lt(currentVersion, latestVersion);
   const borderColor = isOutdated ? '#FC521F' : '#F1618C';
+  let versionSpecifier = undefined;
+  try {
+    const ancestry = getProcessAncestry();
+    versionSpecifier = getStorybookVersionFromAncestry(ancestry);
+  } catch (err) {
+    //
+  }
 
   const messages = {
     welcome: `Adding Storybook version ${picocolors.bold(currentVersion)} to your project..`,
@@ -635,7 +655,12 @@ export async function doInitiate(options: CommandOptions): Promise<
   }
 
   if (!options.disableTelemetry) {
-    await telemetry('init', { projectType, features: telemetryFeatures, newUser });
+    await telemetry('init', {
+      projectType,
+      features: telemetryFeatures,
+      newUser,
+      versionSpecifier,
+    });
   }
 
   if ([ProjectType.REACT_NATIVE, ProjectType.REACT_NATIVE_AND_RNW].includes(projectType)) {
diff --git a/code/yarn.lock b/code/yarn.lock
index 843aa86b95f6..969d541d8a13 100644
--- a/code/yarn.lock
+++ b/code/yarn.lock
@@ -11822,6 +11822,7 @@ __metadata:
     find-up: "npm:^7.0.0"
     ora: "npm:^5.4.1"
     picocolors: "npm:^1.1.0"
+    process-ancestry: "npm:^0.0.2"
     prompts: "npm:^2.4.0"
     react: "npm:^18.2.0"
     semver: "npm:^7.6.2"
@@ -21725,6 +21726,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"process-ancestry@npm:^0.0.2":
+  version: 0.0.2
+  resolution: "process-ancestry@npm:0.0.2"
+  checksum: 10c0/bca0290b7d3bd35da3a30bb958b2b0f2724f468b80d1b41e58d9a6a49fc42ff466faf49c2d085e94b7b660fee654be26e047b43f6b6065613ca123432bd409a9
+  languageName: node
+  linkType: hard
+
 "process-nextick-args@npm:~2.0.0":
   version: 2.0.1
   resolution: "process-nextick-args@npm:2.0.1"