diff --git a/packages/angular-cli/blueprints/module/index.js b/packages/angular-cli/blueprints/module/index.js
index 3cd3b5646119..1ee4be43aea8 100644
--- a/packages/angular-cli/blueprints/module/index.js
+++ b/packages/angular-cli/blueprints/module/index.js
@@ -58,8 +58,12 @@ module.exports = {
   },
 
   afterInstall: function (options) {
-    options.entity.name = path.relative(this.dynamicPath.appRoot, this.generatePath);
-    options.flat = false;
+    // Note that `this.generatePath` already contains `this.dasherizedModuleName`
+    // So, the path will end like `name/name`, 
+    //  which is correct for `name.component.ts` created in module `name`
+    var componentPath = path.join(this.generatePath, this.dasherizedModuleName);
+    options.entity.name = path.relative(this.dynamicPath.appRoot, componentPath);
+    options.flat = true;
     options.route = false;
     options.inlineTemplate = false;
     options.inlineStyle = false;