diff --git a/addon/ng2/blueprints/ng2/files/__path__/system-config.ts b/addon/ng2/blueprints/ng2/files/__path__/system-config.ts
index cc549606a2a4..8fcafd72a350 100644
--- a/addon/ng2/blueprints/ng2/files/__path__/system-config.ts
+++ b/addon/ng2/blueprints/ng2/files/__path__/system-config.ts
@@ -38,13 +38,19 @@ barrels.forEach((barrelName: string) => {
   cliSystemConfigPackages[barrelName] = { main: 'index' };
 });
 
+<% if(isMaterial) { %>
+cliSystemConfigPackages['@angular2-material/core']
+  = { format: 'cjs', defaultExtenstion: 'js', main: 'core.js' };
+<% } %> 
+
 /** Type declaration for ambient System. */
 declare var System: any;
 
 // Apply the CLI SystemJS configuration.
 System.config({
   map: {
-    '@angular': 'vendor/@angular',
+    '@angular': 'vendor/@angular', <% if(isMaterial) { %>
+    '@angular2-material': 'vendor/@angular2-material', <% } %>
     'rxjs': 'vendor/rxjs',
     'main': 'main.js'
   },
diff --git a/addon/ng2/blueprints/ng2/files/angular-cli-build.js b/addon/ng2/blueprints/ng2/files/angular-cli-build.js
index daa7a4b54124..2e2199ab671f 100644
--- a/addon/ng2/blueprints/ng2/files/angular-cli-build.js
+++ b/addon/ng2/blueprints/ng2/files/angular-cli-build.js
@@ -11,7 +11,8 @@ module.exports = function(defaults) {
       'es6-shim/es6-shim.js',
       'reflect-metadata/**/*.+(ts|js|js.map)',
       'rxjs/**/*.+(js|js.map)',
-      '@angular/**/*.+(js|js.map)'
+      '@angular/**/*.+(js|js.map)'<% if(isMaterial) { %>,
+      '@angular2-material/**/*.js' <% } %>
     ]
   });
 };
diff --git a/addon/ng2/blueprints/ng2/files/package.json b/addon/ng2/blueprints/ng2/files/package.json
index f477c2e6d1f1..0e92c3f7c5ff 100644
--- a/addon/ng2/blueprints/ng2/files/package.json
+++ b/addon/ng2/blueprints/ng2/files/package.json
@@ -19,7 +19,8 @@
     "@angular/http": "2.0.0-rc.1",
     "@angular/platform-browser": "2.0.0-rc.1",
     "@angular/platform-browser-dynamic": "2.0.0-rc.1",
-    "@angular/router": "2.0.0-rc.1",
+    "@angular/router": "2.0.0-rc.1",<% if(isMaterial) { %>
+    "@angular2-material/core": "2.0.0-alpha.5-2", <% } %>
     "es6-shim": "^0.35.0",
     "reflect-metadata": "0.1.3",
     "rxjs": "5.0.0-beta.6",
diff --git a/addon/ng2/blueprints/ng2/index.js b/addon/ng2/blueprints/ng2/index.js
index 146ef7c50023..761fc83f449d 100644
--- a/addon/ng2/blueprints/ng2/index.js
+++ b/addon/ng2/blueprints/ng2/index.js
@@ -10,7 +10,8 @@ module.exports = {
     { name: 'source-dir', type: String, default: 'src', aliases: ['sd'] },
     { name: 'prefix', type: String, default: 'app', aliases: ['p'] },
     { name: 'style', type: String, default: 'css' },
-    { name: 'mobile', type: Boolean, default: false }
+    { name: 'mobile', type: Boolean, default: false },
+    { name: 'material', type: Boolean, default: false }
   ],
 
   afterInstall: function (options) {
@@ -38,7 +39,8 @@ module.exports = {
       prefix: options.prefix,
       styleExt: this.styleExt,
       refToTypings: refToTypings,
-      isMobile: options.mobile
+      isMobile: options.mobile,
+      isMaterial: options.material
     };
   },
 
diff --git a/addon/ng2/commands/init.js b/addon/ng2/commands/init.js
index f77a1c2852b7..5f4f13e019c0 100644
--- a/addon/ng2/commands/init.js
+++ b/addon/ng2/commands/init.js
@@ -25,7 +25,8 @@ module.exports = Command.extend({
     { name: 'source-dir', type: String, default: 'src', aliases: ['sd'] },
     { name: 'style', type: String, default: 'css' },
     { name: 'prefix', type: String, default: 'app', aliases: ['p'] },
-    { name: 'mobile', type: Boolean, default: false }
+    { name: 'mobile', type: Boolean, default: false },
+    { name: 'material', type: Boolean, default: false }    
   ],
 
   anonymousOptions: ['<glob-pattern>'],
@@ -103,7 +104,8 @@ module.exports = Command.extend({
       sourceDir: commandOptions.sourceDir,
       style: commandOptions.style,
       prefix: commandOptions.prefix,
-      mobile: commandOptions.mobile
+      mobile: commandOptions.mobile,
+      material: commandOptions.material
     };
 
     if (!validProjectName(packageName)) {
diff --git a/addon/ng2/commands/new.ts b/addon/ng2/commands/new.ts
index 685e4e3e1124..fa7f194eccb7 100644
--- a/addon/ng2/commands/new.ts
+++ b/addon/ng2/commands/new.ts
@@ -24,7 +24,8 @@ const NewCommand = Command.extend({
     { name: 'source-dir', type: String, default: 'src', aliases: ['sd'] },
     { name: 'style', type: String, default: 'css' },
     { name: 'prefix', type: String, default: 'app', aliases: ['p'] },
-    { name: 'mobile', type: Boolean, default: false }
+    { name: 'mobile', type: Boolean, default: false },
+    { name: 'material', type: Boolean, default: false }
   ],
 
   run: function (commandOptions, rawArgs) {
diff --git a/lib/config/schema.json b/lib/config/schema.json
index d8598052dd14..d14bd5d8c741 100644
--- a/lib/config/schema.json
+++ b/lib/config/schema.json
@@ -24,7 +24,8 @@
         "properties": {
           "main": "string",
           "tsconfig": "string",
-          "mobile": "boolean"
+          "mobile": "boolean",
+          "material": "boolean"
         },
         "additionalProperties": false
       },