diff --git a/packages/@angular/cli/models/schematic-command.ts b/packages/@angular/cli/models/schematic-command.ts
index 6175b51847fa..b430449474de 100644
--- a/packages/@angular/cli/models/schematic-command.ts
+++ b/packages/@angular/cli/models/schematic-command.ts
@@ -334,7 +334,7 @@ export abstract class SchematicCommand extends Command {
 
   private _cleanDefaults<T, K extends keyof T>(defaults: T, undefinedOptions: string[]): T {
     (Object.keys(defaults) as K[])
-      .filter(key => !undefinedOptions.includes(key))
+      .filter(key => !undefinedOptions.map(strings.camelize).includes(key))
       .forEach(key => {
         delete defaults[key];
       });
diff --git a/tests/e2e/tests/commands/config/config-global.ts b/tests/e2e/tests/commands/config/config-global.ts
index d1b84b231b75..acb462e84826 100644
--- a/tests/e2e/tests/commands/config/config-global.ts
+++ b/tests/e2e/tests/commands/config/config-global.ts
@@ -3,6 +3,7 @@ import {expectToFail} from '../../../utils/utils';
 import { expectFileToExist } from '../../../utils/fs';
 import * as path from 'path';
 import { homedir } from 'os';
+import { deleteFile } from '../../../utils/fs';
 
 
 export default function() {
@@ -27,5 +28,6 @@ export default function() {
     })
     .then(() => expectToFail(() => ng('config', '--global', 'cli.warnings.notreal', 'true')))
     .then(() => ng('config', '--global', 'cli.warnings.versionMismatch', 'false'))
-    .then(() => expectFileToExist(path.join(homedir(), '.angular-config.json')));
+    .then(() => expectFileToExist(path.join(homedir(), '.angular-config.json')))
+    .then(() => deleteFile(path.join(homedir(), '.angular-config.json')));
 }
diff --git a/tests/e2e/tests/generate/component/component-inline-template.ts b/tests/e2e/tests/generate/component/component-inline-template.ts
new file mode 100644
index 000000000000..f76409820a1a
--- /dev/null
+++ b/tests/e2e/tests/generate/component/component-inline-template.ts
@@ -0,0 +1,26 @@
+import {join} from 'path';
+import {ng} from '../../../utils/process';
+import {expectFileToExist} from '../../../utils/fs';
+import {updateJsonFile} from '../../../utils/project';
+import { expectToFail } from '../../../utils/utils';
+
+
+// tslint:disable:max-line-length
+export default function() {
+  const componentDir = join('src', 'app', 'test-component');
+  return Promise.resolve()
+    .then(() => updateJsonFile('angular.json', configJson => {
+      configJson.projects['test-project'].schematics = {
+        '@schematics/angular:component': { inlineTemplate: true }
+      };
+    }))
+    .then(() => ng('generate', 'component', 'test-component'))
+    .then(() => expectFileToExist(componentDir))
+    .then(() => expectFileToExist(join(componentDir, 'test-component.component.ts')))
+    .then(() => expectFileToExist(join(componentDir, 'test-component.component.spec.ts')))
+    .then(() => expectToFail(() => expectFileToExist(join(componentDir, 'test-component.component.html'))))
+    .then(() => expectFileToExist(join(componentDir, 'test-component.component.css')))
+
+    // Try to run the unit tests.
+    .then(() => ng('test', '--watch=false'));
+}