diff --git a/docs/documentation/new.md b/docs/documentation/new.md
index 37cb262319f0..1dc19d6746fd 100644
--- a/docs/documentation/new.md
+++ b/docs/documentation/new.md
@@ -10,7 +10,7 @@ Default applications are created in a directory of the same name, with an initia
 ## Options
 `--dry-run` (`-d`) run through without making any changes
 
-`--skip-npm` (`-sn`) skip installing npm packages
+`--skip-install` (`-si`) skip installing packages
 
 `--skip-git` (`-sg`) skip initializing a git repository
 
diff --git a/docs/documentation/update.md b/docs/documentation/update.md
index be536099187b..59b36ee5b4f0 100644
--- a/docs/documentation/update.md
+++ b/docs/documentation/update.md
@@ -10,7 +10,7 @@ Initialization is done in-place, meaning that the generated application is initi
 ## Options
 `--dry-run` (`-d`) run through without making any changes
 
-`--skip-npm` (`-sn`) skip installing npm packages
+`--skip-install` (`-si`) skip installing packages
 
 `--skip-git` (`-sg`) skip initializing a git repository
 
diff --git a/packages/@angular/cli/commands/init.ts b/packages/@angular/cli/commands/init.ts
index 5246fb7a374a..4270201a1680 100644
--- a/packages/@angular/cli/commands/init.ts
+++ b/packages/@angular/cli/commands/init.ts
@@ -10,7 +10,7 @@ const InitCommand: any = Command.extend({
     { name: 'dry-run', type: Boolean, default: false, aliases: ['d'] },
     { name: 'verbose', type: Boolean, default: false, aliases: ['v'] },
     { name: 'link-cli', type: Boolean, default: false, aliases: ['lc'] },
-    { name: 'skip-npm', type: Boolean, default: false, aliases: ['sn'] },
+    { name: 'skip-install', type: Boolean, default: false, aliases: ['si'] },
     { name: 'skip-git', type: Boolean, default: false, aliases: ['sg'] },
     { name: 'skip-tests', type: Boolean, default: false, aliases: ['st'] },
     { name: 'skip-commit', type: Boolean, default: false, aliases: ['sc'] },
diff --git a/packages/@angular/cli/commands/new.ts b/packages/@angular/cli/commands/new.ts
index 2f0f6d4cfa77..68fb795b087a 100644
--- a/packages/@angular/cli/commands/new.ts
+++ b/packages/@angular/cli/commands/new.ts
@@ -15,7 +15,7 @@ const NewCommand = Command.extend({
     { name: 'dry-run', type: Boolean, default: false, aliases: ['d'] },
     { name: 'verbose', type: Boolean, default: false, aliases: ['v'] },
     { name: 'link-cli', type: Boolean, default: false, aliases: ['lc'] },
-    { name: 'skip-npm', type: Boolean, default: false, aliases: ['sn'] },
+    { name: 'skip-install', type: Boolean, default: false, aliases: ['si'] },
     { name: 'skip-git', type: Boolean, default: false, aliases: ['sg'] },
     { name: 'skip-tests', type: Boolean, default: false, aliases: ['st'] },
     { name: 'skip-commit', type: Boolean, default: false, aliases: ['sc'] },
diff --git a/packages/@angular/cli/lib/config/schema.json b/packages/@angular/cli/lib/config/schema.json
index 9c1d753aa09b..3ebdc3a5a476 100644
--- a/packages/@angular/cli/lib/config/schema.json
+++ b/packages/@angular/cli/lib/config/schema.json
@@ -292,6 +292,11 @@
       },
       "additionalProperties": false
     },
+    "packageManager": {
+        "enum": [ "npm", "cnpm", "yarn", "default" ],
+        "default": "default",
+        "type": "string"
+    },
     "warnings": {
       "description": "Allow people to disable console warnings.",
       "type": "object",
diff --git a/packages/@angular/cli/tasks/init.ts b/packages/@angular/cli/tasks/init.ts
index d8a8492715f5..72f9ac47253a 100644
--- a/packages/@angular/cli/tasks/init.ts
+++ b/packages/@angular/cli/tasks/init.ts
@@ -2,6 +2,8 @@ import * as chalk from 'chalk';
 import LinkCli from '../tasks/link-cli';
 import NpmInstall from '../tasks/npm-install';
 import { validateProjectName } from '../utilities/validate-project-name';
+import {checkYarnOrCNPM} from '../utilities/check-package-manager';
+import {CliConfig} from '../models/config';
 
 const Task = require('../ember-cli/lib/models/task');
 const Promise = require('../ember-cli/lib/ext/promise');
@@ -13,7 +15,7 @@ const GitInit = require('../tasks/git-init');
 export default Task.extend({
   run: function (commandOptions: any, rawArgs: string[]) {
     if (commandOptions.dryRun) {
-      commandOptions.skipNpm = true;
+      commandOptions.skipInstall = true;
     }
 
     const installBlueprint = new this.tasks.InstallBlueprint({
@@ -32,10 +34,12 @@ export default Task.extend({
     }
 
     let npmInstall: any;
-    if (!commandOptions.skipNpm) {
+    if (!commandOptions.skipInstall) {
+      const packageManager = CliConfig.fromGlobal().get('packageManager');
       npmInstall = new NpmInstall({
         ui: this.ui,
-        project: this.project
+        project: this.project,
+        packageManager
       });
     }
 
@@ -86,7 +90,7 @@ export default Task.extend({
         }
       })
       .then(function () {
-        if (!commandOptions.skipNpm) {
+        if (!commandOptions.skipInstall) {
           return npmInstall.run();
         }
       })
@@ -95,6 +99,7 @@ export default Task.extend({
           return linkCli.run();
         }
       })
+      .then(checkYarnOrCNPM)
       .then(() => {
         this.ui.writeLine(chalk.green(`Project '${packageName}' successfully created.`));
       });
diff --git a/packages/@angular/cli/tasks/npm-install.ts b/packages/@angular/cli/tasks/npm-install.ts
index 02e3f5d1cc27..f0d4f80bfe4d 100644
--- a/packages/@angular/cli/tasks/npm-install.ts
+++ b/packages/@angular/cli/tasks/npm-install.ts
@@ -6,17 +6,21 @@ import {exec} from 'child_process';
 export default Task.extend({
   run: function() {
     const ui = this.ui;
+    let packageManager = this.packageManager;
+    if (packageManager === 'default') {
+      packageManager = 'npm';
+    }
 
     return new Promise(function(resolve, reject) {
-      ui.writeLine(chalk.green('Installing packages for tooling via npm.'));
-      exec('npm install',
+      ui.writeLine(chalk.green(`Installing packages for tooling via ${packageManager}.`));
+      exec(`${packageManager} install`,
         (err: NodeJS.ErrnoException, stdout: string, stderr: string) => {
         if (err) {
           ui.writeLine(stderr);
           ui.writeLine(chalk.red('Package install failed, see above.'));
           reject();
         } else {
-          ui.writeLine(chalk.green('Installed packages for tooling via npm.'));
+          ui.writeLine(chalk.green(`Installed packages for tooling via ${packageManager}.`));
           resolve();
         }
       });
diff --git a/packages/@angular/cli/utilities/check-package-manager.ts b/packages/@angular/cli/utilities/check-package-manager.ts
new file mode 100644
index 000000000000..654812c8ecb3
--- /dev/null
+++ b/packages/@angular/cli/utilities/check-package-manager.ts
@@ -0,0 +1,38 @@
+import * as chalk from 'chalk';
+import {exec} from 'child_process';
+import {CliConfig} from '../models/config';
+
+const Promise = require('../ember-cli/lib/ext/promise');
+const execPromise = Promise.denodeify(exec);
+const packageManager = CliConfig.fromGlobal().get('packageManager');
+
+
+export function checkYarnOrCNPM() {
+  if (packageManager !== 'default') {
+    return Promise.resolve();
+  }
+
+  return Promise
+      .all([checkYarn(), checkCNPM()])
+      .then((data: Array<boolean>) => {
+        const [isYarnInstalled, isCNPMInstalled] = data;
+        if (isYarnInstalled && isCNPMInstalled) {
+          console.log(chalk.yellow('You can `ng set --global packageManager=yarn` '
+            + 'or `ng set --global packageManager=cnpm`.'));
+        } else if (isYarnInstalled) {
+          console.log(chalk.yellow('You can `ng set --global packageManager=yarn`.'));
+        } else if (isCNPMInstalled) {
+          console.log(chalk.yellow('You can `ng set --global packageManager=cnpm`.'));
+        }
+      });
+}
+
+function checkYarn() {
+  return execPromise('yarn --version')
+    .then(() => true, () => false);
+}
+
+function checkCNPM() {
+  return execPromise('cnpm --version')
+    .then(() => true, () => false);
+}
diff --git a/packages/@ngtools/json-schema/src/schema-tree.ts b/packages/@ngtools/json-schema/src/schema-tree.ts
index a946edb83242..02b425e2824a 100644
--- a/packages/@ngtools/json-schema/src/schema-tree.ts
+++ b/packages/@ngtools/json-schema/src/schema-tree.ts
@@ -495,7 +495,9 @@ class EnumSchemaTreeNode extends LeafSchemaTreeNode<any> {
     return v;
   }
 
-  get type() { return 'any'; }
+  get type() {
+    return this._schema['type'] || 'any';
+  }
   get tsType(): null { return null; }
   serialize(serializer: Serializer) { serializer.outputEnum(this); }
 }
diff --git a/tests/acceptance/destroy.spec.js b/tests/acceptance/destroy.spec.js
index 5eeed80b2aad..af0e1eb92cf4 100644
--- a/tests/acceptance/destroy.spec.js
+++ b/tests/acceptance/destroy.spec.js
@@ -11,7 +11,7 @@ describe('Acceptance: ng destroy', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-class.spec.js b/tests/acceptance/generate-class.spec.js
index a219cf23981e..fdd75d2e1606 100644
--- a/tests/acceptance/generate-class.spec.js
+++ b/tests/acceptance/generate-class.spec.js
@@ -16,7 +16,7 @@ describe('Acceptance: ng generate class', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-component.spec.js b/tests/acceptance/generate-component.spec.js
index 5f2b6f541798..4b6ce683c90e 100644
--- a/tests/acceptance/generate-component.spec.js
+++ b/tests/acceptance/generate-component.spec.js
@@ -20,7 +20,7 @@ describe('Acceptance: ng generate component', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-directive.spec.js b/tests/acceptance/generate-directive.spec.js
index 089fda0c640e..0f4b214d0d71 100644
--- a/tests/acceptance/generate-directive.spec.js
+++ b/tests/acceptance/generate-directive.spec.js
@@ -19,7 +19,7 @@ describe('Acceptance: ng generate directive', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-module.spec.js b/tests/acceptance/generate-module.spec.js
index 7ba774885ba7..5e2da7c5c84c 100644
--- a/tests/acceptance/generate-module.spec.js
+++ b/tests/acceptance/generate-module.spec.js
@@ -16,7 +16,7 @@ describe('Acceptance: ng generate module', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-pipe.spec.js b/tests/acceptance/generate-pipe.spec.js
index d930f9927875..60e2e68ec388 100644
--- a/tests/acceptance/generate-pipe.spec.js
+++ b/tests/acceptance/generate-pipe.spec.js
@@ -20,7 +20,7 @@ describe('Acceptance: ng generate pipe', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-route.spec.js b/tests/acceptance/generate-route.spec.js
index 99469635b42e..6d6847bc73b6 100644
--- a/tests/acceptance/generate-route.spec.js
+++ b/tests/acceptance/generate-route.spec.js
@@ -21,7 +21,7 @@ xdescribe('Acceptance: ng generate route', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/generate-service.spec.js b/tests/acceptance/generate-service.spec.js
index 1aa55f8210a2..7a34924ab882 100644
--- a/tests/acceptance/generate-service.spec.js
+++ b/tests/acceptance/generate-service.spec.js
@@ -19,7 +19,7 @@ describe('Acceptance: ng generate service', function () {
     return tmp.setup('./tmp').then(function () {
       process.chdir('./tmp');
     }).then(function () {
-      return ng(['new', 'foo', '--skip-npm']);
+      return ng(['new', 'foo', '--skip-install']);
     });
   });
 
diff --git a/tests/acceptance/init.spec.js b/tests/acceptance/init.spec.js
index ca8a81c7e823..bfef2e731697 100644
--- a/tests/acceptance/init.spec.js
+++ b/tests/acceptance/init.spec.js
@@ -97,7 +97,7 @@ describe('Acceptance: ng update', function () {
   it('ng init does the same as ng update', function () {
     return ng([
       'init',
-      '--skip-npm'
+      '--skip-install'
     ]).then(confirmBlueprinted);
   });
 
@@ -109,7 +109,7 @@ describe('Acceptance: ng update', function () {
       .then(function () {
         return ng([
           'init',
-          '--skip-npm',
+          '--skip-install',
           '--name',
           'tmp'
         ]);
@@ -121,15 +121,15 @@ describe('Acceptance: ng update', function () {
   });
 
   it('init an already init\'d folder', function () {
-    return ng(['init', '--skip-npm'])
+    return ng(['init', '--skip-install'])
       .then(function () {
-        return ng(['init', '--skip-npm']);
+        return ng(['init', '--skip-install']);
       })
       .then(confirmBlueprinted);
   });
 
   it('init a single file', function () {
-    return ng(['init', 'package.json', '--skip-npm'])
+    return ng(['init', 'package.json', '--skip-install'])
       .then(function () {
         return 'package.json';
       })
@@ -137,15 +137,15 @@ describe('Acceptance: ng update', function () {
   });
 
   it('init a single file on already init\'d folder', function () {
-    return ng(['init', '--skip-npm'])
+    return ng(['init', '--skip-install'])
       .then(function () {
-        return ng(['init', 'package.json', '--skip-npm']);
+        return ng(['init', 'package.json', '--skip-install']);
       })
       .then(confirmBlueprinted);
   });
 
   it('init multiple files by glob pattern', function () {
-    return ng(['init', 'src/**', '--skip-npm'])
+    return ng(['init', 'src/**', '--skip-install'])
       .then(function () {
         return 'src/**';
       })
@@ -153,15 +153,15 @@ describe('Acceptance: ng update', function () {
   });
 
   it('init multiple files by glob pattern on already init\'d folder', function () {
-    return ng(['init', '--skip-npm'])
+    return ng(['init', '--skip-install'])
       .then(function () {
-        return ng(['init', 'src/**', '--skip-npm']);
+        return ng(['init', 'src/**', '--skip-install']);
       })
       .then(confirmBlueprinted);
   });
 
   it('init multiple files by glob patterns', function () {
-    return ng(['init', 'src/**', 'package.json', '--skip-npm'])
+    return ng(['init', 'src/**', 'package.json', '--skip-install'])
       .then(function () {
         return '{src/**,package.json}';
       })
@@ -169,15 +169,15 @@ describe('Acceptance: ng update', function () {
   });
 
   it('init multiple files by glob patterns on already init\'d folder', function () {
-    return ng(['init', '--skip-npm'])
+    return ng(['init', '--skip-install'])
       .then(function () {
-        return ng(['init', 'src/**', 'package.json', '--skip-npm']);
+        return ng(['init', 'src/**', 'package.json', '--skip-install']);
       })
       .then(confirmBlueprinted);
   });
 
   it('ng update --inline-template does not generate a template file', () => {
-    return ng(['init', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['init', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => {
         const templateFile = path.join('src', 'app', 'app.component.html');
         expect(existsSync(templateFile)).to.equal(false);
@@ -185,7 +185,7 @@ describe('Acceptance: ng update', function () {
   });
 
   it('ng update --inline-style does not gener a style file', () => {
-    return ng(['init', '--skip-npm', '--skip-git', '--inline-style'])
+    return ng(['init', '--skip-install', '--skip-git', '--inline-style'])
       .then(() => {
         const styleFile = path.join('src', 'app', 'app.component.css');
         expect(existsSync(styleFile)).to.equal(false);
@@ -193,7 +193,7 @@ describe('Acceptance: ng update', function () {
   });
 
   it('should skip spec files when passed --skip-tests', () => {
-    return ng(['init', '--skip-npm', '--skip-git', '--skip-tests'])
+    return ng(['init', '--skip-install', '--skip-git', '--skip-tests'])
       .then(() => {
         const specFile = path.join('src', 'app', 'app.component.spec.ts');
         expect(existsSync(specFile)).to.equal(false);
diff --git a/tests/acceptance/new.spec.ts b/tests/acceptance/new.spec.ts
index 93c56532b7d7..e50457567045 100644
--- a/tests/acceptance/new.spec.ts
+++ b/tests/acceptance/new.spec.ts
@@ -55,34 +55,34 @@ describe('Acceptance: ng new', function () {
   }
 
   it('requires a valid name (!)', () => {
-    return ng(['new', '!', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', '!', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => { throw new Error(); }, () => {});
   });
   it('requires a valid name (abc-.)', () => {
-    return ng(['new', 'abc-.', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', 'abc-.', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => { throw new Error(); }, () => {});
   });
   it('requires a valid name (abc-)', () => {
-    return ng(['new', 'abc-', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', 'abc-', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => { throw new Error(); }, () => {});
   });
   it('requires a valid name (abc-def-)', () => {
-    return ng(['new', 'abc-def-', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', 'abc-def-', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => { throw new Error(); }, () => {});
   });
   it('requires a valid name (abc-123)', () => {
-    return ng(['new', 'abc-123', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', 'abc-123', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => { throw new Error(); }, () => {});
   });
   it('requires a valid name (abc)', () => {
-    return ng(['new', 'abc', '--skip-npm', '--skip-git', '--inline-template']);
+    return ng(['new', 'abc', '--skip-install', '--skip-git', '--inline-template']);
   });
   it('requires a valid name (abc-def)', () => {
-    return ng(['new', 'abc-def', '--skip-npm', '--skip-git', '--inline-template']);
+    return ng(['new', 'abc-def', '--skip-install', '--skip-git', '--inline-template']);
   });
 
   it('ng new foo, where foo does not yet exist, works', function () {
-    return ng(['new', 'foo', '--skip-npm']).then(confirmBlueprinted);
+    return ng(['new', 'foo', '--skip-install']).then(confirmBlueprinted);
   });
 
   it('ng new with empty app does throw exception', function () {
@@ -94,7 +94,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new with app name creates new directory and has a dasherized package name', function () {
-    return ng(['new', 'FooApp', '--skip-npm', '--skip-git']).then(function () {
+    return ng(['new', 'FooApp', '--skip-install', '--skip-git']).then(function () {
       expect(!existsSync('FooApp'));
 
       const pkgJson = JSON.parse(fs.readFileSync('package.json', 'utf8'));
@@ -103,7 +103,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new has a .editorconfig file', function () {
-    return ng(['new', 'FooApp', '--skip-npm', '--skip-git']).then(function () {
+    return ng(['new', 'FooApp', '--skip-install', '--skip-git']).then(function () {
       expect(!existsSync('FooApp'));
 
       const editorConfig = fs.readFileSync('.editorconfig', 'utf8');
@@ -112,9 +112,9 @@ describe('Acceptance: ng new', function () {
   });
 
   it('Cannot run ng new, inside of Angular CLI project', function () {
-    return ng(['new', 'foo', '--skip-npm', '--skip-git'])
+    return ng(['new', 'foo', '--skip-install', '--skip-git'])
       .then(function () {
-        return ng(['new', 'foo', '--skip-npm', '--skip-git']).then(() => {
+        return ng(['new', 'foo', '--skip-install', '--skip-git']).then(() => {
           throw new SilentError('Cannot run ng new, inside of Angular CLI project should fail.');
         }, () => {
           expect(!existsSync('foo'));
@@ -124,7 +124,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new without skip-git flag creates .git dir', function () {
-    return ng(['new', 'foo', '--skip-npm']).then(function () {
+    return ng(['new', 'foo', '--skip-install']).then(function () {
       expect(existsSync('.git'));
     });
   });
@@ -139,7 +139,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new with --directory uses given directory name and has correct package name', function () {
-    return ng(['new', 'foo', '--skip-npm', '--skip-git', '--directory=bar'])
+    return ng(['new', 'foo', '--skip-install', '--skip-git', '--directory=bar'])
       .then(function () {
         const cwd = process.cwd();
         expect(cwd).to.not.match(/foo/, 'does not use app name for directory name');
@@ -154,7 +154,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new --inline-template does not generate a template file', () => {
-    return ng(['new', 'foo', '--skip-npm', '--skip-git', '--inline-template'])
+    return ng(['new', 'foo', '--skip-install', '--skip-git', '--inline-template'])
       .then(() => {
         const templateFile = path.join('src', 'app', 'app.component.html');
         expect(existsSync(templateFile)).to.equal(false);
@@ -162,7 +162,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('ng new --inline-style does not gener a style file', () => {
-    return ng(['new', 'foo', '--skip-npm', '--skip-git', '--inline-style'])
+    return ng(['new', 'foo', '--skip-install', '--skip-git', '--inline-style'])
       .then(() => {
         const styleFile = path.join('src', 'app', 'app.component.css');
         expect(existsSync(styleFile)).to.equal(false);
@@ -170,7 +170,7 @@ describe('Acceptance: ng new', function () {
   });
 
   it('should skip spec files when passed --skip-tests', () => {
-    return ng(['new', 'foo', '--skip-npm', '--skip-git', '--skip-tests'])
+    return ng(['new', 'foo', '--skip-install', '--skip-git', '--skip-tests'])
       .then(() => {
         const specFile = path.join('src', 'app', 'app.component.spec.ts');
         expect(existsSync(specFile)).to.equal(false);
diff --git a/tests/e2e/setup/500-create-project.ts b/tests/e2e/setup/500-create-project.ts
index 4e5f0bbe008b..ef859b46d121 100644
--- a/tests/e2e/setup/500-create-project.ts
+++ b/tests/e2e/setup/500-create-project.ts
@@ -24,7 +24,7 @@ export default function() {
   } else {
     // Otherwise create a project from scratch.
     createProject = Promise.resolve()
-      .then(() => ng('new', 'test-project', '--skip-npm'))
+      .then(() => ng('new', 'test-project', '--skip-install'))
       .then(() => expectFileToExist(join(process.cwd(), 'test-project')))
       .then(() => process.chdir('./test-project'));
   }
diff --git a/tests/e2e/tests/commands/new/check-yarn.ts b/tests/e2e/tests/commands/new/check-yarn.ts
new file mode 100644
index 000000000000..b6be40b6b20e
--- /dev/null
+++ b/tests/e2e/tests/commands/new/check-yarn.ts
@@ -0,0 +1,17 @@
+import {ng} from '../../../utils/process';
+import {getGlobalVariable} from '../../../utils/env';
+
+const yarnRegEx = /You can `ng set --global packageManager=yarn`./;
+
+export default function() {
+  return Promise.resolve()
+    .then(() => process.chdir(getGlobalVariable('tmp-root')))
+    .then(() =>  ng('set', '--global', 'packageManager=default'))
+    .then(() =>  ng('new', 'foo'))
+    .then((stdout) => {
+      // assuming yarn is installed and checking for message with yarn
+      if (!stdout.toString().match(yarnRegEx)) {
+        throw new Error('Should display message to use yarn packageManager');
+      }
+    });
+}
diff --git a/tests/e2e/utils/project.ts b/tests/e2e/utils/project.ts
index f3b9376ec496..f89dd7726968 100644
--- a/tests/e2e/utils/project.ts
+++ b/tests/e2e/utils/project.ts
@@ -34,7 +34,7 @@ export function ngServe(...args: string[]) {
 export function createProject(name: string, ...args: string[]) {
   return Promise.resolve()
     .then(() => process.chdir(getGlobalVariable('tmp-root')))
-    .then(() => ng('new', name, '--skip-npm', ...args))
+    .then(() => ng('new', name, '--skip-install', ...args))
     .then(() => process.chdir(name))
     .then(() => updateJsonFile('package.json', json => {
       Object.keys(packages).forEach(pkgName => {