diff --git a/apps/angular-console-e2e/src/integration/local-collection.spec.ts b/apps/angular-console-e2e/src/integration/local-collection.spec.ts
new file mode 100644
index 0000000000..61a02b23a7
--- /dev/null
+++ b/apps/angular-console-e2e/src/integration/local-collection.spec.ts
@@ -0,0 +1,71 @@
+import {
+  checkDisplayedCommand,
+  clickOnTask,
+  goBack,
+  goToGenerate,
+  openProject,
+  projectPath,
+  taskListHeaders,
+  tasks,
+  texts,
+  uniqName,
+  whitelistGraphql
+} from './utils';
+import { clearRecentTask } from './tasks.utils';
+
+describe('Project with local collection', () => {
+  beforeEach(() => {
+    whitelistGraphql();
+    cy.visit('/workspaces');
+    openProject(projectPath('proj-local-collection'));
+    goToGenerate();
+    cy.get('div.title').contains('Generate Code');
+  });
+
+  it('shows the local schematics', () => {
+    taskListHeaders($p => {
+      expect($p.length).to.equal(3);
+      expect(texts($p)[0]).to.equal('.proj-local-collection');
+    });
+
+    tasks($p => {
+      const t = texts($p);
+      expect(t.indexOf('my-full-schematic') > -1).to.equal(true);
+    });
+  });
+
+  it('runs a local schematic', () => {
+    clickOnTask('.proj-local-collection', 'my-full-schematic');
+    cy.get('div.context-title').contains(
+      'A schematic using a source and a schema to validate options'
+    );
+
+    const name = uniqName('example');
+    cy.get('input[name="name"]').type(name);
+
+    cy.wait(100);
+
+    cy.get('button')
+      .contains('Generate')
+      .click();
+
+    cy.wait(100);
+
+    checkDisplayedCommand(`$ ng generate .:my-full-schematic --name=${name}`);
+    cy.readFile('./../../tmp/proj-local-collection/hola');
+    cy.readFile('./../../tmp/proj-local-collection/allo');
+
+    goBack();
+
+    cy.get('div.title').contains('Generate Code');
+    taskListHeaders($p => {
+      expect(texts($p)[0]).to.equal('.proj-local-collection');
+    });
+  });
+
+  after(() => {
+    cy.visit('/workspaces');
+    openProject(projectPath('proj-local-collection'));
+    clearRecentTask();
+  });
+});
diff --git a/libs/feature-generate/src/lib/schematic/schematic.component.ts b/libs/feature-generate/src/lib/schematic/schematic.component.ts
index afc6cfa886..a55307a01b 100644
--- a/libs/feature-generate/src/lib/schematic/schematic.component.ts
+++ b/libs/feature-generate/src/lib/schematic/schematic.component.ts
@@ -235,7 +235,11 @@ export class SchematicComponent implements OnInit {
   }
 
   getPrefix(schematic: Schematic) {
-    return [`${schematic.collection}:${schematic.name}`];
+    return [
+      `${schematic.collection.startsWith('.') ? '.' : schematic.collection}:${
+        schematic.name
+      }`
+    ];
   }
 
   path() {
diff --git a/server/src/api/read-schematic-collections.ts b/server/src/api/read-schematic-collections.ts
index 011f200cbc..36ecc118cb 100644
--- a/server/src/api/read-schematic-collections.ts
+++ b/server/src/api/read-schematic-collections.ts
@@ -30,7 +30,8 @@ interface Schematic {
 export function readAllSchematicCollections(basedir: string) {
   const nodeModulesDir = path.join(basedir, 'node_modules');
   const packages = listOfUnnestedNpmPackages(nodeModulesDir);
-  const schematicCollections = packages.filter(p => {
+  const relativeRootPath = './..';
+  const schematicCollections = [relativeRootPath, ...packages].filter(p => {
     try {
       return !!readJsonFile(path.join(p, 'package.json'), nodeModulesDir).json
         .schematics;
@@ -47,12 +48,13 @@ export function readAllSchematicCollections(basedir: string) {
     }
   });
   return schematicCollections
-    .map(c => readSchematicCollections(nodeModulesDir, c))
+    .map(c => readSchematicCollections(nodeModulesDir, relativeRootPath, c))
     .filter(collection => !!collection && collection.schematics.length > 0);
 }
 
 function readSchematicCollections(
   basedir: string,
+  rootCollection: string,
   collectionName: string
 ): SchematicCollection {
   try {
@@ -64,8 +66,12 @@ function readSchematicCollections(
       packageJson.json.schematics,
       path.dirname(packageJson.path)
     );
+    const name =
+      collectionName === rootCollection
+        ? `.${packageJson.json.name}`
+        : collectionName;
     const schematicCollection = {
-      name: collectionName,
+      name,
       schematics: [] as Schematic[]
     };
     Object.entries(collection.json.schematics).forEach(([k, v]: [any, any]) => {
@@ -77,7 +83,7 @@ function readSchematicCollections(
 
         schematicCollection.schematics.push({
           name: k,
-          collection: collectionName,
+          collection: name,
           schema: normalizeSchema(schematicSchema.json),
           description: v.description
         });
diff --git a/tools/scripts/set-up-e2e-fixtures.js b/tools/scripts/set-up-e2e-fixtures.js
index c729a24e45..9521ee9ac2 100644
--- a/tools/scripts/set-up-e2e-fixtures.js
+++ b/tools/scripts/set-up-e2e-fixtures.js
@@ -14,10 +14,14 @@ shell.rm('-rf', path.join(tmp, 'proj-extensions'));
 shell.mkdir(path.join(tmp, 'proj-extensions'));
 shell.rm('-rf', path.join(tmp, 'proj-no-node-modules'));
 shell.mkdir(path.join(tmp, 'proj-no-node-modules'));
+shell.rm('-rf', path.join(tmp, 'proj-local-collection'));
+shell.mkdir(path.join(tmp, 'proj-local-collection'));
 
 shell.rm('-rf', path.join(tmp, 'ng'));
 shell.mkdir(path.join(tmp, 'ng'));
 cp.execSync('yarn add @angular/cli@7.0.4', {cwd: path.join(tmp, 'ng')});
+cp.execSync('yarn add @angular-devkit/schematics-cli @schematics/schematics', {cwd: path.join(tmp, 'ng')});
+cp.execSync('yarn add json', {cwd: path.join(tmp, 'ng')});
 
 cp.execSync('ng config -g cli.packageManager yarn');
 cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/ng new proj --collection=@schematics/angular --directory=proj --skip-git --no-interactive`, { cwd: tmp, stdio: [0, 1, 2] });
@@ -28,3 +32,12 @@ shell.mv(path.join(tmp, 'proj-extensions'), './tmp/proj-extensions');
 
 cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/ng new proj-no-node-modules --collection=@schematics/angular --directory=proj-no-node-modules --skip-install --skip-git --no-interactive`, { cwd: tmp, stdio: [0, 1, 2] });
 shell.mv(path.join(tmp, 'proj-no-node-modules'), './tmp/proj-no-node-modules');
+
+cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/ng new proj-local-collection --collection=@schematics/angular --directory=proj-local-collection --skip-git --no-interactive`, { cwd: tmp, stdio: [0, 1, 2] });
+shell.mv(path.join(tmp, 'proj-local-collection'), './tmp/proj-local-collection');
+shell.cd('./tmp/proj-local-collection');
+cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/schematics schematic --name=schematics .`);
+cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/json -I -f package.json -e 'this.schematics="./schematics/src/collection.json"'`);
+cp.execSync('ng config cli.defaultCollection schematics')
+shell.cd('schematics');
+cp.execSync(`${path.join(tmp, 'ng')}/node_modules/.bin/tsc`);