diff --git a/packages/angular_devkit/build_angular/src/babel/presets/application.ts b/packages/angular_devkit/build_angular/src/babel/presets/application.ts
index bd5ffcc6b52f..a1cf286cda8b 100644
--- a/packages/angular_devkit/build_angular/src/babel/presets/application.ts
+++ b/packages/angular_devkit/build_angular/src/babel/presets/application.ts
@@ -16,7 +16,10 @@ export interface ApplicationPresetOptions {
     translation?: unknown;
   };
 
-  angularLinker?: boolean;
+  angularLinker?: {
+    shouldLink: boolean;
+    jitMode: boolean;
+  };
 
   forceES5?: boolean;
   forceAsyncTransformation?: boolean;
@@ -124,13 +127,14 @@ export default function (api: unknown, options: ApplicationPresetOptions) {
   const plugins = [];
   let needRuntimeTransform = false;
 
-  if (options.angularLinker) {
+  if (options.angularLinker?.shouldLink) {
     // Babel currently is synchronous so import cannot be used
     const {
       createEs2015LinkerPlugin,
-    } = require('@angular/compiler-cli/linker/babel');
+    } = require('@angular/compiler-cli/linker/babel') as typeof import('@angular/compiler-cli/linker/babel');
 
     plugins.push(createEs2015LinkerPlugin({
+      linkerJitMode: options.angularLinker.jitMode,
       logger: createNgtscLogger(options.diagnosticReporter),
       fileSystem: {
         resolve: path.resolve,
@@ -138,7 +142,9 @@ export default function (api: unknown, options: ApplicationPresetOptions) {
         dirname: path.dirname,
         relative: path.relative,
         readFile: fs.readFileSync,
-      },
+      // Node.JS types don't overlap the Compiler types.
+      // tslint:disable-next-line: no-any
+      } as any,
     }));
   }
 
diff --git a/packages/angular_devkit/build_angular/src/babel/webpack-loader.ts b/packages/angular_devkit/build_angular/src/babel/webpack-loader.ts
index a3b65df921c5..fefbfa10c4fa 100644
--- a/packages/angular_devkit/build_angular/src/babel/webpack-loader.ts
+++ b/packages/angular_devkit/build_angular/src/babel/webpack-loader.ts
@@ -10,11 +10,9 @@ import { custom } from 'babel-loader';
 import { ScriptTarget } from 'typescript';
 import { ApplicationPresetOptions } from './presets/application';
 
-interface AngularCustomOptions {
+interface AngularCustomOptions extends Pick<ApplicationPresetOptions, 'angularLinker' | 'i18n'> {
   forceAsyncTransformation: boolean;
   forceES5: boolean;
-  shouldLink: boolean;
-  i18n: ApplicationPresetOptions['i18n'];
 }
 
 function requiresLinking(
@@ -41,20 +39,25 @@ export default custom<AngularCustomOptions>(() => {
   });
 
   return {
-    async customOptions({ i18n, scriptTarget, ...rawOptions }, { source }) {
+    async customOptions({ i18n, scriptTarget, aot, ...rawOptions }, { source }) {
       // Must process file if plugins are added
       let shouldProcess = Array.isArray(rawOptions.plugins) && rawOptions.plugins.length > 0;
 
       const customOptions: AngularCustomOptions = {
         forceAsyncTransformation: false,
         forceES5: false,
-        shouldLink: false,
+        angularLinker: undefined,
         i18n: undefined,
       };
 
       // Analyze file for linking
-      customOptions.shouldLink = await requiresLinking(this.resourcePath, source);
-      shouldProcess ||= customOptions.shouldLink;
+      if (await requiresLinking(this.resourcePath, source)) {
+        customOptions.angularLinker = {
+          shouldLink: true,
+          jitMode: aot !== true,
+        };
+        shouldProcess = true;
+      }
 
       // Analyze for ES target processing
       const esTarget = scriptTarget as ScriptTarget | undefined;
@@ -109,10 +112,7 @@ export default custom<AngularCustomOptions>(() => {
           [
             require('./presets/application').default,
             {
-              angularLinker: customOptions.shouldLink,
-              forceES5: customOptions.forceES5,
-              forceAsyncTransformation: customOptions.forceAsyncTransformation,
-              i18n: customOptions.i18n,
+              ...customOptions,
               diagnosticReporter: (type, message) => {
                 switch (type) {
                   case 'error':
diff --git a/packages/angular_devkit/build_angular/src/webpack/configs/common.ts b/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
index 89fdeb03bf0e..9b8e4a6f51c1 100644
--- a/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
+++ b/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
@@ -493,6 +493,7 @@ export function getCommonConfig(wco: WebpackConfigOptions): Configuration {
               options: {
                 cacheDirectory: findCachePath('babel-webpack'),
                 scriptTarget: wco.scriptTarget,
+                aot: buildOptions.aot,
               },
             },
             ...buildOptimizerUseRule,
diff --git a/tests/legacy-cli/e2e/tests/generate/library/library-consumption-linker.ts b/tests/legacy-cli/e2e/tests/generate/library/library-consumption-linker.ts
index 8275c5b5491b..4875cb03a247 100644
--- a/tests/legacy-cli/e2e/tests/generate/library/library-consumption-linker.ts
+++ b/tests/legacy-cli/e2e/tests/generate/library/library-consumption-linker.ts
@@ -1,8 +1,7 @@
+import { getGlobalVariable } from '../../../utils/env';
 import { writeFile } from '../../../utils/fs';
-import { getActivePackageManager } from '../../../utils/packages';
-import { ng, silentYarn } from '../../../utils/process';
+import { ng } from '../../../utils/process';
 import { updateJsonFile } from '../../../utils/project';
-import { getGlobalVariable } from '../../../utils/env';
 
 export default async function () {
   if ((getGlobalVariable('argv')['ve'])) {
@@ -13,8 +12,7 @@ export default async function () {
   await ng('generate', 'library', 'my-lib');
 
   // Enable partial compilation mode (linker) for the library
-  // Enable ivy for production as well (current schematic disables ivy in production)
-  await updateJsonFile('projects/my-lib/tsconfig.lib.prod.json', config => {
+  await updateJsonFile('projects/my-lib/tsconfig.lib.json', config => {
     const { angularCompilerOptions = {} } = config;
     angularCompilerOptions.enableIvy = true;
     angularCompilerOptions.compilationMode = 'partial';
@@ -51,7 +49,7 @@ export default async function () {
         template: '<lib-my-lib></lib-my-lib>'
       })
       export class AppComponent {
-        title = 'app';
+        title = 'test-project';
 
         constructor(myLibService: MyLibService) {
           console.log(myLibService);
@@ -85,18 +83,23 @@ export default async function () {
     });
   `);
 
-  await runLibraryTests();
-  await runLibraryTests(true);
-}
+  // Build library in partial mode (development)
+  await ng('build', 'my-lib', '--configuration=development');
 
-async function runLibraryTests(prodMode = false): Promise<void> {
-  const args = ['build', 'my-lib'];
-  if (!prodMode) {
-    args.push('--configuration=development');
-  }
+  // AOT linking
+  await runTests();
 
-  await ng(...args);
+  // JIT linking
+  await updateJsonFile('angular.json', config => {
+    const build = config.projects['test-project'].architect.build;
+    build.options.aot = false;
+    build.configurations.production.buildOptimizer = false;
+  });
+
+  await runTests();
+}
 
+async function runTests(): Promise<void> {
   // Check that the tests succeeds both with named project, unnamed (should test app), and prod.
   await ng('e2e');
   await ng('e2e', 'test-project', '--devServerTarget=test-project:serve:production');