diff --git a/addon/ng2/blueprints/ng2/files/config/karma.conf.js b/addon/ng2/blueprints/ng2/files/config/karma.conf.js
index 118cdc2e7721..b8aa26e084b2 100644
--- a/addon/ng2/blueprints/ng2/files/config/karma.conf.js
+++ b/addon/ng2/blueprints/ng2/files/config/karma.conf.js
@@ -1,4 +1,4 @@
-// Karma configuration file, see link for more information		
+// Karma configuration file, see link for more information
 // https://karma-runner.github.io/0.13/config/configuration-file.html
 
 module.exports = function (config) {
@@ -8,7 +8,7 @@ module.exports = function (config) {
     plugins: [
       require('karma-jasmine'),
       require('karma-chrome-launcher'),
-      require('karma-coverage'),
+      require('karma-remap-istanbul'),
       require('angular-cli/plugins/karma')
     ],
     customLaunchers: {
@@ -24,8 +24,13 @@ module.exports = function (config) {
     preprocessors: {
       './src/test.ts': ['angular-cli']
     },
+    remapIstanbulReporter: {
+      reports: {
+        html: 'coverage'
+      }
+    },
     angularCliConfig: './angular-cli.json',
-    reporters: ['coverage', 'progress'],
+    reporters: ['progress', 'karma-remap-istanbul'],
     port: 9876,
     colors: true,
     logLevel: config.LOG_INFO,
diff --git a/addon/ng2/blueprints/ng2/files/package.json b/addon/ng2/blueprints/ng2/files/package.json
index 161087266c4c..ca5bead3b842 100644
--- a/addon/ng2/blueprints/ng2/files/package.json
+++ b/addon/ng2/blueprints/ng2/files/package.json
@@ -42,8 +42,8 @@
     "jasmine-spec-reporter": "2.5.0",
     "karma": "0.13.22",
     "karma-chrome-launcher": "0.2.3",
-    "karma-coverage": "^1.0.0",
     "karma-jasmine": "0.3.8",
+    "karma-remap-istanbul": "^0.2.1",
     "protractor": "3.3.0",
     "ts-node": "1.2.1",
     "tslint": "3.13.0",
diff --git a/addon/ng2/models/webpack-build-test.js b/addon/ng2/models/webpack-build-test.js
index 5ed3d5c55ff8..a57313156b1f 100644
--- a/addon/ng2/models/webpack-build-test.js
+++ b/addon/ng2/models/webpack-build-test.js
@@ -46,8 +46,7 @@ const getWebpackTestConfig = function(projectRoot, sourceDir) {
                 tsconfig: path.resolve(projectRoot, `./${sourceDir}/tsconfig.json`),
                 module: 'commonjs',
                 target: 'es5',
-                useForkChecker: true,
-                removeComments: true
+                useForkChecker: true
               }
             },
             {
@@ -70,7 +69,8 @@ const getWebpackTestConfig = function(projectRoot, sourceDir) {
           exclude: [
             /\.(e2e|spec)\.ts$/,
             /node_modules/
-          ]
+          ],
+          query: { 'force-sourcemap': true }
         }
       ]
     },
diff --git a/tests/e2e/e2e_workflow.spec.js b/tests/e2e/e2e_workflow.spec.js
index 1aaa5159f3b7..deb515ffd943 100644
--- a/tests/e2e/e2e_workflow.spec.js
+++ b/tests/e2e/e2e_workflow.spec.js
@@ -283,6 +283,12 @@ describe('Basic end-to-end Workflow', function () {
     });
   });
 
+  it('Make sure the correct coverage folder is created', function () {
+    const coverageReport = path.join(process.cwd(), 'coverage', 'src', 'app');
+
+    expect(existsSync(coverageReport)).to.be.equal(true);
+  });
+
   it('moves all files that live inside `public` into `dist`', function () {
     this.timeout(420000);