diff --git a/packages/@angular/cli/tasks/init.ts b/packages/@angular/cli/tasks/init.ts
index 984ccc8b2bc8..dd36103417c0 100644
--- a/packages/@angular/cli/tasks/init.ts
+++ b/packages/@angular/cli/tasks/init.ts
@@ -51,6 +51,10 @@ export default Task.extend({
     const project = this.project;
     const packageName = commandOptions.name !== '.' && commandOptions.name || project.name();
 
+    if (commandOptions.style === undefined) {
+      commandOptions.style = CliConfig.fromGlobal().get('defaults.styleExt');
+    }
+
     if (!packageName) {
       const message = 'The `ng ' + this.name + '` command requires a ' +
         'package.json in current folder with name attribute or a specified name via arguments. ' +
diff --git a/tests/e2e/tests/commands/new/new-style.ts b/tests/e2e/tests/commands/new/new-style.ts
new file mode 100644
index 000000000000..882bab3a88e5
--- /dev/null
+++ b/tests/e2e/tests/commands/new/new-style.ts
@@ -0,0 +1,14 @@
+import {ng} from '../../../utils/process';
+import {createProject} from '../../../utils/project';
+import {expectFileToExist} from '../../../utils/fs';
+
+
+export default function() {
+  return Promise.resolve()
+    .then(() => ng('set', 'defaults.styleExt', 'scss', '--global'))
+    .then(() => createProject('style-project'))
+    .then(() => expectFileToExist('src/app/app.component.scss'))
+
+    // Try to run the unit tests.
+    .then(() => ng('test', '--single-run'));
+}