diff --git a/package.json b/package.json
index da3ea884e..901d7d246 100644
--- a/package.json
+++ b/package.json
@@ -37,10 +37,10 @@
   "dependencies": {
     "babel-core": "^6.18.2",
     "babel-eslint": "^7.1.0",
-    "babel-register": "^6.18.0",
     "babel-plugin-syntax-class-properties": "^6.13.0",
     "babel-plugin-syntax-flow": "^6.18.0",
     "babel-plugin-transform-flow-strip-types": "^6.18.0",
+    "babel-register": "^6.18.0",
     "bluebird": "^3.4.5",
     "chalk": "^1.1.0",
     "glob": "^7.0.5",
@@ -48,6 +48,8 @@
     "gulp-beautify": "^2.0.0",
     "gulp-eslint": "^3.0.1",
     "gulp-filter": "^4.0.0",
+    "gulp-html2jade": "^1.1.2",
+    "gulp-rename": "^1.2.2",
     "gulp-tap": "^0.1.3",
     "insight": "~0.8.3",
     "lodash": "^4.17.0",
diff --git a/src/generators/app/index.js b/src/generators/app/index.js
index a28f5336c..979e66b70 100644
--- a/src/generators/app/index.js
+++ b/src/generators/app/index.js
@@ -14,6 +14,8 @@ import beaufityStream from 'gulp-beautify';
 import tap from 'gulp-tap';
 import filter from 'gulp-filter';
 import eslint from 'gulp-eslint';
+import html2jade from 'gulp-html2jade';
+import rename from 'gulp-rename';
 import semver from 'semver';
 
 export class Generator extends Base {
@@ -543,6 +545,24 @@ export class Generator extends Base {
           ]);
         }
 
+        // Convert HTML into Pug
+        if(this.filters.pug) {
+          let pugFilter = filter(['**/*.html'], {restore: true});
+          this.registerTransformStream([
+            pugFilter,
+            html2jade({
+              nspaces: 2,
+              noemptypipe: true,
+              bodyless: true,
+            }),
+            rename(path => {
+              path.extname = '.pug';
+            }),
+            pugFilter.restore
+          ]);
+        }
+
+        // ESLint fix server files
         let serverJsFilter = filter(['server/**/*.js'], {restore: true});
         this.registerTransformStream([
           serverJsFilter,
diff --git a/templates/app/client/app/account(auth)/login/login(pug).pug b/templates/app/client/app/account(auth)/login/login(pug).pug
deleted file mode 100644
index a463419d4..000000000
--- a/templates/app/client/app/account(auth)/login/login(pug).pug
+++ /dev/null
@@ -1,45 +0,0 @@
-.container
-  .row
-    .col-sm-12
-      h1 Login
-      p
-        | Accounts are reset on server restart from
-        code server/config/seed.js
-        | . Default account is
-        code test@example.com
-        | /
-        code test
-      p
-        | Admin account is
-        code admin@example.com
-        | /
-        code admin
-
-    .col-sm-12
-      form.form(name='form', ng-submit='vm.login(form)', novalidate='')
-        .form-group
-          label Email
-          input.form-control(type='email', name='email', ng-model='vm.user.email')
-        .form-group
-          label Password
-          input.form-control(type='password', name='password', ng-model='vm.user.password')
-
-        .form-group.has-error
-          p.help-block(ng-show='form.email.$error.required && form.password.$error.required && vm.submitted')
-            | Please enter your email and password.
-          p.help-block {{ vm.errors.login }}
-
-        div
-          button.btn.btn-inverse.btn-lg.btn-login(type='submit')
-            | Login
-          = ' '
-          a.btn.btn-default.btn-lg.btn-register(<% if (filters.uirouter) { %>ui-sref='signup'<% } else { %>href='/signup'<% } %>)
-            | Register
-<% if (filters.oauth) {%>
-        hr
-
-        .row
-          .col-sm-4.col-md-3
-            oauth-buttons(classes='btn-block')
-<% } %>
-  hr
diff --git a/templates/app/client/app/account(auth)/login/login(html).html b/templates/app/client/app/account(auth)/login/login.html
similarity index 100%
rename from templates/app/client/app/account(auth)/login/login(html).html
rename to templates/app/client/app/account(auth)/login/login.html
diff --git a/templates/app/client/app/account(auth)/settings/settings(pug).pug b/templates/app/client/app/account(auth)/settings/settings(pug).pug
deleted file mode 100644
index fc4bee87f..000000000
--- a/templates/app/client/app/account(auth)/settings/settings(pug).pug
+++ /dev/null
@@ -1,35 +0,0 @@
-.container
-  .row
-    .col-sm-12
-      h1 Change Password
-    .col-sm-12
-      form.form(name='form', ng-submit='vm.changePassword(form)', novalidate='')
-        .form-group
-          label Current Password
-          input.form-control(type='password'
-            name='password'
-            ng-model='vm.user.oldPassword'
-            mongoose-error='')
-          p.help-block(ng-show='form.password.$error.mongoose')
-            | {{ vm.errors.other }}
-        .form-group
-          label New Password
-          input.form-control(type='password'
-            name='newPassword'
-            ng-model='vm.user.newPassword'
-            ng-minlength='3', required='')
-          p.help-block(ng-show='(form.newPassword.$error.minlength || form.newPassword.$error.required) && (form.newPassword.$dirty || vm.submitted)')
-            | Password must be at least 3 characters.
-        .form-group
-          label Confirm New Password
-          input.form-control(type='password'
-            name='confirmPassword'
-            ng-model='vm.user.confirmPassword'
-            match="vm.user.newPassword"
-            ng-minlength='3', required='')
-          p.help-block(ng-show='fvm.orm.confirmPassword.$error.match && vm.submitted')
-            | Passwords must match.
-
-        p.help-block  {{ vm.message }}
-
-        button.btn.btn-lg.btn-primary(type='submit') Save changes
diff --git a/templates/app/client/app/account(auth)/settings/settings(html).html b/templates/app/client/app/account(auth)/settings/settings.html
similarity index 100%
rename from templates/app/client/app/account(auth)/settings/settings(html).html
rename to templates/app/client/app/account(auth)/settings/settings.html
diff --git a/templates/app/client/app/account(auth)/signup/signup(pug).pug b/templates/app/client/app/account(auth)/signup/signup(pug).pug
deleted file mode 100644
index 51480eefb..000000000
--- a/templates/app/client/app/account(auth)/signup/signup(pug).pug
+++ /dev/null
@@ -1,63 +0,0 @@
-.container
-  .row
-    .col-sm-12
-      h1 Sign up
-    .col-sm-12
-      form.form(name='form', ng-submit='vm.register(form)', novalidate='')
-        .form-group(ng-class='{ "has-success": form.name.$valid && vm.submitted,\
-        "has-error": form.name.$invalid && vm.submitted }')
-          label Name
-          input.form-control(type='text', name='name', ng-model='vm.user.name', required='')
-          p.help-block(ng-show='form.name.$error.required && vm.submitted')
-            | A name is required
-
-        .form-group(ng-class='{ "has-success": form.email.$valid && vm.submitted,\
-        "has-error": form.email.$invalid && vm.submitted }')
-          label Email
-          input.form-control(type='email', name='email', ng-model='vm.user.email', required='', mongoose-error='')
-          p.help-block(ng-show='form.email.$error.email && vm.submitted')
-            | Doesn't look like a valid email.
-          p.help-block(ng-show='form.email.$error.required && vm.submitted')
-            | What's your email address?
-          p.help-block(ng-show='form.email.$error.mongoose')
-            | {{ vm.errors.email }}
-
-        .form-group(ng-class='{ "has-success": form.password.$valid && vm.submitted,\
-        "has-error": form.password.$invalid && vm.submitted }')
-          label Password
-          input.form-control(type='password'
-            name='password'
-            ng-model='vm.user.password'
-            mongoose-error=''
-            ng-minlength='3', required='')
-
-          p.help-block(ng-show='(form.password.$error.minlength || form.password.$error.required) && vm.submitted')
-            | Password must be at least 3 characters.
-          p.help-block(ng-show='form.password.$error.mongoose')
-            | {{ vm.errors.password }}
-
-        .form-group(ng-class='{ "has-success": form.confirmPassword.$valid && vm.submitted,\
-        "has-error": form.confirmPassword.$invalid && vm.submitted }')
-          label Confirm Password
-          input.form-control(type='password'
-            name='confirmPassword'
-            ng-model='vm.user.confirmPassword'
-            match="vm.user.password"
-            ng-minlength='3', required='')
-          p.help-block(ng-show='form.confirmPassword.$error.match && vm.submitted')
-            | Passwords must match.
-
-        div
-          button.btn.btn-inverse.btn-lg.btn-register(type='submit')
-            | Sign up
-          = ' '
-          a.btn.btn-default.btn-lg.btn-login(<% if (filters.uirouter) { %>ui-sref='login'<% } else { %>href='/login'<% } %>)
-            | Login
-<% if (filters.oauth) {%>
-        hr
-
-        .row
-          .col-sm-4.col-md-3
-            oauth-buttons(classes='btn-block')
-<% } %>
-  hr
diff --git a/templates/app/client/app/account(auth)/signup/signup(html).html b/templates/app/client/app/account(auth)/signup/signup.html
similarity index 100%
rename from templates/app/client/app/account(auth)/signup/signup(html).html
rename to templates/app/client/app/account(auth)/signup/signup.html
diff --git a/templates/app/client/app/admin(auth)/admin(pug).pug b/templates/app/client/app/admin(auth)/admin(pug).pug
deleted file mode 100644
index 7da628335..000000000
--- a/templates/app/client/app/admin(auth)/admin(pug).pug
+++ /dev/null
@@ -1,10 +0,0 @@
-.container
-  p
-    | The delete user and user index api routes are restricted to users with the 'admin' role.
-  ul.list-group
-    li.list-group-item(ng-repeat='user in admin.users')
-      strong {{user.name}}
-      br
-      span.text-muted {{user.email}}
-      a.trash(ng-click='admin.delete(user)')
-        span.glyphicon.glyphicon-trash.pull-right
diff --git a/templates/app/client/app/admin(auth)/admin(html).html b/templates/app/client/app/admin(auth)/admin.html
similarity index 100%
rename from templates/app/client/app/admin(auth)/admin(html).html
rename to templates/app/client/app/admin(auth)/admin.html
diff --git a/templates/app/client/app/main/main(pug).pug b/templates/app/client/app/main/main(pug).pug
deleted file mode 100644
index 9ad5d0ac9..000000000
--- a/templates/app/client/app/main/main(pug).pug
+++ /dev/null
@@ -1,22 +0,0 @@
-header#banner.hero-unit
-  .container
-    h1 'Allo, 'Allo!
-    p.lead Kick-start your next web app with Angular Fullstack
-    img(src='assets/images/yeoman.png', alt='I\'m Yeoman')
-
-.container
-  .row
-    .col-lg-12
-      h1.page-header Features:
-      ul.nav.nav-tabs.nav-stacked.col-md-4.col-lg-4.col-sm-6(ng-repeat='thing in awesomeThings')
-        li
-          a(href='#', [tooltip]='{{thing.info}}')
-            | {{thing.name}}<% if (filters.models) { %>
-            button.close(type='button', (click)='deleteThing(thing)') &times;<% } %><% if (filters.socketio) { %>
-
-  form.thing-form
-    label Syncs in realtime across clients
-    p.input-group
-      input.form-control(type='text', placeholder='Add a new thing here.', ng-model='newThing')
-      span.input-group-btn
-        button.btn.btn-primary(type='submit', (click)='addThing()') Add New<% } %>
diff --git a/templates/app/client/app/main/main(html).html b/templates/app/client/app/main/main.html
similarity index 100%
rename from templates/app/client/app/main/main(html).html
rename to templates/app/client/app/main/main.html
diff --git a/templates/app/client/components/footer/footer(pug).pug b/templates/app/client/components/footer/footer(pug).pug
deleted file mode 100644
index a4069ea9a..000000000
--- a/templates/app/client/components/footer/footer(pug).pug
+++ /dev/null
@@ -1,11 +0,0 @@
-.container
-  p
-    | Angular Fullstack v<%= rootGeneratorVersion() %>
-    = ' | '
-    a(href='http://angular-fullstack.github.io/generator-angular-fullstack') Documentation
-    = ' | '
-    a(href='https://gitter.im/DaftMonk/generator-angular-fullstack') Chat on Gitter
-    = ' | '
-    a(href='https://github.com/angular-fullstack/generator-angular-fullstack/issues?state=open') Issues
-    = ' | '
-    a(href='https://opencollective.com/angular-fullstack') Donate to our Open Collective
diff --git a/templates/app/client/components/footer/footer(html).html b/templates/app/client/components/footer/footer.html
similarity index 100%
rename from templates/app/client/components/footer/footer(html).html
rename to templates/app/client/components/footer/footer.html
diff --git a/templates/app/client/components/navbar/navbar(pug).pug b/templates/app/client/components/navbar/navbar(pug).pug
deleted file mode 100644
index cd32fb74f..000000000
--- a/templates/app/client/components/navbar/navbar(pug).pug
+++ /dev/null
@@ -1,34 +0,0 @@
-div.navbar.navbar-default.navbar-static-top
-  div.container
-    div.navbar-header
-      button.navbar-toggle(type='button', ng-click='$ctrl.isCollapsed = !$ctrl.isCollapsed')
-        span.sr-only Toggle navigation
-        span.icon-bar
-        span.icon-bar
-        span.icon-bar
-      a.navbar-brand(href='/') <%= lodash.slugify(lodash.humanize(appname)) %>
-
-    div#navbar-main.navbar-collapse.collapse(uib-collapse='$ctrl.isCollapsed')
-      ul.nav.navbar-nav
-        li(ng-repeat='item in $ctrl.menu', <% if (filters.uirouter) { %>ui-sref-active='active'<% } else { %>ng-class='{active: $ctrl.isActive(item.link)}'<% } %>)
-          a(<% if (filters.uirouter) { %>ui-sref='{{item.state}}'<% } else { %>ng-href='{{item.link}}'<% } %>) {{item.title}}<% if (filters.auth) { %>
-
-        li(ng-show='$ctrl.isAdmin()', <% if (filters.uirouter) { %>ui-sref-active='active'<% } else { %>ng-class='{active: $ctrl.isActive("/admin")}'<% } %>)
-          a(<% if (filters.uirouter) { %>ui-sref='admin'<% } else { %>href='/admin'<% } %>) Admin
-
-      ul.nav.navbar-nav.navbar-right
-        li(ng-hide='$ctrl.isLoggedIn()', <% if (filters.uirouter) { %>ui-sref-active='active'<% } else { %>ng-class='{active: $ctrl.isActive("/signup")}'<% } %>)
-          a(<% if (filters.uirouter) { %>ui-sref='signup'<% } else { %>href='/signup'<% } %>) Sign up
-
-        li(ng-hide='$ctrl.isLoggedIn()', <% if (filters.uirouter) { %>ui-sref-active='active'<% } else { %>ng-class='{active: $ctrl.isActive("/login")}'<% } %>)
-          a(<% if (filters.uirouter) { %>ui-sref='login'<% } else { %>href='/login'<% } %>) Login
-
-        li(ng-show='$ctrl.isLoggedIn()')
-          p.navbar-text Hello {{ $ctrl.getCurrentUser().name }}
-
-        li(ng-show='$ctrl.isLoggedIn()', <% if (filters.uirouter) { %>ui-sref-active='active'<% } else { %>ng-class='{active: $ctrl.isActive("/settings")}'<% } %>)
-          a(<% if (filters.uirouter) { %>ui-sref='settings'<% } else { %>href='/settings'<% } %>)
-            span.glyphicon.glyphicon-cog
-
-        li(ng-show='$ctrl.isLoggedIn()')
-          a(<% if (filters.uirouter) { %>ui-sref='logout'<% } else { %>href='/logout'<% } %>) Logout<% } %>
diff --git a/templates/app/client/components/navbar/navbar(html).html b/templates/app/client/components/navbar/navbar.html
similarity index 100%
rename from templates/app/client/components/navbar/navbar(html).html
rename to templates/app/client/components/navbar/navbar.html
diff --git a/templates/app/client/components/oauth-buttons(oauth)/oauth-buttons(pug).pug b/templates/app/client/components/oauth-buttons(oauth)/oauth-buttons(pug).pug
deleted file mode 100644
index fd5030bd7..000000000
--- a/templates/app/client/components/oauth-buttons(oauth)/oauth-buttons(pug).pug
+++ /dev/null
@@ -1,14 +0,0 @@
-<% if(filters.facebookAuth) { %>a.btn<% if (filters.bootstrap) { %>.btn-social<% } %>.btn-facebook(ng-class='classes'
-  ng-click='OauthButtons.loginOauth("facebook")')
-  i.fa.fa-facebook
-  |  Connect with Facebook
-
-<% } if(filters.googleAuth) { %>a.btn<% if (filters.bootstrap) { %>.btn-social<% } %>.btn-google(ng-class='classes'
-  ng-click='OauthButtons.loginOauth("google")')
-  i.fa.fa-google-plus
-  |  Connect with Google+
-
-<% } if(filters.twitterAuth) { %>a.btn<% if (filters.bootstrap) { %>.btn-social<% } %>.btn-twitter(ng-class='classes'
-  ng-click='OauthButtons.loginOauth("twitter")')
-  i.fa.fa-twitter
-  |  Connect with Twitter<% } %>
diff --git a/templates/app/client/components/oauth-buttons(oauth)/oauth-buttons(html).html b/templates/app/client/components/oauth-buttons(oauth)/oauth-buttons.html
similarity index 100%
rename from templates/app/client/components/oauth-buttons(oauth)/oauth-buttons(html).html
rename to templates/app/client/components/oauth-buttons(oauth)/oauth-buttons.html
diff --git a/templates/app/server/views/404(pug).pug b/templates/app/server/views/404(pug).pug
deleted file mode 100644
index b5735b4f6..000000000
--- a/templates/app/server/views/404(pug).pug
+++ /dev/null
@@ -1,133 +0,0 @@
-doctype html
-html(lang='en')
-head
-    meta(charset='utf-8')
-    title Page Not Found :(
-    style.
-      ::-moz-selection {
-      background: #b3d4fc;
-      text-shadow: none;
-      }
-      ::selection {
-      background: #b3d4fc;
-      text-shadow: none;
-      }
-      html {
-      padding: 30px 10px;
-      font-size: 20px;
-      line-height: 1.4;
-      color: #737373;
-      background: #f0f0f0;
-      -webkit-text-size-adjust: 100%;
-      -ms-text-size-adjust: 100%;
-      }
-      html,
-      input {
-      font-family: "Helvetica Neue", Helvetica, Arial, sans-serif;
-      }
-      body {
-      max-width: 500px;
-      _width: 500px;
-      padding: 30px 20px 50px;
-      border: 1px solid #b3b3b3;
-      border-radius: 4px;
-      margin: 0 auto;
-      box-shadow: 0 1px 10px #a7a7a7, inset 0 1px 0 #fff;
-      background: #fcfcfc;
-      }
-      h1 {
-      margin: 0 10px;
-      font-size: 50px;
-      text-align: center;
-      }
-      h1 span {
-      color: #bbb;
-      }
-      h3 {
-      margin: 1.5em 0 0.5em;
-      }
-      p {
-      margin: 1em 0;
-      }
-      ul {
-      padding: 0 0 0 40px;
-      margin: 1em 0;
-      }
-      .container {
-      max-width: 380px;
-      _width: 380px;
-      margin: 0 auto;
-      }
-      /* google search */
-      #goog-fixurl ul {
-      list-style: none;
-      padding: 0;
-      margin: 0;
-      }
-      #goog-fixurl form {
-      margin: 0;
-      }
-      #goog-wm-qt,
-      #goog-wm-sb {
-      border: 1px solid #bbb;
-      font-size: 16px;
-      line-height: normal;
-      vertical-align: top;
-      color: #444;
-      border-radius: 2px;
-      }
-      #goog-wm-qt {
-      width: 220px;
-      height: 20px;
-      padding: 5px;
-      margin: 5px 10px 0 0;
-      box-shadow: inset 0 1px 1px #ccc;
-      }
-      #goog-wm-sb {
-      display: inline-block;
-      height: 32px;
-      padding: 0 10px;
-      margin: 5px 0 0;
-      white-space: nowrap;
-      cursor: pointer;
-      background-color: #f5f5f5;
-      background-image: -webkit-linear-gradient(rgba(255,255,255,0), #f1f1f1);
-      background-image: -moz-linear-gradient(rgba(255,255,255,0), #f1f1f1);
-      background-image: -ms-linear-gradient(rgba(255,255,255,0), #f1f1f1);
-      background-image: -o-linear-gradient(rgba(255,255,255,0), #f1f1f1);
-      -webkit-appearance: none;
-      -moz-appearance: none;
-      appearance: none;
-      *overflow: visible;
-      *display: inline;
-      *zoom: 1;
-      }
-      #goog-wm-sb:hover,
-      #goog-wm-sb:focus {
-      border-color: #aaa;
-      box-shadow: 0 1px 1px rgba(0, 0, 0, 0.1);
-      background-color: #f8f8f8;
-      }
-      #goog-wm-qt:hover,
-      #goog-wm-qt:focus {
-      border-color: #105cb6;
-      outline: 0;
-      color: #222;
-      }
-      input::-moz-focus-inner {
-      padding: 0;
-      border: 0;
-      }
-  body
-    .container
-      h1
-        | Not found
-        span :(
-      p Sorry, but the page you were trying to view does not exist.
-      p It looks like this was the result of either:
-      ul
-        li a mistyped address
-        li an out-of-date link
-      script.
-        var GOOG_FIXURL_LANG = (navigator.language || '').slice(0,2),GOOG_FIXURL_SITE = location.host;
-      script(src='//linkhelp.clients.google.com/tbproxy/lh/wm/fixurl.js')
diff --git a/templates/app/server/views/404(html).html b/templates/app/server/views/404.html
similarity index 100%
rename from templates/app/server/views/404(html).html
rename to templates/app/server/views/404.html