diff --git a/packages/angular/cli/commands/update-impl.ts b/packages/angular/cli/commands/update-impl.ts
index 0c2965440acb..2c9cea0eb2c8 100644
--- a/packages/angular/cli/commands/update-impl.ts
+++ b/packages/angular/cli/commands/update-impl.ts
@@ -17,7 +17,7 @@ import { Command } from '../models/command';
 import { Arguments } from '../models/interface';
 import { SchematicEngineHost } from '../models/schematic-engine-host';
 import { colors } from '../utilities/color';
-import { runTempPackageBin } from '../utilities/install-package';
+import { installAllPackages, runTempPackageBin } from '../utilities/install-package';
 import { writeErrorToLogFile } from '../utilities/log-file';
 import { ensureCompatibleNpm, getPackageManager } from '../utilities/package-manager';
 import {
@@ -655,6 +655,26 @@ export class UpdateCommand extends Command<UpdateCommandSchema> {
       packages: packagesToUpdate,
     });
 
+    if (success) {
+      try {
+        // Remove existing node modules directory to provide a stronger guarantee that packages
+        // will be hoisted into the correct locations.
+        await fs.promises.rmdir(path.join(this.context.root, 'node_modules'), {
+          recursive: true,
+          maxRetries: 3,
+        });
+      } catch {}
+
+      const result = await installAllPackages(
+        this.packageManager,
+        options.force ? ['--force'] : [],
+        this.context.root,
+      );
+      if (result !== 0) {
+        return result;
+      }
+    }
+
     if (success && options.createCommits) {
       const committed = this.commit(
         `Angular CLI update for packages - ${packagesToUpdate.join(', ')}`,
diff --git a/packages/angular/cli/src/commands/update/schematic/index.ts b/packages/angular/cli/src/commands/update/schematic/index.ts
index 7291bea7e2a7..56ba9ee8be47 100644
--- a/packages/angular/cli/src/commands/update/schematic/index.ts
+++ b/packages/angular/cli/src/commands/update/schematic/index.ts
@@ -8,7 +8,6 @@
 
 import { logging, tags } from '@angular-devkit/core';
 import { Rule, SchematicContext, SchematicsException, Tree } from '@angular-devkit/schematics';
-import { NodePackageInstallTask } from '@angular-devkit/schematics/tasks';
 import * as npa from 'npm-package-arg';
 import * as semver from 'semver';
 import { getNpmPackageJson } from './npm';
@@ -310,9 +309,7 @@ function _performUpdate(
   const newContent = JSON.stringify(packageJson, null, 2);
   if (packageJsonContent.toString() != newContent || migrateOnly) {
     if (!migrateOnly) {
-      // If something changed, also hook up the task.
       tree.overwrite('/package.json', JSON.stringify(packageJson, null, 2));
-      context.addTask(new NodePackageInstallTask());
     }
 
     const externalMigrations: {}[] = [];
diff --git a/packages/angular/cli/utilities/install-package.ts b/packages/angular/cli/utilities/install-package.ts
index 9b499e9cd62f..ea1776c3e07a 100644
--- a/packages/angular/cli/utilities/install-package.ts
+++ b/packages/angular/cli/utilities/install-package.ts
@@ -19,10 +19,55 @@ interface PackageManagerOptions {
   silent: string;
   saveDev: string;
   install: string;
+  installAll?: string;
   prefix: string;
   noLockfile: string;
 }
 
+export async function installAllPackages(
+  packageManager: PackageManager = PackageManager.Npm,
+  extraArgs: string[] = [],
+  cwd = process.cwd(),
+): Promise<1 | 0> {
+  const packageManagerArgs = getPackageManagerArguments(packageManager);
+
+  const installArgs: string[] = [];
+  if (packageManagerArgs.installAll) {
+    installArgs.push(packageManagerArgs.installAll);
+  }
+  installArgs.push(packageManagerArgs.silent);
+
+  const spinner = new Spinner();
+  spinner.start('Installing packages...');
+
+  const bufferedOutput: { stream: NodeJS.WriteStream; data: Buffer }[] = [];
+
+  return new Promise((resolve, reject) => {
+    const childProcess = spawn(packageManager, [...installArgs, ...extraArgs], {
+      stdio: 'pipe',
+      shell: true,
+      cwd,
+    }).on('close', (code: number) => {
+      if (code === 0) {
+        spinner.succeed('Packages successfully installed.');
+        resolve(0);
+      } else {
+        spinner.stop();
+        bufferedOutput.forEach(({ stream, data }) => stream.write(data));
+        spinner.fail('Package install failed, see above.');
+        reject(1);
+      }
+    });
+
+    childProcess.stdout?.on('data', (data: Buffer) =>
+      bufferedOutput.push({ stream: process.stdout, data: data }),
+    );
+    childProcess.stderr?.on('data', (data: Buffer) =>
+      bufferedOutput.push({ stream: process.stderr, data: data }),
+    );
+  });
+}
+
 export async function installPackage(
   packageName: string,
   packageManager: PackageManager = PackageManager.Npm,
@@ -193,6 +238,7 @@ function getPackageManagerArguments(packageManager: PackageManager): PackageMana
         silent: '--silent',
         saveDev: '--save-dev',
         install: 'add',
+        installAll: 'install',
         prefix: '--prefix',
         noLockfile: '--no-lockfile',
       };
@@ -201,6 +247,7 @@ function getPackageManagerArguments(packageManager: PackageManager): PackageMana
         silent: '--quiet',
         saveDev: '--save-dev',
         install: 'install',
+        installAll: 'install',
         prefix: '--prefix',
         noLockfile: '--no-package-lock',
       };