diff --git a/packages/angular/cli/lib/config/schema.json b/packages/angular/cli/lib/config/schema.json
index f225cea804d2..7bd224d4f204 100644
--- a/packages/angular/cli/lib/config/schema.json
+++ b/packages/angular/cli/lib/config/schema.json
@@ -27,7 +27,7 @@
     "projects": {
       "type": "object",
       "patternProperties": {
-        "^(?:@[a-z0-9-~][a-z0-9-._~]*\/)?[a-z0-9-~][a-z0-9-._~]*$": {
+        "^(?:@[a-zA-Z0-9_-]+\/)?[a-zA-Z0-9_-]+$": {
           "$ref": "#/definitions/project"
         }
       },
diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index 7492b198d135..d6fe283d5ebe 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -300,7 +300,7 @@ export default function (options: ApplicationOptions): Rule {
     const isRootApp = options.projectRoot !== undefined;
     const appDir = isRootApp
       ? normalize(options.projectRoot || '')
-      : join(normalize(newProjectRoot), options.name);
+      : join(normalize(newProjectRoot), strings.dasherize(options.name));
     const sourceDir = `${appDir}/src/app`;
 
     const e2eOptions: E2eOptions = {
diff --git a/packages/schematics/angular/application/index_spec.ts b/packages/schematics/angular/application/index_spec.ts
index ed4a3c241d7b..b5329bd7aa74 100644
--- a/packages/schematics/angular/application/index_spec.ts
+++ b/packages/schematics/angular/application/index_spec.ts
@@ -451,4 +451,20 @@ describe('Application Schematic', () => {
     expect(content).toContain('not IE 11');
     expect(content).toContain('not IE 9-10');
   });
+
+  it(`should create kebab-case project folder names with camelCase project name`, async () => {
+    const options: ApplicationOptions = { ...defaultOptions, name: 'myCool' };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const exists = tree.exists('/projects/my-cool/.browserslistrc');
+    expect(exists).toBeTrue();
+  });
+
+  it(`should create kebab-case project folder names with PascalCase project name`, async () => {
+    const options: ApplicationOptions = { ...defaultOptions, name: 'MyCool' };
+    const tree = await schematicRunner.runSchematicAsync('application', options, workspaceTree)
+      .toPromise();
+    const exists = tree.exists('/projects/my-cool/.browserslistrc');
+    expect(exists).toBeTrue();
+  });
 });