diff --git a/README.md b/README.md
index 7a372bd..e38a5a4 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@ It is fully based on Open Source software, most importantly:
 
 - Ubuntu
 - OpenJDK (Oracle JDK can't be used because of license issues)
-- NPM, Bower and Gulp
+- Yarn, NPM, Bower and Gulp
 - Docker and Docker Compose (see the [JHipster Docker Compose documentation](http://jhipster.github.io/docker-compose/) to learn how to run your application, database or even a full micro-service architecture with Docker)
 - [Ubuntu Make](https://wiki.ubuntu.com/ubuntu-make) so you can easily install your favorite IDE (type `umake ide idea` for Intellij IDEA or `umake ide eclipse` for Eclipse)
 - Chromium and Firefox Web browsers
diff --git a/scripts/setup.sh b/scripts/setup.sh
index e451d11..6f4080c 100755
--- a/scripts/setup.sh
+++ b/scripts/setup.sh
@@ -36,14 +36,17 @@ apt-get install -y nodejs unzip python g++ build-essential
 # update npm
 npm install -g npm
 
+# install yarn
+npm install -g yarn
+
 # install yeoman grunt bower gulp
-npm install -g yo bower gulp
+yarn global add yo bower gulp
 
 # install JHipster
-npm install -g generator-jhipster@3.9.1
+yarn global add generator-jhipster@3.9.1
 
 # install JHipster UML
-npm install -g jhipster-uml@2.0.0
+yarn global add jhipster-uml@2.0.0
 
 ################################################################################
 # Install the graphical environment
@@ -107,7 +110,7 @@ ln -s /opt/cf /usr/bin/cf
 
 # install the AWS tools
 pip install awscli
-npm install -g aws-sdk progress node-uuid
+yarn global add aws-sdk progress node-uuid
 
 #install Guake
 apt-get install -y guake
@@ -160,6 +163,9 @@ chmod +x /usr/local/bin/docker-compose
 # configure docker group (docker commands can be launched without sudo)
 usermod -aG docker vagrant
 
+# fix ownership of yarn cache
+chown -R vagrant:vagrant /home/vagrant/.yarn-cache
+
 # clean the box
 apt-get -y autoclean
 apt-get -y clean