diff --git a/packages/angular-cli/commands/serve.ts b/packages/angular-cli/commands/serve.ts
index 0822b41ce1df..e7ba4b7c94ab 100644
--- a/packages/angular-cli/commands/serve.ts
+++ b/packages/angular-cli/commands/serve.ts
@@ -1,12 +1,14 @@
 import { BuildOptions } from '../models/webpack-config';
 import { BaseBuildCommandOptions } from './build';
-
+import { CliConfig } from '../models/config';
 const PortFinder = require('portfinder');
 const Command = require('../ember-cli/lib/models/command');
+const config = CliConfig.fromProject() || CliConfig.fromGlobal();
 
 PortFinder.basePort = 49152;
 
-const defaultPort = process.env.PORT || 4200;
+const defaultPort = process.env.PORT || config.get('defaults.serve.port');
+const defaultHost = config.get('defaults.serve.host');
 
 export interface ServeTaskOptions extends BuildOptions {
   port?: number;
@@ -34,9 +36,9 @@ const ServeCommand = Command.extend({
     {
       name: 'host',
       type: String,
-      default: 'localhost',
+      default: defaultHost,
       aliases: ['H'],
-      description: 'Listens only on localhost by default'
+      description: `Listens only on ${defaultHost} by default`
     },
     { name: 'proxy-config',         type: 'Path',                          aliases: ['pc'] },
     { name: 'live-reload',          type: Boolean, default: true,          aliases: ['lr'] },
diff --git a/packages/angular-cli/lib/config/schema.json b/packages/angular-cli/lib/config/schema.json
index 67b0473f88e5..905b198635d2 100644
--- a/packages/angular-cli/lib/config/schema.json
+++ b/packages/angular-cli/lib/config/schema.json
@@ -247,6 +247,19 @@
               "default": true
             }
           }
+        },
+        "serve": {
+          "type": "object",
+          "properties": {
+            "port": {
+              "type": "number",
+              "default": 4200
+            },
+            "host": {
+              "type": "string",
+              "default": "localhost"
+            }
+          }
         }
       },
       "additionalProperties": false
diff --git a/tests/e2e/tests/misc/default-port.ts b/tests/e2e/tests/misc/default-port.ts
new file mode 100644
index 000000000000..d3de7d535828
--- /dev/null
+++ b/tests/e2e/tests/misc/default-port.ts
@@ -0,0 +1,20 @@
+import { request } from '../../utils/http';
+import { killAllProcesses } from '../../utils/process';
+import { ngServe } from '../../utils/project';
+import { updateJsonFile } from '../../utils/project';
+
+export default function() {
+  return Promise.resolve()
+    .then(() => updateJsonFile('angular-cli.json', configJson => {
+      const app = configJson.defaults;
+      app.serve = { port: 4201 };
+    }))
+    .then(() => ngServe())
+    .then(() => request('http://localhost:4201/'))
+    .then(body => {
+      if (!body.match(/<app-root>Loading...<\/app-root>/)) {
+        throw new Error('Response does not match expected value.');
+      }
+    })
+    .then(() => killAllProcesses(), (err) => { killAllProcesses(); throw err; });
+}