diff --git a/README.md b/README.md
index a91d41328aec..4eae9e984ea4 100644
--- a/README.md
+++ b/README.md
@@ -38,6 +38,7 @@ The generated project has dependencies that require
 * [Linting and formatting code](#linting-and-formatting-code)
 * [Support for offline applications](#support-for-offline-applications)
 * [Commands autocompletion](#commands-autocompletion)
+* [HTML template engine integration](#html-template-engine-integration)
 * [CSS preprocessor integration](#css-preprocessor-integration)
 * [3rd Party Library Installation](#3rd-party-library-installation)
 * [Updating angular-cli](#updating-angular-cli)
@@ -222,6 +223,12 @@ ng completion >> ~/.bash_profile
 source ~/.bash_profile
 ```
 
+### HTML Template Engine integration
+
+We currently support `Pug` (ex `Jade`) HTML template engine.
+To use `Pug` install `npm install pug --save` in your project and rename `.html` template extensions to `.pug`. Templates will be compiled automatically. 
+
+If you already have `pug` installed globally the plugin will be instatinated automatically and the templates will be compiled to HTML. 
 
 ### CSS Preprocessor integration
 
diff --git a/lib/broccoli/angular-broccoli-pug.js b/lib/broccoli/angular-broccoli-pug.js
new file mode 100644
index 000000000000..13d72a5f48e8
--- /dev/null
+++ b/lib/broccoli/angular-broccoli-pug.js
@@ -0,0 +1,54 @@
+/* jshint node: true, esversion: 6 */
+'use strict';
+
+const requireOrNull = require('./require-or-null');
+const Plugin             = require('broccoli-caching-writer');
+const fse                  = require('fs-extra');
+const path                = require('path');
+const Funnel             = require('broccoli-funnel');
+
+let pug = requireOrNull('pug');
+if (!pug) {
+  pug = requireOrNull(`${process.env.PROJECT_ROOT}/node_modules/pug`);
+}
+
+class PugPlugin extends Plugin {
+  constructor(inputNodes, options) {
+    super(inputNodes, {});
+
+    options = options || {};
+    Plugin.call(this, inputNodes, {
+      cacheInclude: [/\.pug$|\.jade$/]
+    });
+    this.options = options;
+  }
+
+  build() {
+    return Promise.all(this.listEntries().map(e => {
+      let fileName = path.resolve(e.basePath, e.relativePath);
+      return this.compile(fileName, this.inputPaths[0], this.outputPath);
+    }));
+  }
+
+  compile(fileName, inputPath, outputPath) {
+    return new Promise(resolve => {
+      let filePath = fileName.replace(inputPath, outputPath).replace(/\.pug$|\.jade$/, '.html');
+      let html = pug.renderFile(fileName, {
+        pretty: true
+      });
+      fse.outputFileSync(filePath, html, 'utf8');
+      resolve();
+    });
+  }
+}
+
+exports.makeBroccoliTree = (sourceDir, options) => {
+  if (pug) {
+    let pugSrcTree = new Funnel(sourceDir, {
+      include: ['**/*.pug', '**/*.jade'],
+      allowEmpty: true
+    });
+
+    return new PugPlugin([pugSrcTree], options);
+  }
+};
diff --git a/lib/broccoli/angular2-app.js b/lib/broccoli/angular2-app.js
index 487b9bbe4771..bf8e567ac605 100644
--- a/lib/broccoli/angular2-app.js
+++ b/lib/broccoli/angular2-app.js
@@ -127,8 +127,8 @@ class Angular2App extends BroccoliPlugin {
 
     var buildTrees = [assetTree, tsTree, indexTree, vendorNpmTree];
 
-    // Add available and supported CSS plugins.
-    for (const suffix of ['sass', 'less', 'stylus', 'compass']) {
+    // Add available CSS and HTML template plugins.
+    for (const suffix of ['sass', 'less', 'stylus', 'compass', 'pug']) {
       const plugin = require(`./angular-broccoli-${suffix}`);
       const tree = plugin.makeBroccoliTree(this._inputNode, this._options[`${suffix}Compiler`]);
 
@@ -145,7 +145,7 @@ class Angular2App extends BroccoliPlugin {
           return n;
         }
       }));
-    }
+    } 
 
     var merged = new BroccoliMergeTrees(buildTrees, { overwrite: true });