diff --git a/src/cdk/schematics/update-tool/index.ts b/src/cdk/schematics/update-tool/index.ts
index b2561a542f6f..7e60e21190b9 100644
--- a/src/cdk/schematics/update-tool/index.ts
+++ b/src/cdk/schematics/update-tool/index.ts
@@ -50,13 +50,17 @@ export class UpdateProject<Context> {
    * @param data Upgrade data that is passed to all migration rules.
    * @param additionalStylesheetPaths Additional stylesheets that should be migrated, if not
    *   referenced in an Angular component. This is helpful for global stylesheets in a project.
+   * @param limitToDirectory If specified, changes will be limited to the given directory.
    */
   migrate<Data>(
     migrationTypes: MigrationCtor<Data, Context>[],
     target: TargetVersion | null,
     data: Data,
     additionalStylesheetPaths?: string[],
+    limitToDirectory?: string,
   ): {hasFailures: boolean} {
+    limitToDirectory &&= this._fileSystem.resolve(limitToDirectory);
+
     // Create instances of the specified migrations.
     const migrations = this._createMigrations(migrationTypes, target, data);
     // Creates the component resource collector. The collector can visit arbitrary
@@ -65,9 +69,14 @@ export class UpdateProject<Context> {
     const resourceCollector = new ComponentResourceCollector(this._typeChecker, this._fileSystem);
     // Collect all of the TypeScript source files we want to migrate. We don't
     // migrate type definition files, or source files from external libraries.
-    const sourceFiles = this._program
-      .getSourceFiles()
-      .filter(f => !f.isDeclarationFile && !this._program.isSourceFileFromExternalLibrary(f));
+    const sourceFiles = this._program.getSourceFiles().filter(f => {
+      return (
+        !f.isDeclarationFile &&
+        (limitToDirectory == null ||
+          this._fileSystem.resolve(f.fileName).startsWith(limitToDirectory)) &&
+        !this._program.isSourceFileFromExternalLibrary(f)
+      );
+    });
 
     // Helper function that visits a given TypeScript node and collects all referenced
     // component resources (i.e. stylesheets or templates). Additionally, the helper
@@ -121,11 +130,13 @@ export class UpdateProject<Context> {
     if (additionalStylesheetPaths) {
       additionalStylesheetPaths.forEach(filePath => {
         const resolvedPath = this._fileSystem.resolve(filePath);
-        const stylesheet = resourceCollector.resolveExternalStylesheet(resolvedPath, null);
-        // Do not visit stylesheets which have been referenced from a component.
-        if (!this._analyzedFiles.has(resolvedPath) && stylesheet) {
-          migrations.forEach(r => r.visitStylesheet(stylesheet));
-          this._analyzedFiles.add(resolvedPath);
+        if (limitToDirectory == null || resolvedPath.startsWith(limitToDirectory)) {
+          const stylesheet = resourceCollector.resolveExternalStylesheet(resolvedPath, null);
+          // Do not visit stylesheets which have been referenced from a component.
+          if (!this._analyzedFiles.has(resolvedPath) && stylesheet) {
+            migrations.forEach(r => r.visitStylesheet(stylesheet));
+            this._analyzedFiles.add(resolvedPath);
+          }
         }
       });
     }
diff --git a/src/material/schematics/ng-generate/mdc-migration/index.ts b/src/material/schematics/ng-generate/mdc-migration/index.ts
index e59143924d59..62d9c28fa7e6 100644
--- a/src/material/schematics/ng-generate/mdc-migration/index.ts
+++ b/src/material/schematics/ng-generate/mdc-migration/index.ts
@@ -68,6 +68,7 @@ function runMigrations(
   migrators: ComponentMigrator[],
   analyzedFiles: Set<WorkspacePath>,
   additionalStylesheetPaths: string[],
+  limitToDirectory?: string,
 ): boolean {
   const program = UpdateProject.createProgramFromTsconfig(tsconfigPath, fileSystem);
   const project = new UpdateProject(context, program, fileSystem, analyzedFiles, context.logger);
@@ -76,6 +77,7 @@ function runMigrations(
     null,
     migrators,
     additionalStylesheetPaths,
+    limitToDirectory,
   ).hasFailures;
 }
 
@@ -93,11 +95,11 @@ export default function (options: Schema): Rule {
     const analyzedFiles = new Set<WorkspacePath>();
     const componentsToMigrate = getComponentsToMigrate(options.components);
     const migrators = MIGRATORS.filter(m => componentsToMigrate.has(m.component));
-    let additionalStylesheetPaths = options.directory
-      ? findStylesheetFiles(tree, options.directory)
-      : [];
     let success = true;
 
+    if (options.directory) {
+      logger.info(`Limiting migration to: ${options.directory}`);
+    }
     logger.info(`Migrating components:\n${[...componentsToMigrate].join('\n')}`);
 
     for (const projectName of projectNames) {
@@ -114,9 +116,7 @@ export default function (options: Schema): Rule {
         continue;
       }
 
-      if (!options.directory) {
-        additionalStylesheetPaths = findStylesheetFiles(tree, project.root);
-      }
+      const additionalStylesheetPaths = findStylesheetFiles(tree, project.root);
 
       logger.info(`Migrating project: ${projectName}`);
 
@@ -128,6 +128,7 @@ export default function (options: Schema): Rule {
           migrators,
           analyzedFiles,
           additionalStylesheetPaths,
+          options.directory || undefined,
         );
       }
     }
diff --git a/src/material/schematics/ng-generate/mdc-migration/schema.d.ts b/src/material/schematics/ng-generate/mdc-migration/schema.d.ts
index f7a47cfebc87..7dafeb963e4e 100644
--- a/src/material/schematics/ng-generate/mdc-migration/schema.d.ts
+++ b/src/material/schematics/ng-generate/mdc-migration/schema.d.ts
@@ -13,7 +13,7 @@ export interface Schema {
    * Source files determined outside of this directory will be ignored,
    * allowing for an incremental migration.
    *
-   * If not set, the directory is determined based on the specified tsconfig.
+   * If not set, the directory is determined based on the workspace.
    */
   directory?: string;
 
diff --git a/src/material/schematics/ng-generate/mdc-migration/schema.json b/src/material/schematics/ng-generate/mdc-migration/schema.json
index a8366d04a8b9..1cb4331cf700 100644
--- a/src/material/schematics/ng-generate/mdc-migration/schema.json
+++ b/src/material/schematics/ng-generate/mdc-migration/schema.json
@@ -9,7 +9,7 @@
       "format": "path",
       "description": "Workspace-relative path to a directory which will be migrated.",
       "alias": "d",
-      "default": ""
+      "x-prompt": "Limit the migration to a specific directory? (Enter directory or leave blank for all directories)"
     },
     "components": {
       "type": "array",