diff --git a/docs/design/docker-deploy.md b/docs/design/docker-deploy.md
index bd0ec6740b68..634fdc8b3e21 100644
--- a/docs/design/docker-deploy.md
+++ b/docs/design/docker-deploy.md
@@ -97,7 +97,7 @@ If an `env` name is provided, other than "default", generate compose files with
 
 If `--use-image == false` and the selected machine for the environment is a Docker Swarm machine, warn the user. Docker Swarm clusters cannot use the `build:` option in compose, since the resulting built image will not be distributed to other nodes. Swarm requires using the `image:` option in compose, pushing the image to a registry beforehand so that the Swarm nodes have a place to pull the image from (see [Swarm Limitations](https://docs.docker.com/compose/swarm/#building-images)).
 
-Certain configuration values will be stored in the project's ngConfig `angular-cli.json` for use with other docker commands (ie. deploy, logs, exec). See also: [Saved State](#saved-state) section.
+Certain configuration values will be stored in the project's ngConfig `.angular-cli.json` for use with other docker commands (ie. deploy, logs, exec). See also: [Saved State](#saved-state) section.
 
 Provide instructions on what the user can do after initialization completes (push, deploy).
 
diff --git a/docs/design/ngConfig.md b/docs/design/ngConfig.md
index bb3573212900..e37f1cf0e689 100644
--- a/docs/design/ngConfig.md
+++ b/docs/design/ngConfig.md
@@ -16,14 +16,14 @@ Since the data is static, we only need to keep it in a static store somewhere.
 
 One solution would be to keep the data in the `package.json`. Unfortunately, the metadata contains too much data and the `package.json` file would become unmanageable.
 
-Instead of polluting the package file, a `angular-cli.json` file will be created that contains all the values. Access to that file will be allowed to the user if he knows the structure of the file (unknown keys will be kept but ignored), and it's easy to read and write.
+Instead of polluting the package file, a `.angular-cli.json` file will be created that contains all the values. Access to that file will be allowed to the user if he knows the structure of the file (unknown keys will be kept but ignored), and it's easy to read and write.
 
 
 ## Fallback
 
-There should be two `angular-cli.json` files; one for the project and a general one. The general one should contain information that can be useful when scaffolding new apps, or informations about the user.
+There should be two `.angular-cli.json` files; one for the project and a general one. The general one should contain information that can be useful when scaffolding new apps, or informations about the user.
 
-The project `angular-cli.json` goes into the project root. The global configuration should live at `$HOME/.angular-cli.json`.
+The project `.angular-cli.json` goes into the project root. The global configuration should live at `$HOME/.angular-cli.json`.
 
 ## Structure
 
diff --git a/docs/documentation/build.md b/docs/documentation/build.md
index 4ffb5953042d..8724ff59f1f1 100644
--- a/docs/documentation/build.md
+++ b/docs/documentation/build.md
@@ -19,7 +19,7 @@ The build artifacts will be stored in the `dist/` directory.
 environment file to be used with that build (`--environment=dev` or `--environment=prod`).
 By default, the development build target and environment are used.
 
-The mapping used to determine which environment file is used can be found in `angular-cli.json`:
+The mapping used to determine which environment file is used can be found in `.angular-cli.json`:
 
 ```json
 "environments": {
@@ -46,7 +46,7 @@ ng build
 
 You can also add your own env files other than `dev` and `prod` by doing the following:
 - create a `src/environments/environment.NAME.ts`
-- add `{ "NAME": 'src/environments/environment.NAME.ts' }` to the `apps[0].environments` object in `angular-cli.json`
+- add `{ "NAME": 'src/environments/environment.NAME.ts' }` to the `apps[0].environments` object in `.angular-cli.json`
 - use them via the `--env=NAME` flag on the build/serve commands.
 
 ### Base tag handling in index.html
diff --git a/docs/documentation/e2e.md b/docs/documentation/e2e.md
index dd226eef9ae7..48a0446f6663 100644
--- a/docs/documentation/e2e.md
+++ b/docs/documentation/e2e.md
@@ -14,7 +14,7 @@ ng e2e
 End-to-end tests are run via [Protractor](https://angular.github.io/protractor/).
 
 ## Options
-`--config` (`-c`) use a specific config file. Defaults to the protractor config file in `angular-cli.json`.
+`--config` (`-c`) use a specific config file. Defaults to the protractor config file in `.angular-cli.json`.
 
 `--specs` (`-sp`) override specs in the protractor config.
 Can send in multiple specs by repeating flag (`ng e2e --specs=spec1.ts --specs=spec2.ts`).
diff --git a/docs/documentation/stories/asset-configuration.md b/docs/documentation/stories/asset-configuration.md
index 9809f28f0667..0f1a2a170053 100644
--- a/docs/documentation/stories/asset-configuration.md
+++ b/docs/documentation/stories/asset-configuration.md
@@ -1,6 +1,6 @@
 # Project assets
 
-You use the `assets` array in `angular-cli.json` to list files or folders you want to copy as-is
+You use the `assets` array in `.angular-cli.json` to list files or folders you want to copy as-is
 when building your project.
 
 By default, the `src/assets/` folder and `src/favicon.ico` are copied over.
diff --git a/docs/documentation/stories/global-lib.md b/docs/documentation/stories/global-lib.md
index 756dbc952d04..3583b5f143d2 100644
--- a/docs/documentation/stories/global-lib.md
+++ b/docs/documentation/stories/global-lib.md
@@ -2,7 +2,7 @@
 
 Some javascript libraries need to be added to the global scope, and loaded as if
 they were in a script tag. We can do this using the `apps[0].scripts` and
-`apps[0].styles` properties of `angular-cli.json`.
+`apps[0].styles` properties of `.angular-cli.json`.
 
 As an example, to use [Bootstrap 4](http://v4-alpha.getbootstrap.com/) this is
 what you need to do:
diff --git a/docs/documentation/stories/global-scripts.md b/docs/documentation/stories/global-scripts.md
index 0d8a2be58f60..cc1021d25fe7 100644
--- a/docs/documentation/stories/global-scripts.md
+++ b/docs/documentation/stories/global-scripts.md
@@ -1,7 +1,7 @@
 # Global styles
 
 You can add Javascript files to the global scope via the `apps[0].scripts`
-property in `angular-cli.json`.
+property in `.angular-cli.json`.
 These will be loaded exactly as if you had added them in a `<script>` tag inside `index.html`.
 
 This is especially useful for legacy libraries or analytic snippets.
diff --git a/docs/documentation/stories/global-styles.md b/docs/documentation/stories/global-styles.md
index 696b4a903896..c6ca901bdd42 100644
--- a/docs/documentation/stories/global-styles.md
+++ b/docs/documentation/stories/global-styles.md
@@ -6,7 +6,7 @@ The `styles.css` file allows users to add global styles and supports
 If the project is created with the `--style=sass` option, this will be a `.sass`
 file instead, and the same applies to `scss/less/styl`.
 
-You can add more global styles via the `apps[0].styles` property in `angular-cli.json`.
+You can add more global styles via the `apps[0].styles` property in `.angular-cli.json`.
 These will be loaded exactly as if you had added them in a `<link>` tag inside `index.html`.
 
 ```json
@@ -25,4 +25,4 @@ You can also rename the output and lazy load it by using the object format:
   { "input": "lazy-style.scss", "lazy": true },
   { "input": "pre-rename-style.scss", "output": "renamed-style" },
 ],
-```
\ No newline at end of file
+```
diff --git a/docs/documentation/stories/include-bootstrap.md b/docs/documentation/stories/include-bootstrap.md
index f27b21022768..3debf5d279f1 100644
--- a/docs/documentation/stories/include-bootstrap.md
+++ b/docs/documentation/stories/include-bootstrap.md
@@ -33,7 +33,7 @@ npm install bootstrap@next --save
 
 Now that the project is set up it must be configured to include the bootstrap CSS.
 
-- Open the file `angular-cli.json` from the root of your project.
+- Open the file `.angular-cli.json` from the root of your project.
 - Under the property `apps` the first item in that array is the default application.
 - There is a property `styles` which allows external global styles to be applied to your application.
 - Specify the path to `bootstrap.min.css`
@@ -46,7 +46,7 @@ Now that the project is set up it must be configured to include the bootstrap CS
   ],
   ```
 
-**Note:** When you make changes to `angular-cli.json` you will need to re-start `ng serve` to pick up configuration changes.
+**Note:** When you make changes to `.angular-cli.json` you will need to re-start `ng serve` to pick up configuration changes.
 
 ### Testing Project
 
diff --git a/docs/documentation/stories/include-font-awesome.md b/docs/documentation/stories/include-font-awesome.md
index 311af0572e0d..ed0d8b34d2af 100644
--- a/docs/documentation/stories/include-font-awesome.md
+++ b/docs/documentation/stories/include-font-awesome.md
@@ -16,7 +16,7 @@ npm install --save font-awesome
 
 To add Font Awesome CSS icons to your app...
 ```json
-// in angular-cli.json
+// in .angular-cli.json
 
 "styles": [
   "styles.css",
diff --git a/docs/documentation/stories/moving-into-the-cli.md b/docs/documentation/stories/moving-into-the-cli.md
index 6746289444dc..8c4af6dd8aad 100644
--- a/docs/documentation/stories/moving-into-the-cli.md
+++ b/docs/documentation/stories/moving-into-the-cli.md
@@ -47,8 +47,8 @@ relative paths instead.
 - Polyfills are listed in `./src/polyfills.ts` so remove `core-js` and `zone.js` from `index.html`.
 - SystemJS is not needed anymore, so remove it from `index.html` as well.
 - Instead of using `<script>` and `<link>` tags directly in `index.html`, use
-`angular-cli.json` instead.
-  - Look for the `styles` array in `angular-cli.json` and add in any CSS files you have in
+`.angular-cli.json` instead.
+  - Look for the `styles` array in `.angular-cli.json` and add in any CSS files you have in
 `src/index.html`. Use a relative path from `./src/`.
   - Do the same for any remaining script tags as well, using the `scripts` array instead.
 
diff --git a/docs/documentation/stories/moving-out-of-the-cli.md b/docs/documentation/stories/moving-out-of-the-cli.md
index 5f0e63cb2846..371a74c21bd7 100644
--- a/docs/documentation/stories/moving-out-of-the-cli.md
+++ b/docs/documentation/stories/moving-out-of-the-cli.md
@@ -4,7 +4,7 @@ Each project is unique, and even though we try to cater to most setups in Angula
 you need a custom setup.
 
 Even if you need to use a different build system, you can still use other Angular CLI features
-like `ng generate`, `ng lint`, `ng test` and `ng e2e` by leaving in `angular-cli.json` and
+like `ng generate`, `ng lint`, `ng test` and `ng e2e` by leaving in `.angular-cli.json` and
 supporting files like `src/test.ts`.
 
 Moving out of the CLI is very similar to [Moving into the CLI](moving-into-the-cli).
@@ -40,7 +40,7 @@ You might also need to make adjustments to conform to your new build system.
 You might need to change these.
 - Polyfills are listed in `../old-awesome-app/src/polyfills.ts`. Incorporate these into the new
 project.
-- The CLI lists used `<script>` and `<link>` tags in the `angular-cli.json` `scripts`
+- The CLI lists used `<script>` and `<link>` tags in the `.angular-cli.json` `scripts`
 and `styles` array. Check import these in your new project and add them accordingly.
 
 The final step is to copy your git history so you can continue working without losing anything:
diff --git a/packages/@angular/cli/blueprints/ng2/files/__path__/environments/environment.ts b/packages/@angular/cli/blueprints/ng2/files/__path__/environments/environment.ts
index 00313f16648e..b7f639aecac5 100644
--- a/packages/@angular/cli/blueprints/ng2/files/__path__/environments/environment.ts
+++ b/packages/@angular/cli/blueprints/ng2/files/__path__/environments/environment.ts
@@ -1,7 +1,7 @@
 // The file contents for the current environment will overwrite these during build.
 // The build system defaults to the dev environment which uses `environment.ts`, but if you do
 // `ng build --env=prod` then `environment.prod.ts` will be used instead.
-// The list of which env maps to which file can be found in `angular-cli.json`.
+// The list of which env maps to which file can be found in `.angular-cli.json`.
 
 export const environment = {
   production: false
diff --git a/packages/@angular/cli/blueprints/ng2/files/karma.conf.js b/packages/@angular/cli/blueprints/ng2/files/karma.conf.js
index 5a20683052e0..0aa416f5d560 100644
--- a/packages/@angular/cli/blueprints/ng2/files/karma.conf.js
+++ b/packages/@angular/cli/blueprints/ng2/files/karma.conf.js
@@ -29,7 +29,7 @@ module.exports = function (config) {
       fixWebpackSourcePaths: true
     },
     angularCli: {
-      config: './angular-cli.json',
+      config: './.angular-cli.json',
       environment: 'dev'
     },
     reporters: config.angularCli && config.angularCli.codeCoverage
diff --git a/packages/@angular/cli/commands/e2e.ts b/packages/@angular/cli/commands/e2e.ts
index e9bd5fef43be..3a83bae4e832 100644
--- a/packages/@angular/cli/commands/e2e.ts
+++ b/packages/@angular/cli/commands/e2e.ts
@@ -41,7 +41,7 @@ const E2eCommand = Command.extend({
       const e2eConfig = CliConfig.fromProject().config.e2e;
 
       if (!e2eConfig.protractor.config) {
-        throw new SilentError('No protractor config found in angular-cli.json.');
+        throw new SilentError('No protractor config found in .angular-cli.json.');
       }
 
       commandOptions.config = e2eConfig.protractor.config;
diff --git a/packages/@angular/cli/ember-cli/lib/models/blueprint.js b/packages/@angular/cli/ember-cli/lib/models/blueprint.js
index d5ba75852dca..0c47d4429c7b 100644
--- a/packages/@angular/cli/ember-cli/lib/models/blueprint.js
+++ b/packages/@angular/cli/ember-cli/lib/models/blueprint.js
@@ -1285,7 +1285,8 @@ Blueprint.list = function(options) {
   @property renameFiles
 */
 Blueprint.renamedFiles = {
-  'gitignore': '.gitignore'
+  'gitignore': '.gitignore',
+  'angular-cli.json': '.angular-cli.json'
 };
 
 /**
diff --git a/packages/@angular/cli/models/config.ts b/packages/@angular/cli/models/config.ts
index 05a97610f77d..7090cfe6d990 100644
--- a/packages/@angular/cli/models/config.ts
+++ b/packages/@angular/cli/models/config.ts
@@ -5,7 +5,8 @@ import * as chalk from 'chalk';
 import * as fs from 'fs';
 import * as path from 'path';
 
-export const CLI_CONFIG_FILE_NAME = 'angular-cli.json';
+export const CLI_CONFIG_FILE_NAME = '.angular-cli.json';
+const CLI_CONFIG_FILE_NAME_ALT = 'angular-cli.json';
 
 
 function _findUp(name: string, from: string) {
@@ -38,8 +39,11 @@ export class CliConfig extends CliConfigBase<ConfigInterface> {
     // Find the configuration, either where specified, in the angular-cli project
     // (if it's in node_modules) or from the current process.
     return (projectPath && _findUp(CLI_CONFIG_FILE_NAME, projectPath))
+        || (projectPath && _findUp(CLI_CONFIG_FILE_NAME_ALT, projectPath))
         || _findUp(CLI_CONFIG_FILE_NAME, process.cwd())
-        || _findUp(CLI_CONFIG_FILE_NAME, __dirname);
+        || _findUp(CLI_CONFIG_FILE_NAME_ALT, process.cwd())
+        || _findUp(CLI_CONFIG_FILE_NAME, __dirname)
+        || _findUp(CLI_CONFIG_FILE_NAME_ALT, __dirname);
   }
 
   static fromGlobal(): CliConfig {
@@ -66,7 +70,7 @@ export class CliConfig extends CliConfigBase<ConfigInterface> {
     // If any of them returned true, output a deprecation warning.
     if (aliases.some(x => !!x)) {
       console.error(chalk.yellow(oneLine`
-        The "defaults.prefix" and "defaults.sourceDir" properties of angular-cli.json
+        The "defaults.prefix" and "defaults.sourceDir" properties of .angular-cli.json
         are deprecated in favor of "apps[0].root" and "apps[0].prefix".\n
         Please update in order to avoid errors in future versions of Angular CLI.
       `));
@@ -94,7 +98,7 @@ export class CliConfig extends CliConfigBase<ConfigInterface> {
     // If any of them returned true, output a deprecation warning.
     if (aliases.some(x => !!x)) {
       console.error(chalk.yellow(oneLine`
-        The "defaults.prefix" and "defaults.sourceDir" properties of angular-cli.json
+        The "defaults.prefix" and "defaults.sourceDir" properties of .angular-cli.json
         are deprecated in favor of "apps[0].root" and "apps[0].prefix".\n
         Please update in order to avoid errors in future versions of Angular CLI.
       `));
diff --git a/packages/@angular/cli/models/config/config.ts b/packages/@angular/cli/models/config/config.ts
index 594e5aab1225..6432c6e26774 100644
--- a/packages/@angular/cli/models/config/config.ts
+++ b/packages/@angular/cli/models/config/config.ts
@@ -86,7 +86,7 @@ export class CliConfig<JsonType> {
       content = JSON.parse(configContent);
     } catch (err) {
       throw new InvalidConfigError(
-        'Parsing angular-cli.json failed. Please make sure your angular-cli.json'
+        'Parsing .angular-cli.json failed. Please make sure your .angular-cli.json'
         + ' is valid JSON. Error:\n' + err
       );
     }
diff --git a/packages/@angular/cli/models/webpack-config.ts b/packages/@angular/cli/models/webpack-config.ts
index 5bd771fe1e41..4c5765b979ec 100644
--- a/packages/@angular/cli/models/webpack-config.ts
+++ b/packages/@angular/cli/models/webpack-config.ts
@@ -88,7 +88,7 @@ export class NgCliWebpackConfig {
     return Object.assign({}, targetDefaults[buildOptions.target], buildOptions);
   }
 
-  // Fill in defaults from angular-cli.json
+  // Fill in defaults from .angular-cli.json
   private mergeConfigs(buildOptions: BuildOptions, appConfig: any) {
     const mergeableOptions = {
       outputPath: appConfig.outDir,
diff --git a/packages/@angular/cli/models/webpack-configs/production.ts b/packages/@angular/cli/models/webpack-configs/production.ts
index 5db04d93216c..383ed29a4c7d 100644
--- a/packages/@angular/cli/models/webpack-configs/production.ts
+++ b/packages/@angular/cli/models/webpack-configs/production.ts
@@ -23,7 +23,7 @@ export const getProdConfig = function (wco: WebpackConfigOptions) {
       throw new Error(stripIndent`
         Your project is configured with serviceWorker = true, but @angular/service-worker
         is not installed. Run \`npm install --save-dev @angular/service-worker\`
-        and try again, or run \`ng set apps.0.serviceWorker=false\` in your angular-cli.json.
+        and try again, or run \`ng set apps.0.serviceWorker=false\` in your .angular-cli.json.
       `);
     }
 
diff --git a/packages/@angular/cli/tasks/serve.ts b/packages/@angular/cli/tasks/serve.ts
index c7394744f584..93a6f3269684 100644
--- a/packages/@angular/cli/tasks/serve.ts
+++ b/packages/@angular/cli/tasks/serve.ts
@@ -30,7 +30,7 @@ export default Task.extend({
     rimraf.sync(path.resolve(this.project.root, outputPath));
 
     const serveDefaults = {
-      // default deployUrl to '' on serve to prevent the default from angular-cli.json
+      // default deployUrl to '' on serve to prevent the default from .angular-cli.json
       deployUrl: ''
     };
 
diff --git a/tests/e2e/tests/build/assets.ts b/tests/e2e/tests/build/assets.ts
index fba6bde9fcc4..a513878fb626 100644
--- a/tests/e2e/tests/build/assets.ts
+++ b/tests/e2e/tests/build/assets.ts
@@ -22,8 +22,8 @@ export default function () {
       './src/output-asset.txt': 'output-asset.txt',
       './node_modules/some-package/node_modules-asset.txt': 'node_modules-asset.txt',
     }))
-    // Add asset config in angular-cli.json.
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    // Add asset config in .angular-cli.json.
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['assets'] = [
         'folder',
diff --git a/tests/e2e/tests/build/config-file-fallback.ts b/tests/e2e/tests/build/config-file-fallback.ts
new file mode 100644
index 000000000000..e480ad3e9c08
--- /dev/null
+++ b/tests/e2e/tests/build/config-file-fallback.ts
@@ -0,0 +1,10 @@
+import {ng} from '../../utils/process';
+import {moveFile} from '../../utils/fs';
+
+
+export default function() {
+  return Promise.resolve()
+    .then(() => ng('build'))
+    .then(() => moveFile('.angular-cli.json', 'angular-cli.json'))
+    .then(() => ng('build'));
+}
diff --git a/tests/e2e/tests/build/deploy-url.ts b/tests/e2e/tests/build/deploy-url.ts
index 7fcff1ff397d..d5b0ecb417b1 100644
--- a/tests/e2e/tests/build/deploy-url.ts
+++ b/tests/e2e/tests/build/deploy-url.ts
@@ -18,7 +18,7 @@ export default function () {
     // verify --deploy-url isn't applied to extracted css urls
     .then(() => expectFileToMatch('dist/styles.bundle.css', 'url\(more.svg\)'))
     // verify option also works in config
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['deployUrl'] = 'config-deployUrl/';
     }))
diff --git a/tests/e2e/tests/build/filename.ts b/tests/e2e/tests/build/filename.ts
index a9e7258959e1..e8979648f9a6 100644
--- a/tests/e2e/tests/build/filename.ts
+++ b/tests/e2e/tests/build/filename.ts
@@ -7,7 +7,7 @@ import {copyFile} from '../../utils/fs';
 export default function() {
   return Promise.resolve()
     .then(() => copyFile('src/index.html', 'src/config-index.html'))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['outDir'] = 'config-build-output';
       app['index'] = 'config-index.html';
diff --git a/tests/e2e/tests/build/output-dir.ts b/tests/e2e/tests/build/output-dir.ts
index 7e56e1d5f2f5..c159fe287398 100644
--- a/tests/e2e/tests/build/output-dir.ts
+++ b/tests/e2e/tests/build/output-dir.ts
@@ -10,7 +10,7 @@ export default function() {
     .then(() => expectFileToExist('./build-output/index.html'))
     .then(() => expectFileToExist('./build-output/main.bundle.js'))
     .then(() => expectToFail(expectGitToBeClean))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['outDir'] = 'config-build-output';
     }))
diff --git a/tests/e2e/tests/build/scripts-array.ts b/tests/e2e/tests/build/scripts-array.ts
index 5b2e844848ce..be81248ec3f1 100644
--- a/tests/e2e/tests/build/scripts-array.ts
+++ b/tests/e2e/tests/build/scripts-array.ts
@@ -18,7 +18,7 @@ export default function () {
     'src/common-entry-style.css': '.common-entry-style { color: red }',
   })
     .then(() => appendToFile('src/main.ts', 'import \'./string-script.js\';'))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['scripts'] = [
         'string-script.js',
diff --git a/tests/e2e/tests/build/styles/extract-css.ts b/tests/e2e/tests/build/styles/extract-css.ts
index ff08c2aef1de..ee0c704f3178 100644
--- a/tests/e2e/tests/build/styles/extract-css.ts
+++ b/tests/e2e/tests/build/styles/extract-css.ts
@@ -19,7 +19,7 @@ export default function () {
       'src/common-entry-style.css': '.common-entry-style { color: red }',
       'src/common-entry-script.js': 'console.log(\'common-entry-script\');'
     }))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['styles'] = [
         'string-style.css',
diff --git a/tests/e2e/tests/build/styles/imports.ts b/tests/e2e/tests/build/styles/imports.ts
index a7ce2a17f859..192761637d6c 100644
--- a/tests/e2e/tests/build/styles/imports.ts
+++ b/tests/e2e/tests/build/styles/imports.ts
@@ -35,7 +35,7 @@ export default function () {
           h1 { background: #000; }
         `})
         // change files to use preprocessor
-        .then(() => updateJsonFile('angular-cli.json', configJson => {
+        .then(() => updateJsonFile('.angular-cli.json', configJson => {
           const app = configJson['apps'][0];
           app['styles'] = [`styles.${ext}`];
         }))
@@ -57,7 +57,7 @@ export default function () {
         .then(() => expectFileToMatch('dist/main.bundle.js',
           /h1.*background:\s*#000+/))
         // change files back
-        .then(() => updateJsonFile('angular-cli.json', configJson => {
+        .then(() => updateJsonFile('.angular-cli.json', configJson => {
           const app = configJson['apps'][0];
           app['styles'] = ['styles.css'];
         }))
diff --git a/tests/e2e/tests/build/styles/include-paths.ts b/tests/e2e/tests/build/styles/include-paths.ts
index 4f4913e2f328..92ead1cd2687 100644
--- a/tests/e2e/tests/build/styles/include-paths.ts
+++ b/tests/e2e/tests/build/styles/include-paths.ts
@@ -34,7 +34,7 @@ export default function () {
     }))
     .then(() => replaceInFile('src/app/app.component.ts', `'./app.component.css\'`,
       `'./app.component.scss', './app.component.styl'`))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['styles'] = [
         'styles.scss',
diff --git a/tests/e2e/tests/build/styles/less.ts b/tests/e2e/tests/build/styles/less.ts
new file mode 100644
index 000000000000..10d191c5f648
--- /dev/null
+++ b/tests/e2e/tests/build/styles/less.ts
@@ -0,0 +1,42 @@
+import {
+  writeMultipleFiles,
+  deleteFile,
+  expectFileToMatch,
+  replaceInFile
+} from '../../../utils/fs';
+import { expectToFail } from '../../../utils/utils';
+import { ng } from '../../../utils/process';
+import { stripIndents } from 'common-tags';
+import { updateJsonFile } from '../../../utils/project';
+
+export default function () {
+  return writeMultipleFiles({
+    'src/styles.less': stripIndents`
+      @import './imported-styles.less';
+      body { background-color: blue; }
+    `,
+    'src/imported-styles.less': stripIndents`
+      p { background-color: red; }
+    `,
+    'src/app/app.component.less': stripIndents`
+        .outer {
+          .inner {
+            background: #fff;
+          }
+        }
+      `})
+    .then(() => deleteFile('src/app/app.component.css'))
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['styles'] = ['styles.less'];
+    }))
+    .then(() => replaceInFile('src/app/app.component.ts',
+      './app.component.css', './app.component.less'))
+    .then(() => ng('build', '--extract-css', '--sourcemap'))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /body\s*{\s*background-color: blue;\s*}/))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /p\s*{\s*background-color: red;\s*}/))
+    .then(() => expectToFail(() => expectFileToMatch('dist/styles.bundle.css', '"mappings":""')))
+    .then(() => expectFileToMatch('dist/main.bundle.js', /.outer.*.inner.*background:\s*#[fF]+/));
+}
diff --git a/tests/e2e/tests/build/styles/loaders.ts b/tests/e2e/tests/build/styles/loaders.ts
index 9a2121c8f7dd..703497b2f555 100644
--- a/tests/e2e/tests/build/styles/loaders.ts
+++ b/tests/e2e/tests/build/styles/loaders.ts
@@ -26,7 +26,7 @@ export default function () {
         }
       `})
     .then(() => deleteFile('src/app/app.component.css'))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['styles'] = ['styles.scss'];
     }))
diff --git a/tests/e2e/tests/build/styles/scss.ts b/tests/e2e/tests/build/styles/scss.ts
new file mode 100644
index 000000000000..24a018d45eb0
--- /dev/null
+++ b/tests/e2e/tests/build/styles/scss.ts
@@ -0,0 +1,42 @@
+import {
+  writeMultipleFiles,
+  deleteFile,
+  expectFileToMatch,
+  replaceInFile
+} from '../../../utils/fs';
+import { expectToFail } from '../../../utils/utils';
+import { ng } from '../../../utils/process';
+import { stripIndents } from 'common-tags';
+import { updateJsonFile } from '../../../utils/project';
+
+export default function () {
+  return writeMultipleFiles({
+    'src/styles.scss': stripIndents`
+      @import './imported-styles.scss';
+      body { background-color: blue; }
+    `,
+    'src/imported-styles.scss': stripIndents`
+      p { background-color: red; }
+    `,
+    'src/app/app.component.scss': stripIndents`
+        .outer {
+          .inner {
+            background: #fff;
+          }
+        }
+      `})
+    .then(() => deleteFile('src/app/app.component.css'))
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['styles'] = ['styles.scss'];
+    }))
+    .then(() => replaceInFile('src/app/app.component.ts',
+      './app.component.css', './app.component.scss'))
+    .then(() => ng('build', '--extract-css', '--sourcemap'))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /body\s*{\s*background-color: blue;\s*}/))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /p\s*{\s*background-color: red;\s*}/))
+    .then(() => expectToFail(() => expectFileToMatch('dist/styles.bundle.css', '"mappings":""')))
+    .then(() => expectFileToMatch('dist/main.bundle.js', /.outer.*.inner.*background:\s*#[fF]+/));
+}
diff --git a/tests/e2e/tests/build/styles/styles-array.ts b/tests/e2e/tests/build/styles/styles-array.ts
index efa6bf531f3f..5cbb608070a7 100644
--- a/tests/e2e/tests/build/styles/styles-array.ts
+++ b/tests/e2e/tests/build/styles/styles-array.ts
@@ -17,7 +17,7 @@ export default function () {
     'src/common-entry-style.css': '.common-entry-style { color: red }',
     'src/common-entry-script.js': 'console.log(\'common-entry-script\');'
   })
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['styles'] = [
         'string-style.css',
diff --git a/tests/e2e/tests/build/styles/stylus.ts b/tests/e2e/tests/build/styles/stylus.ts
new file mode 100644
index 000000000000..c73923a596ad
--- /dev/null
+++ b/tests/e2e/tests/build/styles/stylus.ts
@@ -0,0 +1,42 @@
+import {
+  writeMultipleFiles,
+  deleteFile,
+  expectFileToMatch,
+  replaceInFile
+} from '../../../utils/fs';
+import { expectToFail } from '../../../utils/utils';
+import { ng } from '../../../utils/process';
+import { stripIndents } from 'common-tags';
+import { updateJsonFile } from '../../../utils/project';
+
+export default function () {
+  return writeMultipleFiles({
+    'src/styles.styl': stripIndents`
+      @import './imported-styles.styl';
+      body { background-color: blue; }
+    `,
+    'src/imported-styles.styl': stripIndents`
+      p { background-color: red; }
+    `,
+    'src/app/app.component.styl': stripIndents`
+        .outer {
+          .inner {
+            background: #fff;
+          }
+        }
+      `})
+    .then(() => deleteFile('src/app/app.component.css'))
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['styles'] = ['styles.styl'];
+    }))
+    .then(() => replaceInFile('src/app/app.component.ts',
+      './app.component.css', './app.component.styl'))
+    .then(() => ng('build', '--extract-css', '--sourcemap'))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /body\s*{\s*background-color: #00f;\s*}/))
+    .then(() => expectFileToMatch('dist/styles.bundle.css',
+      /p\s*{\s*background-color: #f00;\s*}/))
+    .then(() => expectToFail(() => expectFileToMatch('dist/styles.bundle.css', '"mappings":""')))
+    .then(() => expectFileToMatch('dist/main.bundle.js', /.outer.*.inner.*background:\s*#[fF]+/));
+}
diff --git a/tests/e2e/tests/generate/component/component-flat.ts b/tests/e2e/tests/generate/component/component-flat.ts
index 62f2f28675fe..57c3658907da 100644
--- a/tests/e2e/tests/generate/component/component-flat.ts
+++ b/tests/e2e/tests/generate/component/component-flat.ts
@@ -8,7 +8,7 @@ export default function() {
   const appDir = join('src', 'app');
 
   return Promise.resolve()
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const comp = configJson.defaults.component;
       comp.flat = true;
     }))
diff --git a/tests/e2e/tests/generate/component/component-not-flat.ts b/tests/e2e/tests/generate/component/component-not-flat.ts
index 487e5a4542b4..91ba0ba0e2fd 100644
--- a/tests/e2e/tests/generate/component/component-not-flat.ts
+++ b/tests/e2e/tests/generate/component/component-not-flat.ts
@@ -8,7 +8,7 @@ export default function() {
   const componentDir = join('src', 'app', 'test-component');
 
   return Promise.resolve()
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const comp = configJson.defaults.component;
       comp.flat = false;
     }))
diff --git a/tests/e2e/tests/misc/assets.ts b/tests/e2e/tests/misc/assets.ts
new file mode 100644
index 000000000000..482881561495
--- /dev/null
+++ b/tests/e2e/tests/misc/assets.ts
@@ -0,0 +1,22 @@
+import {writeFile, expectFileToExist, expectFileToMatch} from '../../utils/fs';
+import {ng} from '../../utils/process';
+import {updateJsonFile} from '../../utils/project';
+import {expectToFail} from '../../utils/utils';
+
+
+export default function() {
+  return writeFile('src/assets/.file', '')
+    .then(() => writeFile('src/assets/test.abc', 'hello world'))
+    .then(() => ng('build'))
+    .then(() => expectFileToExist('dist/favicon.ico'))
+    .then(() => expectFileToExist('dist/assets/.file'))
+    .then(() => expectFileToMatch('dist/assets/test.abc', 'hello world'))
+    .then(() => expectToFail(() => expectFileToExist('dist/assets/.gitkeep')))
+    // doesn't break beta.16 projects
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['assets'] = 'assets';
+    }))
+    .then(() => expectFileToExist('dist/assets/.file'))
+    .then(() => expectFileToMatch('dist/assets/test.abc', 'hello world'));
+}
diff --git a/tests/e2e/tests/misc/default-port.ts b/tests/e2e/tests/misc/default-port.ts
index d3de7d535828..b525cf9867f0 100644
--- a/tests/e2e/tests/misc/default-port.ts
+++ b/tests/e2e/tests/misc/default-port.ts
@@ -5,7 +5,7 @@ import { updateJsonFile } from '../../utils/project';
 
 export default function() {
   return Promise.resolve()
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson.defaults;
       app.serve = { port: 4201 };
     }))
diff --git a/tests/e2e/tests/misc/different-file-format.ts b/tests/e2e/tests/misc/different-file-format.ts
index d3bb097f9955..e6dad9a7a069 100644
--- a/tests/e2e/tests/misc/different-file-format.ts
+++ b/tests/e2e/tests/misc/different-file-format.ts
@@ -10,6 +10,6 @@ const options = {
 export default function() {
   return Promise.resolve()
     .then(() => fs.prependToFile('./src/tsconfig.json', '\ufeff', options))
-    .then(() => fs.prependToFile('./angular-cli.json', '\ufeff', options))
+    .then(() => fs.prependToFile('./.angular-cli.json', '\ufeff', options))
     .then(() => ng('build', '--env=dev'));
 }
diff --git a/tests/e2e/tests/misc/fallback.ts b/tests/e2e/tests/misc/fallback.ts
index fb6253609aa5..12b27cf9d8d9 100644
--- a/tests/e2e/tests/misc/fallback.ts
+++ b/tests/e2e/tests/misc/fallback.ts
@@ -18,7 +18,7 @@ export default function () {
     .then(() => killAllProcesses(), (err) => { killAllProcesses(); throw err; })
     // should correctly fallback to a changed index
     .then(() => moveFile('src/index.html', 'src/not-index.html'))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['index'] = 'not-index.html';
     }))
diff --git a/tests/e2e/tests/misc/minimal-config.ts b/tests/e2e/tests/misc/minimal-config.ts
index 5e94c7545619..7e21832b0f72 100644
--- a/tests/e2e/tests/misc/minimal-config.ts
+++ b/tests/e2e/tests/misc/minimal-config.ts
@@ -4,7 +4,7 @@ import { ng } from '../../utils/process';
 
 export default function () {
   return Promise.resolve()
-    .then(() => writeFile('angular-cli.json', JSON.stringify({
+    .then(() => writeFile('.angular-cli.json', JSON.stringify({
       apps: [{
         root: 'src',
         main: 'main.ts',
@@ -32,7 +32,7 @@ export default function () {
           });
         });
       `,
-      'angular-cli.json': JSON.stringify({
+      '.angular-cli.json': JSON.stringify({
         apps: [{
           root: 'src',
           scripts: ['./script.js']
diff --git a/tests/e2e/tests/misc/version.ts b/tests/e2e/tests/misc/version.ts
index d5d5cbd2a2a5..c49c0c62dae3 100644
--- a/tests/e2e/tests/misc/version.ts
+++ b/tests/e2e/tests/misc/version.ts
@@ -4,7 +4,7 @@ import {ng} from '../../utils/process';
 
 export default function() {
   return ng('version')
-    .then(() => deleteFile('angular-cli.json'))
-    // doesn't fail on a project with missing angular-cli.json
+    .then(() => deleteFile('.angular-cli.json'))
+    // doesn't fail on a project with missing .angular-cli.json
     .then(() => ng('version'));
 }
diff --git a/tests/e2e/tests/test/test-assets.ts b/tests/e2e/tests/test/test-assets.ts
new file mode 100644
index 000000000000..12d247aad6ef
--- /dev/null
+++ b/tests/e2e/tests/test/test-assets.ts
@@ -0,0 +1,49 @@
+import { writeMultipleFiles } from '../../utils/fs';
+import { ng } from '../../utils/process';
+import { updateJsonFile } from '../../utils/project';
+import { expectToFail } from '../../utils/utils';
+import { stripIndent } from 'common-tags';
+
+// Make sure asset files are served
+export default function () {
+  return Promise.resolve()
+    .then(() => writeMultipleFiles({
+      'src/assets/file.txt': 'assets-folder-content',
+      'src/file.txt': 'file-content',
+      // Not using `async()` in tests as it seemed to swallow `fetch()` errors
+      'src/app/app.component.spec.ts': stripIndent`
+        describe('Test Runner', () => {
+          const fetch = global['fetch'];
+          it('should serve files in assets folder', (done) => {
+            fetch('/assets/file.txt')
+              .then(response => response.text())
+              .then(fileText => {
+                expect(fileText).toMatch('assets-folder-content');
+                done();
+              });
+          });
+          it('should serve files explicitly added to assets array', (done) => {
+            fetch('/file.txt')
+              .then(response => response.text())
+              .then(fileText => {
+                expect(fileText).toMatch('file-content');
+                done();
+              });
+          });
+        });
+      `
+    }))
+    // Test failure condition (no assets in .angular-cli.json)
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['assets'] = [];
+    }))
+    .then(() => expectToFail(() => ng('test', '--single-run'),
+      'Should fail because the assets to serve were not in the Angular CLI config'))
+    // Test passing condition (assets are included)
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['assets'] = ['assets', 'file.txt'];
+    }))
+    .then(() => ng('test', '--single-run'));
+}
diff --git a/tests/e2e/tests/test/test-scripts.ts b/tests/e2e/tests/test/test-scripts.ts
index 2e4d581d1bb5..ddc9fd90b318 100644
--- a/tests/e2e/tests/test/test-scripts.ts
+++ b/tests/e2e/tests/test/test-scripts.ts
@@ -58,7 +58,7 @@ export default function () {
     }))
     // should fail because the global scripts were not added to scripts array
     .then(() => expectToFail(() => ng('test', '--single-run')))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['scripts'] = [
         'string-script.js',
diff --git a/tests/e2e/tests/third-party/bootstrap.ts b/tests/e2e/tests/third-party/bootstrap.ts
index b8a8de5384a8..6208fd17637f 100644
--- a/tests/e2e/tests/third-party/bootstrap.ts
+++ b/tests/e2e/tests/third-party/bootstrap.ts
@@ -7,7 +7,7 @@ import {oneLineTrim} from 'common-tags';
 export default function() {
   return Promise.resolve()
     .then(() => npm('install', 'bootstrap@next'))
-    .then(() => updateJsonFile('angular-cli.json', configJson => {
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
       const app = configJson['apps'][0];
       app['styles'].push('../node_modules/bootstrap/dist/css/bootstrap.css');
       app['scripts'].push(