diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index d6fe283d5ebe..93053a0e6086 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -103,10 +103,10 @@ function addAppToWorkspaceFile(options: ApplicationOptions, appDir: string): Rul
     || options.minimal
     || options.style !== Style.Css) {
     const componentSchematicsOptions: JsonObject = {};
-    if (options.inlineTemplate || options.minimal) {
+    if (options.inlineTemplate ?? options.minimal) {
       componentSchematicsOptions.inlineTemplate = true;
     }
-    if (options.inlineStyle || options.minimal) {
+    if (options.inlineStyle ?? options.minimal) {
       componentSchematicsOptions.inlineStyle = true;
     }
     if (options.style && options.style !== Style.Css) {
@@ -289,10 +289,11 @@ export default function (options: ApplicationOptions): Rule {
         viewEncapsulation: options.viewEncapsulation,
       } :
       {
-        inlineStyle: true,
-        inlineTemplate: true,
+        inlineStyle: options.inlineStyle ?? true,
+        inlineTemplate: options.inlineTemplate ?? true,
         skipTests: true,
         style: options.style,
+        viewEncapsulation: options.viewEncapsulation,
       };
 
     const workspace = await getWorkspace(host);
diff --git a/packages/schematics/angular/application/index_spec.ts b/packages/schematics/angular/application/index_spec.ts
index 4fbd54846756..fde0e33d8f91 100644
--- a/packages/schematics/angular/application/index_spec.ts
+++ b/packages/schematics/angular/application/index_spec.ts
@@ -32,8 +32,6 @@ describe('Application Schematic', () => {
 
   const defaultOptions: ApplicationOptions = {
     name: 'foo',
-    inlineStyle: false,
-    inlineTemplate: false,
     routing: false,
     skipPackageJson: false,
   };
@@ -206,6 +204,30 @@ describe('Application Schematic', () => {
     });
   });
 
+  it('minimal=true allows inlineStyle=false when configuring the schematics options for components', async () => {
+    const options = { ...defaultOptions, minimal: true, inlineStyle: false };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const config = JSON.parse(tree.readContent('/angular.json'));
+    const schematics = config.projects.foo.schematics;
+    expect(schematics['@schematics/angular:component']).toEqual({
+      inlineTemplate: true,
+      skipTests: true,
+    });
+  });
+
+  it('minimal=true allows inlineTemplate=false when configuring the schematics options for components', async () => {
+    const options = { ...defaultOptions, minimal: true, inlineTemplate: false };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const config = JSON.parse(tree.readContent('/angular.json'));
+    const schematics = config.projects.foo.schematics;
+    expect(schematics['@schematics/angular:component']).toEqual({
+      inlineStyle: true,
+      skipTests: true,
+    });
+  });
+
   it('should create correct files when using minimal', async () => {
     const options = { ...defaultOptions, minimal: true };
     const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
@@ -235,6 +257,64 @@ describe('Application Schematic', () => {
     ]));
   });
 
+  it('should create correct files when using minimal and inlineStyle=false', async () => {
+    const options = { ...defaultOptions, minimal: true, inlineStyle: false };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const files = tree.files;
+    [
+      '/projects/foo/tsconfig.spec.json',
+      '/projects/foo/tslint.json',
+      '/projects/foo/karma.conf.js',
+      '/projects/foo/src/test.ts',
+      '/projects/foo/src/app/app.component.html',
+      '/projects/foo/src/app/app.component.spec.ts',
+    ].forEach(x => expect(files).not.toContain(x));
+
+    expect(files).toEqual(jasmine.arrayContaining([
+      '/projects/foo/tsconfig.app.json',
+      '/projects/foo/src/environments/environment.ts',
+      '/projects/foo/src/environments/environment.prod.ts',
+      '/projects/foo/src/favicon.ico',
+      '/projects/foo/src/index.html',
+      '/projects/foo/src/main.ts',
+      '/projects/foo/src/polyfills.ts',
+      '/projects/foo/src/styles.css',
+      '/projects/foo/src/app/app.module.ts',
+      '/projects/foo/src/app/app.component.css',
+      '/projects/foo/src/app/app.component.ts',
+    ]));
+  });
+
+  it('should create correct files when using minimal and inlineTemplate=false', async () => {
+    const options = { ...defaultOptions, minimal: true, inlineTemplate: false };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const files = tree.files;
+    [
+      '/projects/foo/tsconfig.spec.json',
+      '/projects/foo/tslint.json',
+      '/projects/foo/karma.conf.js',
+      '/projects/foo/src/test.ts',
+      '/projects/foo/src/app/app.component.css',
+      '/projects/foo/src/app/app.component.spec.ts',
+    ].forEach(x => expect(files).not.toContain(x));
+
+    expect(files).toEqual(jasmine.arrayContaining([
+      '/projects/foo/tsconfig.app.json',
+      '/projects/foo/src/environments/environment.ts',
+      '/projects/foo/src/environments/environment.prod.ts',
+      '/projects/foo/src/favicon.ico',
+      '/projects/foo/src/index.html',
+      '/projects/foo/src/main.ts',
+      '/projects/foo/src/polyfills.ts',
+      '/projects/foo/src/styles.css',
+      '/projects/foo/src/app/app.module.ts',
+      '/projects/foo/src/app/app.component.html',
+      '/projects/foo/src/app/app.component.ts',
+    ]));
+  });
+
   describe(`update package.json`, () => {
     it(`should add build-angular to devDependencies`, async () => {
       const tree = await schematicRunner.runSchematicAsync('application', defaultOptions, workspaceTree)
diff --git a/packages/schematics/angular/application/schema.json b/packages/schematics/angular/application/schema.json
index d96ee6824f78..cc31560ed1f8 100644
--- a/packages/schematics/angular/application/schema.json
+++ b/packages/schematics/angular/application/schema.json
@@ -22,14 +22,12 @@
     "inlineStyle": {
       "description": "When true, includes styles inline in the root component.ts file. Only CSS styles can be included inline. Default is false, meaning that an external styles file is created and referenced in the root component.ts file.",
       "type": "boolean",
-      "default": false,
       "alias": "s",
       "x-user-analytics": 9
     },
     "inlineTemplate": {
       "description": "When true, includes template inline in the root component.ts file. Default is false, meaning that an external template file is created and referenced in the root component.ts file. ",
       "type": "boolean",
-      "default": false,
       "alias": "t",
       "x-user-analytics": 10
     },
diff --git a/packages/schematics/angular/ng-new/schema.json b/packages/schematics/angular/ng-new/schema.json
index e772a53571ab..d2c70b48ac0e 100644
--- a/packages/schematics/angular/ng-new/schema.json
+++ b/packages/schematics/angular/ng-new/schema.json
@@ -66,14 +66,12 @@
     "inlineStyle": {
       "description": "When true, includes styles inline in the component TS file. By default, an external styles file is created and referenced in the component TS file.",
       "type": "boolean",
-      "default": false,
       "alias": "s",
       "x-user-analytics": 9
     },
     "inlineTemplate": {
       "description": "When true, includes template inline in the component TS file. By default, an external template file is created and referenced in the component TS file.",
       "type": "boolean",
-      "default": false,
       "alias": "t",
       "x-user-analytics": 10
     },