diff --git a/packages/angular-cli/tasks/npm-install.ts b/packages/angular-cli/tasks/npm-install.ts
index abf491061847..0debf342b4e3 100644
--- a/packages/angular-cli/tasks/npm-install.ts
+++ b/packages/angular-cli/tasks/npm-install.ts
@@ -2,23 +2,59 @@ const Task = require('ember-cli/lib/models/task');
 import * as chalk from 'chalk';
 import {exec} from 'child_process';
 
+function removeFromArray(array: any[], item: any) {
+  const itemIndex = array.indexOf(item);
+  if (itemIndex !== -1) {
+    array.splice(itemIndex, 1);
+  }
+}
 
 export default Task.extend({
   run: function() {
     const ui = this.ui;
+    let PATH: string;
 
     return new Promise(function(resolve, reject) {
       ui.writeLine(chalk.green('Installing packages for tooling via npm.'));
-      exec('npm install',
-        (err: NodeJS.ErrnoException, stdout: string, stderr: string) => {
-        if (err) {
-          ui.writeLine(stderr);
-          ui.writeLine(chalk.red('Package install failed, see above.'));
-          reject();
-        } else {
-          ui.writeLine(chalk.green('Installed packages for tooling via npm.'));
-          resolve();
-        }
+      // remove from PATH:
+      // - absolute path to projet's node_modules
+      // - relative path to projet's node_modules (linux and windows)
+      exec('npm bin', (err: NodeJS.ErrnoException, stdout: string, stderr: string) => {
+            if (err) {
+              ui.writeLine(stderr);
+              ui.writeLine(chalk.red('Package install failed, see above.'));
+              reject();
+            } else {
+              const absoluteProjectNodeModulesPath = stdout.replace(/(\r|\n)/, '');
+              const pathArr = process.env.PATH.split(':');
+              removeFromArray(pathArr, absoluteProjectNodeModulesPath);
+              removeFromArray(pathArr, 'node_modules/.bin');
+              removeFromArray(pathArr, 'node_modules\.bin');
+              PATH = pathArr.join(':');
+              resolve();
+            }
+      });
+    })
+    .then(() => {
+      return new Promise(function(resolve, reject) {
+        const options = {
+          env: {
+            PATH: PATH
+          }
+        };
+        exec(
+          'npm install',
+          options,
+          (err: NodeJS.ErrnoException, stdout: string, stderr: string) => {
+          if (err) {
+            ui.writeLine(stderr);
+            ui.writeLine(chalk.red('Package install failed, see above.'));
+            reject();
+          } else {
+            ui.writeLine(chalk.green('Installed packages for tooling via npm.'));
+            resolve();
+          }
+        });
       });
     });
   }