diff --git a/packages/angular-cli/blueprints/module/index.js b/packages/angular-cli/blueprints/module/index.js
index f0004fb7fe28..03022d434651 100644
--- a/packages/angular-cli/blueprints/module/index.js
+++ b/packages/angular-cli/blueprints/module/index.js
@@ -58,7 +58,7 @@ module.exports = {
   },
 
   afterInstall: function (options) {
-    options.entity.name = path.join(this.entityName, this.dasherizedModuleName);
+    options.entity.name = path.join(this.dasherizedModuleName, this.dasherizedModuleName);
     options.flat = true;
     options.route = false;
     options.inlineTemplate = false;
diff --git a/tests/acceptance/generate-module.spec.js b/tests/acceptance/generate-module.spec.js
index 28195cf5eb53..2be0d23e7ae9 100644
--- a/tests/acceptance/generate-module.spec.js
+++ b/tests/acceptance/generate-module.spec.js
@@ -49,4 +49,11 @@ describe('Acceptance: ng generate module', function () {
       expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.spec.ts'))).to.equal(true);
     });
   });
+
+  it('ng generate module TwoWord', function () {
+    return ng(['generate', 'module', 'TwoWord']).then(() => {
+      expect(existsSync(path.join(testPath, 'two-word', 'two-word.module.ts'))).to.equal(true);
+      expect(existsSync(path.join(testPath, 'two-word', 'two-word.module.spec.ts'))).to.equal(false);
+    });
+  });
 });