diff --git a/packages/schematics/angular/migrations/update-12/update-angular-config.ts b/packages/schematics/angular/migrations/update-12/update-angular-config.ts
index 7a4da5035685..4c0001f77f81 100644
--- a/packages/schematics/angular/migrations/update-12/update-angular-config.ts
+++ b/packages/schematics/angular/migrations/update-12/update-angular-config.ts
@@ -18,6 +18,7 @@ export default function (): Rule {
 
       for (const [, options] of allTargetOptions(target)) {
         delete options.experimentalRollupPass;
+        delete options.lazyModules;
       }
     }
   });